NZ Productivity Organisation

Election Year Excuses? Why Manufacturers Can’t Afford Them

From February issue, NZ Manufacturer magazine David Altena is Head of Growth & Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions We are entering a familiar three yearly cycle of hesitation. As we flip into another election year, a subtle but pervasive “hush” descends over factories from Penrose to Invercargill. Business cases for new CNC machinery get shuffled to the bottom of the pile. Recruitment for that much needed engineer is “put on hold until we know who is running the Beehive.” Election years tempt businesses to pause, waiting for policy clarity. But in manufacturing, hesitation is costly. Whoever wins, the fundamentals won’t change. Capability, capital confidence and innovation still matter. Waiting is the real risk. We have been waiting for the miracle decisions every three years for decades. It is no surprise that the MBIE and Foreign Affairs Long Term Insights Briefing released in December 2025 still describes New Zealand as being stuck in a low-productivity rut. Another report to feed the lack of progress on this subject over the last 40-years. “Wait and see” is not a strategy, it’s slow-motion surrender. (Ab0ve)Rob Bull is Director of The New Zealand Lean Academy. rob@nzla.nz Myth Busting: The “Pause Button” Election-year uncertainty is the ultimate security blanket. It’s the perfect, explainable excuse for inaction, but let’s look at the reality of the productivity gap. New Zealand has struggled with a tail of underperformance compared to our OECD peers[1] and according to The Economist, New Zealand’s economic performance is now ranked 33rd (of 37) in 2024[2] (we were as high as 3rd in the 1950’s!). That gap doesn’t take a holiday because there are billboards on the side of the road and policy ideas thrown about like a lolly scramble. The truth is sitting there right […]

Productivity and baby boomer business owners

From March issue, NZ Manufacturer magazine By Mike Warmington, Platform 1 For many SME baby boomer business owners last year, the economy forced them to think more of productivity and how to do things smarter. Some made strong gains however these were generally the larger SME sized businesses and above. Smaller businesses with long term owners often struggled to pivot to using technology or Ai as an enabler to be more productive. Bringing in a consultant is perhaps an option and there are a multitude of companies running courses and programmes on Ai in social media promising to upskill people 15 min a day for 30 days. But is it helpful to just be a generalist on all the productivity uses in your business ? You can’t do everything and it comes down to ensuring you execute on your critical biggest productivity bottlenecks. Many owners know where their bottlenecks are and it’s not the skills but the willingness to embrace emerging technologies to improve these bottlenecks that is the challenge. Learning something new and foreign later in life can be daunting, when what you want to do, and deserve to do is to slow down. Another option is to find a technology and Ai savvy potential Business Partner to work in your business, using their experience and knowledge to help enable technology and Ai for productivity gains. With planning skills honed in much larger organisations that have training budgets and resources they will work with you to identify bottlenecks and implement productivity solutions. They acquire skin in the game over time to a structured managed plan and you exit with more wealth, as your business becomes more productive and profitable. A business we worked with did over 4000 specialised scheduled preventative maintenance jobs a month managed on an Access database and a […]

Backing Capability: Lessons from Fi Innovations and the Future of NZ Manufacturing

From February issue, NZ Manufacturer magazine New Zealand’s manufacturing sector has always relied on one core strength: capability. Not scale or low-cost production, but the practical skill, judgement, and adaptability of the people who make things here. In a recent podcast, Caliber founder Jonathan Prince spoke with Gareth Dykes and Derek Manson from Fi innovations about how that capability is built over time. Their story is a reminder that sustained engineering know-how, not quick wins, is what underpins resilient manufacturing in New Zealand. Fi Innovations is a Southland business with deep roots. What began as a specialist plaster and fibreglass shop has expanded into composites, industrial flooring, moulding, and now advanced additive manufacturing. They have diversified far beyond their original customer base and invested early in technologies that many companies were still evaluating. Their journey illustrates what it takes for a regional manufacturer to build resilience and stay relevant in a changing industry. One of the strongest themes in the discussion was the role of persistence. Fi Innovations focused on building long-term relationships by showing up, solving real problems, and delivering consistently. Some of their most significant customer partnerships began with small, speculative jobs. Steady effort turned these into ongoing programmes of work. This is a familiar pattern across much of New Zealand industry where trust, reliability, and follow-through often matter more than formal processes. Another theme is the value of people. Gareth and Derek were clear that the strength of their business lies in the capability of their team. Their growth into new materials and technologies was made possible by people who were willing to learn, experiment, and solve problems in practical ways. This emphasis on people aligns with what many manufacturers know: technology investment only works when capability grows alongside it. “We’re not here to make CAD models. […]

Importing gas locks NZ into fossil fuels for longer – just as clean energy surges

