Smart Manufacturing Today

At the coalface of technology adoption in manufacturing

By Jane Finlayson, Head of Advanced Manufacturing, EMA As the backbone of New Zealand’s economy our manufacturing sector contributes approximately 10% to GDP and employs more than over 240,000 people. Yet, despite its significance, the sector’s productivity has been stagnating, with labour productivity growing at a mere 0.92% annually over the past decade, well below the national average of 1.17%. This stagnation is not due to a lack of effort or ambition. Instead, it reflects a critical gap: the sector’s slow and fragmented adoption of technology. While many larger firms are beginning to modernise their operations, many small and medium-sized enterprises (SMEs) still rely on outdated systems, manual processes, and fragmented workflows. This digital inertia is limiting their global competitiveness and resilience. At the Employers and Manufacturers Association (EMA), we see firsthand how these challenges play out. Through our series ‘ASB Manufacturers Workshop: The Impact of Industry 4.0 on Your Business’, manufacturers consistently share a mix of enthusiasm and uncertainty about the path forward. While many are eager to innovate, they often feel overwhelmed by the scope of change and unclear about where to start. One of the most urgent barriers is the widening digital skills gap. In PwC’s 27th Annual CEO Survey, released last year, 83% of local business leaders report they have a skills shortage within their organisation and 76% specify a lack of technical capabilities as a barrier to transformation. This disconnect is deeply concerning, especially as technologies such as artificial intelligence (AI), collaborative robotics (cobots), the Internet of Things (IoT), and data analytics have moved from being future ambitions to current necessities. Feedback from manufacturers who have attended the workshops confirms this. There is growing demand for reskilling workers not only in technical areas, such as integrating Enterprise Resource Planning (ERP) with design tools, managing Supervisory […]

Reflections from Australian Manufacturing Week, looking forward to SouthMACH 2025

Adam Sharnan, CEO LMAC Group APAC Australian Manufacturing Week is an annual exhibition for the manufacturing industry, this year held in Melbourne between 6-9th May. Over the four days of the exhibition, the manufacturing industry comes together to share emerging technologies and services, share learnings and ideas and connect with partners across the industry. With this year’s event taking place within days of the Federal election and the Labour Party’s return to power, the focus of the event was on lifting productivity of Australia’s manufacturing sector and, in turn, its contribution to lifting national GDP. Not unlike, New Zealand’s manufacturing sector, Australian businesses are facing significant challenges. Louise McGrath, Head of Industry Development and Policy at the Australian Industry Group highlighted slowing investment, a restrictive workplace relations system, an uncompetitive tax system, a complex regulatory environment, ongoing skilled labour shortages, and uncertainty over energy affordability and reliability (gas prices having risen by 49% in the last 5 years, contributing to an increase of 31% across all manufacturing inputs) as being the key headwinds facing Australian Manufacturers. These issues are compounded by volatile international conditions and national security challenges, severely constraining the capacity and confidence to invest in business R&D, which is critical for innovation and productivity enhancement. In response to these challenges, industry groups used the Australian Manufacturing Week exhibition to advocate for an industry-wide approach to lifting productivity and viability of the manufacturing industry focused on Digitisation (acceleration of productivity through the adoption of Industry 4.0 technology), Diversification (in to new and growing markets such as defence and hydrogen production) and Decarbonisation (to reduce reliance on high-cost energy inputs). Prior to their election, the Albanese government outlined a federal industry support package focus around the National Reconstruction Fund (allocating $1 billion of its $15 billion budget to novel and […]

