NZ Productivity Organisation

The Canterbury engineering business with trained staff who never want to leave

Training at the heart of exporter’s success story An unwavering commitment to upskilling its people has helped keep tool maker Sutton Tools (NZ) out in front despite a string of setbacks including an earthquake, a pandemic, and in 2022, a fire that gutted their Kaiapoi factory. Now though, the future looks brighter than ever with a brand-new factory in Rangiora and a forward-focussed masterplan that will drive expansion and power up their knowledge base. Sutton Tools manufactures its high-quality cutting tools in Rangiora, as well as at two sites in Victoria, Australia before exporting them globally. Adopting a proactive approach to training has been a critical factor in their success, and a long-standing partnership with industry training organisation Competenz has been pivotal to this work. For over 30 years, Competenz has collaborated with Sutton Tools, offering apprenticeship and traineeship opportunities to enhance skills and engagement. Production Manager Brian McCallum has spent just shy of 25 years with the company and in that time, he has completed a string of Competenz programmes including a New Zealand Certificate in Workplace Health & Safety Practices (Level 3), a National Certificate in Competitive Manufacturing (Level 4), and a National Certificate in Manufacturing (Metal and Related Products) (Level 3). Currently he’s working towards his NZ Apprenticeship in Mechanical Engineering (Trade) (Level 4) – Fitting and Machining. “I went to Sutton for work experience when I was 17 and I never left,” says Brian. “In that time, I’ve been given lots of opportunities and done lots of different things within the company, including gaining qualifications and temporarily relocating to Australia after the fire to help with running one of the manufacturing plants in Melbourne.” With a myriad of development and career prospects – and a highly supportive, encouraging employer – he can’t see a reason to […]

LCA: A powerful tool for change

In the early days of sustainability, we were often driven by a desire to “save the polar bears” or protect rainforests. Today, business leaders are asking a different question. It’s no longer “Is this the right thing to do?” but “Is this worth the investment?” The answer is yes, and Life Cycle Assessment (LCA) can help prove it. So, what exactly is an LCA? LCA is a tool that measures the environmental footprint of a product or service across its life cycle. It helps you understand your product’s environmental footprint, find opportunities to improve and communicate your sustainability credentials with confidence. This means LCA gives you a snapshot of your product or services’ footprint, both what goes into it and what comes out. That includes: what goes in, like energy and raw materials what comes out, like waste, water pollution and carbon emissions. The lower the impact, the smaller your product’s environmental footprint. Click here to learn more in thinkstep-anz’s Need to Know guide. From burden to business case LCA can seem complex and overwhelming. It’s sometimes seen as a data-heavy, costly exercise. But when you look at it through a business lens, LCA becomes a strategic tool. It can help you build resilience, drive innovation and gain market advantage. Around the world, LCA is gaining traction. In the EU, it’s a requirement for Horizon funding. In Australia, the 2024 Building Ministers’ Meeting endorsed LCA as part of the National Construction Code for commercial buildings. EPD Australasia just celebrated 2,000 Environmental Product Declarations. In China, national funding for LCA research is growing rapidly. Business success starts with transparency LCA takes a full-life approach. It looks at a product’s environmental impact from raw materials to disposal. This broad scope gives you visibility – and with visibility comes opportunity. One client asked, […]

