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Is your value network world class?

Ian Walsh, Partner, Argon & Co NZ Over the last 40 years I have seen the change in how manufacturing businesses compete. We have moved through the quality revolution, bringing new expectations re quality and cost, the lean revolution and associated methodologies delivering better service, value and reduced costs, supply chain optimisation, bringing end to end thinking and no longer business vs business but supply chain vs supply chain enabled by ERPS and now value networks. With no longer point to point, but integrated webs of suppliers and partners delivering products and services to end users through multiple channels seamlessly and of course the rapidly increasing deployment of AI to enable this. At the root of this is how do businesses better deliver what the end user wants, when they want it and at the right cost? So, understanding the value equation and then aligning their service delivery model to meet and exceed this expectation, better than competition, and all the while doing this at the most competitive cost to maximise margins. Very few, if any, businesses can do all of this by themselves. Although larger businesses with more scale, buying power, connections have more leverage than SME’s. On the positive side though interconnected SME’s can create highly efficient clusters which can compete with anyone and be highly agile and scalable. So, as we know NZ has a high proportion of SME’s and therefore presents an opportunity and a risk. The risk is, that if we are unable to create these value networks then our competitors will fill the gaps and erode our share or margin and ultimately eat our lunch. Technology is enabling competitors from anywhere to provide goods or services into markets with lower barriers to entry (tariff discussions aside) and low-cost delivery models. The opportunity is […]

World-class technology and outstanding culture at Architectural Glass Products

Architectural Glass Products (AGP) is a cutting-edge glass manufacturing business based in Hautapu, near Cambridge. Established five years ago, AGP was created to help provide the APL window manufacturer network with a total window solution. It was born from the belief that the local window and glass industry was being underserved, particularly in terms of service and quality. In response, David Bunting, Mitch Plaw, Craig Vincent and Brent Martin joined forces to create a world-class, fully digitalised, and highly automated double-glazing operation. The result is a custom-built, state-of-the-art facility stretching 417 metres long and 108 metres wide, home to some of the most advanced glass processing equipment in the Southern Hemisphere. The Employers and Manufacturers Association’s Nicholas Russell sat down with David to discuss the challenges and successes of launching a greenfield manufacturing operation in New Zealand, the pivotal role of digital transformation, and the importance of investing in people and culture from day one. Why was AGP started?? We felt the glass and window industry in New Zealand was underserved – quality was lacking, and service wasn’t up to par. Our customers, being APL Window Manufacturers, were feeling the pain and we realised the only way to truly improve the supply chain experience was to control it ourselves. That meant starting from scratch and building a manufacturing business that could deliver exceptional products with equally exceptional service. AGP is known for its massive and innovative facility. Can you tell us about the design thinking behind it? We designed the building around the manufacturing process, not the other way around. That gave us complete freedom to optimise product flow and efficiency. The building is 417 metres long (you could park five Boeing 777s inside with room to spare) and 108 metres wide, which helped us futureproof our operations. Aesthetically, it looks […]

At the coalface of technology adoption in manufacturing

By Jane Finlayson, Head of Advanced Manufacturing, EMA As the backbone of New Zealand’s economy our manufacturing sector contributes approximately 10% to GDP and employs more than over 240,000 people. Yet, despite its significance, the sector’s productivity has been stagnating, with labour productivity growing at a mere 0.92% annually over the past decade, well below the national average of 1.17%. This stagnation is not due to a lack of effort or ambition. Instead, it reflects a critical gap: the sector’s slow and fragmented adoption of technology. While many larger firms are beginning to modernise their operations, many small and medium-sized enterprises (SMEs) still rely on outdated systems, manual processes, and fragmented workflows. This digital inertia is limiting their global competitiveness and resilience. At the Employers and Manufacturers Association (EMA), we see firsthand how these challenges play out. Through our series ‘ASB Manufacturers Workshop: The Impact of Industry 4.0 on Your Business’, manufacturers consistently share a mix of enthusiasm and uncertainty about the path forward. While many are eager to innovate, they often feel overwhelmed by the scope of change and unclear about where to start. One of the most urgent barriers is the widening digital skills gap. In PwC’s 27th Annual CEO Survey, released last year, 83% of local business leaders report they have a skills shortage within their organisation and 76% specify a lack of technical capabilities as a barrier to transformation. This disconnect is deeply concerning, especially as technologies such as artificial intelligence (AI), collaborative robotics (cobots), the Internet of Things (IoT), and data analytics have moved from being future ambitions to current necessities. Feedback from manufacturers who have attended the workshops confirms this. There is growing demand for reskilling workers not only in technical areas, such as integrating Enterprise Resource Planning (ERP) with design tools, managing Supervisory […]

