Productivity

Hutt Valley’s focus on manufacturing’s future

Just released is strategic report 35 BY 35, the ten-year roadmap for Hutt Valley business growth, with a strong focus on manufacturing. The ambitious 10-year plan is to grow the Hutt Valley’s GDP by 35%, increase productivity by 16%, and increase highly skilled jobs by 18% – putting our region at the heart of New Zealand’s manufacturing, research, science and innovation industries; delivering business and community prosperity. There are over 15,000 businesses in the Hutt Valley contributing $10 billion to the New Zealand economy and employing more than 70,000 people. In the picture:Patrick McKibbin, Chief Executive, The Hutt Valley Chamber of Commerce. The plan wants to see: Productivity increase by 18.3% Increase highly skilled jobs by 16.5% GDP increase by 35% Higher average wages More jobs Greater wellbeing Better infrastructure Based on the past five years’ performance alone, linear growth for Hutt Valley is predicted at 30.7% by 2035 (44.1% in Upper Hutt and 26.4% in Lower Hutt). The ambition is to exceed linear growth. Higher productivity than the national average In the financial year to March 2022, the Hutt Valley exhibited a robust productivity level, with GDP per filled job amounting to $138,345. This figure surpassed the national average of $132,815, indicating the region’s higher productivity levels. Productivity growth Productivity in the Hutt Valley in March 2022 demonstrated steady growth, increasing by 2.8% compared to the previous year, outpacing the national increase of 2.3%. This growth trend is indicative of a region that values efficiency and innovation. The Hutt Valley is the engine room of the Wellington region – a vibrant hub of manufacturing, innovation, science and research, and many outstanding support businesses, which together form the thriving business community that we take immense pride in. The region has existing and future plans to invest significantly in construction […]

Digital transformation on a shoestring: Auckland’s innovative approach to manufacturing

A new insights paper from Tātaki Auckland Unlimited reveals how small manufacturers can embrace digital technologies without breaking the bank or risking disrupting their processes. Manufacturing remains a cornerstone of Tāmaki Makaurau Auckland’s economy, contributing more than $11 billion to the region’s GDP and employing approximately 85,000 people. Despite this significant economic footprint, New Zealand’s manufacturing sector faces persistent productivity challenges compared to other advanced economies. A pioneering initiative called Digital Manufacturing Light aims to change this by helping small and medium-sized enterprises (SMEs) in the manufacturing sector take their first steps toward digital transformation. This month, Tātaki Auckland Unlimited (the region’s economic development and cultural agency delivering on behalf of Auckland Council) is releasing an insights paper that introduces the Digital Manufacturing Light concept and shares findings from a successful pilot programme. The Digital Manufacturing Light pilot, which began in April 2022, was led by the University of Auckland in collaboration with Tātaki Auckland Unlimited. Around 20 Auckland-based organisations participated in the pilot, which included workshops and trial deployments of digital solutions. Pam Ford, Director of Economic Development at Tātaki Auckland Unlimited says, “Digital transformation doesn’t have to be expensive or disruptive. By adopting a phased approach using readily available technologies, manufacturing SMEs can create affordable and low-risk digital solutions that provide immediate benefits.” The Digital Manufacturing Light concept draws inspiration from the United Kingdom’s ‘Digital Manufacturing on a Shoestring’ programme developed by the Institute for Manufacturing (IfM) at the University of Cambridge, and is being developed in collaboration with IfM and partners across Australia and New Zealand. It follows similar principles but has been adjusted to suit the New Zealand business environment. This approach is particularly relevant for New Zealand’s manufacturing sector, which is predominantly composed of small businesses. Of the country’s 24,000 manufacturing businesses, only 1.6% employ […]