Expect to Win: Raising the Bar and Aiming for Excellence

From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz In a Bay of Plenty workshop, the first press of the day starts up. Meanwhile, 18,000 kilometres away, its twin in Stuttgart is already changing over to the next job, 30% more parts out the door before smoko. Same equipment, same potential just different culture. David Altena is Head of Growth & Partnerships at SmartSpace ai & Co-Founder & Host of The Better SMB Podcast. david@altena.solutions New Zealanders already work around 15 percent longer than the OECD average while generating 20 percent less output per person. Our productivity gap has widened from 34 percent in 1996 to roughly 40 percent today. “Good enough for NZ” is quietly costing us millions every pay cycle. The Budget for manufacturers is a brand-new 20% “Investment Boost” tax deduction: buy qualifying plant or machinery after 22 May 2025 and you can write off one-fifth of the cost in year one, on top of normal depreciation. Rob Bull is Director & Principal Consultant at Plexus Consultant & C0-Founder& Host of The Better SMB Podcast. rob@nzla.nz Before racing for a purchase order, pause. A tax break multiplies whatever capability you already have, good or bad. Before you bolt a faster robot to yesterday’s habits, take ninety days to hard-wire a culture that expects to win. After all, every dollar you save on tax is wasted if the new kit sits idle for want of process discipline. Winning is a system, not a slogan In factories that outperform global peers, five habits show up in every shift and hum in the background like the compressor: Uncompromising clarity – three numbers on every wall, one for productivity, one for quality, one for innovation and improvement. The strategic goals are translated into performance metrics the whole team can understand and influence. Standard […]

SouthMACH 2025: Capability Is still the differentiator

From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Review from Caliber Design There was a strong sense of optimism at SouthMACH this year. The energy was good. People were open, engaged, and proud of the work they’re doing. Yes, there are still challenges—but the general feeling was that things are picking up, and that real progress is being made. Capability remains a key issue. “We’ve got the ideas. We just don’t have the resource.” The work is there. Priorities are clear. But teams are at capacity. There’s limited room to take on more—let alone deliver faster. Shifting the Dial Whether the focus is production, upgrades, product development, or compliance—it takes people to get things done. Not just more hands, but the right experience, at the right time. At SouthMACH, there was strong interest in how to keep momentum without overloading internal teams. Many are turning to flexible engineering support—people who can step in, contribute from day one, and help shift the dial. The common thread? Capability isn’t just about technical knowledge. It’s about judgement, communication, adaptability, and the ability to work well on-site, under pressure, and in step with the wider team. What We Noticed Amidst the usual challenges—capacity, backlog, deadlines—there was also a clear sense of optimism. Many have weathered tough years and come through more focused. Some of the best conversations we had were about what’s working: building long-term partnerships that help teams flex as needed; investing in project engineering—not just design, but full delivery; and embedding engineers into existing teams to remove bottlenecks and keep work flowing. We also asked our team: “What was the most exciting innovation or product you came across during the event?” The answers were varied—but all pointed to practical, clever engineering solving real problems. Dawn Aerospace stood out to several engineers—not just […]

SouthMach 2025: Innovation, Excellence, and the Future Talent of New Zealand Manufacturing

From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -Adam Sharman,CEO LMAC Group, APAC SouthMach 2025, held at Wolfbrook Arena in Christchurch from 28–29 May, once again proved to be the South Island’s premier event for the manufacturing and engineering sectors. With a strong focus on innovation, digital transformation, and workforce development, this year’s expo came at a pivotal time for New Zealand’s manufacturing industry—one that is navigating both significant challenges and emerging opportunities. The SouthMach expo is always an opportunity to showcase the innovation happening in New Zealand and this year’s event was no exception with a focus on South Island innovation through the AMA Innovation Zone led by Dawn Aerospace, Argus Manutech, ENI Engineering and Hamilton Jet and United Machinists. It was interesting to see how these organisations have practically leveraged industry 4.0 technologies in the New Zealand context to drive innovation and productivity through smart investment and a staged approach to adoption. The adoption of Industry 4.0 was a key theme of SouthMach this year and this was reinforced through the ASB Manufacturers Workshop, delivered by the EMA and LMAC. Participants on both days were exposed to a practical case study to build awareness of industry 4.0 in a New Zealand business and left with a roadmap of next steps for their own businesses. A Visionary Keynote: From Garage to Orbit One of the most inspiring moments of SouthMach 2025 came from Charlie North of Dawn Aerospace, during his keynote titled “From Garage to Orbit: A Manufacturing Story.” North shared the company’s remarkable journey from a backyard shed in New Zealand to becoming a global leader in spaceplane and in-space propulsion technology. His talk emphasised that true innovation in manufacturing isn’t about hype or heroics—it’s about people, process, and purpose. He called on New Zealand’s industrial sector to “aim high, build well, and back […]

Have you optimised your asset care strategy?

