Smart Manufacturing Today

New Zealand Productivity Organisation wants to hear from you

www.nzproductivityorganisation.co.nz www.nzmanufacturer.co.nz/nzproductivityorganisation The New Zealand Productivity Organisation (NZPO) invites all businesses throughout the country to share their views on Productivity and how they are finding current business conditions. Your company may be doing well or not quite reaching the mark you are aiming for. The economy in 2026 seems to be picking up and the better than expected PMI figures are welcome and a sign of better things around the corner. For each company it will be different, the level of Productivity. Share with us how the tools and methods you are using, the technology and expert advice, showing the way to a better future and just how you are planning ahead. Your story can appear jn the NZ Manufacturer magazine or on the media platform. Please visit NZPO at the above address.

Manufacturing starts year by shifting up a gear

Hon Chris Penk New data showing New Zealand manufacturing is experiencing its highest level of activity since December 2021 signals a strong start to the year, Small Business and Manufacturing Minister Chris Penk says. The latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI) shows the seasonally adjusted PMI for December has risen by 4.4 points compared to November, bringing it to 56.1. “This is an incredibly positive signal, as a PMI reading above 50.0 indicates the manufacturing industry is generally expanding. The data suggests New Zealand manufacturing growth is outperforming major economies including the United States, China, Japan, the United Kingdom, and Australia,” Mr Penk says. “The success of manufacturing is central to the health of the New Zealand economy. The sector directly employs more than 220,000 people, contributes around eight percent of GDP and accounts for 60 percent of our exports. “We know some manufacturers felt the pinch of harder months last year. Today’s great news coupled with a 1.1 percent uptick for national GDP in the September quarter indicates a brighter future for businesses. “The Government is focused on setting the right conditions and fixing the basics so that businesses can thrive. Manufacturers are turning that certainty into growth through hard work and innovation. “The creativity and resilience of the sector, and its contribution to national prosperity deserve to be celebrated. It’s therefore my pleasure to announce the second annual Minister for Manufacturing Awards will be held at Auckland Showgrounds on 27 May. “This year’s awards will again recognise the Manufacturer of the Year, Manufacturing Leader of the Year, Apprentice of the Year and Excellence in Process Innovation. It will also introduce three new categories. “This includes a dedicated Manufacturer of the Year award for businesses with fewer than 50 Full Time Equivalent Employees (FTEs). With around 97 percent of manufacturers falling into this group, opening a new category ensures small businesses receive the recognition they deserve. “An Emerging Manufacturer Leader of the Year award is also being added to shine a spotlight on the next generation of innovators and trailblazers, alongside a Manufacturing Lifetime & Legacy Award to honour those who have […]

How CTEM, AI, and access control redefine OT security in 2026

By Carlos Buenano, Field CTO for OT, Armis As we step into 2026, AI-driven adversaries, supply chain fragility, and relentless digitisation are forcing Operational Technology (OT) security to mature into a force to be reckoned with. Here’s what 2026 looks like: AI-Powered adversaries demand autonomous defence AI is no longer an abstract threat vector; it’s an operational force multiplier that attackers are leveraging with frightening results. We’re witnessing adversaries use autonomous agents to probe networks, map exposed devices, and launch dynamic exploitation campaigns that run continuously. In 2026, those systems will act autonomously: isolating compromised segments, or enforcing multifactor re-authentication for operators under suspicious conditions. In OT, where minutes can mean millions, automation will be the only meaningful defence. CTEM becomes the operational centre of gravity A few years ago, “CTEM” was just another Gartner acronym. In 2026, it’s the organising principle for any serious OT security program. CTEM represents a shift from periodic vulnerability management to continuous, risk-based exposure assessment and management across hardware, firmware, network paths, and even supply-chain dependencies. But the key difference this year is context. We’re aligning exposures with what actually matters; the physical process, the human safety implications, and the potential operational impact. The cybersecurity landscape in 2026 is clearly set for a strong and necessary integration where vendors leverage the strengths of CTEM to directly inform actionable firewall enforcements, workflows, and reporting. This narrative is driven by the final “Mobilisation” step of the CTEM cycle, which demands that validated, confirmed high-priority exposures leads to an immediate, automated remediation. Specifically for firewalls, this means a CTEM platform will no longer just issue a general alert but will use its deep, risk-based context to trigger a Security Orchestration, Automation, and Response (SOAR) playbook that instantly pushes a micro-segmentation policy or a temporary block rule to […]