Hutt Valley’s focus on manufacturing’s future

Just released is strategic report 35 BY 35, the ten-year roadmap for Hutt Valley business growth, with a strong focus on manufacturing. The ambitious 10-year plan is to grow the Hutt Valley’s GDP by 35%, increase productivity by 16%, and increase highly skilled jobs by 18% – putting our region at the heart of New Zealand’s manufacturing, research, science and innovation industries; delivering business and community prosperity. There are over 15,000 businesses in the Hutt Valley contributing $10 billion to the New Zealand economy and employing more than 70,000 people. In the picture:Patrick McKibbin, Chief Executive, The Hutt Valley Chamber of Commerce. The plan wants to see: Productivity increase by 18.3% Increase highly skilled jobs by 16.5% GDP increase by 35% Higher average wages More jobs Greater wellbeing Better infrastructure Based on the past five years’ performance alone, linear growth for Hutt Valley is predicted at 30.7% by 2035 (44.1% in Upper Hutt and 26.4% in Lower Hutt). The ambition is to exceed linear growth. Higher productivity than the national average In the financial year to March 2022, the Hutt Valley exhibited a robust productivity level, with GDP per filled job amounting to $138,345. This figure surpassed the national average of $132,815, indicating the region’s higher productivity levels. Productivity growth Productivity in the Hutt Valley in March 2022 demonstrated steady growth, increasing by 2.8% compared to the previous year, outpacing the national increase of 2.3%. This growth trend is indicative of a region that values efficiency and innovation. The Hutt Valley is the engine room of the Wellington region – a vibrant hub of manufacturing, innovation, science and research, and many outstanding support businesses, which together form the thriving business community that we take immense pride in. The region has existing and future plans to invest significantly in construction […]

Digital transformation on a shoestring: Auckland’s innovative approach to manufacturing

A new insights paper from Tātaki Auckland Unlimited reveals how small manufacturers can embrace digital technologies without breaking the bank or risking disrupting their processes. Manufacturing remains a cornerstone of Tāmaki Makaurau Auckland’s economy, contributing more than $11 billion to the region’s GDP and employing approximately 85,000 people. Despite this significant economic footprint, New Zealand’s manufacturing sector faces persistent productivity challenges compared to other advanced economies. A pioneering initiative called Digital Manufacturing Light aims to change this by helping small and medium-sized enterprises (SMEs) in the manufacturing sector take their first steps toward digital transformation. This month, Tātaki Auckland Unlimited (the region’s economic development and cultural agency delivering on behalf of Auckland Council) is releasing an insights paper that introduces the Digital Manufacturing Light concept and shares findings from a successful pilot programme. The Digital Manufacturing Light pilot, which began in April 2022, was led by the University of Auckland in collaboration with Tātaki Auckland Unlimited. Around 20 Auckland-based organisations participated in the pilot, which included workshops and trial deployments of digital solutions. Pam Ford, Director of Economic Development at Tātaki Auckland Unlimited says, “Digital transformation doesn’t have to be expensive or disruptive. By adopting a phased approach using readily available technologies, manufacturing SMEs can create affordable and low-risk digital solutions that provide immediate benefits.” The Digital Manufacturing Light concept draws inspiration from the United Kingdom’s ‘Digital Manufacturing on a Shoestring’ programme developed by the Institute for Manufacturing (IfM) at the University of Cambridge, and is being developed in collaboration with IfM and partners across Australia and New Zealand. It follows similar principles but has been adjusted to suit the New Zealand business environment. This approach is particularly relevant for New Zealand’s manufacturing sector, which is predominantly composed of small businesses. Of the country’s 24,000 manufacturing businesses, only 1.6% employ […]

Upskilling your workforce: the secret weapon to staying ahead in tough economies

Convex, an innovative New Zealand plastic packaging company, sees staff training not just as a strategy, but as a vital driver of success. During the Covid-19 pandemic, the company actively invested in upskilling its people to stay agile through the crisis. Now, with New Zealand businesses facing fresh economic challenges, Convex continues to lead by example — showing how ongoing training builds a stronger, more resilient workforce. Convex Operations Manager Aaron Collett says agility and adaptability have been the key to thriving in an industry as competitive as plastics packaging. “Upskilling is a necessity to being and staying competitive, and for us competition is not just local, it’s global,” says Aaron. “Manufacturing is under pressure in New Zealand from imports and staying competitive in the packaging business is tough. A lot of what we do is highly specialised, capital intensive, and relies heavily on skilled trained staff.” He says while training is a non-negotiable at Convex, it must also be scalable through tough times. “Investment in training changes depending on the need, but for us it has always been important to continue upskilling our people, it’s just ‘the where’ and ‘the how’ that changes,” says Aaron. “As a business we certainly have been tested, firstly during Covid and more so recently with the economic downturn. In recent years we’ve had to navigate a new landscape in reduced demand so all areas of the business have been reviewed and training has been reduced in some non-core areas to reduce costs – but apprenticeships and appliance training maintains status quo and we’ve boosted training around HR, mental health and resilience as well as group training utilising the expertise of key suppliers.” One clear benefit of this sustained investment is agility. Trained employees can maximise production efficiency, adapt to new technologies, and take […]

