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Innovation in adversity: Transformative approaches to outsourcing

As the year winds down, businesses across New Zealand reflect on lessons learned and strategise for growth. For some, this year has been transformative, driven by innovative approaches to overcoming industry challenges. Director of Auckland public relations agency Impact PR Mark Devlin, discusses how selective outsourcing can be leveraged to expand capacity and access lucrative export markets. For many SME manufacturers, this is a frenetic time of year. Trying to pack in two months of production and administration along with plans for time with the family in the three weeks before Christmas can be exhausting. The public relations sector is no different. Media continue to churn out content, client crises and issues still arise (frequently when the CEO is at the beach for some reason) and we work with journalists looking for stories they can hold to publish over the summer season when the news cycle tends to quieten. That said, the end of the year is often the only time many of us will get to reflect back on lessons learned and look ahead to better more efficient ways of achieving business growth. Over the past 12 months, I have worked with two businesses in very different sectors that stood out in this regard. Both of these have developed new ways of overcoming the challenges associated with outsourcing to dramatically expand their capacity and develop new export markets. Wool carpet manufacturer Bremworth is a great example of how unanticipated adversity can be turned into an opportunity for growth. In the months following the extensive damage to their Napier facility caused by Cyclone Gabrielle, the company moved to develop a hybrid manufacturing model under which New Zealand wool is sent offshore to be spun into yarn and dyed – before being sent back here to be made into premium wool […]

2024 : We are experiencing the bust, are we prepared for the boom?

Dr Troy Coyle, CEO NZ Heavy Engineering Research Association (HERA) 2024 was a difficult year for construction and therefore manufacturing supply chains supporting it. Our levy, which is legislated under the Heavy Engineering Research Levy Act, 1968, is a reliable indicator of sector activity (at least in the segments that use structural steel, such as multi-storey residential, commercial and bridges). In June this year, we experienced the lowest levy level of any month in more than ten years. Boom and bust cycles are a pattern that is pretty consistent, and which we are not really learning how to avoid (e.g. through planned, transparent and sustainable infrastructure investments). The consequence is that in the bust, which we are certainly in, there is a significant reduction in the employment of our skilled workforce. Then, in the boom, we no longer have the available skilled workforce available to meet demand. They have mostly gone offshore. It would certainly help the sector if there was a bilaterally supported pipeline of national infrastructure projects, with a secured budget allocation, that were consciously timed to ensure stability of construction. Combine a construction bust with an inexplicable proposed “reform” of the Vocational Education System introduced by the Hon Penny Simmonds, Minister for Tertiary Education and Skills in 2024, and things are not looking good for the future of our sector. The link between boom and bust cycles and instability in our vocational education system means that looking ahead (possibly in 2026), construction-related manufacturing could experience an unprecedented skilled labour shortage when the market recovers. Our industry is reliant upon skilled apprentices and concerningly, at the moment, there doesn’t seem to be a lot of Government support for work-based learning appearing within the planned “reform”. For steel, there are also potential concerns with the proposed Building (Overseas Building Products, […]

Editorial NZ Manufacturer December issue: Challenges and success hand in hand in 2024

In a year that has brought its challenges, there are success stories of businesses striving and finding new opportunities and markets. And we also have a balancing act, one where we retain staff or see them leave for overseas in their quest to try something different. It has been a year of central government keeping the treasure chest closed and seeing restraint as the best way forward (for now). Let us hope that the Minister for Manufacturing, Andrew Bayly, can, at some stage, soon, be allocated some funding to benefit our manufacturing industries. In this issue we include our annual Year in Review and Innovations 2024 to reflect on where we have been and where we are going to. On Page 1, Ian Walsh from Argon and Co, describes this year as “The year to survive”, with businesses focused on managing costs, avoiding unnecessary spending and looking to how they can improve their productivity to improve returns. In 2025, Ian wants to see an increased adoption of lean techniques and tools, AI and automation tools and a unified approach to leadership and team capability. Adam Sharman, LMAC, (Page 14) believes the New Zealand manufacturing sector has navigated a complex landscape this year, a flat-lining of productivity rather than a significant decline. The industry experienced 2.3% modest growth in 2023-24 which indicates a gradual recovery and renewed resilience. David O’Connor of The Learning Wave, (Page 15) believes there is a sense of optimism and energy for our manufacturing businesses. Dr Troy Coyle, CEO, HERA (Page 15) would like to see a bilaterally supported pipeline of national infrastructure projects, with a secured budget allocation, consciously timed to ensure stability of construction. On Page 16, Director of Auckland public relations agency Impact PR, Mark Devlin, discusses how selective outsourcing can be leveraged to […]