Digital transformation

From February 2026 issue, NZ Manufacturer www.nzmanufacturer.co.nz By Frank Phillips, Director, Fulcrum New Zealand Ltd Automation in manufacturing is a competitive imperative. It’s getting easier and cheaper to do, and able to be applied in situations previously unsuitable. Knowing where to start, identifying the right process to automate, detailing solid scopes and finding the right parter are challenges across the industry. That’s why we started Fulcrum, ‘The Automation Brokers’. We help Kiwi manufacturers cut through the complexity of automation projects, keep upfront costs down and reduce risk, while unlocking tangible performance gains. At its core, Fulcrum is an independent automation broker. A new way for manufacturers assess custom automation opportunities. Like other broker models we work on behalf of the buyer, ensuring clarity in what they are buying and finding the best deal and our revenue predominantly comes from the technology partners in our network. Rather than selling a specific technology or locking clients into one vendor’s solution, we assess processes, write business cases, calculate return on investment and detail scopes before putting the opportunity to market across proven partners with proven track records. We have seen many companies delay or abandon automation initiatives simply because the procurement process felt too daunting alongside the pressures of daily operations. That’s understandable when you’re expected to define scope, compare responses, and negotiate contracts on top of running a business. The real challenges NZ Manufacturers are facing Across Aotearoa, the conversation about automation often starts with machines robots, conveyors, vision systems — but it quickly evolves into something deeper: Budget constraints: Many SME manufacturers simply don’t have the capital or confidence to commit to large automation projects without a clear, validated path forward. Skills and capacity: Knowing what to automate and how to scope it requires expertise that many teams don’t have in-house. […]

Reflecting on 2025: Circularity, Sustainability and Transformation for Steel Manufacturing

Troy Coyle, CEO, HERA As 2025 draws to a close, it’s clear this has been a year of transformation and momentum for Aotearoa New Zealand’s steel manufacturing industry and for HERA. The national conversation around sustainability and circular design has matured significantly, with steel once again proving itself to be the rockstar of the circular economy. One of the biggest milestones for our sector was undoubtedly the announcement of the Electric Arc Furnace (EAF) at New Zealand Steel. This long-anticipated investment represents a major step forward for domestic steelmaking, enabling the production of lower-carbon steel from locally recycled scrap. It’s a tangible example of how industry can decarbonise while strengthening regional manufacturing resilience. The EAF signals a new era where circularity, innovation, and sustainability sit at the core of our national manufacturing. At HERA, we’ve seen that growing interest in low-carbon and circular design first-hand. Our newly released update to “How to Specify Low Carbon Steel” guide, has rapidly become our most downloaded publication, reflecting the appetite among engineers, designers, and specifiers to make informed material choices that reduce embodied carbon. This surge in demand shows that Aotearoa New Zealand’s construction and manufacturing sectors are ready to move from ambition to action. Circularity goes beyond just lowering emissions. It’s about designing systems that keep materials in use for as long as possible and few materials perform better than steel in this regard. That’s why one of HERA’s proudest achievements in 2025 was launching our Low-Carbon Circular Design Guidance. This guidance provides a practical framework for designers and manufacturers to apply circular economy principles in real projects, helping to close the loop between design, fabrication, and reuse. It showed that >50% reductions in carbon emissions were readily achievable through clever design and material selection. This work has been further strengthened by our successful application for […]

2026, moving forward together: Competenz deepens support for learners and employers

