Sustainability

Through the mill: Tokoroa’s tough year was about much more than job losses

Fionna Hurd, Associate Professor, Marketing & International Business, Auckland University of Technology. Suzette Dyer, Senior Lecturer in Human Resource Management, University of Waikato For Kinleith Mill, cycles of new owners, restructuring and retrenchment have been a fact of life since the 1980s. Each ownership change and downsizing has affected the mill’s workforce – and, inevitably, the Tokoroa community. In July this year, foreign-owned Oji Fibre Solutions closed the mill’s last paper machine, effectively stopping all manufacturing. Not long after, Carter Holt Harvey announced it was also shutting its Tokoroa plywood plant. The double impact and loss of 249 jobs was seen by many as simply the latest blow to a dying forestry company town. Elsewhere, the sale of Fonterra’s consumer brands and the closure of Carter Holt Harvey’s Nelson-Tasman sawmill seemed to underscore the fragility of New Zealand’s manufacturing base. These decisions were no doubt justified commercially: competing with international firms that enjoy cheaper production and larger consumer markets has become increasingly difficult. And, as ownership of major industrial facilities has shifted overseas, those making the decisions have become further removed from the local context – and from the communities that bear the consequences. But it hasn’t always been this way. Building the forestry industry was central to Aotearoa New Zealand’s postwar economic and employment strategies. As our research has shown, community identity and cohesion cannot be easily separated from that political and economic history. Life of a forestry town When the government issued its first pulp licence in 1943, it had two clear aims: to create jobs for returning servicemen after World War II, and to make use of the forests planted during the Depression-era work schemes of the 1930s. The establishment of the privately-owned Kinleith mill, and the development of Tokoroa, fitted neatly within these national priorities. The mill was entirely funded by private equity, common […]

Make your emissions data stand up to scrutiny

Starting out with your first carbon footprint, or refining years of data? Either way, the credibility of your greenhouse-gas (GHG) numbers matters. Reliable, verified information builds trust with customers, regulators and supply-chain partners – and helps you make confident decisions. Here’s how to find the right type of independent check for your business. Why independent checks matter Independent reviews give confidence that your figures are robust and transparent. For manufacturers, they can reveal data gaps in energy use, fuel consumption or process emissions; reduce the risk of overstated “carbon-neutral” claims; and strengthen credibility with clients, boards and export markets. A third-party perspective adds objectivity and helps demonstrate integrity – especially useful when bidding for contracts or supplying international brands that ask for evidence of sustainability performance. Choosing the right GHG evaluation approach Term Use for: What is reviewed (include timeframe) Outcome Verification Public reporting or disclosure where independent checks are required. Credibility for boards, investors, or regulators. Historical GHG data, calculation methods, and processes. Timeframe: Past or current reporting period. Independent statement of assurance – limited (regulatory) or reasonable (investor-grade). Validation Setting or updating emissions reduction targets. Testing future assumptions or pathways. Assumptions, models, and methods for projections. Timeframe: Future targets or scenarios. Opinion on whether your approach and assumptions are sound and achievable. External review Independent feedback before verification or disclosure. Checking inventory or scope 3 estimates. Data, methods, and reporting approach. Timeframe: Past or current data. Informal feedback to improve quality; no formal assurance. Assurance Building confidence in verified data for regulated or investor reporting. Choosing limited or reasonable assurance. Verified historical information. Timeframe: Past reporting period. Formal statement confirming confidence level in verified data. Certification Claiming carbon neutrality or joining programmes (e.g. Toitū, Ekos, Climate Active). Public recognition of verified results. Verified data, reduction plans, and […]