Upskilling your workforce: the secret weapon to staying ahead in tough economies

Convex, an innovative New Zealand plastic packaging company, sees staff training not just as a strategy, but as a vital driver of success. During the Covid-19 pandemic, the company actively invested in upskilling its people to stay agile through the crisis. Now, with New Zealand businesses facing fresh economic challenges, Convex continues to lead by example — showing how ongoing training builds a stronger, more resilient workforce. Convex Operations Manager Aaron Collett says agility and adaptability have been the key to thriving in an industry as competitive as plastics packaging. “Upskilling is a necessity to being and staying competitive, and for us competition is not just local, it’s global,” says Aaron. “Manufacturing is under pressure in New Zealand from imports and staying competitive in the packaging business is tough. A lot of what we do is highly specialised, capital intensive, and relies heavily on skilled trained staff.” He says while training is a non-negotiable at Convex, it must also be scalable through tough times. “Investment in training changes depending on the need, but for us it has always been important to continue upskilling our people, it’s just ‘the where’ and ‘the how’ that changes,” says Aaron. “As a business we certainly have been tested, firstly during Covid and more so recently with the economic downturn. In recent years we’ve had to navigate a new landscape in reduced demand so all areas of the business have been reviewed and training has been reduced in some non-core areas to reduce costs – but apprenticeships and appliance training maintains status quo and we’ve boosted training around HR, mental health and resilience as well as group training utilising the expertise of key suppliers.” One clear benefit of this sustained investment is agility. Trained employees can maximise production efficiency, adapt to new technologies, and take […]

Article 2: The Crucial Role of System Integrators in Industry 4.0 and Automation

-Frank Phillips, Director, Fulcrum Welcome to the next part of our Industry 4.0 series for SME manufacturers. We’re exploring various companies that can help you embrace advanced technologies and optimise your operations. Today’s focus: System Integrators. Let’s dive in and see how they can drive your business success. System Integrators: The Orchestrators of Connectivity In the realm of Industry 4.0 and automation, system integrators are the maestros who ensure that all the pieces of your technological puzzle work seamlessly together. These companies specialise in connecting various automated systems, ensuring smooth communication and integration between hardware and software components. They act as the bridge that links different technologies, creating a harmonious and efficient manufacturing environment. Maximising Efficiency: How System Integrators Add Value Engaging a system integrator can significantly enhance your manufacturing operations by ensuring that all automated systems and technologies work in unison. Manufacturers facing challenges like disjointed processes, data silos, and inefficiencies can benefit greatly from the expertise of system integrators. By creating a unified system, these professionals help optimise workflows, reduce downtime, and improve overall productivity. System Integrators tend to have significant cyber security knowledge. When establishing a wider Operational Technology (OT) environment they can be key partners to keep your business secure. Journey to Integration: Typical Engagement and Resource Requirements The process of working with a system integrator typically begins with an assessment of your existing systems and a thorough understanding of your integration goals. This phase involves site visits, technical evaluations, and collaborative discussions to identify integration opportunities and challenges. The system integrator then designs a customized integration plan tailored to your specific needs. Expect to allocate internal resources, including IT personnel, operations managers, and system administrators, to collaborate with the system integrator. The engagement can range from a few weeks to several months, depending on the […]

Navigating the tariff maze: How NZ manufacturers can thrive amid trade tensions

Adam Sharman, CEO LMAC Group APAC Tariff turbulence: Understanding the impact on kiwi manufacturers. As trade tensions escalate globally, through the introduction of heavy tariff from the U.S. New Zealand manufacturers find themselves navigating increasingly complex waters. The United States is one of New Zealand’s key export markets worth approximately NZ$9 billion annually, and New Zealand products provide key components in other countries’ supply chains into the USA. The ripple effects of U.S. tariff changes extend far beyond simple price adjustments. When tariffs increase, manufacturers face immediate margin pressure, but also longer-term strategic questions about market positioning and investment priorities. For New Zealand’s primary sector, dairy processors, which have developed specialised ingredients for U.S. food manufacturers, tariff increases could undermine carefully cultivated market positions. Similarly, premium meat exporters who have invested heavily in sustainability certifications and farm-to-table traceability to command premium pricing, could see their value propositions challenged. The impact extends beyond agricultural processing. New Zealand’s high-tech manufacturing sector, including medical device manufacturers and precision agricultural equipment producers, faces similar challenges. For organisations that have established niches in specialised global supply chains where even modest tariff increases could significantly alter competitive dynamics, a focus on IP protection and maintaining certifications required for market access, for example in aerospace, pharmaceuticals and defence help protect market position, and reduce price sensitivity. Strategic pivot: Capitalising on trade war opportunities While tariff increases present challenges, they also create strategic opportunities. As tensions escalate between the United States and other major trading blocs, particularly Europe and China, New Zealand manufacturers could benefit from “tariff arbitrage” – situations where Kiwi products become relatively more competitive due to higher tariffs on competitor nations. Exporting organisations are required to think differently about their global market positioning, both in terms of direct market tariffs and the relative position […]

