Editorial

Two Factories, One Economy

NZ Manufacturer, December issue. How the Same Conditions Create Winners and Loser Christmas is almost here and for many it can’t come fast enough. Another year of holding on, fighting fires and telling ourselves we just need to wait for better times to arrive. Yet look across the industry and you’ll see something striking: the same tough conditions producing completely different outcomes. One manufacturer is crawling to the finish line; another is smashing targets and celebrating wins. The break ahead isn’t just an opportunity to rest, it’s a reset. David Altena is Head of Growth & Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions The biggest variable in 2026 won’t be the economy. It’ll be the mindset you choose over the holidays. Because when you strip away the noise, this year has made one truth impossible to ignore: the same conditions are producing entirely different results. Some firms have spent 2025 wrestling the economy like an anchor, while others have treated it like a headwind to lean into… uncomfortable, but navigable. That contrast is the real story. It tells us the gap between struggling and succeeding may not be the market at all, but the mindset leaders bring to it. Rob Bull is Director of The New Zealand Lean Academy. rob@nzla.nz This is where the tale of two manufacturers begins The phrase we heard so much last year, “Survive till ’25”, was the hope we were clinging to, but it quickly morphed into “Survive 25,” reflecting how many manufacturers feel worn down by another long, slow year. Stories of closures, liquidations and persistent pressure have reinforced the sense that the economy is dictating our destiny. It is easy to get swept into that narrative. Yet, if we look closer, we find a stark contrast, two […]

Controlling Ignition Sources through ORS

Chris Beh, Think Consulting Oxygen Reduction Systems (ORS) utilise a process to lower the atmospheric oxygen levels of 21% below the ignition threshold for the items stored in an area (e.g. below 14%) – a proactive, preventative fire protection system unlike fire suppression, such as sprinklers, which are reactive (i.e. initiate only when a fire event occurs). Typically, nitrogen is generated from ambient air using on-site pressure swing adsorption (PSA) units and introduced into the area to be protected. Uses for the technology has been in high-value occupancies where the use of traditional fire suppression technologies such as fire sprinklers is challenging due to space constraints and hydraulic design (e.g. for adequate pipe work), tight or congested storage, lack of established protection design methodologies, or need to avoid water or chemical residue damage. Globally, there are more than 500 installations of these systems with applications in high-bay and freezer/cold store warehouses, datacentres and museums and libraries where valuable artifacts need protection from fire without exposure to extinguishing agents. In New Zealand, the use of this technology has mainly been in high-bay, cold store warehouses with the popularity of the system slowly becoming recognised. Firms considering installing ORS should consider the following which may influence both the acceptance (such as insurer) and the requirements imposed on facilities utilising this technology, noting this list is not exhaustive. Design Undertake a risk-based design review of the system and process including operation, maintenance and health and safety. Ensure the operating oxygen level is correctly designed for the hazard class being stored. The protected area sealed and structurally suitable for maintaining reduced oxygen levels. The enclosure that contains the reduced oxygen environment is to be constructed of non-combustible material. This area is to maintain the oxygen design concentration for twelve hours with all operations shutdown […]

Higher speeds lower productivity: what the data shows crash delays really cost Auckland

Timothy Welch, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau Another morning, another crash on one of Auckland’s major roads. Traffic isn’t moving. Drivers sit in their cars rehearsing reasons for being late again. Radio hosts offer the usual advice: leave earlier and find an alternative route. It happens so often we barely notice anymore. But the costs add up fast, and they’re far bigger than a few delayed meetings. Auckland had 34,628 reported crashes between 2022 and 2025. The “road toll” conversation typically stops at the obvious costs: injuries, deaths, emergency response. But it misses a lot. A new analysis puts the true figure at NZ$9.23 billion over those three years (roughly 2% of Auckland’s $157 billion economy), including nearly $200 million that never enters the policy debate. Transport agencies already put dollar figures on crashes. The New Zealand Transport Authority (NZTA) uses official methodology covering the usual: medical bills, lost productivity, property damage and the statistical value of a life. One fatal crash amounts to $15.2 million. But buried in the technical reports is an additional cost category that most policy discussions ignore: network disruption. False economies Crashes on major roads hit more than just the people involved. Thousands of other drivers get caught in the delays that spread across the network. Traffic engineering consultancy Flow Transportation Specialists recently worked out these network delay costs for Auckland Transport for the first time. Using GPS travel time data and traffic counts, researchers tracked how crashes create congestion that extends far beyond the crash scene and persists long after vehicles are cleared. A multi-vehicle crash on Auckland’s motorway network generates between $1.4 million and $3.5 million in network delay costs. Even a serious crash on an arterial road can cost $26,000 to $37,000 in lost time across all affected road users. When applied across […]

