Productivity

Company Profile: South Waikato Precision Engineering

Fiona Schroeder, General Manager How are you finding current business conditions? Business has been tough over the last 12 months, across the board, our customers have been “down” and experiencing lower demand. However, it would seem there are some green shoots which will hopefully mean that we have hit the bottom and are now looking forward to a period of gradual growth. What are the main activities of your company? South Waikato Precision Engineering is a manufacturing engineering business. We design and manufacture KNAPP spreader bars, lifting beams, man cages, skid steer attachments and excavator attachments including thumbs. We also manufacture parts for other New Zealand Manufacturers. With 11 CNCs and offline programming, we machine a wide variety of precision parts including tooling steels. We also have fabrication and welding, giving us the capability to manufacture welded parts that require machining in one place rather than having to use two separate suppliers. Our assembly team assemble manufactured parts into sub-assemblies for customers to streamline their manufacturing production. Where are future opportunities for growth, for your company? From a production manufacturing perspective, South Waikato Precision Engineering is partnering with New Zealand manufacturers to produce parts and provide sub-assemblies with the goal to reduce production costs and increase efficiencies to ensure our customers remain competitive in the global market. We believe this approach of assisting our manufacturing customers to reduce costs and use an external supplier to change fixed costs to variable costs will continue to create opportunities for growth both for South Waikato Precision Engineering and our customers. For our own products, KNAPP has the largest range of certified spreader bars and lifting beams available in New Zealand with growing demand from Crane and Hiab companies, manufacturers and warehouses that require compliant, certified lifting equipment. We also see growth in opportunities […]

Smart manufacturing and the UK government’s industrial strategy

In the following article from the UK there is some good learning to be had for NZ Manufacturers, and if they are listening, Government (MBIE particularly Small Business & Manufacturing), and other key stakeholders on the importance of a solid strategic approach to achieve higher levels of productivity using technology. The UK’s Industrial Strategy, that was released this year, is focused on Advanced Manufacturing with a significant growth target to be achieved with significant investment in the sector growing from the current business investment of £21bn to £39bn in 2035. Clearly not the sort of investment we could compete with in NZ but does demonstrate that investing in Smart Manufacturing is worthwhile for economic prosperity. Within the article are a series of logical steps that can be applied to any industry sector to prepare for and use technology to be a smarter manufacturer. The article is written by James Watson, Parter with Argon & Co, along with Rachel Noll, Manager of Data/AI at IRIS. Smart manufacturing and the UK government’s industrial strategy With a fresh 10-year blueprint for economic growth, the UK’s Industrial Strategy puts advanced manufacturing at the heart of its ambitions. James Watson and Rachel Noll at Argon & Co explore how smarter use of data, automation, and robotics can help manufacturers unlock productivity, resilience and long-term growth The UK Government’s newly launched Industrial Strategy was long in the making, but has arrived with bold ambitions. Its 10-year roadmap for economic growth has a firm bet on advanced manufacturing as one of the eight high-potential industries in the UK, along with sectors like financial services, clean energy, and life sciences. For many operating in this sector, this support couldn’t have arrived soon enough. Manufacturing has been pushed from disruption to disruption, hampered by inflation, persistent labour shortages, and […]

Construction 4.0 Technologies

Opportunities and Scalability for Aotearoa New Zealand’s Construction Industry By Dr. Troy Coyle, CEO, HERA Introduction The construction industry is undergoing a major transformation thanks to new digital technologies, a shift often called Construction 4.0. Inspired by the smart technologies that revolutionised manufacturing, these innovations are now changing how buildings and infrastructure are designed, built, and managed. This overview highlights some of the key technologies shaping this change and considers their potential for New Zealand’s construction sector. The emerging technologies research theme of HERA’s Ngākopa Construction 4.0 project, led by Prof Robert Amor from the University of Auckland, aims to identify the technologies that can support a transition to construction 4.0. Summary of key technologies in Construction 4.0 Building Information Modelling (BIM) is a way of creating detailed 3D digital models of buildings that everyone involved in a project can use. Instead of relying on flat blueprints, BIM lets architects, engineers, and builders work from the same interactive model, reducing mistakes and improving teamwork. It also helps plan costs, timelines, and even assists with managing buildings after construction. The Internet of Things (IoT) connects sensors, tools, vehicles, and even workers on a construction site, collecting real-time information about everything from weather conditions to equipment status. This data helps managers improve safety, avoid delays, and make better decisions by keeping track of what’s happening on site at all times. Augmented Reality (AR) allows project teams to view digital designs overlaid onto the real world using mobile devices or special glasses. This makes it easier to spot design problems early, estimate costs accurately, and manage quality directly on site. Knowledge-based systems use smart computer programs to analyse risks, project timelines, and safety issues, helping teams make better decisions by understanding complex data and uncertainties. Computer vision uses cameras and drones to watch construction sites, automatically spotting safety risks […]