From Automation to Augmentation: How Industry 5.0 is Redefining Manufacturing

The landscape of manufacturing is undergoing a significant transformation as we transition from the principles of Industry 4.0 to the emerging focus of Industry 5.0. While Industry 4.0 emphasised automation and the integration of digital technologies into manufacturing processes, Industry 5.0 shifts the spotlight towards augmentation, fostering a harmonious collaboration between humans and machines. Evolution from Industry 4.0 to 5.0 Industry 4.0 brought a revolution by embedding automation and data exchange into manufacturing through cyber-physical systems, the Internet of Things, and cloud computing. The central aim was to streamline operations, reduce human intervention, and enhance efficiency. However, as we pivot to Industry 5.0, the emphasis broadens to include the critical role humans play alongside machines, leveraging the unique capabilities of both to drive innovation and adaptability. Key Differences: Automation vs Augmentation The shift from automation to augmentation marks a fundamental change. Automation focuses on machines performing tasks independently, effectively reducing human involvement in repetitive and labour-intensive activities. In contrast, augmentation enhances human capabilities. It is about empowering workers with intelligent systems, using machines to support and elevate human decision-making and creativity rather than replace it. Benefits of Human-Machine Collaboration The synergy between humans and machines in Industry 5.0 offers numerous benefits. It enhances problem-solving capabilities by combining human intuition with machine precision and data processing power. This partnership can lead to more innovative solutions and a more flexible production environment. Moreover, it increases operational efficiency as machines handle repetitive tasks, allowing human workers to focus on more strategic roles that require creativity and complex decision-making. Examples of Successful Augmentation Real-world examples of successful augmentation in manufacturing often involve collaborative robots, known as cobots, working alongside human workers on production lines. These cobots are designed to assist with precision tasks, reducing the physical strain on workers and lowering the risk of human error. […]

‘Tech bro’ culture stifling startup sector

You might have heard the term ‘tech bro’ – a shorthand for the hypermasculine culture synonymous with the startup world. But while it’s often associated with Silicon Valley, that same culture is alive and well in New Zealand’s innovation scene too, say researchers Professor Anne de Bruin and Dr Janine Swail. Entrepreneurial ecosystems: the networks, organisations, and funding systems that support startup ventures, might seem open to all. But they’re far from gender neutral, the researchers say. “The strong association of masculine traits with entrepreneurship persists, hindering gender equity,” says de Bruin. In a new paper, de Bruin and Swail examine how gender dynamics shape startup ecosystems, and how feminist theories can be used to make them more inclusive and equitable. “If you think about Auckland’s startup sector, it’s still pretty ‘tech bro’,” says Swail. “We need to rethink what it means to be inclusive in entrepreneurship.” She says this starts with challenging the norms that shape entrepreneurial culture – norms that can make women and non-binary people feel unwelcome. “Imagine you’re a female deep-tech entrepreneur looking for a lab or an accelerator programme,” says Swail. “You walk into a space that feels overwhelmingly masculine; in-jokes, blokey language, a boys club. It can be difficult to feel like you belong, let alone thrive.” One of the biggest barriers? Unacknowledged gender bias baked into the structures and language of entrepreneurship. De Bruin points to New Zealand’s finance ecosystem, where most venture capitalists are men. “The way people communicate and operate in that world is often coded in a very masculine way. Language matters, and when we start to unpack it, we see how women and others are often excluded, even unintentionally.” If New Zealand wants to develop a genuinely diverse startup sector, we need to question who it’s built for, and who’s […]