Report: China & New Zealand National Brands Forum

Held in November during the China International Import Expo in which New Zealand was the guest of honor. The forum was co-hosted by the NEXT Federation and the New Zealand Business Roundtable in China, with co-organisation by the China Chamber of Commerce of I/E Foodstuffs, Native Products and Animal By-Products, and Tus-Holdings. Fonterra and Taishan City served as principal partners, while strategic cooperation was provided by Dong Jiu, NZ Fos+, Heng Yuan Xiang, and Yudu Junyao. The forum received support from International Business Daily, under the Ministry of Commerce of China. With the theme “Conquering New Heights”, the forum convened senior executives from leading New Zealand enterprises operating in China, top experts in international relations and industrial collaboration, and prominent brand representatives from both nations. The event aimed to strengthen bilateral cooperation in trade, industrial investment, and brand development, while exploring New Practices, New Trends, and New Dynamics in China-New Zealand collaboration. Professor Wang Yong, from the Department of International Political Economy at Peking University, provided insights into the impact of U.S.-China relations on the global economy and examined the potential for enhanced China-New Zealand collaboration. He observed that the United States is entering a conservative era characterised by an “America First” doctrine, marked by intensified political polarization, protectionist policies, and a growing tendency toward unilateralism that undermines international cooperation. These shifts, he noted, are underpinned by deepening wealth inequality and other systemic challenges. David Mahon, Managing Director and Chief Investment Officer of Mahon China Investment Management Ltd., drew on his more than 30 years of experience in fostering China-New Zealand cooperation to share his insights. He emphasised the significant potential for collaboration in areas such as investment, trade, and innovation, even in the face of the challenges posed by globalization. The forum also attracted the participation of relevant government […]

Navigating a Reputation Crisis

Business leaders rarely expect a reputation crisis, but these situations do arise, often attracting media scrutiny. Facing media inquiries in challenging times can be daunting, particularly when potential brand damage is involved. Director of Auckland public relations agency Impact PR Mark Devlin discusses how manufacturers can navigate a crisis in front of the media. For many businesses, lacking a crisis response plan means CEOs and senior leaders might struggle to manage a sudden call from a journalist or an impromptu press conference. Some executives opt for a “no comment” response, which can imply a lack of transparency or unwillingness to address issues directly. In most cases, declining to comment isn’t the best strategy. Although there may be rare instances where silence is justifiable, generally, it’s more effective to respond with honesty, offering information where possible. The key to successfully managing media during a crisis is having a pre-existing plan, pinpointing potential crisis scenarios, and identifying who will address reporters’ questions. This spokesperson must be well-prepared and trained in media engagement to deliver a clear, impactful message. Preparation is the best defence against negative press. Most can recall a situation where a CEO’s or spokesperson’s mishandled responses amplified a crisis, but there are also cases where skilled media handling turned potential setbacks into reputation-building moments. The company’s most senior leaders, especially the CEO, should ideally be the face of media responses during a crisis, signalling that the situation is taken seriously. The CEO’s presence shows the company values the matter and is ready to act, as they are seen as the ultimate authority who can credibly commit to solutions or offer a genuine apology. Whoever is chosen to interact with the media must understand how to positively influence both the interviewer and the broader audience. An interview is an opportunity to […]

Manufacturing, Technology and Innovation Success at the Hutt Valley Business Excellence Awards 2024

