Smart Manufacturing Today

AI is peeling back the layers of ‘low-value’ work

Kenny Ching, Senior Lecturer, Business School, University of Auckland, Waipapa Taumata Rau As generative artificial intelligence (AI) advances at breakneck speed, it is upending assumptions about which jobs are “safe” from automation. Disruption now extends well beyond manual or routine work into white-collar roles once considered untouchable. Tools such as ChatGPT, Claude and Midjourney can produce policy briefs, analytical reports, software code, design assets and marketing copy in seconds. Even in specialised domains, systems such as PolicyPulse can generate structured briefs and thematic syntheses – tasks that once required teams of experts. If AI can so easily replicate large swaths of professional output, how much of the economy rests on work that creates the appearance of value rather than tangible impact? And could New Zealand – anchored in sectors rooted in physical work, human judgement and essential services – be structurally better placed to thrive? AI’s exposure effect A 2023 Goldman Sachs report estimated generative AI could automate work equivalent to 300 million full-time jobs globally. The highest exposure is in administrative, legal and other information-heavy sectors. In 2024, the International Monetary Fund warned that economies reliant on high-skilled services – such as education, law and finance – face both job losses and rising inequality. This echoes author David Graeber’s concept of “bullshit jobs” – roles that add little genuine value. Between 2000 and 2018, most net job growth came from low productivity service sectors such as marketing, consulting and corporate administration. These are precisely the kinds of tasks AI can now perform in seconds. The OECD has noted routine information processing jobs face the greatest risk. AI is not only replacing roles – it is revealing how insubstantial many of them were. Some argue finance illustrates this reality starkly: intended to allocate capital efficiently, the sector has expanded beyond its productive purpose. Businessman Adair Turner famously called much of […]

Kiwi exporters can plan and adapt now we have some tariff certainty

By EMA Head of Membership & Export Simon Devoy New Zealand exporters were dealt a tough blow at the start of August as the United States confirmed an unexpected increase in tariffs on our goods, from a widely predicted 10% to 15%. It appeared the New Zealand government and our trade negotiators had been working on the assumption that the rate would be held at 10%, but that understanding evaporated with a decision made directly by President Donald Trump. The shift reflects Washington’s new trade-first, numbers-driven approach, which leaves little room for nuance or negotiation. In this worldview, a trade surplus equals punishment, and despite New Zealand’s relatively modest NZ$500 million surplus with the US, we found ourselves in the higher tariff bracket while competitors such as Australia and Chile remained at 10% thanks to deficits in recent months. Minister for Trade and Investment Todd McClay, accompanied by New Zealand’s top trade negotiator Vangelis Vitalis, is in Washington to press the case for a reversal. They are there to register concern, seek an explanation for the extra 5%, highlight the strain this places on New Zealand–US relations, and explore a path back to a lower rate. However, the message from the US side has been blunt: the Trump administration believes America has been “ripped off” in past trade arrangements and is determined to redress what it sees as imbalances. For New Zealand, the reality is we have limited leverage. One example of an avenue we could go down is strategic procurement, such as directing some of our planned defence upgrades towards US manufacturers to help offset the surplus. While not a quick fix, such moves could be part of a wider diplomatic and economic strategy. Despite the blow, the latest announcement at least brings certainty after months of speculation and […]

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 […]

Building the Foundation: Preparing Your Manufacturing Business for AI Success

-Adam Sharman, CEO LMAC Group APAC The manufacturing sector stands at the precipice of an AI revolution that promises to transform everything from production efficiency to supply chain management. Yet for many business leaders, the question isn’t whether to adopt AI, but how to prepare their organisations to extract maximum value from these powerful technologies. The answer lies not in the sophistication of the AI itself, but in the quality of the foundation upon which it’s built. The Data Foundation Imperative Before any AI system can deliver meaningful insights, your manufacturing operation must first establish a robust data infrastructure. This begins with conducting a comprehensive audit of your existing data landscape. Map out where data is generated across your operation—from sensor readings on the factory floor to inventory management systems, quality control metrics, and customer order patterns. Many manufacturers discover they’re sitting on vast amounts of valuable data that remains siloed across different departments and systems. The key is achieving data integration and standardisation. Legacy systems often speak different languages, storing similar information in incompatible formats. A machine’s operational data might be recorded in one system while maintenance records exist in another, making it impossible for AI to identify patterns between equipment performance and maintenance needs. Investing in data integration platforms that can unify these disparate sources creates the coherent dataset that AI algorithms require to function effectively. Data quality represents another critical pillar. AI systems amplify the characteristics of the data they’re trained on—if your data contains errors, inconsistencies, or gaps, your AI will perpetuate and magnify these problems. Implement rigorous data validation processes, establish clear data governance protocols, and create systems for continuous data quality monitoring. This might involve automated checks for outliers, regular audits of data entry processes, and establishing clear accountability for data accuracy across teams. […]

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

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