AI is peeling back the layers of ‘low-value’ work

Kenny Ching, Senior Lecturer, Business School, University of Auckland, Waipapa Taumata Rau As generative artificial intelligence (AI) advances at breakneck speed, it is upending assumptions about which jobs are “safe” from automation. Disruption now extends well beyond manual or routine work into white-collar roles once considered untouchable. Tools such as ChatGPT, Claude and Midjourney can produce policy briefs, analytical reports, software code, design assets and marketing copy in seconds. Even in specialised domains, systems such as PolicyPulse can generate structured briefs and thematic syntheses – tasks that once required teams of experts. If AI can so easily replicate large swaths of professional output, how much of the economy rests on work that creates the appearance of value rather than tangible impact? And could New Zealand – anchored in sectors rooted in physical work, human judgement and essential services – be structurally better placed to thrive? AI’s exposure effect A 2023 Goldman Sachs report estimated generative AI could automate work equivalent to 300 million full-time jobs globally. The highest exposure is in administrative, legal and other information-heavy sectors. In 2024, the International Monetary Fund warned that economies reliant on high-skilled services – such as education, law and finance – face both job losses and rising inequality. This echoes author David Graeber’s concept of “bullshit jobs” – roles that add little genuine value. Between 2000 and 2018, most net job growth came from low productivity service sectors such as marketing, consulting and corporate administration. These are precisely the kinds of tasks AI can now perform in seconds. The OECD has noted routine information processing jobs face the greatest risk. AI is not only replacing roles – it is revealing how insubstantial many of them were. Some argue finance illustrates this reality starkly: intended to allocate capital efficiently, the sector has expanded beyond its productive purpose. Businessman Adair Turner famously called much of […]

Kiwi exporters can plan and adapt now we have some tariff certainty

By EMA Head of Membership & Export Simon Devoy New Zealand exporters were dealt a tough blow at the start of August as the United States confirmed an unexpected increase in tariffs on our goods, from a widely predicted 10% to 15%. It appeared the New Zealand government and our trade negotiators had been working on the assumption that the rate would be held at 10%, but that understanding evaporated with a decision made directly by President Donald Trump. The shift reflects Washington’s new trade-first, numbers-driven approach, which leaves little room for nuance or negotiation. In this worldview, a trade surplus equals punishment, and despite New Zealand’s relatively modest NZ$500 million surplus with the US, we found ourselves in the higher tariff bracket while competitors such as Australia and Chile remained at 10% thanks to deficits in recent months. Minister for Trade and Investment Todd McClay, accompanied by New Zealand’s top trade negotiator Vangelis Vitalis, is in Washington to press the case for a reversal. They are there to register concern, seek an explanation for the extra 5%, highlight the strain this places on New Zealand–US relations, and explore a path back to a lower rate. However, the message from the US side has been blunt: the Trump administration believes America has been “ripped off” in past trade arrangements and is determined to redress what it sees as imbalances. For New Zealand, the reality is we have limited leverage. One example of an avenue we could go down is strategic procurement, such as directing some of our planned defence upgrades towards US manufacturers to help offset the surplus. While not a quick fix, such moves could be part of a wider diplomatic and economic strategy. Despite the blow, the latest announcement at least brings certainty after months of speculation and […]