Reflections from Australian Manufacturing Week, looking forward to SouthMACH 2025

Adam Sharnan, CEO LMAC Group APAC Australian Manufacturing Week is an annual exhibition for the manufacturing industry, this year held in Melbourne between 6-9th May. Over the four days of the exhibition, the manufacturing industry comes together to share emerging technologies and services, share learnings and ideas and connect with partners across the industry. With this year’s event taking place within days of the Federal election and the Labour Party’s return to power, the focus of the event was on lifting productivity of Australia’s manufacturing sector and, in turn, its contribution to lifting national GDP. Not unlike, New Zealand’s manufacturing sector, Australian businesses are facing significant challenges. Louise McGrath, Head of Industry Development and Policy at the Australian Industry Group highlighted slowing investment, a restrictive workplace relations system, an uncompetitive tax system, a complex regulatory environment, ongoing skilled labour shortages, and uncertainty over energy affordability and reliability (gas prices having risen by 49% in the last 5 years, contributing to an increase of 31% across all manufacturing inputs) as being the key headwinds facing Australian Manufacturers. These issues are compounded by volatile international conditions and national security challenges, severely constraining the capacity and confidence to invest in business R&D, which is critical for innovation and productivity enhancement. In response to these challenges, industry groups used the Australian Manufacturing Week exhibition to advocate for an industry-wide approach to lifting productivity and viability of the manufacturing industry focused on Digitisation (acceleration of productivity through the adoption of Industry 4.0 technology), Diversification (in to new and growing markets such as defence and hydrogen production) and Decarbonisation (to reduce reliance on high-cost energy inputs). Prior to their election, the Albanese government outlined a federal industry support package focus around the National Reconstruction Fund (allocating $1 billion of its $15 billion budget to novel and […]

Looking forward to SouthMACH 2025

-Adam Sharman, CEO LMAC,APAC As we look ahead to SouthMach 2025, it is hard to avoid the national and global context in which this year’s event is set. Global volatility and uncertainty, combined with a slow domestic economy are providing significant headwinds for New Zealand’s manufacturing industry. With the country’s industry coming together in Christchurch, we are provided with an opportunity to learn from each other, share ideas and collaborate for the benefit of the industry and country as a whole. Having recently attended the Australian Manufacturing Week exhibition in Melbourne and hearing the themes of digitisation, diversification and decarbonisation as priorities for Australia’s manufacturers, we will be paying close attention to see if these themes are replicated in the attendees, speakers and visitors to SouthMach. With the shift in the support landscape occurring in the last 6 months e.g. the disbanding of Callaghan Innovation and, with it, the Industry 4.0 Demonstration Network, at LMAC we are proud to be playing an active role in the continuing awareness and capability development of the industry. With this goal front and centre, we are pleased to be collaborating with the EMA, ASB and AspectPT to bring the Smart Manufacturers Workshop to SouthMach on both days. I will be presenting, as part of the seminar series on ‘Getting Started with Digital Transformation’, providing a practical guide to the first steps of a digital transformation in manufacturing and how this can be achieved in cost-effective way. The new addition of the Minister for Manufacturing Awards is a fantastic initiative and we congratulate all the nominees and finalists who have been recognised so far across all categories. The announcing of the award winners at SouthMach is sure to be a highlight as we celebrate the amazing people and organisations working across our industry. LMAC have […]

