Manufacturing Technology

Manufacturing a key player in our export story

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Chris Penk, Minister for Small Business and Manufacturing Starting 2025 by taking on the role of Minister for Small Business and Manufacturing has been an exciting time. As readers of NZ Manufacturer will be well aware, these areas lie at the heart of the New Zealand economic engine. Manufacturing is a key player in our export story and the vast majority of NZ businesses are “small” (with 97% having fewer than 20 FTE employees). So let me start by saying how grateful I am to everyone in the sector who is producing the goods, quite literally(!), to ensure New Zealand’s economic growth. My initial approach is to listen carefully to what manufacturers see as their challenges and opportunities. This will provide a countrywide perspective, on top of what I hear from constituent businesses within Kaipara ki Mahurangi. The area that I represent in northwest and the rural north of Auckland includes some significant industrial zones, so I appreciate manufacturing is a key enabler of employment and social cohesion in local communities. My “starter for 10” would be making sure that manufacturing businesses can navigate bureaucratic roadblocks and – wherever possible – removing those roadblocks. I have observed that the compliance burden is too high and doesn’t reflect a risk-based approach. Greater balance is needed, which is why smart regulation (as opposed to removing all regulation) is our watchword as a government. Trade is another key pillar to aid growth, and it’s our ambition to double the value of New Zealand exports within a decade. We’re getting on with signing new trade agreements across the globe – knowing the quality of our great […]

NZ–Canada initiative to drive food export growth

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz By Mark Devlin, Managing Director, Impact PR New Zealand’s food manufacturing sector has long been the pride of our nation—an industry built on innovation, quality and a deep-rooted commitment to sustainability. Yet, in an increasingly competitive global market, even our best ideas need a boost to flourish on the world stage. The recent announcement of a Government-backed export initiative with Canada is a significant step in that direction. A new era for Kiwi food exports The latest initiative, which saw the recent signing of a Memorandum of Understanding between the Canadian Food Innovation Network (CFIN) and its local counterpart New Zealand Food Innovation Network (NZFIN), promises to accelerate the commercialisation of Kiwi food innovations. It is designed to give our food and beverage firms access to emerging technologies, comprehensive market intelligence and robust research and development support. With Canada’s 40 million consumers within reach, this collaborative programme could open a new frontier for New Zealand’s agricultural exports—a sector that accounts for nearly half of all goods and services sold offshore. The move is part of a broader strategy to double the value of New Zealand food exports by 2030. Recent forecasts predict that our food and fibre exports will reach a staggering $56.9 billion by mid-2025. For an industry that already invests over half a billion dollars annually in agri-food research, such ambitious targets underline the urgency of transforming research outputs into commercially viable products. Building an international innovation ecosystem At the heart of this initiative lies the innovative ‘Catalyst Model’ developed by NZFIN. This model is engineered to create a domestic international ecosystem, seamlessly integrating food innovation facilities across Auckland, Waikato, Otago, Palmerston North and Canterbury […]

No More Excuses: Manufacturers Need to Lead NZ Productivity Shift

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz By David Altena and Rob Bull Podcast: https://www.linkedin.com/company/the-better-smb/ David Altena is Head of Growth & Partnerships | SmartSpace.ai Co-Founder | The Better SMB Podcast Rob Bull is Director & Principal Consultant at Plexus Consultant & Co-Founder & Host of The Better SMB Podcast New Zealand’s productivity crisis has dragged on for decades, waiting hasn’t worked. Our productivity lags other OECD nations, with clear consequences: stagnant wages, reduced competitiveness, declining living standards, weak business investment, an over-reliance on commodities and low-value industries. We work longer and harder, not smarter. The Treasury has called it our biggest economic challenge, yet we continue to treat it as an abstract problem rather than an urgent, business-led priority. The Numbers Don’t Lie To make any meaningful progress and catch our peers, businesses en masse must focus actively on performance improvement. Even with that level of action and momentum, it would still take three to five years before we begin seeing national productivity improvements. To achieve this, we’re not talking about “some manufacturing businesses” making incremental improvements. We need to redefine New Zealand’s economic landscape… According to Statistics NZ (2023) there are ~ 23,000 NZ manufacturing businesses. For meaningful change we need 15,000 manufacturers, or two-thirds, to make this their top priority for the next five years. Why Government Targets Won’t be Enough Our government has set ambitious targets spanning: Doubling exports Improving R&D Strengthening skills Reducing crime rates Improved healthcare Focusing on sustainability But these span every sector and shift with the political cycle. While government policy provides a foundation, it’s not enough. Business leaders must take charge. Without individual businesses improving their performance, national productivity will remain stagnant. What if prioritising productivity delivered more impact than today’s scattergun approach? Without productivity gains, even billions in […]

