NZ Productivity Organisation

Marshall Industries celebrates ninety years of roofing in Southland

Manufacturing from 1938 and still going strong. A Southland business that has spent generations working on the region’s homes, farms, and businesses is marking a major milestone, with a legacy that has quietly helped shape the way New Zealand builds. Marshall Industries is celebrating ninety years in business, a journey that has seen the company become a familiar and trusted name across Southland and Otago, while also playing a pioneering role in the country’s roofing industry. Originally established in 1938 as Owen Marshall Plumbing Ltd, the business was responsible for a major innovation in New Zealand construction. The company was the first in the country to develop and produce continuous long-run corrugated roofing iron, designing and building its own machinery in Invercargill using local tradespeople. It was a breakthrough that changed how roofing was manufactured and installed across New Zealand, setting a new standard that is still widely used today. The company also led another national first, developing continuous spouting systems and manufacturing twenty machines locally, in the 1940s, which were then distributed across New Zealand, Australia and the Pacific Islands. Managing Director Tom Marshall says these milestones reflect a long history of practical innovation driven by the needs of the industry. “There has always been a strong focus on finding better ways to do the job,” Marshall says. “That early innovation came from local knowledge and skilled tradespeople right here in Southland, and it is something we are incredibly proud of.” Alongside this legacy of innovation, the business has continued to deliver roofing solutions across the region, protecting homes, farm buildings and commercial properties through decades of growth, change and Southland weather. Marshall says reaching ninety years is something the whole team is proud of, but it is also a reflection of the community that has supported the business […]

Fonterra’s real turnaround was productivity

From April issue of NZ Manufacturer magazine Geerten Lengkeek, Managing Director, Productivity People Miles Hurrell’s resignation marks the end of a significant chapter for Fonterra, and in many ways, for New Zealand. Fonterra isn’t just another company. It’s our largest business, a global-scale manufacturer, and the commercial engine behind a big part of our primary sector. When Fonterra performs, New Zealand performs. What stands out to me about the Hurrell era is this:the real turnaround wasn’t about growth, it was about productivity. He inherited a business that had achieved global scale, but not always strong returns. Revenue was high, but capital wasn’t working as hard as it could. Over the past six to seven years, that has fundamentally shifted. Return on capital has moved from around 5–6% to consistently around 11–12%, without a material increase in milk supply. That tells you something important. This wasn’t a volume story. It was a conversion story, and that’s what productivity really is. Better conversion of milk into value. Better use of assets to drive throughput and margin. Better deployment of capital into earnings. A big part of that has been strategic focus. Simplifying the portfolio, exiting lower-return businesses, and refocusing on Ingredients and Foodservice where Fonterra has real advantage. But just as important is what’s happened inside the system. This is a manufacturing business at scale. Productivity is won or lost in how well you manage flow, yield, and asset utilisation: from farm through to processing and export. Many years ago, my colleague Nick Brownsword and I were involved in the early operational excellence work in Fonterra. Even then, it was clear how much opportunity existed in improving flow, reducing waste, and aligning the system end-to-end. What’s been encouraging is seeing how those ideas have evolved and matured, and how this is […]

