Manufacturing bottleneck: How Auckland’s land crunch threatens growth
From NZ Manufacturer magazine, February 2025 By Mark Devlin, Managing Director, Impact PR Auckland is the industrial heart of New Zealand, but an emerging scarcity of industrial-zoned land is poised to have far-reaching implications for the manufacturing sector. As businesses increasingly seek larger, purpose-built facilities to house state-of-the-art technology and automated processes, the land supply constraints could prevent growth and innovation in one of the country’s most essential industries. Manufacturing Under Pressure New Zealand’s manufacturing sector, which contributes over 10% to GDP and employs more than 240,000 people, is under increasing pressure to modernise and scale up. Global trends in automation, robotics, and smart logistics demand facilities that are capable of supporting high ceilings, expansive footprints, and advanced connectivity. Stephen Hughes, CEO of Drury South Crossing—New Zealand’s largest mixed-use property development—says that half of the second phase of their industrial development has already been sold. Manufacturing companies and industrial operators are vying for what remains of the land, recognising the unique advantages that sites like Drury offer. According to Hughes, “Large-scale manufacturing facilities require contiguous greenfield sites with close access to major transport arteries like motorways and rail. The diminishing availability of such land in Auckland is beginning to limit the options for industrial expansion.” Automation Driving Land Demand A major shift in the manufacturing sector is the adoption of Automated Storage and Retrieval Systems (ASRS) and other advanced technologies. These systems optimise operations by automating warehousing processes, reducing labour costs, and improving efficiency. However, the infrastructure for such systems cannot simply be retrofitted into existing warehouses; they demand purpose-built facilities with ceilings as high as 30 metres and footprints of two hectares or more. Ben Stewart, Associate Director of Property at Calder Stewart, explains that Auckland’s geography and regulatory landscape are significant obstacles. “The region is constrained by natural […]