By Toni Christie: Competenz General Manager – Employer and Learner Experience With apprentices and employers across the country navigating an evolving sector, Competenz focused on stability, support and momentum — strengthening learner pathways and employer capability ahead of the 2026 shift to Industry Skills Boards. More than 7,000 apprentices and trainees are developing their careers through Competenz-supported programmes across New Zealand – everywhere from engineering workshops to plastics manufacturing lines, heating and ventilation rooms, forestry operations and fabrication floors. And in 2025, that collective momentum has only grown. Even as the vocational education system continued to evolve, our focus remained clear: equip learners and employers with the support and confidence they need to make real progress. A major driver of that progress has been the continued strengthening of our Learner Support Framework. The needs across our network have become more varied, and this year the framework supported apprentices everywhere from engineering workshops and plastics plants to fire protection crews and forestry teams. By early 2025, more than 1,000 learners were joining our fortnightly study groups – a sign not just of demand, but of trust and belonging. Support for priority learners has continued to deepen. Whether someone needs help with literacy, numeracy, drawing, or navigating neurodiversity, we’ve ensured there’s a pathway that meets them where they are. Accessibility has remained a priority too, with 300 Chromebooks circulating nationally — many in the hands of learners who would otherwise struggle to engage online. Wellbeing has been another steady thread through 2025. Our partnership with Vitae continued to provide vital mental-health support. Employers have also played a pivotal role in setting apprentices up for success, and in 2025 our nationwide Train-the-Trainer workshops helped build that capability even further. The series focused on practical, real-world coaching skills — exploring how effective on-the-job guidance […]

The Year in Review: A Seconded View of NZ Manufacturing in 2025

-Caliber Design Working inside engineering teams throughout New Zealand gives us a practical view of how the sector is moving. This year we saw steady progress and exciting developments, even with the head winds. Companies continued to advance capital projects, refine equipment, develop new products, and pursue leading edge innovation in emerging fields. While each sector had its own pressures, the overall feel has been one of steady momentum. Manufacturers continued to deal with stretched internal resource, long project lists, the need to keep work moving without disrupting production, and uncertain economic times. Yet across our secondments and conversations, the intent to improve and invest remained consistent, and that intent shaped much of the engineering work carried out this year. Steady improvements in established industries In processing, materials handling, dairy, poultry, and food and beverage sites, we saw ongoing investment in practical upgrades. These were not large transformation programmes, but they mattered. Many involved service layout adjustments, safety improvements, reliability work, and design changes that reduce maintenance effort or improve workflow. This work is almost always carried out in operational environments, which means planning, communication, and sequencing are as important as the technical solution. The projects are varied but typically share a common goal of keeping plants running safely and efficiently while making incremental improvements that compound over time. Emerging technology continued to build momentum At the other end of the spectrum, 2025 saw significant activity in emerging technology. We set a goal to work with seven emerging technology companies this year and ended up partnering with nineteen. That growth is a strong indicator of how much innovation and technical development is happening in New Zealand. Projects spanned aerospace, clean materials, innovative transport, robotics, advanced energy systems, and specialised manufacturing. These companies move quickly, iterate rapidly, and often need targeted […]

Apex Valves: From garage to global

From humble beginnings in a Titirangi garage, Apex Valves has grown into one of New Zealand’s standout manufacturing and export success stories. Built on precision engineering and commitment to quality, the company now supplies high performance water control valves to homes and farms around the globe. The EMA’s Nicholas Russell sat down with Apex General Manager Mark Gracie to talk about the competitive edge that comes from manufacturing excellence backed by decades of innovation. Q: How did Apex Valves’ journey begin, and what triggered your move into larger-scale manufacturing? Mark Gracie: Apex was founded in 1982 by my father, Alan Gracie, in a Titirangi garage. At that time, New Zealand had almost no domestic manufacturers of valves for home hot-water systems. If you needed one, you imported it, often at high cost and with long delays. That gap in the market sparked the idea: could a Kiwi manufacturer produce a reliable, locally made alternative? From that question, Apex grew steadily. We expanded from residential hot-water valves into broader plumbing fittings, and then into agriculture when a rural-supply customer asked if we could engineer a heavy-duty trough valve that would not break under high water pressure or daily farm use. That product became our breakout success. More than 40 years later, that trough valve remains one of our biggest sellers, used on farms across New Zealand and in multiple export markets. As demand grew, we shifted into proper manufacturing facilities, but over time those sites became limiting. Our last location served us for 28 years, but we were spread across four buildings, with production split into disconnected pockets. For a company that prides itself on quality and efficiency, the layout created unnecessary complications and increasing constraints. Q: What has changed now, after the move to your new facility at Rosebank Road? […]