Jen Purdie,Senior Research Fellow, Centre for Sustainability, University of Otago The government’s announcement that it would move ahead with plans for a new facility to import liquefied natural gas (LNG), potentially as early as next year, was framed as a way to shore up energy security. But the decision instead marks another major step backwards for domestic efforts to decarbonise. Notably, it comes as communities across the North Island – including Mount Maunganui – are recovering from just the kind of extreme weather events climate change is projected to intensify. With the United States now withdrawing from the Paris climate agreement, and New Zealand simultaneously weakening its own climate settings, it is easy to feel a sense of drift. Despite 89% of people globally wanting stronger climate action, the erosion of the international rules-based order risks pulling more countries away from cooperative solutions. But the energy transition now has real momentum. So how much difference does the US withdrawal from Paris – and New Zealand’s turn back towards fossil fuels – actually make? A setback, not a stop Before the US withdrew, 93% of global emissions came from countries with net-zero policies in place; that figure has now fallen to 83%. The drop would have been larger if not for pledges by 24 US states, along with many cities and corporations, to stick to Paris Agreement targets. So, while the US exit might be a massive blow, it is far from the end of global climate action. Current Paris Agreement pledges and targets would see global emissions peak in the next few years, if countries follow through. Many states – including the US, United Kingdom, China, Australia and Canada – are already recording declines. New Zealand’s emissions have flatlined since 2008 but it is still doing less than its fair share on a per-capita basis. Globally, the race is now on between avoiding dangerous climate tipping […]

2026 off to a strong start for manufacturers

From February issue of NZ Manufacturer magazine By Hon Chris Penk, Minister for Small Business and Manufacturing As I kick off my first manufacturing column of 2026, I want to pass on my best wishes to manufacturers across the country as you return from a well earned summer break. I know many of you will already be back into the swing of things, but I hope the warmer weather is still bringing some enjoyment outside of busy working hours. I am genuinely delighted to see large parts of our manufacturing sector entering the new year with real momentum, supported by the strongest activity levels recorded since 2021. The latest BNZ BusinessNZ Performance of Manufacturing Index shows December 2025 activity rising 4.4 points from the previous month to 56.1. This is a very encouraging signal. New Zealand’s PMI has now shown expansion for six consecutive months and in December it outperformed manufacturing activity in the United States, China, Japan, the United Kingdom and Australia. For an economy of our size, that is a result worthy of recognition. Businesses also reported improved confidence, stronger export and forward orders, and benefits flowing through from increased infrastructure activity. This strong start echoes many of the themes that defined 2025. Manufacturers faced sustained cost pressures throughout the year, yet continued to adapt, innovate and deliver solid export performance. Food and beverage producers, advanced manufacturers and precision engineering firms all showed resilience in the face of challenging conditions. While 2025 was about regaining stability, early indicators suggest 2026 has the potential to deliver stronger forward momentum. Across the wider economy, several trends are beginning to move in a positive direction. GDP rose 1.1 percent in the September 2025 quarter, supported by a 2.2 percent increase in manufacturing and reinforcing how important the sector is to New […]

New Zealand Productivity Organisation wants to hear from you

www.nzproductivityorganisation.co.nz www.nzmanufacturer.co.nz/nzproductivityorganisation The New Zealand Productivity Organisation (NZPO) invites all businesses throughout the country to share their views on Productivity and how they are finding current business conditions. Your company may be doing well or not quite reaching the mark you are aiming for. The economy in 2026 seems to be picking up and the better than expected PMI figures are welcome and a sign of better things around the corner. For each company it will be different, the level of Productivity. Share with us how the tools and methods you are using, the technology and expert advice, showing the way to a better future and just how you are planning ahead. Your story can appear jn the NZ Manufacturer magazine or on the media platform. Please visit NZPO at the above address.

Manufacturing starts year by shifting up a gear

Hon Chris Penk New data showing New Zealand manufacturing is experiencing its highest level of activity since December 2021 signals a strong start to the year, Small Business and Manufacturing Minister Chris Penk says. The latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI) shows the seasonally adjusted PMI for December has risen by 4.4 points compared to November, bringing it to 56.1. “This is an incredibly positive signal, as a PMI reading above 50.0 indicates the manufacturing industry is generally expanding. The data suggests New Zealand manufacturing growth is outperforming major economies including the United States, China, Japan, the United Kingdom, and Australia,” Mr Penk says. “The success of manufacturing is central to the health of the New Zealand economy. The sector directly employs more than 220,000 people, contributes around eight percent of GDP and accounts for 60 percent of our exports. “We know some manufacturers felt the pinch of harder months last year. Today’s great news coupled with a 1.1 percent uptick for national GDP in the September quarter indicates a brighter future for businesses. “The Government is focused on setting the right conditions and fixing the basics so that businesses can thrive. Manufacturers are turning that certainty into growth through hard work and innovation. “The creativity and resilience of the sector, and its contribution to national prosperity deserve to be celebrated. It’s therefore my pleasure to announce the second annual Minister for Manufacturing Awards will be held at Auckland Showgrounds on 27 May. “This year’s awards will again recognise the Manufacturer of the Year, Manufacturing Leader of the Year, Apprentice of the Year and Excellence in Process Innovation. It will also introduce three new categories. “This includes a dedicated Manufacturer of the Year award for businesses with fewer than 50 Full Time Equivalent Employees (FTEs). With around 97 percent of manufacturers falling into this group, opening a new category ensures small businesses receive the recognition they deserve. “An Emerging Manufacturer Leader of the Year award is also being added to shine a spotlight on the next generation of innovators and trailblazers, alongside a Manufacturing Lifetime & Legacy Award to honour those who have […]