-Ian Walsh, Partner, Argon & Co NZ It’s great to see the recent government announcements allowing additional tax deduction for new assets, which will encourage business to invest in plants and equipment to help drive productivity. These are all a step in the right direction for making New Zealand’s manufacturing sector more competitive on a global stage. With that said, any investment should be reviewed in terms of the cost and benefit, and the overall business case for making it. When I worked in Japan the approach taken was to drive efficiency and productivity until you had exhausted the potential of your existing assets. The aim was to get the absolute maximum possible out of all the equipment and space available, and only then to invest in extra capacity. This led to a relentless focus on efficiency and debottlenecking to get the most reliable, most productive assets. I remember a conversation I had with a production manager at one of these Japanese plants. He explained to me how he disliked new equipment, as “the first day was the worst day”, and it got better after that. He preferred older equipment because “we know everything about it and how to run it highly efficiently”. This is interesting to compare with more ‘Western’ approaches where we assume that new equipment is at its best on its first day and then we depreciate it, because it’s deteriorating and will only perform worse from then! The difference is that the better performing factories don’t only invest in new capital when they need capacity (or to meet an innovation need); they invest in the total asset. This includes how it is commissioned, optimising it for its role, how it is run, how it’s maintained, care for its individual parts, how people are trained to operate […]

SouthMACH 2025 hailed as most successful event to date

From June 2025 issue of NZ Manufacturer magazine www.nzmanufacturer.co.nz SouthMACH 2025 has concluded with resounding success, marking the most impactful event since XPO acquired the brand in 2015. This year’s exhibition saw a record number of exhibitors and an impressive 22% increase in visitor attendance, highlighting the burgeoning strength of New Zealand’s manufacturing, engineering and technology sectors. The organisers extend their sincere gratitude to all exhibitors and visitors whose participation was instrumental in making SouthMACH such a dynamic and valuable experience. This year’s success would not have been possible without the invaluable support of SouthMACH’s esteemed partners and programme activators. A heartfelt thank you is extended to Catherine Lye from Advancing Manufacturing Aotearoa, Jane Finlayson from EMA, Dieter Adam from MAKE│NZ, John Hamilton from Business Canterbury, the University of Canterbury, Business South and Gina McMaster from IRHACE (HVAC&R South). Their continued collaboration is vital to the success of this event and the wider industry. Event highlights included Dawn Aerospace’s packed seminar, huge interest in the HamiltonJet HT1000, the launch of IRHACE’s HVAC&R South, and the inaugural Minister for Manufacturing Awards 2025, celebrating manufacturing excellence from apprentices to business leaders. Jack Heslin, sales and event manager for SouthMACH, commented on the event’s success, stating, “The success of SouthMACH 2025 is more than just numbers – it’s a clear signal that New Zealand’s manufacturing, engineering and technology sectors are gaining traction. A strong turnout from industry professionals, innovators and future talent reflects a sector that’s not only growing but also evolving.” He added, “I’m incredibly grateful to our partners, exhibitors and every single visitor who made SouthMACH 2025 such a vibrant and valuable event. Your support drives the future of manufacturing in Aotearoa.” Jack also expressed pride in the atmosphere of the event, remarking, “Seeing the Wolfbrook arena buzzing with energy, innovation […]

