Regional Manufacturing

Science reform: The missing link in NZ’s manufacturing productivity puzzle ?

The Problem We Have Been Ignoring By Sean Doherty, Manufacturing Commentator | NZ Industry Trends Ask any manufacturer about their biggest constraints and the answers are familiar: energy costs, skilled labour, margin pressure, and global competition from economies with far greater scale. What rarely comes up is New Zealand’s persistent underinvestment in the science and technology that lifts productivity. That gap is real. New Zealand’s total R&D investment sits at around 1.5% of GDP, well below the OECD average of 2.7%, and business investment is under 1%, among the lowest in the developed world. This shortfall is estimated to account for up to a third of our productivity gap. But this isn’t just about how much we spend. It’s also about how well manufacturing and science connect. When that link is weak, research struggles to reach the factory floor and manufacturers miss out on practical solutions. When it works, the gains are clear: better products, improved materials, and performance that carries through to export outcomes and productivity gains. All of this sits against a broader shift. Manufacturing’s share of GDP has halved since 2004, and close to 60% of what remains is concentrated in dairy, meat, food, and timber processing. These sectors matter, but focusing most of our limited science effort there won’t deliver the step change in productivity or living standards we’ll need. At best, it sustains incremental gains in mature industries. If we want a different trajectory, the focus has to shift toward building new capability, not just reinforcing what we already do well. What the 2026 Science Reforms Change The Government’s Science Investment Plan 2026–2036 is the most significant restructure of New Zealand’s research system in more than a decade. It also chooses a clear mission based focus and puts commercial outcomes as key objectives. Seven Crown […]

Strong quarter as manufacturing leads growth

New Zealand’s manufacturing sector was the single biggest driver of economic growth in the March 2026 quarter, growing 1.9 percent and powering the country’s start to 2026, Small Business and Manufacturing Minister Cameron Brewer says. “Manufacturing was the largest contributor to economic growth in the March quarter. That tells you just how much this sector matters to New Zealand,” Mr Brewer says. Statistics New Zealand figures show GDP grew 0.8 percent, with manufacturing up 1.9 percent, led by a 4.0 percent lift in transport equipment, machinery and equipment manufacturing. “That growth is being driven by world-leading firms like Dawn Aerospace and Rocket Lab, medtech manufacturers like Fisher and Paykel Healthcare, and the specialist firms building the components that go into them,” Mr Brewer says. “This is exactly what I’ve been seeing on the factory floor around the country: hard-working, innovative Kiwis making world-beating products, lifting productivity and pushing into new markets. Manufacturing contributes around 8 percent of GDP and employs more than 220,000 people. “Our Manufacturing Productivity Advisory Group, who I meet with regularly, tell me forward orders are strong. They’re a great example of industry and government working together, as is the outstanding work Advancing Manufacturing Aotearoa is doing to champion the sector,” Mr Brewer says. “Our priority is to back manufacturers to invest and grow. That’s what Investment Boost is designed to do, letting businesses deduct a chunk of new capital investment upfront so they can buy the machinery and equipment that lifts productivity, exactly the kind of activity we’re seeing in this data. “When manufacturing grows, the whole economy benefits. This is all part of the Government’s plan to fix the basics and build the future, with a sector that’s leading New Zealand’s recovery.”

Last month massive for the Manufacturing sector

-Hon. Cameron Brewer, Minister for Small Business and Manufacturing I had the opportunity to attend and speak at the Hutt Valley Manufacturing and Innovation Expo, where I saw first-hand the breadth of activity and innovation underway in the region. Following this, visiting EMEX 2026 (Pictured)and speaking directly with exhibitors reinforced a clear message: high value added, innovative manufacturing is happening right across the country. Not just in the main centres, but in places like Bluff, Gisborne and everywhere in between. A particular highlight for me was the second Minister for Manufacturing Awards. It was a great opportunity to celebrate success and recognise the high standards being set across the sector. This year’s finalists and winners showed the innovation and strong execution needed for the sector to stay competitive and grow its $22 billion contribution to the economy. The awards showcased what excellence looks like in practice, with businesses investing in their people, improving processes, and adopting new technologies to lift productivity and performance. One of the new categories this year, the Manufacturing Lifetime and Legacy Award, recognises sustained leadership and impact. Jeff Douglas of Douglas Pharmaceuticals was a highly deserving recipient. Over three decades, he has led the transformation of the business, choosing to anchor high value research and development and specialised manufacturing in New Zealand rather than following the global trend of offshoring. That kind of long-term commitment is exactly what strengthens our manufacturing base. For my part, this Government is committed to backing manufacturing by getting the basics right. That means supporting investment, strengthening skills, enabling innovation and improving access to markets so businesses can grow, compete and succeed. The 2026 Budget, released in late May, delivers a number of measures that will support the sector to remain competitive and resilient in a changing operating environment. These respond […]