The Skills Shortage Smokescreen

Stop searching for unicorns. Build a workplace worth joining and staying at. “We just can’t find the right people.” It’s the go-to excuse for operational issues, stalled growth and missed deadlines. But let’s call it what it is: a smokescreen. The so-called “skills shortage” is a convenient distraction from a harder truth. For many businesses, they don’t have a people problem, it’s a management problem. David Altana is head of growth and partnership at Smartspace.ai and co-host and founder of The Better SMB Podcast. When we dig beneath the surface, the reality is clearer than we’d like to admit. If your business can’t attract or retain good people, it’s probably not the labour market letting you down. It’s likely something internal: your culture, your systems, or your leadership. You Get What You Build For According to MBIE[1], 40% of roles in Tamaki Makaurau are classed as low-skilled, so let’s contrast a couple of businesses in the same region, competing to attract the same workers. One constantly complains about a lack of skilled staff. The other quietly gets on with hiring, training and growing its team. The difference isn’t luck. It’s leadership. Rob Bull is Director and principal consultant at Plexus Consultant and co-founder and host of The Better SMB Podcast. The successful business has designed itself to be a place people want to stay. It invests in onboarding, creates meaningful development pathways, and builds an environment where team members feel valued. Managers know their people. They communicate. They coach. They share the “why” behind the work. These companies don’t have a secret recruitment strategy, they simply understand retention starts with trust, which is built through day-to-day leadership, not policies or perks. To get an idea of what this looks like in practice, it’s worth reading the Jones & Sandford Joinery […]

Manufacturing fuels the present – SouthMACH 2025 is on soon

From NZ Manufacturer magazine, April 2025 -Doug Green, Publisher Fisher and Paykel Healthcare, Gallagher Industries, Buckley Systems, Rocket Lab, Rakon, Skellerup Holdings, Particle Systems, Scott Technology…are just a few examples of successful companies who have found markets for their ‘home grown’ products and services. And they keep moving ahead in challenging times. www.smartmanufacturingtoday.com They are members of the Creative Class – to which so many of us belong – who help drive the economy. They are the people who role their sleeves up and get stuck in, in their workshops or studios, to make ‘the next best thing’ and find new markets for their unique products. At present, it is not only tariffs we need to keep an eye on, Generative AI (GenAI) is set to reshape manufacturing, driving innovative integration, operational efficiency, and data insights, transforming productivity and revenue. Distribution leaders will need to adopt AI, robotics, and IoT to enhance industry-specific processes, data, and ways of working. Ian Walsh, Partner, Argon and Co is big on Lean. And others don’t just talk Industry 4.0, they also talk Industry 5.0 These are all required for the efficiency of manufacturing. And of course, there is the urgent need to raise the levels of Productivity. This cant just be a never-ending conversation piece – we need to do something about it! Manufacturers will have to be prepared for the continued rise in competition from lower-cost production countries in Asia, including Vietnam, Thailand and China, along with more technologically advanced nations in Europe. The world and its markets are changing and our manufacturers need to adapt and move forward. Research the TIN Network, or the EMA, HERA, the Hutt Valley Chamber of Commerce, the Southland Business Chamber, Make NZ or the Northland Chamber of Commerce. Join, find out what is going on […]

Smart Industry Readiness Index: Key Themes and Findings

From March issue NZ Manufacturer magazine. www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Adam Sharman, CEO LMAC Group APAC The Smart Industry Readiness Index (SIRI) has emerged as a critical tool for manufacturing organisations seeking to navigate their digital transformation journeys. At LMAC Group we have supported over 200 business across New Zealand and the UK to define, start and optimise their Industry 4.0 journeys through our digital transformation approach using the Smart Industry Readiness Index. Reflecting on this experience, in this article we will discuss the key themes and insights into the current state of Industry 4.0 adoption and their implications for manufacturing business across the industry As New Zealand manufacturers seek to optimise and accelerate their productivity through Industry 4.0, they face several distinctive challenges: Scale and Investment Capacity: With most New Zealand manufacturers being SMEs, many face challenges in securing sufficient capital for comprehensive digital transformation initiatives. Talent Acquisition: The limited local talent pool for specialised digital skills creates a significant barrier, with many organisations struggling to attract and retain experts in areas like industrial IoT, data science, and automation engineering. Connectivity Infrastructure: Regional manufacturers sometimes contend with limited high-speed internet access, constraining their ability to implement cloud-based solutions or real-time monitoring systems. Integration with Legacy Systems: Many established New Zealand manufacturers operate with older equipment and systems that present integration challenges for newer digital technologies. New Zealand manufacturers exhibit a characteristically pragmatic approach to technology implementation. Rather than pursuing cutting-edge technologies for their own sake, Kiwi businesses tend to prioritise practical solutions with clear returns on investment. This approach serves many companies well but can sometimes limit exploration of more transformative technologies that might deliver longer-term competitive advantages. Most Commonly Identified Priority Dimensions for New Zealand Manufacturers SIRI assessments […]

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