More tools in the toolbox for manufacturing

By Chris Penk, Minister for Small Business and Manufacturing Being the Minister responsible for advocating for New Zealand’s magnificent manufacturers comes with the benefit of being welcomed into factories around the country for tours and meetings. From racing car seats and top-grade pharmaceuticals to steel, bread, and plastic containers, there’s a wealth of products made right here in our backyard beyond what the average Kiwi could even imagine. Time and again, when visiting these businesses, I hear two consistent messages: they need skilled workers to grow, and they need fewer obstacles when selling their world-class products internationally. That’s why I’m proud to share two recent wins that directly respond to those calls and aim to give the manufacturing sector a real boost, helping it grow and build confidence—something very welcome amid the tough global and economic climate. First, we’re tackling one of the most persistent challenges facing the sector: skills shortages. Welders, fabricators, machinists, panel beaters – these are the roles that keep factories running and businesses growing. Unfortunately, in too many regions, there simply aren’t enough people to fill them. With thanks to my colleague, Immigration Minister Erica Stanford, I sincerely hope this pressure is about to ease. Starting in August, ten additional manufacturing and trades roles will be added to the Green List’s Work to Residence pathway. Eligible migrants working in these roles will be able to apply for residency after just two years of experience with an accredited New Zealand employer. This practical change will help fast-track the talent manufacturers need to keep moving. Whether it’s a vehicle painter in the Far North or a pressure welder in the deep south, these roles are crucial to daily operations, and the Government appreciates that bringing in the right people is crucial in providing the stability businesses need to […]

New Zealand is poor because it chooses to be

-Sean Doherty Sir Paul Callaghan famously declared: “New Zealand is poor because it chooses to be.” Nearly 15 years on, with the decision to dissolve Callaghan Innovation the agency bearing his name, these words ring truer than ever in 2025. At this turning point, New Zealand must decide: Will we finally address the innovation deficit by embracing high-value manufacturing, or continue on a path of slow, incremental change? The productivity trap New Zealanders are admired for their work ethic and creativity. Yet, the nation continues to lag behind its global peers in productivity and prosperity. The key reason? An overreliance on low-value, commodity-driven industries rather than advancing technology-rich, high-value sectors. Despite technological progress worldwide, New Zealand’s per-capita prosperity growth has not matched high-value, knowledge-led economies over the past two decades. International comparisons Israel, Singapore, and Ireland are cited as examples of nations that have transformed through purposeful investment in advanced research, tech-enabled manufacturing, and robust support for innovation and entrepreneurship. These countries consistently invest in science, technology, and high-value manufacturing, creating dynamic economies with sustained prosperity. The power of innovation Sir Paul Callaghan stressed that true prosperity can only be achieved by focusing national efforts on innovation-intensive sectors. Efforts to “pick winners” in areas like biotech, agritech, and clean tech have delivered mixed results, highlighting that the most transformative advances come from empowering New Zealanders to innovatively solve challenges and seize opportunities—often in surprising, unscripted ways. “Prosperity doesn’t grow from following the script of what other Governments are doing; it emerges from innovators taking risks and building new niches.” Time for a new roadmap The closure of Callaghan Innovation and changes to science agencies will achieve little unless policy, business, and scientific leadership rally behind a new, bolder strategy. This pivotal moment calls for action: Backing High-Tech manufacturing Shift from […]

ABB study shows New Zealand industries step up to lead Asia Pacific’s energy transition