Christchurch apprentice graduate soars to the edge of New Zealand’s space future

When a spaceplane flew last year carrying experimental hardware developed for California Polytechnic (Cal Poly), a young Canterbury engineer was watching closely – knowing components she had helped manufacture were on board. Yelena Cunningham, 21, a Manufacturing Engineer at Dawn Aerospace in Christchurch, played a role in building parts used in the Cal Poly spaceplane flight in June. Seeing her work move from technical drawing to flight-ready hardware was a defining moment. “I’ve made a few components for the spaceplane which I’ve taken from just being a technical drawing to an actual part,” says Yelena. “We got to watch the spaceplane launch… just seeing and knowing that my parts were on that was unreal. It was really, really cool.” Yelena works in Dawn’s machine shop, producing high-precision components that support the manufacture of aerospace propulsion systems used by customers globally. Her pathway into advanced manufacturing began early. “I worked part time in two workshops during Year 13,” she says. “Then I moved halfway through my apprenticeship from the company I was at to Dawn Aerospace because I got this opportunity – and it’s been really cool. Dawn is the fourth workshop I’ve been in.” At Dawn, apprentices are trusted with sophisticated equipment and complex production work. “They’ve been really good,” she says. “They put me on the top machine in our workshop to allow me to learn on that. And they’ve been really patient. “All the guys in the workshop are knowledgeable and passing on that knowledge is really cool. They let me do the programming and the CAD. Their patience allows me to learn without pressure.” Dawn Aerospace employs around 130 people globally, with roughly half based in New Zealand. Apprenticeships are an important pathway, with Yelena one of three to have come through the business. Dawn Aerospace Brand […]

The cost of Deindustrialisation: How New Zealand’s manufacturing decline threatens our economic future

NZ Manufacturer magazine wants more business owners and decisionmakers to speak up and positively make suggestions on issues affecting the future of manufacturing. Dont be silent when your ideas can make a difference. Speak up for your country. Doug Green, Publisher By Sean Doherty, Manufacturing Commentator | NZ Industry Trends Manufacturing is not just another sector in New Zealand; it is one of the core systems that keeps regional communities alive and anchors our standard of living. When factories close in Whakatāne, or the outer suburbs of Christchurch, we do not seamlessly “move up the value chain.” We lose well‑paid careers, technical capability, and the dense network of firms and supply chains that make an economy resilient. The signs of deindustrialisation are already all around us Long‑standing manufacturing plants shutting, production shifting offshore, and investment decisions quietly goes against New Zealand. The immediate impact is job loss, but the deeper damage is structural. Manufacturing has long provided thousands of solid, mid‑skill, mid‑wage jobs for people who are prepared to learn a trade, run complex processes, and take responsibility for quality and output. As these roles disappear, the labour market splits into a small group of high‑income professionals and a growing pool of low‑paid service jobs in areas like tourism and hospitality. That mix locks in stagnant wages, weakens social mobility, and drives up fiscal pressure as more households rely on government support to close the income gap. For regions, the consequences are even more personal. A single plant in a provincial town can support hundreds of families directly and many more through suppliers—maintenance firms, transport operators, engineering workshops, automation integrators, local business services. When production ceases, these networks unravel. Young people see fewer reasons to stay, schools lose roll numbers, and community struggle. Once this cycle takes hold, it is […]

McCain employees walking towards production facility

Turning manufacturing around

The announcement by McCains of their closure in Hastings and that of Heinz Wattie’s to close three sites around the country has come with a (wait for it) vacuum of comment, suggestions and concern. Neither does it affirm the benefits of having fifty cent cans of vegetables coming into NZ for sale in supermarkets. It shows greed is alive and kicking! Especially if growers need to readapt and align with the dairy and sheep sectors to survive. Where are the industry leaders, Government officials and ministers leading the charge to do something about the situation, so we do not continue to see the reduction in manufacturing throughout this and other sectors? Have any ideas been expressed and shared as to how this situation can be reversed because, after all, we do want home grown produce and continue to have pride in our land-based industries, don’t we? Is the lack of outrage down to the lack of belief in the ability to come up with concrete ideas to turn the sector around. This must at least be the bottom line to bring about change. Here are a couple you can feed back to me on. Or you might have an idea you want to share: Idea No.1 Is it possible for all affected growers to pull together their produce and start a grower’s co-op, on the North Island and on the South Island, to take on the supermarkets, get a decent return for their efforts and continue to have the populous support “home grown”? Idea No 2 The nation of 5m deposits $1 a week, for a month, into a bank account, NZ Future Manufacturing (for example). After the month there will be $20m in the account. A site is selected, central North Island (Palmerston North, for example) where a manufacturing […]

