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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 […]

Kiwi garage start up one of largest dual market export operations

Set for $115m expansion in China A Kiwi company that began as a West Auckland garage start-up nearly three decades ago has grown into one of NZ’s largest dual-market export operations, and is set for further expansion with the construction of a new $115m biotech manufacturing facility in China underway. Manukau-based Alpha Group is a vertically integrated nutraceutical exporter at the international forefront of fermentation technologies. The company produces patented fungal and plant-based bioactives, with integrated research and manufacturing operations across New Zealand and China. The new 60,000m² facility in Ningde will support New Zealand’s fermentation export capabilities by integrating advanced R&D, testing, treatment and production. Once complete, it is expected to generate more than NZ$225 million in annual revenue and expand Alpha’s transnational footprint to over 119 hectares. To date, the company has invested over NZ$830 million in developing this global infrastructure. Alpha Group was founded in New Lynn in 1998 by Professor Yihuai Gao, a globally recognised researcher in medicinal fungi and honorary fellow at Massey University’s Riddet Institute. Mike Arand, Alpha Group senior business advisor, says the new facility is the physical realisation of Alpha’s long-term dual-market strategy, which combines New Zealand’s scientific and natural resource strengths with China’s demand, scale and infrastructure. He says the development bridges lab-to-market pathways, turning New Zealand-led research into commercial outcomes that drive export growth and reinvestment into local R&D. “This facility unlocks exponential growth potential for New Zealand’s fermentation sector. “By integrating R&D and processing in one hub close to our largest export market, we can boost output, reduce lead times and increase demand for Kiwi-derived ingredients. “It’s about creating a transnational innovation ecosystem where New Zealand science drives offshore commercial outcomes, which then feed back into local jobs, R&D and raw material demand,” he says. Alpha Group has already […]

Leadership From the Top

How Government Must Reflect What It Asks of Business Stop Pointing Fingers, Start Holding Mirrors If you’re a business leader in New Zealand, you’ve likely heard it all before: “Lift your productivity, innovate faster, create higher-wage jobs, be more sustainable, upskill your workforce. David Altena is Head of Growth & Partnerships at SmartSpace.ai & Co-Founder of The Better SMB Podcast. david@altena.solutions Rob Bull is Director & Principal Consultant at Plexus Consultant & Co-Founder & Host of The Better SMB Podcast. rob@nzla.nz These are worthy goals. But it’s time we asked a tough question in return: Are our public institutions holding themselves to the same standard they expect from us? Leadership isn’t about titles, it’s about accountability, starting at the top. If the private sector is expected to do the hard work of transformation, then the public sector must model what good leadership looks like: clarity, consistency and execution. The Double Standard Holding Us Back Manufacturers are told to build systems, measure progress and lead their teams intentionally. We’re expected to set targets, empower people and stay the course through uncertainty. Yet across public policy, we too often see the opposite: Strategies without metrics Funding without follow-through Agencies working in silos Change driven by election cycles, not national interest It’s no wonder productivity has flatlined for decades. The truth is, we don’t just have a business performance problem, we have a systems leadership problem. Businesses are being challenged to grow up, digitise and collaborate. Isn’t it time government did the same? The Easy Button Problem In the private sector, lifting performance means innovating delivery models, rethinking processes and doing more with less. If we make poor decisions, we lose customers. If we waste resources, we destroy value. But in government, too often the first response is to reach for what […]