Management Buy-In vs Management Buy-Out

Not all exit options are right for your business. A Management By-In or Buy-Out could be an attractive option worth evaluating. -Mike Warmington, Platform 1 Many people know about a Management Buy-Out when a person or team within your business becomes your exit option, generally over time. A Management Buy-In is less understood. This is where an external person comes into your business while you transition out over time. An internal person or team can be a great option, after all they are a known quantity and are loyal trusted employees. However in many cases if your business does not have experienced senior leadership, it may be difficult to do. It’s not enough for you to just like them. Why is This ? We often hear a business owner say that “John” my Operations Manager will be my successor whilst the owner has never had a serious conversation about it with John. If John, while knowing the owner is nearing retirement has never brought it up either, then he may not be entrepreneurial. Not all people are entrepreneurial or leaders or have capital available. Someone taking over from you needs to have : Capability Capital Compatibility This person or team needs to tick all of the 3 C’s. The success of your business and your legacy depends on this. So What is a Management Buy-In and How Can it Work ? There are people actively in the market looking for a way to get into business ownership through working with an existing owner. The fact that they can leverage off the owners experience and knowledge is attractive to them. They won’t cost you any more than a salaried GM but will come with significantly more horsepower to grow your wealth. Because they will gradually buy into your business they won’t […]

Age-Inclusive manufacturing: Passing the torch: Practical mentoring and knowledge sharing across generations

By Shyamini Szeko, 2025: Based on Master’s research into ageing and work in NZ manufacturing (AcademyEx) Why mentoring matters “I didn’t learn my job overnight.” – Team Leader, 33 years in manufacturing That sums it up. Experience can’t be replaced overnight. Older workers carry deep know-how, the kind that keeps production steady and safe. If that knowledge walks out the door at retirement, the business loses far more than a person. In most factories, mentoring already happens in small, informal ways, a tip shared on the line, a quick demo, a quiet correction. It works, but it’s fragile. Unless mentoring is built into the system, those lessons disappear fast. The knowledge gap My research found that most mentoring is informal and unrecorded. One manager put it bluntly: “We realise too late how much knowledge sits in people’s heads.” When experienced operators leave, the next person inherits the machine, but not the method. That’s a real productivity and safety risk. What works on the factory floor Younger workers bring energy, tech skills, and fresh ideas. Older workers bring judgment, craftsmanship, and context. When they work together, everyone benefits. Here are some practices NZ manufacturers are already testing: Buddy systems — pair new hires with experienced mentors. Quick video walk-throughs — capture how jobs are done for training libraries. Digital “how-to” hubs — store process tips and lessons learned. Small, structured actions like these help preserve know-how and grow confidence across generations. Turning goodwill Into good systems The challenge isn’t motivation — it’s structure. Mentoring can’t rely on good intentions alone. To make it stick: Schedule mentoring time as part of shifts, not extra work. Recognise mentors in performance reviews or training plans. Link mentoring to leadership and succession planning. When knowledge sharing is part of how work is organised, not an […]

There are no Silver Bullets: Productivity, AI, and Sustainable Growth

NZ Manufacturer, November issue Ian Walsh, Partner, Argon & Co Over the last 30 years, the productivity landscape has undergone a dramatic transformation. Like many revolutions, its roots stretch back decades—indeed, to the 1900’s. The publication of “The Machine That Changed The World” in the late 1980s marked a turning point, crystallising the profound impact and untapped potential of innovative methodologies in manufacturing and, more broadly, organisational transformation. What followed was a period I call “buzzword bingo,” as terms such as TQC, TQM, Zero Defects, SQC, TPM, TOC, SPC, Lean, Six Sigma, and Lean Six Sigma emerged in rapid succession over 20 years. Each brought unique insights and some overlapping “nuggets,” yet amidst the flurry, the core principles of continuous improvement began to take root. Over the last 10–15 years, this wave of methodologies has stabilised, with businesses refining their approaches. However, the reality remains that few have unlocked the full promise of integrated continuous improvement. While many have seen notable performance gains, in New Zealand the adoption rate lags significantly behind other countries—a primary contributor to our national productivity deficit. As we step into 2025, we find ourselves on the cusp of the AI age. The dawn of Industry 5.0 promises a seamless partnership between humans and technology, delivering smarter systems, streamlined processes, real-time insights, comprehensive end-to-end visibility, and dramatic improvements in efficiency and capability. The vision is enticing, but it is crucial to remember: there are no silver bullets. As Deming wisely put it, “if you can’t describe what you are doing as a process, you don’t know what you are doing.” Mastery begins with clarity—being able to define and articulate your processes. But it goes deeper: everyone in your organisation who touches a process must understand it for true mastery to occur. This demands more than […]