Q & A with Geoff Necklen of Roadside Supports

What does your company do? We are a steel product manufacturer. . How long have you been in business? 41 years this month. What products do you make? We manufacture our own Roadsign Supports brand range of highway sign pole systems for the NZ market primarily. This includes motorway signage, and urban signage on single post units called Monopoles which are our main products. We are also involved in special electronic poles for bus and congestion management. How are you finding business at present? We have been steady this year but sales volumes are a bit down. I am getting good enquiries, however, and am confident about next year. Where do you source your components? We source all our materials locally from merchants and utilise second-tier suppliers such as profile cutters and galvanisers. Suppliers such as profile cutters and galvanisers. We try to source NZ AUS material as much as possible. Where do you see growth for your company in the future? The roads of national significance and associated new highway projects announced by National mean we have a long-term future with the products we make. The electronics industry is also exciting, and we are right there with many new project solutions with our good client partner.

Building a comprehensive business case for factory technology investment – Beyond the numbers

From NZ Manufacturer magazine, February 2025. Adam Sharman, CEO LMAC Group, APAC As the imperative for technology adoption in manufacturing increase, investment decisions are becoming increasingly complex. Gone are the days when a simple ROI calculation could justify major capital expenditure. Forward-thinking manufacturers are now developing comprehensive business cases that look beyond immediate financial returns to consider broader strategic implications, particularly around workforce sustainability and competitive positioning. The Demographic Imperative One of the most compelling arguments for technology investment lies in addressing the looming demographic crisis facing manufacturing. Across developed economies, the manufacturing workforce is aging rapidly, with experienced workers retiring faster than they can be replaced. This isn’t just a temporary staffing challenge – it represents a fundamental shift in labour market dynamics that will persist for decades. Modern automation and digital technologies offer a powerful response to this demographic challenge. Rather than viewing technology merely as a cost-saving measure, manufacturers should consider how it helps future-proof their operations against workforce scarcity. Advanced robotics and automation systems can maintain productivity even as skilled labor becomes harder to find. More importantly, they can make manufacturing more attractive to a new generation of workers who expect to work with cutting-edge technology. Transforming Work, Not Eliminating It When building a business case for technology adoption, it’s crucial to move beyond the simplistic narrative of automation replacing workers. Instead, focus on how technology transforms and elevates human roles. Modern manufacturing technologies create opportunities for workers to develop new skills and take on more engaging responsibilities. Repetitive, physically demanding tasks can be automated, allowing workers to focus on higher-value activities that require human judgment and creativity. This transformation has important implications for workforce development and retention. Younger workers are often more attracted to workplaces that offer opportunities to work with advanced technology. By investing […]