Own It: Leadership is a Personal Responsibility, Not a Title

In the picture: David Altana is head of Growth & Partnerships at Smartspace.ai & Co-Founder & Host of The Better SMB Podcast. You can’t change your business without changing how you lead. In the picture: Rob Bull, Director & Principal Consultant at Plexus Consultant & Co-Founder & Host of The Better Business SMB Podcast We’ve made the case. New Zealand’s productivity crisis is real, and it won’t be solved by waiting on government policy, new funding mechanisms, or the perfect hire. Now we come to the heart of the matter. If we want better-performing businesses, change needs to happen to avoid the status quo and repeat the conversations of the past 30 years. If you’re the owner, GM or leader of a manufacturing business, the next leap isn’t strategic. It’s personal. The next frontier is you. The Mirror Test Think back to last week. Were you the calm in the chaos, or part of it? Were your conversations clear, or rushed? Did your team get direction, or distraction? Did you put aside any time to improve your leadership skills or knowledge? This might have been as simple as being curious and watching a couple of YouTube videos. Learn what is happening in leading businesses, it doesn’t take too long to find a couple of case studies and pick up a few pointers, then think about how this can be applied in your business. Leadership isn’t just visible in the big decisions. It’s in the energy you bring to the day-to-day. And your team mirrors it back, whether you realise it or not. Many of us rose through the ranks by being the fixer, the hard worker, the one who showed up when others didn’t. But that mindset, the hustle, the constant firefighting, the 14-hour days, doesn’t scale. It […]

Hutt Valley’s focus on manufacturing’s future

Just released is strategic report 35 BY 35, the ten-year roadmap for Hutt Valley business growth, with a strong focus on manufacturing. The ambitious 10-year plan is to grow the Hutt Valley’s GDP by 35%, increase productivity by 16%, and increase highly skilled jobs by 18% – putting our region at the heart of New Zealand’s manufacturing, research, science and innovation industries; delivering business and community prosperity. There are over 15,000 businesses in the Hutt Valley contributing $10 billion to the New Zealand economy and employing more than 70,000 people. In the picture:Patrick McKibbin, Chief Executive, The Hutt Valley Chamber of Commerce. The plan wants to see: Productivity increase by 18.3% Increase highly skilled jobs by 16.5% GDP increase by 35% Higher average wages More jobs Greater wellbeing Better infrastructure Based on the past five years’ performance alone, linear growth for Hutt Valley is predicted at 30.7% by 2035 (44.1% in Upper Hutt and 26.4% in Lower Hutt). The ambition is to exceed linear growth. Higher productivity than the national average In the financial year to March 2022, the Hutt Valley exhibited a robust productivity level, with GDP per filled job amounting to $138,345. This figure surpassed the national average of $132,815, indicating the region’s higher productivity levels. Productivity growth Productivity in the Hutt Valley in March 2022 demonstrated steady growth, increasing by 2.8% compared to the previous year, outpacing the national increase of 2.3%. This growth trend is indicative of a region that values efficiency and innovation. The Hutt Valley is the engine room of the Wellington region – a vibrant hub of manufacturing, innovation, science and research, and many outstanding support businesses, which together form the thriving business community that we take immense pride in. The region has existing and future plans to invest significantly in construction […]

Digital transformation on a shoestring: Auckland’s innovative approach to manufacturing

A new insights paper from Tātaki Auckland Unlimited reveals how small manufacturers can embrace digital technologies without breaking the bank or risking disrupting their processes. Manufacturing remains a cornerstone of Tāmaki Makaurau Auckland’s economy, contributing more than $11 billion to the region’s GDP and employing approximately 85,000 people. Despite this significant economic footprint, New Zealand’s manufacturing sector faces persistent productivity challenges compared to other advanced economies. A pioneering initiative called Digital Manufacturing Light aims to change this by helping small and medium-sized enterprises (SMEs) in the manufacturing sector take their first steps toward digital transformation. This month, Tātaki Auckland Unlimited (the region’s economic development and cultural agency delivering on behalf of Auckland Council) is releasing an insights paper that introduces the Digital Manufacturing Light concept and shares findings from a successful pilot programme. The Digital Manufacturing Light pilot, which began in April 2022, was led by the University of Auckland in collaboration with Tātaki Auckland Unlimited. Around 20 Auckland-based organisations participated in the pilot, which included workshops and trial deployments of digital solutions. Pam Ford, Director of Economic Development at Tātaki Auckland Unlimited says, “Digital transformation doesn’t have to be expensive or disruptive. By adopting a phased approach using readily available technologies, manufacturing SMEs can create affordable and low-risk digital solutions that provide immediate benefits.” The Digital Manufacturing Light concept draws inspiration from the United Kingdom’s ‘Digital Manufacturing on a Shoestring’ programme developed by the Institute for Manufacturing (IfM) at the University of Cambridge, and is being developed in collaboration with IfM and partners across Australia and New Zealand. It follows similar principles but has been adjusted to suit the New Zealand business environment. This approach is particularly relevant for New Zealand’s manufacturing sector, which is predominantly composed of small businesses. Of the country’s 24,000 manufacturing businesses, only 1.6% employ […]