$50 Billion up for grabs thanks to new procurement rules

NZ Manufacturer magazine, November 2025 By Hon Chris Penk, Minister for Small Business and Manufacturing You may have seen the Finance Minister’s recent announcement about changes to how the Government buys goods and services. I want to make sure Kiwi businesses hear the good news because the new procurement rules, coming into effect on 1 December 2025, are designed to give small and homegrown firms a real chance to win government work. If landing a government contract has ever felt out of reach, now is the time to take a closer look. Government procurement is big business. Each year, agencies spend over $50 billion on goods, services, and infrastructure. That is a huge opportunity for local manufacturers, suppliers, and service providers. Until now, feedback from the business community showed that too many local manufacturers and small and medium-sized enterprises found the process complex, time-consuming, and costly to engage with. The Government has responded to that challenge with reforms aimed at making the system simpler and fairer. The number of procurement rules will reduce from 71 to 47, cutting duplication, streamlining processes, and making it easier for businesses to understand what is expected when bidding for government work. One of the most significant changes is a new rule requiring agencies to consider the economic benefit to New Zealand in every procurement. When evaluating bids, agencies must now give at least 10 percent weighting to how a supplier’s proposal will benefit the New Zealand economy. That benefit could include using local suppliers, creating jobs, supporting regional businesses, or investing in skills and training. For the roughly 20,700 manufacturers in New Zealand, this means the Government wants to work with businesses that help New Zealand thrive. The change will support local firms directly and also encourages international companies to show how they will […]

The Business Owners Exit Dilemma

David O’Connor, Platform 1 Many aging business owners have worked hard all their lives and are at a stage where they have built up a business that has given them a good income and lifestyle and it’s part of who they are. They know they should do something at some stage but often the easiest thing to do is to delay, however procrastination can be costly, not just in lost time but in missed opportunities to secure the future of your business. The earlier you start planning the more options you will have. There are many different reasons we hear for procrastination in relation to exiting a business : “I have still got 5 years in me” “Nobody has the knowledge to run it like I can” “What if I don’t find anyone?” “But someone offered me $5M 5 years ago…” “The market and our sales are down so maybe I should just delay until next year ?” “What exit options do I have ?” “Do my kids even want to take over and do they have the skills?” If you’re considering an exit plan, start now rather than focus on the “why not” to ensure the best outcome for you and your business. Talk to someone who has experience in this area and understands the various options. “ There is no one exit option that is right for all business owners “ Our advice is to review all the options before make a decision. Options could include : Your staff (Management Buy-Out) An Outright Sale Business Owner Transition (Management Buy-In) Merger Private Equity – If you are big enough Most people understand the outright sale process and it can be a go to strategy simply because it’s well known. It’s the right option for some business owners but […]

Could a laser-generated plume be the next biohazard scare?