A year of supporting innovation, safety and export growth

By EMA Head of Membership, Export and Manufacturing Simon Devoy It’s not news that New Zealand’s economy remains heavily reliant on commodity-based exports. Yet the country is steadily carving out a reputation for high‑tech, high‑value manufacturing. While we’re known globally for milk powder, meat and timber, we are increasingly competing across advanced sectors, including aerospace, agritech, medical devices and precision engineering. The ambition is to be seen as an innovation nation, but there are significant challenges that must be addressed. Throughout 2025, the EMA’s focus in the manufacturing sector has been on two linked priorities: reducing workplace harm and helping the sector modernise and become better connected so businesses can scale and export with confidence. Despite the sector’s strengths, stubborn rates of workplace injury continue to drag on productivity and impose high costs. In response, we partnered with ACC and data specialists Flock to launch the Manufacturing Safety Dashboard, an anonymised benchmarking tool that allows manufacturers to compare reported incidents across sub‑sectors and identify where to focus safety improvements. This tool converts raw accident data into actionable insight. It highlights where injuries cluster, identifies high-risk tasks, and demonstrates which businesses are making measurable progress. This approach moves safety conversations from awareness to actionable intelligence, and anonymised peer data provides a clear pathway for improvement rather than a spotlight on failure. The sector has also shown a strong appetite for peer-led guidance and practical tools that enable measurable improvement. To address this, we partnered with ASB to run the Manufacturers’ Workshop Series exploring the impact of Industry 4.0 technology on New Zealand manufacturing. These workshops offered a practical examination of automation, data integration, and digital technologies through interactive demonstrations, including digital twin simulations. This hands‑on approach enabled manufacturers with lower levels of automation to see the potential of technology to improve efficiency, safety […]

It won’t be the new machines that win in 2026. It will be the people running them

Adam Harvey, Business Performance Partner – Manufacturing, The Learning Wave What if next year looked different? Picture this: Same pressures. Same market conditions. But instead of starting 2026 already firefighting, you’re ahead of demand. Your people anticipate issues before they hit production. Technology accelerates performance instead of slowing it down. The morning meeting is about what you’re improving, not what you’re recovering from. That’s the position some manufacturers have put themselves in this year. And let’s be honest. They didn’t get there because 2025 was easy. This has been one of the toughest planning cycles in recent memory. Margin squeeze. Labour shortages. Compliance tightening. Digital expectations rising. Budgets dissected line by line just to keep the lights on and the line moving. But while most held back waiting for “the right moment”, the bold manufacturers, big and small, doubled down on capability. Not because it was part of a grand strategy. In some cases, because the same issues kept cropping up, and the old approach wasn’t working. Not because they had spare time. Because they knew they couldn’t afford to wait. We saw it everywhere: Lion invested in teams’ problem-solving capability and OEE improved Altus backed their leaders to own and solve problems and culture and collaboration lifted – this piece of work paid for itself 3X Tegel moved safety from reactive to proactive by growing rep capability Ashburton Meats and Kraft Heinz built their leaders ahead of operational change Tasman Tanning, Essity, AFFCO, George Weston Foods, Vitaco and Inghams built performance skills. Their frontline teams now act earlier, make better decisions, solve problems faster, reduce waste, and speak up when performance is at risk Buckleys continued building capability at every level Foot Science International, Baker Boys and Argus ManuTech prepared their teams for digital transformation They didn’t just […]

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