Ecostore: Building world-class sustainable manufacturing from Auckland

Offering environmentally responsible and eco-friendly alternatives to conventional products has been the goal of Ecostore since its foundation in 1993. That purpose is backed by a sophisticated manufacturing operation in Auckland, where ecostore develops, manufactures and packs its home cleaning, personal care and baby products at its own Toitū Net Carbon Zero-certified factory in Pakuranga. A B Corp-certified business with products sold across New Zealand and into multiple export markets, Ecostore’s growth story is one of continuous improvement. The EMA’s Nicholas Russell spoke to Ecostore Chief Operating Officer Tony Acland about how the company has used smart design, practical technology and better factory flows to lift performance, capability and scale. How does manufacturing support ecostore’s growth and export strategy? Tony Acland: Manufacturing is at the heart of Ecostore’s business model. By owning our production and packing, the company can move faster on product innovation, control quality, and continuously improve how products are made. As demand has grown over the past decade, the focus has been on redesigning layouts, upgrading equipment and improving material flows so the factory can scale efficiently while maintaining high environmental and quality standards. That mindset has driven major changes in how the site operates, from relocating and re-positioning key production equipment into brighter, cleaner, better-ventilated areas, through to re-engineering how raw materials and packaging move through the facility. The result is a manufacturing environment that better supports higher volumes, smoother workflows and more consistent output. What practical investments have made the biggest difference on the factory floor? Tony Acland: One standout example has been investing in equipment that improves both efficiency and accessibility. The installation of vacuum bag lifters means powder batches can now be manufactured without manual handling of large volumes, making production faster, safer and more inclusive for a wider range of workers. Space and logistics were another key focus. As […]

Exporting in 2026: Sustainability and proof

Exporters are not being asked for their sustainability commitments. They are being asked to prove them. Across global markets, sustainability is becoming a condition of doing business. Not because it is the “right thing to do” (although it is), but because regulators, retailers and procurement teams are building sustainability into the rules of trade. Eloise Joiner, Sustainability Lead at New Zealand Trade and Enterprise (NZTE), shared with thinkstep-anz team at our recent team days what NZTE is hearing directly from exporters and what this means for New Zealand businesses trying to grow internationally. Her talk was a timely reminder that while the sustainability conversation may feel noisy, complex and sometimes uncertain at home, the international direction is clear. Here are our takeaways Regulation is moving fast and it is not just climate Eloise highlighted that around 70% of New Zealand exports go to countries with mandatory climate disclosures either proposed or enforced. But climate is only one part of the picture. Exporters are also navigating requirements related to modern slavery, packaging, end-of-life responsibility and product design. For many companies, the challenge is not a single regulation. It is the growing number of overlapping requirements across multiple markets. The result is a system that is often fragmented and hard to interpret, particularly for businesses exporting to more than one region. \ The EU is setting the pace and everyone else is watching Eloise made it clear that Europe is setting the direction on sustainability requirements, and exporters will increasingly need to respond. Read more about the Europe’s sustainability demands on NZTE’s website. The challenge is not just the volume of regulation. It is the complexity, fragmentation and ambiguity, especially for companies selling into multiple markets. New Zealand’s domestic policy signals may not match what exporters face internationally. Despite any changes New […]

Why our car dependence is now a strategic liability

Timothy Welch, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau The war in Iran and the effective closure of the Strait of Hormuz have sent oil prices past US$100 a barrel – and Kiwis flocking to fill up. Petrol just hit NZ$3 a litre and some stations have reported running dry. In response to about 20% of the world’s oil supply being shut off in just a few days, the International Energy Agency announced its largest-ever coordinated reserve release of 400 million barrels. But analysts warn oil could reach US$150 a barrel if the strait stays closed. For a country that imports every drop of its petrol, diesel and jet fuel, this is not only a problem, it’s a hard reminder New Zealand has failed to mitigate such strategic vulnerability. Since Marsden Point stopped refining oil in 2022, New Zealand has imported all its refined fuel, mostly from South Korea and Singapore. Those refineries rely on crude oil shipped through the waters now blocked by Iranian drones. The latest official fuel stocks update suggests roughly 52 days of total cover, with less than 33 days of petrol in the country. This buffer was only designed to smooth over short disruptions, not substitute for a prolonged supply crisis. Motorists are already starting to hoard supplies, with petrol stations in Auckland already selling out of fuel cans. Some drivers may well be regretting not having bought an electric vehicle earlier. Failure to electrify New Zealand generates more than 85% of its electricity from renewable sources – rising to a record 96.4% in the last quarter of 2025. It has one of the cleanest and most oil-independent electricity systems in the world. Yet transport, which consumes nearly 40% of all energy in the country, remains almost entirely chained to imported oil. Electricity provides just 0.5% of domestic transport energy. It didn’t have to be […]