By Ruth Nicholson, Laser Safety Officer and Director at NZ Laser Training Institute Ltd Lasers are an emerging technology used across various industrial applications such as precision cutting of metals, welding components with minimal heat distortion, or hardening to improve wear and corrosion resistance. Unlike ordinary white light, they emit a single wavelength of light specifically designed to target materials. When workers use lasers for welding or removing corrosion from surfaces, a laser-generated plume is created. The plume or visible smoke that you can see identifies the bigger particles. However, it is what you can’t see that causes more hazard and harm. The plume is a mixture of smoke, invisible vapours, and airborne contaminants that can be produced as a byproduct of laser processing, where heat sources interact with substrate materials. Plume generation occurs with Class 4 lasers and some Class 3B lasers and can be either ‘contained’ or ‘airborne’. Each scenario presents a risk. However, the hazard level depends on how the by-product plume is managed afterwards. This interaction between the laser and the target relies on the scientific principle that specific wavelengths of light energy can affect targets such as grease, soot, paint, rust, oil, debris, or other forms of corrosion. Laser-generated plumes are a non-beam hazard; they are silent, subtle, and often overlooked. The contents of the plume depend on the materials being lasered and they can include carcinogenic particles, such as silica and hexavalent chromium. Specific laser interactions can decompose materials into toxic substances, such as hydrogen chloride and hydrogen fluoride. It’s essential to emphasise that exposure to non-beam hazards can pose immediate safety threats or delayed health issues, some of which may not be readily recognised, as the hazard itself is still emerging. Laser-generated air contaminants (LGACs) can appear in both particle and gas forms. Some of the […]

Supporting manufacturers to succeed

By Hon Chris Penk, Minister for Small Business and Manufacturing While the Government has been setting out a pro-growth agenda, a question I often hear when I visit manufacturers or speak to business audiences is: what support is available for firms that want to expand and contribute to a stronger economy? For those who haven’t come across it yet, I want to highlight the Regional Business Partner (RBP) Network. This nationwide programme, delivered in partnership with business chambers, economic development agencies and the national provider Poutama Trust, offers practical, tailored support to help small businesses grow. The past financial year has been one of the strongest yet for the RBP Network. Nearly 4,500 businesses engaged with the programme, which is the highest number outside the COVID-19 response. That’s a seven per cent increase on the previous year, and 13 per cent higher than in 2022/23. This growing uptake tells us that business owners value the advice and connections on offer, and that word-of-mouth recommendations are carrying real weight. One example of what this support can achieve is Coastwood Furniture, a long-established manufacturer in Greymouth. Known for solid timber furniture designed for both retail and commercial clients, Coastwood has been in business for more than 25 years. Like many regional firms, it faces challenges: rising operating costs, softening retail demand, and limited access to experienced leadership talent. Within the company, some staff had stepped into management roles without formal training. Across its retail network, staff were not always equipped to present Coastwood products consistently. With support from Development West Coast through the RBP programme, Coastwood put targeted training in place. This included leadership development workshops, advanced health and safety training, and a “train the trainer” sales initiative to help retail partners around the country. The impact has been clear. Leaders […]

Eight reasons why how you communicate sustainability matters

By Jule Scherer, thinkstep ANZ How you talk about your business’s sustainability efforts can make or break your reputation. Communicating poorly, or not at all, risks damaging your reputation, losing customer trust, or even being accused of greenwashing. On the other hand, clear and credible communication can win you new business, strengthen stakeholder loyalty and attract and retain skilled employees. Done well, it turns sustainability from a compliance exercise into a competitive advantage and helps the whole industry to move ahead. What is sustainability communication? Sustainability communication goes far beyond formal reporting or meeting compliance. It shapes your brand and influences how people see your business. It can take many forms: from conversations with customers, to updates on social media, to the claims you make in packaging and tender documents. Whatever the channel, the foundation must always be solid data and evidence. At thinkstep-anz, we keep emphasising this because credible communication builds trust and gives your business a real edge. Here are eight reasons why getting communication right matters and how it can strengthen your business. 1. It drives better business performance Good communication can give you a competitive edge. When you clearly explain your sustainability goals and progress, you demonstrate leadership and differentiate your business from others in the market. Whether you’re exporting high-value food products or supplying components for infrastructure, clear and credible communication signals to your buyers that your business is future-focused and resilient. For manufacturers, this may mean explaining how you’re reducing emissions across your operations or sourcing more sustainable raw materials. The clearer you are, the more confidence you build in your brand. 2. It builds stakeholder support Manufacturers rarely act alone. You rely on suppliers, logistics partners, distributors, customers and employees to achieve your goals. Communicating your sustainability strategy in plain English – and […]

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