Investing for growth

The Budget’s Investment Boost is a tax incentive for businesses to invest in productive assets such as machinery, tools and equipment. This means business can deduct 20 per cent of a new asset’s value from that year’s taxable income, on top of normal depreciation. Because the cashflow from investment improves, more investment opportunities become financially viable and therefore more take place. Business investment can raise the productivity of workers, lifts incomes and drive long-term economic growth. However, businesses, following this path, need some predictability. That a reasonable investment will bring about a return. That their equipment purchases will help their businesses grow. I take it that by increasing the stock of capital in New Zealand, Investment Boost is expected to lift GDP by 1 per cent per year and wages by 1.5 per cent per year over the next twenty years, with half these gains in the next five years. Investment Boost makes New Zealand a more attractive place to invest. It gives businesses facing global uncertainty a reason to keep investing in themselves and in the future of New Zealand. It seems that large-scale businesses with established markets can continue to build their markets. There is also Invest New Zealand to encourage investment in infrastructure. This would be a welcome change from investment in property …let’s keep making and growing things!

Is your value network world class?

Over the last 40 years I have seen significant change in how manufacturing businesses compete. We have moved through the quality revolution which brought new expectations around quality and cost, to the lean revolution and associated methodologies delivering better service, value and reduced costs. Businesses then shifted their focusses onto supply chain optimisation, bringing end-to-end thinking. Their approaches moved from comparing their business models with their competitors’, to comparing their supply chains. Top performing supply chains became enabled by ERPs, and are now enabled by value networks, no longer in point-to-point structures but integrated webs of suppliers and partners delivering products and services seamlessly through a multitude of channels. Of course, the rapidly increasing deployment of AI further fuels optimisation and connectedness in these supply chains. At the root of this change in manufacturing are constantly moving market-led goalposts for how businesses better deliver what the end customer wants, when they want it, at the lowest cost possible. Understanding this value equation and then aligning their service delivery model to meet and exceed this expectation better than competition is what separates the wheat from the chaff, and industry leaders are doing this at the most competitive cost to maximise their margins. Very few, if any, businesses can do all of this by themselves. Generally, larger businesses with more scale, buying power, and connections have more capability than SMEs. However, interconnected SMEs can create highly efficient clusters which can compete with anyone and be highly agile and scalable. As we know NZ has a high proportion of SMEs and this presents both an opportunity and a risk. The opportunity is that we can create high-value clusters and that can be highly agile, integrated and capable of delivering high-value products and services through multiple channels to customers around the world. We certainly […]

World-class technology and outstanding culture at Architectural Glass Products

Architectural Glass Products (AGP) is a cutting-edge glass manufacturing business based in Hautapu, near Cambridge. Established five years ago, AGP was created to help provide the APL window manufacturer network with a total window solution. It was born from the belief that the local window and glass industry was being underserved, particularly in terms of service and quality. In response, David Bunting, Mitch Plaw, Craig Vincent and Brent Martin joined forces to create a world-class, fully digitalised, and highly automated double-glazing operation. The result is a custom-built, state-of-the-art facility stretching 417 metres long and 108 metres wide, home to some of the most advanced glass processing equipment in the Southern Hemisphere. The Employers and Manufacturers Association’s Nicholas Russell sat down with David to discuss the challenges and successes of launching a greenfield manufacturing operation in New Zealand, the pivotal role of digital transformation, and the importance of investing in people and culture from day one. Why was AGP started?? We felt the glass and window industry in New Zealand was underserved – quality was lacking, and service wasn’t up to par. Our customers, being APL Window Manufacturers, were feeling the pain and we realised the only way to truly improve the supply chain experience was to control it ourselves. That meant starting from scratch and building a manufacturing business that could deliver exceptional products with equally exceptional service. AGP is known for its massive and innovative facility. Can you tell us about the design thinking behind it? We designed the building around the manufacturing process, not the other way around. That gave us complete freedom to optimise product flow and efficiency. The building is 417 metres long (you could park five Boeing 777s inside with room to spare) and 108 metres wide, which helped us futureproof our operations. Aesthetically, it looks […]

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NZ Productivity Organisation