Engineering capacity when and where you need it

Celebrating 10 Years of Caliber Design at SouthMach 2025 Caliber Design is turning 10—and we’re marking the occasion at SouthMach 2025 with a celebration that reflects who we are: practical, people-focused, and project-driven. Visit us at Booth 135 for a slice of birthday cake and go in the draw to win a $1,000 Christchurch Adventure Park voucher. While you’re there, we’d love to talk about how we can help you scale your mechanical engineering capacity, flexibly and efficiently. We’re not a consultancy. We’re not a contractor. Caliber is something different—a secondment-based engineering firm with a growing team of over 60 mechanical engineers working with businesses across New Zealand. We embed engineers directly into your team, on-site or remote, to provide the horsepower you need to get projects across the line. Whether you’re navigating a peak workload, filling a short-term skills gap, or moving a major capital project forward, our engineers are there when and where you need them. From machine design and product development to FEA and project engineering, our team has deep, practical experience across a wide range of industries—from automation and manufacturing to food processing, aerospace, and advanced materials handling. What Makes Caliber Unique? What sets Caliber apart isn’t just our model—it’s our people. We carefully select engineers who bring the right mix of technical ability, communication skills, adaptability, and professionalism. We back them with systems, mentors, and processes that ensure they deliver value quickly. And we stay involved—checking in regularly, monitoring progress, and making sure the secondment is working for everyone. When you engage a Caliber engineer, you don’t just get that one person—you tap into the entire Caliber network. That’s 350+ years of collective experience, shared knowledge, and access to a powerful library of proven templates and systems. As one client put it, “Caliber engineers don’t […]

Chemz: Built on experience, Powered by Kiwi loyalty

From May issue of NZ Manufacturer magazine. We celebrate this outstanding achievement. Chemz: 100 Seasons of Kiwi Innovation and Loyalty A New Zealand-owned success story built on quality, loyalty, and a commitment to solutions that work for Kiwi industries – celebrates 25 year anniversary. -John Berry The Chemz story begins more than 100 seasons ago, on the other side of the world. In 1964, during my OE, I entered the petroleum industry just as marine seismic surveys were beginning to shape the future of energy exploration. Working with Western Geophysical Co. of America, and later with Shell Australia, I gained hands-on experience across the Mediterranean, Gulf States, and Australia. After a decade abroad, I returned home to New Zealand and helped establish an American industrial aerosol brand that soon became a household name. However, when that company shifted from family ownership to corporate control, I knew it was time to step away. Whilst farming in Central Hawke’s Bay offered a refreshing change, it sparked a new vision: the idea of creating a New Zealand-owned aerosol company designed for Kiwi industries and Kiwi conditions. In 2000, that vision became reality. Chemz was formed after discussions with a group of national distributors seeking a new supplier committed to quality, consistency, and genuine service. After working closely with raw material suppliers, industrial chemists, and manufacturing partners, we launched Chemz with just nine products and a simple philosophy: Do it properly, or not at all. Fast forward to today, and Chemz now offers a range of over 100 premium products across the electrical, industrial, automotive, forestry, food, and paint sectors. We continue to develop solutions that meet the tough demands of New Zealand’s climate and industries—because what works overseas doesn’t always work here. Chemz operates from our purpose-built facility in the Whakatu Industrial Area […]