A New Service to Power Your Projects

We’re heading back to EMEX 2026, and this year we’ve got something new to share. Complex projects rarely sit neatly inside one discipline. Electrical design, automation, controls, mechanical design, commissioning, and documentation all need to line up. We’ve introduced Automation & Controls so we can support clients across more of the engineering work it takes to get complex projects delivered. From mechanical design and project engineering through to electrical design, automation, commissioning, and documentation, our goal is to help keep the technical pieces connected and moving. Caliber Design has been supporting New Zealand engineering companies for 11 years, working with more than 300 companies across 1200+ projects. Our model is simple: we provide talented engineers on a seconded basis, embedded in your team, working within your systems, standards, and processes to help get projects over the line. Until now, that’s meant mechanical design, FE analysis, product development, and project engineering. With our new Automation & Controls service, we can now support clients across a broader mix of disciplines. Our degree-qualified engineers can support electrical design, PLC, HMI and SCADA development, commissioning, documentation, and project support, while you retain full control and ownership of the work. We’re also contributing to the EMEX seminar programme. Daniel du Plessis, our Auckland Regional Manager, is presenting Project Plans Don’t Solve Technical Problems on Wednesday 27 May at 2pm. Dan’s session looks at the gaps that can open up between design, procurement, fabrication, installation, and commissioning, and how technical leadership can support more successful outcomes. EMEX is always a great chance to celebrate the depth of Kiwi engineering and manufacturing innovation. We’ll be keeping an eye out for stories for our monthly Celebrating Kiwi Innovation newsletter. If you’d like to be featured, come and find us at Stand 1015. We currently have vacancies throughout the […]

EMEX is with us again

From May issue, NZ Manufacturer magazine The latest version, EMEX 2026, is mere days away. The most focussed trade fair for manufacturing businesses in New Zealand continues to display the latest and advanced equipment and technology which our companies require to improve their levels of Productivity and to make better their chances of success on local and export markets. There is no getting away from the fact that New Zealand’s future depends on continuing to find avenues overseas for our quality products. We can’t, of course, guarantee markets. We strive to be product perfect and cost competitive, in a cluttered world where it is everyone for themselves. And the technology and expertise from EMEX 2026 can help your company get there. There is a real plethora of events for your interest, including the Make NZ Industry Conference; the Epicor Knowledge Theatre; Harnex AI Workshops; the Minister for Manufacturing Awards; plus, a host of Industry Speakers, including Ian Walsh from Argon & Co and David Altana from The Better SMB, to bring you up to date with expert advice for better business. Enjoy the trade show, savour in the experience, make new business contacts and make every second count as you network for your company’s future. -Doug Green, Publisher, NZ Manufacturer magazine

(I wonder) What is in the Budget for manufacturers?

Another Budget, another election year. Lots of hand wringing? I hope not. The business community needs government to invest more and assist to make life better for all of us. Through these challenging times, we are not hearing from Ministers, expressing concerns, or sharing ideas to address the difficulties businesses are facing. When companies are challenged in moving forward, there needs to be options that can assist. Take for example Wattie’s and McCains, where are the Minister for Regional Development and the Minister for Small Business and Manufacturing? If they are working on a plan to improve the lot of these two companies, they are sure not letting business and communities know what is going on. If there are meetings going on, share the outcomes. Regions like Hawkes Bay are renowned for the quality of their products. Growers all over the country too. Rural business is holding the country together, financially, with their ginormous returns for high quality hort and agricultural export products. It is not the Queen Street farmer driving these efforts! In the Budget, we need to see investment into Manufacturing for companies to go forward, with confidence, and continue to grow. Manufacturing companies need the ability to invest in technology to do better and to enhance our market share. Improved technology can result in improved productivity, which can result in an improved bottom line. We cannot have a budget like the one in 2025, when to balance the books, the Finance Minister needed the money that was to be used for equal pay! I get it that in an election year members of Parliament may not want to comment or share ideas with the population because their words may well be remembered, affecting their chances of re-election. However, they work for us; with business, to bring about […]

NZ‑India free trade deal: were early fears about immigration and investment justified?

by Rahul Sen, Senior Lecturer, Department of Economics and Finance, Auckland University of Technology Depending on which side of the argument you listen to, the recently signed New Zealand-India free trade agreement represents either a huge economic opportunity for New Zealand or a risk to its economic sovereignty. In an election year, we can expect political positioning over something as significant as this deal, given the broader context. India is a huge market of 1.4 billion people, migration is a burning issue globally and economic growth has been elusive during a period of inflation, war and fuel price hikes. Broadly, the agreement reduces barriers to trade in goods, services, capital and skilled labour. It’s not surprising exporters are excited about the opportunities. India is projected to grow at 6.5% this year and the next – faster than New Zealand’s other existing trade partners. The Ministry of Foreign Affairs and Trade’s national interest analysis estimates trade, output and real wages will increase due to the market access for New Zealand goods in the deal. The economic benefits projected by 2050 may even be conservative estimates, given higher-than-modelled gains were seen once the New Zealand-China free trade agreement was in place. But the India deal goes beyond trade in goods and encompasses services and investment liberalisation, which was where the most political opposition was faced. First, it was feared New Zealand could be penalised for not investing enough in India. Second, according to NZ First’s Shane Jones, the agreement opens a door to “unfettered immigration”, displacing local jobs. The hyperbole notwithstanding, then, what does the text of the agreement tell us about the likely economic impact of the deal on New Zealand? Can NZ be penalised for not investing enough? The major sticking point for the Labour Party – whose support for the deal was needed because government coalition partner NZ First opposed it […]