Tech companies are blaming massive layoffs on AI

Uri Gal, Professor in Business Information Systems, University of Sydney In the past few months, a wave of tech corporations have announced significant staff cuts and attributed them to efficiency gains driven by artificial intelligence (AI). Companies such as Atlassian, Block and Amazon have announced they would lay off thousands of employees due to increased reliance on AI. The narrative these companies offer is consistent: AI is making human labour replaceable, and responsible management demands adjustment. The evidence, however, tells a more nuanced story. The automation story is partly true Genuine disruption is visible in specific corners of the labour market, though the scale of that disruption is commonly overstated. Research from Anthropic published earlier this month shows that although many work tasks are susceptible to automation, the vast majority are still performed primarily by humans rather than AI tools. Moreover, some occupations are more exposed to displacement than others: computer programmers sit at the top of the list, followed by customer service representatives and data entry workers. Yet even within the most exposed occupations, AI use is still limited. The aggregate economic data reflects this reality. A 2025 Goldman Sachs report estimated that if AI were used across the economy for all the things it could currently do, roughly 2.5% of US employment would be at risk of job loss. That’s not a trivial number. However, the report notes that workers in AI-exposed occupations are currently no more likely to lose their jobs, face reduced hours, or earn lower wages than anyone else. The report does note early signs of strain in specific industries. Goldman Sachs identifies sectors where employment growth has slowed that align with AI-related efficiency gains. Examples include marketing consulting, graphic design, office administration and call centres. In the tech sector, US workers in their 20s in AI-exposed occupations saw unemployment rise by almost 3% […]

Workplace literacy: The hidden lever of performance

Adam Harvey, Business Performance Partner – Manufacturing, The Learning Wave We all know the story: New Zealand productivity lags behind much of the OECD. For years, it’s been in reports, debated at conferences and written in board packs. You feel it when the same issues resurface, rework creeps back in, downtime conversations repeat, and new kit doesn’t deliver what it promised. Travelling the country and visiting Kiwi manufacturers, one thing is clear: there’s ambition everywhere. New systems being introduced, digital dashboards going up, automation projects underway, and capital being committed. There’s no shortage of intent. That’s progress. It’s the right direction. But there’s an uncomfortable truth that needs to be addressed. New systems, processes and tools don’t create better performance on their own. If the people closest to the work aren’t confident reacting to change, interpreting data, using the tools, and actively improving waste, quality and efficiency, productivity and performance rarely changes. Not because your team doesn’t care. But because the capability required to unlock that next performance level hasn’t kept pace. The real constraint holding us back In many cases, that capability gap traces back to something we don’t talk nearly enough about in manufacturing: low workplace literacy and numeracy. Not school maths. Not essay writing. Workplace skills. Reading a job sheet and understanding what it needs. Identifying problems and asking the right questions. Speaking up and asking questions when they aren’t sure. Across Kiwi manufacturing, the data is confronting. At least half of all frontline workers don’t have the skills to thrive in increasingly complex plants. When those skills aren’t strong, performance leaks. The silence when you ask for questions? The issues noticed but not raised? The instruction acknowledged but not followed? All likely literacy challenges. And as new tools, systems and processes roll in, those gaps […]

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