Article 2: The Crucial Role of System Integrators in Industry 4.0 and Automation

-Frank Phillips, Director, Fulcrum Welcome to the next part of our Industry 4.0 series for SME manufacturers. We’re exploring various companies that can help you embrace advanced technologies and optimise your operations. Today’s focus: System Integrators. Let’s dive in and see how they can drive your business success. System Integrators: The Orchestrators of Connectivity In the realm of Industry 4.0 and automation, system integrators are the maestros who ensure that all the pieces of your technological puzzle work seamlessly together. These companies specialise in connecting various automated systems, ensuring smooth communication and integration between hardware and software components. They act as the bridge that links different technologies, creating a harmonious and efficient manufacturing environment. Maximising Efficiency: How System Integrators Add Value Engaging a system integrator can significantly enhance your manufacturing operations by ensuring that all automated systems and technologies work in unison. Manufacturers facing challenges like disjointed processes, data silos, and inefficiencies can benefit greatly from the expertise of system integrators. By creating a unified system, these professionals help optimise workflows, reduce downtime, and improve overall productivity. System Integrators tend to have significant cyber security knowledge. When establishing a wider Operational Technology (OT) environment they can be key partners to keep your business secure. Journey to Integration: Typical Engagement and Resource Requirements The process of working with a system integrator typically begins with an assessment of your existing systems and a thorough understanding of your integration goals. This phase involves site visits, technical evaluations, and collaborative discussions to identify integration opportunities and challenges. The system integrator then designs a customized integration plan tailored to your specific needs. Expect to allocate internal resources, including IT personnel, operations managers, and system administrators, to collaborate with the system integrator. The engagement can range from a few weeks to several months, depending on the […]

Remanufacturing 101: Reviving parts, reclaiming value

The remanufacturing market unlocks opportunity across sectors for higher margins, affordability, and supply chain resilience. Remanufacturing, the process of restoring used parts to give them a second life, has propelled into the spotlight in recent years by attempts to mitigate supply chain shortages, reach new customers through affordability, and search for high-margin alternatives for parts. Both independent remanufacturing companies and remanufacturing arms within OEMs have proved essential for efficiently restoring parts and creating a way to lower expenses while making operations more efficient. These players provide value across multiple industries, from the well-established space in the automotive sector to more emergent opportunities across sectors such as medical devices and electronics. All of these sectors can benefit from reduced dependence on raw materials, extended product life cycles, and more. But remanufacturing is an inherently complex process, and the industry faces unique challenges. For example, remanufacturers grapple with the unpredictable availability, quantity, and quality of incoming used parts (referred to as “core”), complex pricing due to the volume and long tail of SKUs, and a high volume of unstructured, text-based data generated by product warranty claims. What is remanufacturing? Remanufacturing is the process of restoring core to give it an entirely new life. The core, the starting point for the remanufacturing process, is typically a high-value part that requires technical expertise to be restored to its original function. Within the automotive and industrials industry, parts that can be remanufactured include engines, transmissions, hydraulic components (such as bucket lifters), and drivetrain components (such as clutches and axels), as well as turbochargers and superchargers. Historically, the automotive and industrial equipment industries have had the most use cases for remanufacturing, but a growing number of use cases are emerging in industries such as medical devices, furniture, electronics, and aircraft components. The remanufacturing process typically involves seven […]

From Automation to Augmentation: How Industry 5.0 is Redefining Manufacturing

The landscape of manufacturing is undergoing a significant transformation as we transition from the principles of Industry 4.0 to the emerging focus of Industry 5.0. While Industry 4.0 emphasised automation and the integration of digital technologies into manufacturing processes, Industry 5.0 shifts the spotlight towards augmentation, fostering a harmonious collaboration between humans and machines. Evolution from Industry 4.0 to 5.0 Industry 4.0 brought a revolution by embedding automation and data exchange into manufacturing through cyber-physical systems, the Internet of Things, and cloud computing. The central aim was to streamline operations, reduce human intervention, and enhance efficiency. However, as we pivot to Industry 5.0, the emphasis broadens to include the critical role humans play alongside machines, leveraging the unique capabilities of both to drive innovation and adaptability. Key Differences: Automation vs Augmentation The shift from automation to augmentation marks a fundamental change. Automation focuses on machines performing tasks independently, effectively reducing human involvement in repetitive and labour-intensive activities. In contrast, augmentation enhances human capabilities. It is about empowering workers with intelligent systems, using machines to support and elevate human decision-making and creativity rather than replace it. Benefits of Human-Machine Collaboration The synergy between humans and machines in Industry 5.0 offers numerous benefits. It enhances problem-solving capabilities by combining human intuition with machine precision and data processing power. This partnership can lead to more innovative solutions and a more flexible production environment. Moreover, it increases operational efficiency as machines handle repetitive tasks, allowing human workers to focus on more strategic roles that require creativity and complex decision-making. Examples of Successful Augmentation Real-world examples of successful augmentation in manufacturing often involve collaborative robots, known as cobots, working alongside human workers on production lines. These cobots are designed to assist with precision tasks, reducing the physical strain on workers and lowering the risk of human error. […]

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