Manufacturing, technology and Innovation were again at the centre of the Hutt Valley Chamber of Commerce’s annual business excellence awards. The gala dinner and awards ceremony for the 2degrees Wellington Regional Business Excellence Awards were held in the Hutt Valley on Friday 15th November and manufacturing, technology and innovation organisations were among the finalists and winners. ‘Our local manufacturing, technology and innovation organisations make up so much of our business sector and do so much for our community’ said Patrick McKibbin, CEO of the Hutt Valley Chamber of Commerce. ‘We had so much talent at the Gala Dinner tonight, and it was so good to see so many of our great businesses being recognised.’ The manufacturing, technology and innovation winners and finalists included: Excellence in Sustainable and Environmental Practices sponsored by CentrePort Ltd: Winner Pact Group Holdings Ltd 🌿- a leading Hut Valley manufacturer leading the recycle revolution and creating sustainable packaging solutions. Eli Barrington, Operations Manager from Pact Group receiving his award from Anthony Delaney from CentrePort. Best Small Business sponsored by Gallagher: Winner Prologic Skin Care 🛍️- a Wellington based manufacturing a unique corneotherapeutic range of skin care products and supplying to markets in New Zealand, Australia, and the UK. Excellence in Health, Safety, and Wellbeing Innovation sponsored by ACC New Zealand: Winner – MJH Engineering Ltd 🤲 – one of New Zealand’s leading structural steel fabricators and based in the Hutt valley Finalist – Whakatiki Engineering (1984) Ltd – an Upper Hutt Based structural steel fabrication company. Finalist – Sharesies – innovating to help people invest, save, insure and grow their future wealth with Kiwisaver. Excellence in Manufacturing sponsored by Woburn International: Winner – Whakatiki Engineering (1984) Ltd 🏭- an Upper Hutt Based structural steel fabrication company Finalist – Contemporary Korowai Designs – from Wainuiomata they hand […]

How manufacturers can prepare for the ESPR

www.thinkstep-anz.com Image by Dinh Khoi Nguyen from Pixabay. As global sustainability regulations evolve, New Zealand manufacturers must stay ahead of the curve to maintain their competitive edge, especially with upcoming policies like the European Union’s Ecodesign for Sustainable Products Regulation (ESPR). But what is the ESPR, and how can manufacturers in New Zealand prepare for it? What is the ESPR? The ESPR is a new EU policy aimed at making products more sustainable and circular throughout their lifecycle, supporting the EU’s 2050 climate goals. The ESPR applies to products sold within the EU, setting specific sustainability requirements for design, use and disposal. It applies to most products sold in the EU, except for some like food and medicines. Non-compliant products may face fines or bans. Although it took effect in July 2024, the detailed rules will be developed over the next year. The regulation aims to make products more durable, reusable, repairable, and recyclable, while banning the destruction of unsold goods like electronics and textiles. A digital product passport will also be required, giving consumers direct access to sustainability data and exposing brands to greenwashing claims under the Green Claims Directive. Why should New Zealand manufacturers pay attention to ESPR? For manufacturers exporting to the EU or intend to: Failure to prepare for the regulations could result in loss of market access, fines, or even prosecution. Your products will face stricter comparisons on sustainability and circularity, which could impact your market share positively or negatively. Even if your business doesn’t currently export to the EU, the trends set by the ESPR are likely to influence regulations and purchasing decisions in other markets. As supply chains globalise, multinational corporations may enforce ESPR-style standards on all their suppliers, no matter where they are located. With more sustainability and […]

