NZ Productivity Organisation

Will the budget boost small firms? Not in the way we might think

Rod McNaughton, University of Auckland, Waipapa Taumata Rau With the lid lifted on Budget 2026 many small and medium New Zealand businesses will be poring over the detail to see what it has in store for them. Many may come away disappointed. With the government having been upfront about its spending constraints, this budget was never likely to deliver a large new package for small firms. Instead, the budget delivers a mix of smaller compliance changes, infrastructure spending and energy transition support. It also includes funding for advisory services, digital systems, early-stage capital initiatives and small-business capability programmes, alongside changes to research and development support. It might be asked whether this mix of small initiatives adds up to anything that will lift productivity. But aside from offering direct support, budgets can also act as useful signals from government. On this test, this budget appears strongest on encouraging restraint and resilience in a difficult economic environment, even if it is less clear how ordinary small and medium firms are expected to become more productive. That is important because New Zealand’s productivity problem will not be solved by large firms, infrastructure projects or high-growth startups alone. It also depends on whether thousands of everyday businesses can lift capability, adopt technology and improve margins. There is an important distinction here. Business support helps firms navigate rules or cope with pressure. Productivity policy helps firms change how they create value. If we look closely, there are measures in the budget to assist in both areas. The hidden small-business budget Several budget initiatives are relevant to small firms. Simplified fringe benefit tax rules for private motor vehicle use will be welcomed by owner managers, trades businesses and service firms. Removing detailed logbook requirements may not sound transformational, but compliance time is time taken away from customers, […]

Critical materials: the hidden supply chain risk for manufacturers

By Jim Goddin, Head of Circularity at thinkstep-nz The Iran crisis has exposed a hard truth for global business: supply chains are only as resilient as their weakest link. When conflict disrupts major trade routes, the effects spread quickly through the wider economy. The immediate shock may be geopolitical, but the underlying business problem is dependence. Too much reliance on fragile external supply chains leaves companies exposed when conditions change. This is where critical materials come into focus. For years, discussion has centred on critical minerals such as lithium, cobalt and rare earth elements. These matter, and governments are right to worry about them. But for business, the more immediate issue often sits further along the value chain. What matters operationally are critical materials: batteries, magnets, alloys, catalysts and electronic components that deliver the performance modern products depend on. These materials are often hidden within products, used in low concentrations and difficult to substitute without losing performance. They are also tied to long, complex and fragile global supply chains. That makes them a resilience issue, not just a resource issue. For New Zealand manufacturers, this matters because distance, scale and reliance on imported components can amplify disruption. Many manufacturers operate in specialised markets where a single component, supplier or shipping route can determine whether production continues smoothly. Resilience is not only about holding more stock. It is about understanding where value sits, where dependencies exist and how materials can be kept working for longer. The transition to renewables must also be resilient None of this is an argument against renewables. Quite the opposite. Greater use of renewable energy is critical because continued dependence on oil and gas leaves economies exposed to repeated price shocks and geopolitical disruption. But the transition brings a second challenge. Many renewable and low-emissions technologies […]

A New Service to Power Your Projects

We’re heading back to EMEX 2026, and this year we’ve got something new to share. Complex projects rarely sit neatly inside one discipline. Electrical design, automation, controls, mechanical design, commissioning, and documentation all need to line up. We’ve introduced Automation & Controls so we can support clients across more of the engineering work it takes to get complex projects delivered. From mechanical design and project engineering through to electrical design, automation, commissioning, and documentation, our goal is to help keep the technical pieces connected and moving. Caliber Design has been supporting New Zealand engineering companies for 11 years, working with more than 300 companies across 1200+ projects. Our model is simple: we provide talented engineers on a seconded basis, embedded in your team, working within your systems, standards, and processes to help get projects over the line. Until now, that’s meant mechanical design, FE analysis, product development, and project engineering. With our new Automation & Controls service, we can now support clients across a broader mix of disciplines. Our degree-qualified engineers can support electrical design, PLC, HMI and SCADA development, commissioning, documentation, and project support, while you retain full control and ownership of the work. We’re also contributing to the EMEX seminar programme. Daniel du Plessis, our Auckland Regional Manager, is presenting Project Plans Don’t Solve Technical Problems on Wednesday 27 May at 2pm. Dan’s session looks at the gaps that can open up between design, procurement, fabrication, installation, and commissioning, and how technical leadership can support more successful outcomes. EMEX is always a great chance to celebrate the depth of Kiwi engineering and manufacturing innovation. We’ll be keeping an eye out for stories for our monthly Celebrating Kiwi Innovation newsletter. If you’d like to be featured, come and find us at Stand 1015. We currently have vacancies throughout the […]