2026: It’s Now or Never

From December issue, NZ Manufacturer – The Year in Review Ian Walsh, Partner, Argon & Co NZ We have finally seen the “green shoots” and those businesses still going can finally tick the survive (till) 2025 box. Confidence is on the up and activity is starting to move, what a ride! But what have we learned? Here are a few reflections from me. Traditional approaches to getting through the hard times are no longer enough. Many businesses tightened their belts, let people go, stopped all discretionary spending, travel etc. and didn’t make it. Waiting for things to get better is not a strategy. This is just giving your competitors, especially those overseas, a free pass. We can no longer rely on distance and separation for protection. NZ is easy to access and service from anywhere, if you think you are safe you may be deluding yourself. It is all about productivity. We must face into this reality, we can’t work harder or longer we already top this league, we must work differently and recognise the rest of the world is and has adapted, and so must we. There’s no avoiding it or waiting for government intervention. We have some core industries and capabilities which are world leading. Our dairy and tech sectors are world-leading, with aspirational companies. Let’s not be complacent; let’s push on and assert and grow these advantages. We have a window of opportunity. Carpe Diem. Now is the time, before the next global uncertainty. It is now or maybe never. Identify your strategic competitive advantage and actualise it? Need help? Seek it. We are brave and innovative, the pioneering spirit lives strong, we can do this. There are enough tall poppy killers out there, lets celebrate the go getters, the achievers, the adopters and the triers and […]

Through the mill: Tokoroa’s tough year was about much more than job losses

Fionna Hurd, Associate Professor, Marketing & International Business, Auckland University of Technology. Suzette Dyer, Senior Lecturer in Human Resource Management, University of Waikato For Kinleith Mill, cycles of new owners, restructuring and retrenchment have been a fact of life since the 1980s. Each ownership change and downsizing has affected the mill’s workforce – and, inevitably, the Tokoroa community. In July this year, foreign-owned Oji Fibre Solutions closed the mill’s last paper machine, effectively stopping all manufacturing. Not long after, Carter Holt Harvey announced it was also shutting its Tokoroa plywood plant. The double impact and loss of 249 jobs was seen by many as simply the latest blow to a dying forestry company town. Elsewhere, the sale of Fonterra’s consumer brands and the closure of Carter Holt Harvey’s Nelson-Tasman sawmill seemed to underscore the fragility of New Zealand’s manufacturing base. These decisions were no doubt justified commercially: competing with international firms that enjoy cheaper production and larger consumer markets has become increasingly difficult. And, as ownership of major industrial facilities has shifted overseas, those making the decisions have become further removed from the local context – and from the communities that bear the consequences. But it hasn’t always been this way. Building the forestry industry was central to Aotearoa New Zealand’s postwar economic and employment strategies. As our research has shown, community identity and cohesion cannot be easily separated from that political and economic history. Life of a forestry town When the government issued its first pulp licence in 1943, it had two clear aims: to create jobs for returning servicemen after World War II, and to make use of the forests planted during the Depression-era work schemes of the 1930s. The establishment of the privately-owned Kinleith mill, and the development of Tokoroa, fitted neatly within these national priorities. The mill was entirely funded by private equity, common […]

Building psychologically safe, high-performance cultures: Why ISO 45003 matters for NZ manufacturing