The Year in Review – Business Exit Landscape

Mike Warmington, Platform 1 This year has been marked by fluctuations in the business exit landscape. The first quarter saw lots of activity and some deal flow. The middle two quarters saw business owners contemplating transitioning out, more likely to hold off as they endured a tougher sales environment putting the squeeze on their businesses. Our meeting numbers with business owners we had not previously met were significantly up on 2024, however this did not translate into as many engagements as we would normally expect from that level of activity. The market is experiencing record demand from individuals seeking business ownership or transition opportunities. Three Reserve Bank OCR cuts since August and lower interest rates made a noticeable positive difference ,along with increasingly positive business confidence survey results. We have found more business owners we spoke to during the year are only now prepared to either push the button on engagement now or indicate they will take action in early 2026. Having held off through COVID and the recent recession many owners are years behind in their exit planning or executing .In our opinion NZ faces the largest business ownership transition it has ever seen : Over 50% of New Zealand SME owners are aged 55 or older Over 40% of business owners plan to exit in the next 5 years Over 70% of business owners plan to exit in the next 10 years While exact numbers are assumptions, figures from a variety of other sources all quote essentially the same statistics.This demographic reality means thousands of businesses will change hands in the next decade creating both challenges and opportunities. Here’s what I’m seeing in the market: Management Buy-Ins are gaining awareness and traction – external talented entrepreneurial people transitioning in over time. Employee Ownership Models are emerging to keep businesses […]

2026, moving forward together: Competenz deepens support for learners and employers

By Toni Christie: Competenz General Manager – Employer and Learner Experience With apprentices and employers across the country navigating an evolving sector, Competenz focused on stability, support and momentum — strengthening learner pathways and employer capability ahead of the 2026 shift to Industry Skills Boards. More than 7,000 apprentices and trainees are developing their careers through Competenz-supported programmes across New Zealand – everywhere from engineering workshops to plastics manufacturing lines, heating and ventilation rooms, forestry operations and fabrication floors. And in 2025, that collective momentum has only grown. Even as the vocational education system continued to evolve, our focus remained clear: equip learners and employers with the support and confidence they need to make real progress. A major driver of that progress has been the continued strengthening of our Learner Support Framework. The needs across our network have become more varied, and this year the framework supported apprentices everywhere from engineering workshops and plastics plants to fire protection crews and forestry teams. By early 2025, more than 1,000 learners were joining our fortnightly study groups – a sign not just of demand, but of trust and belonging. Support for priority learners has continued to deepen. Whether someone needs help with literacy, numeracy, drawing, or navigating neurodiversity, we’ve ensured there’s a pathway that meets them where they are. Accessibility has remained a priority too, with 300 Chromebooks circulating nationally — many in the hands of learners who would otherwise struggle to engage online. Wellbeing has been another steady thread through 2025. Our partnership with Vitae continued to provide vital mental-health support. Employers have also played a pivotal role in setting apprentices up for success, and in 2025 our nationwide Train-the-Trainer workshops helped build that capability even further. The series focused on practical, real-world coaching skills — exploring how effective on-the-job guidance […]

The Year in Review: A Seconded View of NZ Manufacturing in 2025

-Caliber Design Working inside engineering teams throughout New Zealand gives us a practical view of how the sector is moving. This year we saw steady progress and exciting developments, even with the head winds. Companies continued to advance capital projects, refine equipment, develop new products, and pursue leading edge innovation in emerging fields. While each sector had its own pressures, the overall feel has been one of steady momentum. Manufacturers continued to deal with stretched internal resource, long project lists, the need to keep work moving without disrupting production, and uncertain economic times. Yet across our secondments and conversations, the intent to improve and invest remained consistent, and that intent shaped much of the engineering work carried out this year. Steady improvements in established industries In processing, materials handling, dairy, poultry, and food and beverage sites, we saw ongoing investment in practical upgrades. These were not large transformation programmes, but they mattered. Many involved service layout adjustments, safety improvements, reliability work, and design changes that reduce maintenance effort or improve workflow. This work is almost always carried out in operational environments, which means planning, communication, and sequencing are as important as the technical solution. The projects are varied but typically share a common goal of keeping plants running safely and efficiently while making incremental improvements that compound over time. Emerging technology continued to build momentum At the other end of the spectrum, 2025 saw significant activity in emerging technology. We set a goal to work with seven emerging technology companies this year and ended up partnering with nineteen. That growth is a strong indicator of how much innovation and technical development is happening in New Zealand. Projects spanned aerospace, clean materials, innovative transport, robotics, advanced energy systems, and specialised manufacturing. These companies move quickly, iterate rapidly, and often need targeted […]

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