Listening harder in a noisier world

By EMA Head of Membership and Export Simon Devoy If there’s one thing Kiwi manufacturers and exporters don’t need in 2026, it’s more noise. Between tariffs, geopolitical tensions and the return of supply chain disruption, clarity is harder to find. That is why the ExportNZ DHL Export Barometer matters, and why more manufacturers and exporters need to contribute to it. The EMA supports ExportNZ’s work north of Taupō, connecting exporters across the Upper North Island into a national advocacy voice. That voice is only as strong as the evidence behind it. The Barometer is one of the clearest ways we can cut through uncertainty and influence the policy and support settings that shape global competitiveness. The 2025 results showed resilience under pressure. Nearly half of exporters increased export orders, and a further third held steady. That performance stands out given the backdrop. Beneath that headline, serious pressures remain. Logistics continues to be the number one constraint. Even as shipping costs remained high but relatively stable, 72 percent of exporters still cited shipping costs as a supply chain impact. With continued instability across key global trade routes, those costs are again under pressure. For manufacturers operating on tight margins, this directly affects competitiveness. At the same time, concern about global trade tensions has increased sharply. The proportion of exporters worried about escalating trade wars has more than doubled year on year. Tariffs, particularly in the United States, are adding complexity, even where the full impact is still unfolding. There is also clear opportunity in the data. Manufacturers and exporters are adapting by developing new products, strengthening their digital presence, and exploring new markets. The United Kingdom and Japan are gaining traction, while Australia and the United States remain core markets. These insights directly inform the EMA’s annual Global X Summit, which […]

Leadership: The difference between the plan you have and the results you get

Adam Harvey, Business Performance Partner – Manufacturing , The Learning Wave You can feel good leadership before you see it. A strong shift hums. There’s a rhythm: Clean handovers, problems solved where they happen, and a team that knows what “good” is. Output is steady. Waste is controlled. The team owns it. You can feel a weak one too. The plan exists…somewhere. Standards are vague. Rework builds without anyone asking “why”. And when you’re in it, it feels like you’re constantly chasing your table. Most manufacturing businesses don’t have a strategy problem. They have a leadership one. The productivity illusion Right now, the industry is full of intent. We’re chasing efficiency with everything we’ve got. New systems. Dashboards. Automation. Continuous improvement programmes. Everyone is chasing that extra 2% of output. It feels like progress. But if your leaders on the floor can’t lead performance, none of it sticks. If they can’t set clear expectations, keep the team focused on what matters, and have the tough conversations when standards slip, you haven’t improved performance. You’ve just made inefficiency faster. It’s like putting a faster engine into a car with no steering. It moves. But not where you need it to. Where the performance actually leaks Most leaders can’t pinpoint where the operation is losing performance because it doesn’t show up as one big issue. It leaks. A missed standard. A shortcut. A conversation avoided. A problem escalated that should never have left the floor. Individually, small. Across a shift, expensive. The biggest leak is “silence on standards”. Every time a leader sees something off and says nothing, the standard drops. And once it drops, it spreads. Most frontline leaders aren’t underperforming because they don’t care. They’re stuck. Reacting. Firefighting. Being the best operator instead of the best leader. But the moment […]

EMEX is with us again

From May issue, NZ Manufacturer magazine The latest version, EMEX 2026, is mere days away. The most focussed trade fair for manufacturing businesses in New Zealand continues to display the latest and advanced equipment and technology which our companies require to improve their levels of Productivity and to make better their chances of success on local and export markets. There is no getting away from the fact that New Zealand’s future depends on continuing to find avenues overseas for our quality products. We can’t, of course, guarantee markets. We strive to be product perfect and cost competitive, in a cluttered world where it is everyone for themselves. And the technology and expertise from EMEX 2026 can help your company get there. There is a real plethora of events for your interest, including the Make NZ Industry Conference; the Epicor Knowledge Theatre; Harnex AI Workshops; the Minister for Manufacturing Awards; plus, a host of Industry Speakers, including Ian Walsh from Argon & Co and David Altana from The Better SMB, to bring you up to date with expert advice for better business. Enjoy the trade show, savour in the experience, make new business contacts and make every second count as you network for your company’s future. -Doug Green, Publisher, NZ Manufacturer magazine

World-First construction tech could cut building emissions by 80%

-Mark Devlin New world-first technology developed to prevent design errors from cascading throughout the country’s most complex construction project to date could reduce cost overruns in New Zealand’s $275bn infrastructure pipeline by millions of dollars, as well as cutting new building emissions by up to 80%, according to new data. Modelling from the Government’s $290m Te Rua National Archives shows that if digital twin technology is introduced from the design stage of large-scale projects to identify and address flaws across the infrastructure pipeline to the levels achieved on Te Rua, where contingency spend was held to five percent against an industry average of up to ten percent, New Zealand could potentially avoid millions of dollars in construction cost overruns. Data also shows that the preventative maintenance capability of the technology could reduce operational carbon emissions of a building by up to 80%. It is believed that with the integration of AI, the methodology could also be adapted for use in New Zealand’s planned multibillion-dollar healthcare infrastructure programme to produce clinically safer environments for patients. The recently completed Te Rua Archive in Wellington is the most technically demanding building ever constructed in New Zealand. Designed to remain operational after a one in 1,800-year earthquake, it must maintain temperature and humidity within a one degree tolerance for at least 48 hours in a power failure to protect taonga and government records held under UNESCO Memory of the World obligations. Phill Stanley, portfolio manager for ASX-listed Dexus, says these performance requirements meant the project could not rely on traditional construction methodologies, as even minor errors would have compromised the stability of the collection. “When you are managing irreplaceable taonga and national records, there is no margin for error. Any design flaw that affects temperature, humidity or structural performance directly threatens the integrity of […]