Fixing manufacturing’s billion-dollar harm problem

Jane Finlayson, EMA Head of Manufacturing Harm in New Zealand manufacturing is unacceptably high and urgent action is needed. The good news is that through a recent partnership between the Accident Compensation Corporation (ACC) and the Employers and Manufacturers Association (EMA), help is on the way. ACC claims costs for the manufacturing sector have skyrocketed, exceeding $165 million annually, with weekly compensation costs doubling from $51 million to $109 million between 2015 and 2024. Health and safety regulator WorkSafe estimates that chronic harm results in a staggering loss of 5,000 disability-adjusted life years each year, contributing to an economic burden of approximately $1.23 billion. The breakdown of this burden is alarming: 27% of injuries stem from musculoskeletal disorders, 17% from mental health issues, 16% from cancers, and 15% from respiratory problems. In a significant stride towards addressing this harm, ACC appointed the EMA to lead a by industry for industry project to create a harm reduction action plan. The EMA stood up Project Whakahaumaru, which translates to ‘safeguard’ or ‘protect’, and gathered the perspectives of around 200 stakeholders from the manufacturing sector, health and safety professionals, and WorkSafe via focus groups, one-to-one interviews, co-designed workshops and surveys. EMA Head of Manufacturing Jane Finlayson says the recently released results of this discovery phase have been sobering. “We embarked on this journey to safeguard our industry, and the findings highlight a pressing need for change,” Finlayson says. “Injuries are not just numbers; they represent lives affected, families impacted, and potential futures altered. “We cannot ignore the implications of these injuries – not only for the workers but for businesses and the economy as a whole. “These figures are a call to action.” Over the past year, the EMA has worked with stakeholders across the sector to develop the Project Whakahaumaru Harm Reduction […]

Steel awards showcase local industry’s expertise and sophistication

Steel Construction New Zealand (SCNZ) is pleased to announce the results of 2024’s SCNZ Excellence in Steel Awards. The winners were announced in Rotorua recently, where close to 300 structural steel industry leaders and specialists gathered to celebrate the best of the best at an event that showcases the sector’s commitment to innovation, best practice and collaboration. Each year, the task of judging becomes increasingly difficult. This year, 24 finalists were selected from a pool of more than 50 outstanding submissions across an impressive array of structural steel applications. Together, they reflect the endless possibilities of structural steel, demonstrating the remarkable design and execution possible when steel is the primary construction material. “This year’s entries have once more showcased our industry’s ability to produce remarkable work,” says SCNZ Chair Malcolm Hammond. “We are a progressive industry that continues to add significant value to projects through our unparalleled knowledge of steel construction, and our appetite to collaborate with our clients and design teams.” “It has been the most hotly contested awards to date and, anecdotally, has produced some of the highest and closest scores ever seen in the SCNZ Awards,” says SCNZ General Manager Darren O’Riley. “It is a reflection of the industry’s continued evolution and sophistication.” The 2024 Supreme Winner and Category Winners are: Supreme Winner and Standalone Residential Category Winner: Grayson Engineering for Geo Domes This stunning domed structure in Mangawhai consists of two residential dwellings constructed from rolled and formed heavy universal column and beam sections. Measuring 42m by 42m and 7.5m high in the centre, the larger dome is comprised of 110 tonnes of steel. Steel was the only viable material for the domes, offering the required strength, durability, quick on-site assembly and cost-effectiveness to meet the design specifications. Coordination between the steelwork and the builder, along […]

5S – Not That Old Chestnut

Ian Walsh, Partner, Argon & Co NZ I was reflecting recently on how many business owners have started an improvement program with 5S and failed. Before I talk about the “why” and the “how” 5S implementations fail in these businesses, and for those who haven’t come across 5S before, allow me to briefly explain what 5S is. 5S is a practice that was developed at Toyota in the 1960s. 5S consists of 5 “S’s” based on Japanese words and the associated anglicised word: Seiri (Sort) – Eliminate unnecessary items from the workplace. Seiton (Set in Order) – Organize the necessary items so they are easy to use and accessible. Seiso (Shine) – Clean the workplace and keep it clean. Seiketsu (Standardise) – Standardise the best practices within the workplace. Shitsuke (Sustain) – Ensure discipline and commitment to maintain the 5S processes. All the business leaders that I’ve talked to about failed 5S implementations were unable to maintain the “standardise” and “sustain” the initiative. After a period of time, standards slipped and then eventually (or quite quickly) returned to the previous level with a few artifacts remaining. Most of these leaders said “we tried that, it didn’t work”. This needs a deeper analysis. There are examples across the globe of world-class companies that rely on 5S as a core practice and have succeeded in sustaining the practice. On that evidence, surely it’s not that 5S itself fails, but that particular implementations fail? Many of these business leaders I talked to stated that they were told something along the lines of “if you can’t do 5S you can’t do anything”, and so they started their improvement journey with 5S, usually with help from a “mentor”. Typically, they would do a 5S exercise in an area in 1-2 days and then move into […]

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