Talking point from Mayor Wendy Schollum: McCain and Wattie’s closures

When a major employer closes and another downsizes, the impact doesn’t stop at the factory gate. In Hastings it affects workers, growers, contractors, suppliers, transport operators, local businesses, and families across our region – because when steady jobs disappear, it is felt around kitchen tables, in local shops, and across the wider community. That is why the recent changes at McCain and Wattie’s matter to our community, and why Council has a role to play. Over recent weeks we’ve brought together growers and industry to understand the drivers and impacts, and successfully pushed for a national review of the issues that have resulted in these business decisions. Wattie’s is not just a factory. For many families in this district, it is part of their history. Parents and grandparents worked there. Growers built businesses around supplying it. Contractors and transport operators have relied on it. It is part of Hastings’ identity as a food-producing district. But it is also important to say this clearly: Hastings is not starting from a weak position. We have strong growers, manufacturers, exporters and businesses that continue to play a major role in our district. Hastings is a powerhouse in primary industry, manufacturing, health and technology for the region, which provide about 60 per cent of Hawke’s Bay jobs, and we must remain focused on continued growth. We have an opportunity and a responsibility to respond with urgency to these recent announcements. Since they were made, I have been working with Central Hawke’s Bay Mayor Will Foley, growers and industry, to advocate at a national level with one clear Hawke’s Bay voice. This is a regional and national issue, not just a Hastings issue. Many affected growers are in Central Hawke’s Bay. Workers come from across the region, including Napier. The consequences reach well beyond one […]

The cost of Deindustrialisation: How New Zealand’s manufacturing decline threatens our economic future

NZ Manufacturer magazine includes expert comment and analysis from Sean Doherty, Ian Walsh, Geerten Lengkeek, Dr. Megan Woods, and soon, the new Minister for Small Business and Manufacturing, Cameron Brewer. In this election year, we welcome feedback from you, the reader, on the issues you would like the incoming government to focus on and do something about (productivity – energy costs – the cost of living – housing etc). This article is by Sean Doherty, Manufacturing Commentator | NZ Industry Trends Manufacturing is not just another sector in New Zealand; it is one of the core systems that keeps regional communities alive and anchors our standard of living. When factories close in Whakatāne, or the outer suburbs of Christchurch, we do not seamlessly “move up the value chain.” We lose well‑paid careers, technical capability, and the dense network of firms and supply chains that make an economy resilient. The signs of deindustrialisation are already all around us Long‑standing manufacturing plants shutting, production shifting offshore, and investment decisions quietly goes against New Zealand. The immediate impact is job loss, but the deeper damage is structural. Manufacturing has long provided thousands of solid, mid‑skill, mid‑wage jobs for people who are prepared to learn a trade, run complex processes, and take responsibility for quality and output. As these roles disappear, the labour market splits into a small group of high‑income professionals and a growing pool of low‑paid service jobs in areas like tourism and hospitality. That mix locks in stagnant wages, weakens social mobility, and drives up fiscal pressure as more households rely on government support to close the income gap. For regions, the consequences are even more personal. A single plant in a provincial town can support hundreds of families directly and many more through suppliers—maintenance firms, transport operators, engineering workshops, automation […]

Marshall Industries celebrates ninety years of roofing in Southland

Manufacturing from 1938 and still going strong. A Southland business that has spent generations working on the region’s homes, farms, and businesses is marking a major milestone, with a legacy that has quietly helped shape the way New Zealand builds. Marshall Industries is celebrating ninety years in business, a journey that has seen the company become a familiar and trusted name across Southland and Otago, while also playing a pioneering role in the country’s roofing industry. Originally established in 1938 as Owen Marshall Plumbing Ltd, the business was responsible for a major innovation in New Zealand construction. The company was the first in the country to develop and produce continuous long-run corrugated roofing iron, designing and building its own machinery in Invercargill using local tradespeople. It was a breakthrough that changed how roofing was manufactured and installed across New Zealand, setting a new standard that is still widely used today. The company also led another national first, developing continuous spouting systems and manufacturing twenty machines locally, in the 1940s, which were then distributed across New Zealand, Australia and the Pacific Islands. Managing Director Tom Marshall says these milestones reflect a long history of practical innovation driven by the needs of the industry. “There has always been a strong focus on finding better ways to do the job,” Marshall says. “That early innovation came from local knowledge and skilled tradespeople right here in Southland, and it is something we are incredibly proud of.” Alongside this legacy of innovation, the business has continued to deliver roofing solutions across the region, protecting homes, farm buildings and commercial properties through decades of growth, change and Southland weather. Marshall says reaching ninety years is something the whole team is proud of, but it is also a reflection of the community that has supported the business […]

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Regional Manufacturing