World class is not optional

From May issue, NZ Manufacturer magazine Ian Walsh, Partner, Argon & Co While there are industries — car assembly, for example — where the economic case for local production can be debated, food is different. Producing food is something we should be doing. More than that, it is something we must do well. The story of Heinz — and by association Wattie’s — is one that is very near and dear to my heart. I have worked in this business on and off since the 1990s, in the UK, the US, and across ANZ. That lived experience matters, because this is not a theoretical discussion about ownership structures or ideology. It is a practical lesson in how value is built over decades — and how it can be lost just as surely. Under the leadership of Tony O’Reilly, Heinz became one of the great global food companies of the late twentieth century. Through the 1980s and early 1990s, the strategy was clear: disciplined international expansion, strong brand investment, and relentless focus on cost and productivity. The acquisition of Wattie’s in 1992 — for approximately NZ$565 million — fit this pattern perfectly: a category‑leading local brand with deep trust and export potential. Markets rewarded this approach. By the early 1990s, Heinz’s market value had grown to roughly US$10–15 billion. Scale, brand power, and operating discipline reinforced one another. But acquisition‑led growth is never free. Each successive wave of M&A expanded the footprint and lifted shareholder expectations. With every deal came aging assets, capital‑intensive manufacturing plants, and increasing complexity. To sustain growth and fund further acquisitions, the base business had to extract more productivity and cut costs. Over time, this narrowed the margin for error. Many manufacturing sites were already under‑capitalised when acquired. They required sustained reinvestment simply to remain competitive. Too […]

Free 60-minute webinar

$144K recovered. 18% more output. When literacy improves, performance follows. As an operational or HR leader, you see the issues every day. Downtime that shouldn’t have happened. Instructions that were acknowledged but not followed. People waiting around for instructions, not sure of what’s next. And a strange silence during safety briefings or shift handovers. Most leaders call it “poor engagement”. Some call it “poor attitude”. But what if it’s not the real problem? The real constraint holding us back In Kiwi operational environments, at least 50% of frontline teams lack the literacy and numeracy skills to thrive in increasingly complex workplaces. Think manufacturing, construction, and logistics, and that figure is closer to 70%. This isn’t an HR issue; it’s a literacy issue showing up as lost performance. And it’s quietly draining your bottom line. What you’ll experience in 60 minutes: The redacted reality: We’ll apply a “CIA-style” redaction tool to a real-life induction document to show you exactly what a worker with an average reading age actually sees. What looks “clear” to you isn’t always readable to them. Connecting the “performance leaks” to the literacy gap: Connect the dots between downtime, rework, missed targets, and silence in meetings. You’ll see literacy gaps where you once saw attitude and engagement issues. How we start with the numbers, not textbooks: Learn how we build capability around your targets, your operational challenges, and your numbers, and strengthen literacy and numeracy to make it stick. What happens when it clicks: We’ll share real Kiwi case studies where teams built the literacy to read and respond to the work, they delivered an 18% lift in output, and recovered $144K in waste. The Operational Performance Diagnostic: You’ll leave with a high-level Operational Performance Diagnostic to pinpoint exactly where your plant is leaking performance Stop guessing. […]

(I wonder) What is in the Budget for manufacturers?

Another Budget, another election year. Lots of hand wringing? I hope not. The business community needs government to invest more and assist to make life better for all of us. Through these challenging times, we are not hearing from Ministers, expressing concerns, or sharing ideas to address the difficulties businesses are facing. When companies are challenged in moving forward, there needs to be options that can assist. Take for example Wattie’s and McCains, where are the Minister for Regional Development and the Minister for Small Business and Manufacturing? If they are working on a plan to improve the lot of these two companies, they are sure not letting business and communities know what is going on. If there are meetings going on, share the outcomes. Regions like Hawkes Bay are renowned for the quality of their products. Growers all over the country too. Rural business is holding the country together, financially, with their ginormous returns for high quality hort and agricultural export products. It is not the Queen Street farmer driving these efforts! In the Budget, we need to see investment into Manufacturing for companies to go forward, with confidence, and continue to grow. Manufacturing companies need the ability to invest in technology to do better and to enhance our market share. Improved technology can result in improved productivity, which can result in an improved bottom line. We cannot have a budget like the one in 2025, when to balance the books, the Finance Minister needed the money that was to be used for equal pay! I get it that in an election year members of Parliament may not want to comment or share ideas with the population because their words may well be remembered, affecting their chances of re-election. However, they work for us; with business, to bring about […]

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