Independent study commissioned by ABB reveals that 77% of New Zealand business leaders in key industries are allocating over 10% of their capital expenditure to energy transition initiatives over the next five years. Technological advancement identified as a top driver of the energy transition, with 67% citing it as having the greatest potential to accelerate progress. New Zealand’s high share of renewable electricity – around 85%, mainly from hydropower, geothermal and wind energy – gives it a strong foundation to lead the Asia-Pacific region in decarbonisation. The ABB Asia Pacific Energy Transition Readiness Index 2025 in collaboration with Sandpiper Research and Insights has surveyed close to 4,100 business, IT, and sustainability leaders responsible for technology, electrification and automation strategies across 12 markets in Asia Pacific – Australia, Mainland China, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The respondents are drawn from key industries including property & infrastructure, chemicals & refining, data centres, energy & power generation, industry & manufacturing, steelmaking, machinery & mining, pharmaceutical & life sciences, oil & gas, transportation, and water & waste solutions. A key finding was that Kiwi companies are investing heavily in clean energy, automation and digitalisation. Anders Maltesen, President of ABB Energy Industries Asia, says, “New Zealand’s high share of renewable electricity – around 85%, mainly from hydropower, geothermal and wind energy – gives it a strong foundation to lead the Asia-Pacific region in electrification and decarbonisation. But to meet net-zero by 2050, electricity use must increase by over 60%, and that means there’s urgency to scaling smart technologies and modernising ageing infrastructure.” Business is increasing green investment, and geopolitics is an opportunity to lead More than 200 respondents were surveyed from New Zealand and the findings show that 77% (73% regionally) are allocating over 10% of […]

How an elite athlete system could unlock new levels of productivity in NZ manufacturing

-Mark Devlin, Impact PR New Zealand’s manufacturers have long punched above their weight. Despite our relatively small domestic market and geographic isolation, Kiwi businesses have found ways to innovate, adapt, and produce world-class products. But there’s one area where we continue to fall behind global benchmarks, and that is workforce productivity. In a sector where efficiency, speed, and output are constantly under pressure, how we support and develop human performance should be central to every productivity conversation. Yet all too often, manufacturers focus their investment on new machinery, process automation, or software upgrades, while overlooking the untapped potential within their people. That is why a new system, originally designed to help elite athletes deliver peak performances under pressure, could represent a game-changing opportunity for our industry. Vantaset, a New Zealand-based performance company, has developed a science-backed workplace platform that helps individuals and teams consistently deliver their best. It was created by Craig Steel, a performance expert whose research into the psychological breaking point of athletes led to a repeatable framework now used in both public and private sector organisations. This is not a motivational workshop or a leadership seminar. It is a codified, platform-based performance system grounded in decades of data and testing. Developed by a team that includes a former All Blacks manager and two Olympians, the Vantaset framework was originally designed to help elite athletes deliver peak performance on demand. It has since been refined into a platform-as-a-service (PaaS) model that organisations can implement across their entire workforce. What makes this particularly relevant for manufacturers is the platform’s focus on helping people function effectively in high-pressure environments. Unlike many workplace performance tools that are reactive-used to manage poor results or resolve personnel issues-Vantaset’s system is designed to proactively lift output and engagement. This approach is especially powerful for […]

Carbon claims: Get the language right and the facts straight

-thinkstep-anz If you’re sharing your organisation’s carbon footprint, net zero goals or carbon neutral status, it’s vital to communicate clearly and accurately. Getting it wrong could damage your reputation, open you up to legal risk or erode trust with your customers and stakeholders. Strong carbon claims can show leadership, but only if they’re backed by real action and solid evidence. The good news is: once you understand the terms, it’s much easier to get them right. Why clarity matters more than ever In today’s fast-moving policy and regulatory environment, environmental claims are under increasing scrutiny. We’ve seen businesses taken to court for inaccurate or unsubstantiated claims. To stay on the right side of the law – and the right side of your customers – you need to be cautious and well-informed. This article explains the key carbon terms and offers practical advice to help manufacturers communicate responsibly. What the key carbon terms mean Carbon neutral Your business, product or service has measured its emissions, taken action to reduce them and used offsets to balance what’s left. You need: a defined scope (e.g. your head office or a specific product line), a timeframe, a verified carbon footprint and a credible reduction plan. Use offsets only for emissions you genuinely can’t avoid, after reduction efforts. Standard to follow: ISO 14068. Example: A manufacturer measures and verifies its emissions for 2023, reduces what it can and offsets the rest using certified carbon credits. It communicates: “Carbon neutral for our Christchurch site in 2023, certified to ISO 14068.” Net carbon zero This means deep emissions cuts first, and offsets only for what’s unavoidable. It’s typically applied to entire organisations. You need: to follow the Science Based Targets initiative (SBTi) approach – prioritising genuine emissions reductions. Offsetting alone is not enough. You must reduce most […]

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