From December issue, NZ Manufacturer www.nzmanufacturer.co.nz Theresa Grainger, General Manager, The Lean Hub Every manufacturing site I visit, whether it is a busy factory floor or a small specialised workshop, I believe has one universal truth and that is that people want to feel valued, supported, and safe to share their ideas and do meaningful work. This is where ISO 45003 adds real value, released in 2021 as the world’s first global standard dedicated to managing psychosocial risks and it has become increasingly relevant as organisations recognise that wellbeing and high performance go hand in hand. Building on the foundation established by ISO 45001, ISO 45003 extends workplace safety into an area many organisations still find challenging to define and measure: the mental, emotional, and social conditions of work. It provides guidance for creating environments where people can not only perform well but genuinely thrive. At its core, ISO 45003 is about both preventing harm and protecting workers from psychosocial risks before they escalate. It encourages organisations to take a proactive approach, identifying early warning signs and addressing the root causes of stress or conflict, and designing work environments that reduce the likelihood of harm. The standard offers not just compliance guidance, but a roadmap for building resilient, high-performing and people-centric operations. Personally, this is where it really resonates for me, I love what it represents because it speaks to something I have witnessed again and again in my work: when we design workplaces around people, when we honour their wellbeing, their voices, and their value, the entire organisation lifts. It is also deeply aligned with the principles of Lean and Continuous Improvement, at its heart, Lean isn’t just about eliminating waste, it is about creating environments where people can collaborate openly, feel safe to speak up and bring their […]

The tough year that was 2025

From December issue of NZ Manufacturer www.nzmanufacturer.co.nz The Year That Was -Sean Doherty 2025 was a brutal year for most New Zealand manufacturers, with many focused on staying afloat rather than growing. Rising costs for electricity, gas, labour, and raw materials squeezed margins across almost every subsector. Official data shows manufacturing employment fell by 2.6% meaning around 6,300 jobs were lost in just 12 months. The pain was felt from the factory floor to senior leaders, with many firms freezing hiring, cutting shifts, or closing lines to survive. Primary processing feeling the strain New Zealand’s traditional strengths in meat, timber, and dairy processing were not enough to shield the manufacturing sector from mounting cost pressures. Even large, historically resilient processors were forced to seek offshore funding and recapitalisation to keep plants running. These moves reflect a deeper reality: high input costs and intense international competition are eroding the ability of local processors to reinvest in plant, technology, and people at the pace required to stay globally competitive. Construction-linked manufacturing hit hard Manufacturers tied to the domestic building and construction sector took the a big hit in 2025. As the pipeline of new housing and commercial projects shrank, demand for building-related products dropped sharply. Several major timber mills closed, leading to hundreds of job losses. While high electricity and operating costs were part of the story, the real challenge was a combination of a weaker local construction pipeline and new international competitors, which made large, capital-intensive investments in New Zealand mills increasingly hard to justify. Ownership changes: selling to survive The need for capital and stability drove some of the most significant ownership changes the sector has seen in decades. Farmer-shareholders at Alliance Group voted to sell a 65% majority stake to Ireland’s Dawn Meats for $270 million, ending 77 years […]

Lifting Productivity from the Ground Up

How project engineering keeps NZ manufacturing efficient, safe, and moving Caliber Design, Christchurch Productivity is one of the most talked-about issues in New Zealand manufacturing. We all want to do more with less: more output with fewer delays, more progress with leaner teams, and more innovation with limited budgets. Yet productivity is not only about machines or technology. It is just as much about how projects are delivered. Every year, manufacturers invest millions in upgrades, automation, and plant improvements. Whether those projects add real productivity depends on one thing: how well design transitions to delivery. That is where project engineering makes a quiet but measurable difference. Planning that prevents waste Every successful project needs more planning than just a timeline. A good project engineer will identify risks early, validate the scope and technical deliverables, and plan sequencing so that the right work happens in the right order. We saw this recently on a multi-site upgrade where the factory could not afford any unplanned downtime. By mapping out isolations, access, and parallel work streams, the project engineer saved two weeks on installation and avoided a costly mid-project rework. These savings rarely show up as headlines, but they result in less time lost to rework, fewer hours spent chasing decisions, and smoother commissioning. Coordination that keeps people productive Even the best design will stall without good coordination. Modern manufacturing projects bring together multiple suppliers, contractors, and compliance demands. Someone has to keep the stakeholders all aligned on the actual deliverables for successful execution. On a large materials-handling project, one of our project engineers managed more than 20 subcontractors. Rather than reacting to site issues, they held short daily stand-ups with each trade, resolved bottlenecks on the spot, and kept everyone working to a clear, shared schedule. The project finished ahead of plan […]