The pay equity puzzle: can we compare effort, skill and risk between different industries?

Gemma Piercy, Lecturer, Sociology, Social Policy and Criminology, University of Waikato Bill Cochrane, Senior Lecture in Sociology and Social Policy, University of Waikato Suzette Dyer, Senior Lecturer in Human Resource Management, University of Waikato Last week’s move by the government to amend pay equity laws, using parliamentary urgency to rush the reforms through, caught opposition parties and New Zealanders off guard. Protests against the Equal Pay Amendment Bill have continued into this week, driven to some extent by disappointment that an apparent political consensus on the issue has broken down. In 2017, the National-led government passed a forerunner to the current legislation for the health sector only, the Care and Support Workers (Pay Equity) Settlement Act. Later, in opposition, National also supported the Labour government’s Equal Pay Act in 2018, as well as the Equal Pay Amendment Act in 2020. That legislation was designed to extend a pay equity process to all occupations and create a clearer pathway for making pay equity claims. With both major parties seemingly aligned, some 33 pay equity claims were under way. Those claims – all halted now – involve the education, health and social services sectors. As such, the government would have to meet the costs of successful claims. This explains why one rationale for the law change has been that the claims were potentially too expensive. The other rationale (preferred by Finance Minister Nicola Willis and Workplace Relations Minister Brooke van Velden) is that the existing policy wasn’t sufficiently rigorous in determining the validity of some claims. Unlock new possibilities. In reality, both the cost and the policy framework allowing equity claims to proceed are interrelated: the more permissive the framework, the higher the potential cost to the government and employers. But while equal pay for equal work is the goal, it’s important to understand that equal pay and pay equity are not the […]

Engineering capacity when and where you need it

Celebrating 10 Years of Caliber Design at SouthMach 2025 Caliber Design is turning 10—and we’re marking the occasion at SouthMach 2025 with a celebration that reflects who we are: practical, people-focused, and project-driven. Visit us at Booth 135 for a slice of birthday cake and go in the draw to win a $1,000 Christchurch Adventure Park voucher. While you’re there, we’d love to talk about how we can help you scale your mechanical engineering capacity, flexibly and efficiently. We’re not a consultancy. We’re not a contractor. Caliber is something different—a secondment-based engineering firm with a growing team of over 60 mechanical engineers working with businesses across New Zealand. We embed engineers directly into your team, on-site or remote, to provide the horsepower you need to get projects across the line. Whether you’re navigating a peak workload, filling a short-term skills gap, or moving a major capital project forward, our engineers are there when and where you need them. From machine design and product development to FEA and project engineering, our team has deep, practical experience across a wide range of industries—from automation and manufacturing to food processing, aerospace, and advanced materials handling. What Makes Caliber Unique? What sets Caliber apart isn’t just our model—it’s our people. We carefully select engineers who bring the right mix of technical ability, communication skills, adaptability, and professionalism. We back them with systems, mentors, and processes that ensure they deliver value quickly. And we stay involved—checking in regularly, monitoring progress, and making sure the secondment is working for everyone. When you engage a Caliber engineer, you don’t just get that one person—you tap into the entire Caliber network. That’s 350+ years of collective experience, shared knowledge, and access to a powerful library of proven templates and systems. As one client put it, “Caliber engineers don’t […]

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