Regional Manufacturing

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 […]

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 […]

Talk fests do not help the bottom line

Editorial NZ Manufacturer February 2025 We are not short of commentators in New Zealand telling us what is wrong. Some even prefer ideas on how we can fix things. These commentators appear in our newspapers and whatever they say – does it matter? – does not bring about change. They do not affect policy. They keep their Profile and allowance – the newspapers keep their commentators as added value for the paper they write for, seemingly to satisfy the subscriber. If they believe they can make a difference to our way of life, they need to talk less about (say) real estate, where so much money is invested that does not go into the productive sector. People buying up property are, generally, not the creative class, innovators, developers, forward- thinking in their view on the nation’s future. This is where a cloud hangs over our prime minister; he owns properties and whatever he says for the direction the country does not affect his back pocket. He is in a regal position where decisions made will not lessen his financial situation. We have Chris Plenk, the new Minister for Small Business and Manufacturing who does not have a budget, A minister outside cabinet who answers to Judith Collins. We have the disassembling of Callaghan Innovation and its functions moved to other entities. We need to come to grips with where the country is heading and how we are going to get there. Is it more overseas investment, hopefully in businesses and not real estate. Is it public sector and private sector investment – and what will the investment focus on? We continually discuss the rail, road and sea transport systems as to help make the economy stronger. But just what is around the corner? We know agriculture and land-based enterprises continue […]

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 […]

Embracing digital transformation: A strategic roadmap for Argus ManuTech Ltd

-Adam Sharman, CEO LMAC Group, APAC Argus ManuTech is a new name, but it has over 50 years of experience as an industry-leading manufacturer of electrical products. It specialises in cable and harness assemblies, viscous reheating products, and electrical medical devices. It has a rich history of supplying local and global customers from its facility in Christchurch. The global manufacturing sector is experiencing a major transformation fuelled by rapid technological advancements and an increasing demand for efficient, sustainable, and data-driven operations. Recognising the opportunities these changes presented, Argus ManuTech set out to tackle key challenges such as improving productivity, optimising supply chains, and remaining competitive despite rising labour costs. To address these issues, the company developed a clear roadmap for its digital manufacturing transformation. Argus ManuTech’s digital transformation strategy was developed through an initial two-step assessment process. Initially, a business survey was conducted with all employees to understand their challenges and needs regarding their work and the opportunities for the organisation. This survey proved invaluable in shaping the transformation strategy and identifying key insights and themes. Nathan Hay, General Manager, says, “I can’t stress enough how impactful and important it was to engage with staff before developing any strategy.” The second step involved using the Smart Industry Readiness Index (SIRI) framework to guide Argus ManuTech in prioritising initiatives for digital transformation initiatives. The SIRI framework, an Industry 4.0 diagnostic tool facilitated for Argus ManuTech by LMAC’s certified assessors, was employed to evaluate the current digital state of Argus ManuTech’s factories. This framework addresses three fundamental aspects of Industry 4.0: Process, Technology, and Organization. Based on this assessment, four high-impact areas were identified for ManuTech to focus its resources on: vertical integration, shop floor automation, shop floor intelligence, and inter and intra-company collaboration. Using these impact areas, Argus ManuTech developed a […]

Q & A: Frank Phillips, Managing Director, Fulcrum

We have all heard of our ‘productivity problem’. Adopting proven and well understood technology – not the bleeding edge risky stuff – will be key to tackling it. Anyone in manufacturing who has tried to search for technology solutions to solve a particular challenge knows the rabbit hole it can become. The associated lack of confidence in vendors (particularly when there’s no in country support) follows; so it goes in the too hard basket and progress stops. All this in a nation where Number 8 wire pedigree and ‘build it yourself’ solutions start to proliferate. This distracts from core business focus and can be a black hole of investment to develop and maintain. What does Fulcrum do? We save time; give confidence and ultimately help manufacturers get stuff done! Fulcrum connects New Zealand manufacturers to New Zealand technology partners. Part of this is a simple self-service platform, but we also act as your part time CTO, prioritising and advising to make sure the right things get done by the right partners. In New Zealand we have all the skills, knowledge and technology for manufacturing to thrive, but we often don’t do a great job of talking about it! Fulcrum works with manufacturers and primary industries of all sizes. We often find that our on-boarding and follow up sessions allow us to act as an unofficial ‘part time CTO’ – helping manufacturers to prioritise, build the foundations of their digital transformation and work with the right partners to deliver it. We’ve been conscious when onboarding Technology partners that their can be a right size fit to consider. A specialist contractor working independently may be the right fit for one manufacturer in agility and cost, but not right for another where long term support agreements are needed. Digitisation is the way forward? […]