Wired for success: Re-engineering apprenticeships to power New Zealand’s workforce

Toni Christie, Competenz General Manager, Employer and Learner Experience. A strengthened apprenticeship support system is driving higher completion rates across engineering and manufacturing — helping New Zealand build the skilled workforce it needs. Toni Christie explains how industry training organisation Competenz redesigned their apprentice learning experience to give every one of their learners the tools – and confidence – to finish what they start. In the three years since COVID-19, Māori credit achievement in mechanical engineering apprenticeships has surged from 49 percent to 72 percent, while Pasifika learners have lifted from 45 percent to 64 percent. For decades, Māori and Pasifika apprentices were among the least likely to complete their training. Now, in some of New Zealand’s most technically demanding industries, they’re leading the way. These outcomes prove that when learner support is reimagined, equity is not only possible – it’s measurable. A few years ago, too many apprentices were falling through the cracks. They arrived to on-job-training with potential but little guidance – like trying to start an engine with half the wiring missing. In 2019, a review of the New Zealand Certificate in Mechanical Engineering revealed that 42 percent of first-year learners were inactive, meaning they weren’t making enough progress within a defined period. Many were under 25, struggling with self-directed study or the literacy and numeracy skills their training required. By 2024, only 42 percent of new learners entered training above the national benchmark for literacy and numeracy – down from 70 percent just two years earlier. In other words, most apprentices now need extra support simply to get started. Many of our apprentices arrive with talent and ambition, but the system alone wasn’t giving them the tools to succeed. We needed to design a framework that met apprentices and trainees where they were. That framework, introduced in 2021 […]

Make your emissions data stand up to scrutiny

Starting out with your first carbon footprint, or refining years of data? Either way, the credibility of your greenhouse-gas (GHG) numbers matters. Reliable, verified information builds trust with customers, regulators and supply-chain partners – and helps you make confident decisions. Here’s how to find the right type of independent check for your business. Why independent checks matter Independent reviews give confidence that your figures are robust and transparent. For manufacturers, they can reveal data gaps in energy use, fuel consumption or process emissions; reduce the risk of overstated “carbon-neutral” claims; and strengthen credibility with clients, boards and export markets. A third-party perspective adds objectivity and helps demonstrate integrity – especially useful when bidding for contracts or supplying international brands that ask for evidence of sustainability performance. Choosing the right GHG evaluation approach Term Use for: What is reviewed (include timeframe) Outcome Verification Public reporting or disclosure where independent checks are required. Credibility for boards, investors, or regulators. Historical GHG data, calculation methods, and processes. Timeframe: Past or current reporting period. Independent statement of assurance – limited (regulatory) or reasonable (investor-grade). Validation Setting or updating emissions reduction targets. Testing future assumptions or pathways. Assumptions, models, and methods for projections. Timeframe: Future targets or scenarios. Opinion on whether your approach and assumptions are sound and achievable. External review Independent feedback before verification or disclosure. Checking inventory or scope 3 estimates. Data, methods, and reporting approach. Timeframe: Past or current data. Informal feedback to improve quality; no formal assurance. Assurance Building confidence in verified data for regulated or investor reporting. Choosing limited or reasonable assurance. Verified historical information. Timeframe: Past reporting period. Formal statement confirming confidence level in verified data. Certification Claiming carbon neutrality or joining programmes (e.g. Toitū, Ekos, Climate Active). Public recognition of verified results. Verified data, reduction plans, and […]

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