Blending artistry with automation for strategic advantage

-Scott Adams, Argon & Co Manufacturing companies in New Zealand are most often owned, managed, and operated by engineers and therefore they often lack artistry, passion, and flair. I readily, and happily, accept there are exceptions to this statement, but for every exception there are 10 more that focus on precision, performance, and cost. Is this a problem? Sometimes it is, because we miss the opportunity of producing something wonderful rather than something utilitarian, but also because it limits opportunity and commercial outcomes. If we build a low-cost focused, and therefore often automated, manufacturing capability without creativity then it is very difficult to be innovative with product design and it therefore limits our ability to adapt to a changing market or to create opportunity in a new market. I frequently hear that the only reason a product has changed is because the client required it. This is satisfactory for many of our smaller national or regionally focused manufacturing companies as there are significant obstacles to change: there is not enough space, inflexible machinery, or people are scared to try something different. But if we were to examine a list of the NZ manufacturing companies that have been successful globally and nationally, it would be full of companies that have blended artistry with automation, admittedly in industry sectors where that combination is encouraged, which is generally high-value niche products. Another smaller list of successful companies will show they have primarily focused on the artistry. However, we have very few low-cost automation manufacturing companies producing volume that have been successful, primarily because there are too many barriers to be globally, let alone nationally, successful due to our small population and high labour costs. So, if there are benefits in blending automation with artistry then what steps would I take? I’d argue that […]

Adoption of smart practises by manufacturers across New Zealand

New Zealand’s manufacturing sector has stepped firmly into the fourth industrial revolution, with a 10.5 percent increase in the use of advanced manufacturing technologies since 2023, as shown in the final Industry 4.0 Insights Survey by Callaghan Innovation. The Industry 4.0 programme was launched to build awareness and educate New Zealand’s manufacturing sector about the powers of digitisation and connectivity in manufacturing. And, while it’s achieved this goal with 80 percent of Kiwi manufacturers aware of the programme, for Sean Doherty, Industry 4.0 Product Manager at Callaghan Innovation, the real impact has been how quickly that awareness has turned into action. “What seemed experimental five years ago, has quickly become business as usual for many Kiwi manufacturers,” he says. “Manufacturers are increasingly recognising the value of advanced technologies as essential tools for growth and resilience. We now have nearly 40 percent of the workforce implementing Industry 4.0 technologies.” From AI and robotics to real-time data tracking, manufacturers are turning to smart technologies to lift productivity, improve quality and modernise operations. It’s already seen that Industry 4.0 technologies such as AI, digital twins or cloud technology are able to increase productivity by 15-30%. Supporting this momentum, the recently introduced Investment Boost scheme offers manufacturers an immediate 20 percent tax deduction on eligible machinery and equipment purchases. “Capital investment often presents a significant challenge for manufacturers,” says Doherty. “This incentive helps lower that barrier to entry, making it more feasible for businesses to invest in automation, AI and other advanced tools. It’s a promising development and will help keep momentum built through Industry 4.0.” However, Doherty stresses that “technology alone isn’t enough, investing in people and company culture is critical for lasting success.” To view the full Callaghan Innovation Industry 4.0 Insights Survey report, visit: https://www.callaghaninnovation.govt.nz/assets/documents/Industry-4-0/2025_Industry4_Insights_Survey_FINAL.pdf

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 […]

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Living in an apartment, near the railway line

On a business trip, I travelled on the Tokaido Shinkansen Bullet Train between Tokyo and Nagoya and, was taken by the number of apartments along the side of the track, at Bullet Train speed. And they all had one thing in common on their balcony: a dog kennel, a satellite dish, plants and clothes lines. Nowhere to walk, no ground level space to kick a ball around. I wonder what the thinking is around 15 storey apartment buildings around the new Auckland railway stations? Is it to ensure the trains have patronage and the huge spend on their development justified? The Government wants Auckland Council to make apartments possible. “Ensuring that Auckland takes economic advantage of this transformational investment in the city”. I wonder how many Government ministers will move there? Apartment buildings can bring problems – lots of people in a built-up area without social cohesion, finding ways to get into each other’s way and an over familiarity with one’s neighbours which doesn’t necessarily lead to a quality of life. The economic advantages for engineers, architects, developers, interior decorating consultants and so on will be great. And may also continue to see trades people in Auckland continue to have work instead of crossing the ditch to Australia. If people live in a large city, they need a quality of life for day-by-day accessibility to work, education and social events. But why live in a large city, in an apartment, by a railway line? Why not move to the regions where you have greater choices of more competitively priced housing and greenfields where the family can play? -Doug Green, Publisher, NZ Manufacturer www.nzmanufacturer.co.nz publisher@xtra.co.nz

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