From Survive to Thrive: FMCG Strategies for Growth and Profitability in 2025

From NZ Manufacturer magazine, February 2025. Chris Foord, Partner, Argon & Co New Zealand As we look forward to 2025 the outlook for business and NZ are improving. Many businesses in 2024 were focused on the “survive till 2025” mindset, controlling costs and avoiding discretionary spend. Very few though forgot about the consumer/customer and the need to continue to serve, surprise and delight with excellent product, service and pricing. Most FMCG businesses will be looking to return to better margin positions in 2025 and indications are favourable that this is achievable. The inflation beast has been tamed, so interest rates have fallen and are predicted to drop further (albeit not by a huge amount) through 2025. Business sentiment is on the rebound. Consumer confidence is at its highest level for two years, which in turn improves business confidence. Whilst the signs are positive, navigating from the survival mindset to a thrive mindset doesn’t happen without intent. So, what are some helpful tips to consider as FMCG businesses transition into what should be a period of growth, and importantly how to create value and embed sustainable profitability. Here are some areas to consider and explore: Align operations to execute your business strategy Plan to drive profitable growth Unlock, deliver and celebrate quick wins Create and embed a continuous improvement culture AI: Proof of Value Align operations to execute your business strategy Operations is where the rubber hits the road for your business strategy. Are your operational teams involved in the key decisions as you launch new products, drive innovation, review range, pricing and promotional plans? If not, they should be. They operationalise strategy, plans and tactics into reality. Get them onboard early and you will realise value faster and more effectively. Plan to drive profitable growth Continue your focus on productivity. […]

How manufacturers can adapt to workforce changes through flexible working environments

Liam Merrick, sales engineer, ECI Solutions New Zealand’s manufacturing sector faces a significant challenge amid an ongoing skills and labour shortage. The Employers and Manufacturers Association (EMA) reports that 71 per cent of employers can’t find skilled people, an increase from 40 per cent in 2022, and 90 per cent are struggling to fill vacancies (1). Employers also face difficulties in hiring trainees and apprentices due to the lack of technical staff to train them. This issue is exacerbated by the shifting preferences of workers, who increasingly seek flexible work arrangements. The nature of production processes has long dictated that the traditional manufacturing environment requires onsite work. However, workers across industries now expect greater flexibility in their work arrangements, and manufacturers must respond to these changing expectations to remain competitive in the labour market. Consequently, manufacturers must adapt their practices and embrace flexible working models that can attract and retain talent, such as exploring innovative solutions to maintain productivity and growth or investigating hybrid models for supporting staff. This is particularly relevant for manufacturing workers that will benefit from modern technology augmenting their onsite responsibilities, while administrative roles may not require workers to be onsite. For example, certain roles will always require a physical presence on the factory floor, particularly in smaller operations, though some supporting functions can be partially or fully performed remotely such as finance, management, and even sales staff in the field. Offering hybrid options for these less-fixed roles lets manufacturers expand their talent pool beyond geographical constraints to attract professionals who may not have considered a career in manufacturing due to perceived inflexibility. Onsite, this may involve creating more collaborative spaces, improving ergonomics, and enhancing safety measures. Offsite, it involves providing employees with the latest technologies to perform their duties remotely and create an innovative environment […]

New Zealand Manufacturing: A Year of Resilience and Transformation in 2024

Adam Sharman CEO LMAC-Group APAC The New Zealand manufacturing sector has navigated a complex landscape in 2024, with significant headwinds such as persistent inflation and increased operational costs, local and global supply chain complexities and global economic uncertainty; factors which led many to adopt the mantra of ‘survive to ‘25’ in order to navigate sales uncertainty and low market and consumer confidence. Whilst these realities are pervasive in the industry, economic indicators suggest a flat-lining of productivity rather than a significant decline and this year’s performance and the macro level is perhaps best understood through a detailed lens of economic indicators and sector-specific metrics. According to Statistics New Zealand’s latest manufacturing sector survey [1], the industry’s overall output experienced a modest growth of 2.3% in the 2023-2024 financial year, following a challenging period of contraction in previous years. This growth, while incremental, signals a gradual recovery and renewed resilience in the sector. Key economic indicators revealed: Manufacturing sector contribution to GDP: 11.5% (up from 10.9% in 2023) Total manufacturing sector revenue: NZ$55.3 billion Productivity growth: 1.8% year-on-year Labour productivity improved by 2.1%, demonstrating increased efficiency through technological adoption Export data from the Ministry of Foreign Affairs and Trade [2] painted a nuanced picture of New Zealand’s manufacturing capabilities: Total manufacturing exports: NZ$29.6 billion Top export sectors: Food and beverage manufacturing: NZ$12.4 billion (42% of manufacturing exports) Machinery and equipment: NZ$5.7 billion Chemical and associated products: NZ$3.9 billion Notably, the food and beverage sector continued to be the main breadwinner for GDP, with dairy-related manufactured products accounting for approximately 25% of total manufacturing exports. The sector saw a 3.5% increase in export value, driven by high-quality processing and global demand for New Zealand’s premium agricultural products. Whilst there is potentially some cause for optimism in these numbers, despite ongoing advancements in […]