We need to pay attention to completely natural, consumer quality-verified, unprocessed food

-Phyllis Tichinin, soil scientist, founder of True Health Ltd The health narrative is increasingly moving away from processed food, especially ultra-processed foods (UPFs). More emphasis is being put on vitamin and mineral, antioxidant and polyphenol content, also called nutrient density or ORAC. Consumers are becoming concerned about pesticides and packaging chemicals in what they eat. They are looking for food that fully nourishes and heals cells. Ultra-processed items are receiving bad press and labelled as the cause of chronic disease. In America, ninety three percent of Americans have some form of inflammatory chronic disease: cancer, diabetes, fatty liver, Alzheimer’s, allergies, etc. More than half of the population is obese. Seventy-seven percent of young men are unfit for military service. These figures are mirrored in health statistics worldwide. While sedentary screen time, air and water toxins, and stress are implicated, Influential functional medicine doctors and health celebrities are placing the majority of the blame on consumption of processed food. (Check out Dr Casey Means interviews on the Web or Spotify) Our NZ consumption of UPFs is only slightly lower than in the USA and the UK – around 50%, even for children under 5. This global trend has implications for NZ’s food and packaging industries. Most of the food we export is minimally processed, compared to the ultra-processed foods like packaged snacks, desserts, energy bars, etc. We are presently well positioned with a reputation for natural quality, but in most food categories Italy and France have international reputations superior to ours. We can’t cruise on our laurels in this space and we certainly can’t afford to lose any ground. Food wrapping and containers that preserve vitamins, minerals and flavour components without the use of any chemical, heavy metal, or plastic need to be a focus of innovation. Hand in hand […]

Manufacturers have unique opportunity to bank talent

With forecasts from the Hanga-Aro-Rau Workforce Development Council showing the manufacturing, engineering, and logistics (MEL) sectors will need to fill over 157,000 jobs over the next 5 years, existing recruitment strategies need to be widened to include those with transferable skills from other industries. As NZ Manufacturer business advisor and director of Auckland public relations agency Impact PR Mark Devlin has found, recent government cost-cutting measures could provide an opportunity for manufacturers to access a resource critical for the sector’s future growth. With thousands of government and private sector workers made redundant during the recession and from public sector cuts in recent months, the opportunity exists for the manufacturing sector to create a talent bank of skilled workers. This could help futureproof the sector by accommodating thousands of new employees in manufacturing firms nationwide. A large proportion of the 6,000+ Government workers who are losing their jobs as a result of public sector cuts have highly transferable skills that are in short supply and could be absorbed by a wide range of manufacturing firms that contribute directly to the country’s economic growth. What we know of government workers is that they are well-trained in many of the key competencies in desperate need within the manufacturing sector. This includes people from government departments with an existing relationship with industry such as WorkSafe, NZTE, ACC, and MPI. With Māori and Pacific Peoples expected to make up a growing proportion of the workforce the sector needs to be looking to bring in greater diversity and more cultural awareness – and the Government workforce has an abundance of expertise in this area. As a nation, we have invested heavily in developing our government workforce and it is critical we move to retain these skills, many of which are unique to our ethnic and demographic […]

‘We haven’t the money, so we’ve got to think”

EDITORIAL: From August issue NZ Manufacturer www.nzmanufacturer.co.nz These words were spoken by Lord Sir Ernest Rutherford, Nobel Laureate. Since he spoke them, some inspiring products have been made. These include The Martin JetPack, The Yike Bike, The Springfree Trampoline, Woollen Shoes, The Pavlova, Richars Pearse’s Flying Machine, Hamilton Jet, The Buzzy Bee…and the list goes on. What is significant about these products is that they were made at a time when there wasn’t the money available. Through sheer determination and effort, they found markets and advanced New Zealand’s name on the world stage as an innovative and go-ahead nation. There are a lot more products that have made the country proud and celebrated the entrepreneurs determined to get ahead. However, times have been changing and their is a lack of attention focussing on the productive sector. Financial corrections have been made to get the books in order and, now, support is urgently needed for our manufacturers. Nowhere in the Budget did we hear of the importance of the manufacturing sector to the economy, that all efforts were appreciated and when times get better, assistance would be offered to keep the backbone of the country strong. It seems that Government has gone too far with its slash and burn. The country of 5,000,000 can’t all dance on the top of the designated pin. Anyway, back to the inventions: The Britten Motorcycle, Wave Power, Conducting Polymers, Carbon Nanotubes, The Electric Fence, the Hamburger Holder…

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Regional Manufacturing