A year to reflect and renew

From NZ Manufacturer magazine, December 2024. By EMA Head of Advanced Manufacturing, Jane Finlayson There’s no doubt that 2024 has been another challenging year for New Zealand’s manufacturing sector. Global uncertainties, local economic pressures, and significant supply chain disruptions have tested manufacturers across the country. Yet, despite these obstacles, the resilience, adaptability, and determination of our manufacturing community have shone through. However, the year also showed how much work remains to be done to turn the sector around and get productivity back on track. The latest BNZ-BusinessNZ Performance of Manufacturing Index (PMI) for November 2024 showed the 21st consecutive month of contraction for the sector, underscoring the ongoing pressures faced by many manufacturers. While some encouraging signs were visible midway through the year, with what looked like a gradual return towards the neutral 50.0 mark, October and November decreases highlighted the fragility of the recovery. The key sub-indices, such as production, employment and deliveries all registered below the neutral mark, with production activity in particular falling to its lowest point since July 2024. The general economic slowdown continues to weigh heavily on the sector, with many manufacturers grappling with high costs, reduced domestic demand, and external pressures such as the ongoing fallout from global inflationary trends and trade disruptions. These numbers don’t tell the full story. Beneath the surface, there’s a lot of good work happening. Many of you have been upskilling your teams, adopting new technologies, and finding smarter ways to operate. These efforts are setting the groundwork for a sector that’s not only resilient but ready to thrive when markets ease and new free trade agreements start to deliver better trading opportunities for some of our goods. Investing in People and Skills One area that stood out this year is the investment being made in people and their […]

Report: China & New Zealand National Brands Forum

Held in November during the China International Import Expo in which New Zealand was the guest of honor. The forum was co-hosted by the NEXT Federation and the New Zealand Business Roundtable in China, with co-organisation by the China Chamber of Commerce of I/E Foodstuffs, Native Products and Animal By-Products, and Tus-Holdings. Fonterra and Taishan City served as principal partners, while strategic cooperation was provided by Dong Jiu, NZ Fos+, Heng Yuan Xiang, and Yudu Junyao. The forum received support from International Business Daily, under the Ministry of Commerce of China. With the theme “Conquering New Heights”, the forum convened senior executives from leading New Zealand enterprises operating in China, top experts in international relations and industrial collaboration, and prominent brand representatives from both nations. The event aimed to strengthen bilateral cooperation in trade, industrial investment, and brand development, while exploring New Practices, New Trends, and New Dynamics in China-New Zealand collaboration. Professor Wang Yong, from the Department of International Political Economy at Peking University, provided insights into the impact of U.S.-China relations on the global economy and examined the potential for enhanced China-New Zealand collaboration. He observed that the United States is entering a conservative era characterised by an “America First” doctrine, marked by intensified political polarization, protectionist policies, and a growing tendency toward unilateralism that undermines international cooperation. These shifts, he noted, are underpinned by deepening wealth inequality and other systemic challenges. David Mahon, Managing Director and Chief Investment Officer of Mahon China Investment Management Ltd., drew on his more than 30 years of experience in fostering China-New Zealand cooperation to share his insights. He emphasised the significant potential for collaboration in areas such as investment, trade, and innovation, even in the face of the challenges posed by globalization. The forum also attracted the participation of relevant government […]

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