Sustainability

Why the Right to Repair will benefit New Zealand manufacturers

From NZ Manufacturer magazine March 2025 www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu *Jim Goddin, Head of Circular Economy at thinkstep-anz. The recent first reading of the Consumer Guarantees (Right to Repair) Amendment Bill in New Zealand’s Parliament marks a pivotal moment for businesses, consumers, and the environment. If enacted, this legislation will require manufacturers to provide spare parts, repair manuals, and software access to consumers and independent repairers. While some manufacturers may be concerned about potential costs or intellectual property risks, the right to repair presents significant benefits for New Zealand’s manufacturing sector. It can drive business innovation, reduce waste, enhance customer loyalty, and build a more resilient, circular economy. Understanding the Right to Repair The right to repair ensures that consumers and independent repairers have access to the tools, parts, and information necessary to maintain and fix products. It challenges restrictive policies that limit repairs to authorised service providers, often increasing costs and contributing to e-waste. Key elements of the Right to Repair include: Access to spare parts and manuals – Manufacturers should provide genuine replacement parts and repair guides. Repair-friendly design – Products should be designed to allow easy repairs without specialised or proprietary tools. Protection against restrictive policies – Consumers should not be locked out of repairs due to software restrictions or warranty clauses. The legislation is particularly relevant to industries such as electronics, appliances, vehicles, and agricultural machinery, where manufacturers traditionally limit repair options, increasing costs for businesses and consumers alike. The Right to Repair and its Impact on manufacturers Some manufacturers may worry that making spare parts and repair information available will reduce profits from new product sales or increase compliance costs. However, international experience […]

Smart Industry Readiness Index: Key Themes and Findings

From March issue NZ Manufacturer magazine. www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Adam Sharman, CEO LMAC Group APAC The Smart Industry Readiness Index (SIRI) has emerged as a critical tool for manufacturing organisations seeking to navigate their digital transformation journeys. At LMAC Group we have supported over 200 business across New Zealand and the UK to define, start and optimise their Industry 4.0 journeys through our digital transformation approach using the Smart Industry Readiness Index. Reflecting on this experience, in this article we will discuss the key themes and insights into the current state of Industry 4.0 adoption and their implications for manufacturing business across the industry As New Zealand manufacturers seek to optimise and accelerate their productivity through Industry 4.0, they face several distinctive challenges: Scale and Investment Capacity: With most New Zealand manufacturers being SMEs, many face challenges in securing sufficient capital for comprehensive digital transformation initiatives. Talent Acquisition: The limited local talent pool for specialised digital skills creates a significant barrier, with many organisations struggling to attract and retain experts in areas like industrial IoT, data science, and automation engineering. Connectivity Infrastructure: Regional manufacturers sometimes contend with limited high-speed internet access, constraining their ability to implement cloud-based solutions or real-time monitoring systems. Integration with Legacy Systems: Many established New Zealand manufacturers operate with older equipment and systems that present integration challenges for newer digital technologies. New Zealand manufacturers exhibit a characteristically pragmatic approach to technology implementation. Rather than pursuing cutting-edge technologies for their own sake, Kiwi businesses tend to prioritise practical solutions with clear returns on investment. This approach serves many companies well but can sometimes limit exploration of more transformative technologies that might deliver longer-term competitive advantages. Most Commonly Identified Priority Dimensions for New Zealand Manufacturers SIRI assessments […]

A tale of two sectors

From March issue NZ Manufacturer magazine www.nzmanufacturer.co.nz NZ Manufacturer March 25 by Media Hawkes Bay Limited – Issuu Ian Walsh, Partner, Argon & Co NZ I was reminded last week of the level of complexity and difficulty to solve our productivity crisis. It’s clear to me that we have a multi-speed economy, with certain sectors having made great progress over the last 10 years with others still on the starting blocks. The dairy sector has been developing and implementing best practices, training leaders, building capability and employing appropriate technology for over 25 years. Fonterra has lead the charge and most other dairy companies have followed this lead, by developing and employing solutions to improve productivity, reduce waste, improve yield and reduce costs. It has led to fantastic outcomes, with the most recent payout reflecting both the great work on the farm and the much improved off-the-farm processing capability. It would be untenable to consider competing globally with the capability the sector had in 1999. The payout would have been significantly lower and dare I say many processors would have been seriously impacted. This is, of course, not to say the job is finished, because it isn’t, but the direction of travel for the sector looks good. In contrast, the global construction sector has seen little-to-no productivity growth over the last 50 years, and in New Zealand it’s no different. There is a unified view that productivity needs to improve, however little or no concerted action has been taken to adopt best practices. The tales of late delivery, cost overruns and underperformance on completion are now so common that these outcomes are expected. Indeed 94% of construction projects don’t achieve cost, time or quality objectives. When a job is costed at $2 billion, it’s no […]

Sustainability Outlook 2025: Six tips for manufacturers

www.thinkstep-anz.com From February issue NZ Manufacturer magazine Sustainability is no longer a “nice-to-have”—it’s a must-have. For New Zealand manufacturers, 2025 will bring new challenges and exciting opportunities. As the world grapples with climate change, resource scarcity, and shifting regulations, businesses that embrace sustainability will not only keep up but thrive. To stay competitive, manufacturers need to navigate changes in climate adaptation, the circular economy, transparency, and stakeholder expectations. It’s about planning ahead, staying flexible, and taking action. Here are six practical tips from thinkstep-anz’s sustainability experts to help you lead the way in 2025. Stay financially, environmentally and socially sustainable 2025 is expected to bring continued disruption and uncertainty on the global stage. Political and economic turbulence may distract some industries from their sustainability goals. However, maintaining focus on long-term objectives is critical. “Succeeding sustainably means being financially sustainable as well as environmentally and socially,” explains Emily Townsend, Services Director at thinkstep-anz. For manufacturers, this means building resilience by investing in sustainable practices that match up with stakeholder priorities and market expectations. Even if external pressures temporarily lessen, pushing forward with sustainability can pay dividends in the long run. Your Action: Review your sustainability strategy to ensure it balances environmental goals with financial and social resilience. Focus on initiatives that will have long-term benefits for your business and stakeholders. Prepare for the circular economy to go mainstream The circular economy is no longer a niche concept. In 2025, manufacturers exporting to the EU will face increasing requirements to quantify and communicate the circularity of their products. Aligning with standards like ISO 59020 and incorporating circularity metrics into Environmental Product Declarations (EPDs) will become essential to maintaining market access. “We’ll see the circular economy go mainstream,” predicts Jim Goddin, Head of Circular Economy at thinkstep-anz. This trend is also gaining traction […]

Building a comprehensive business case for factory technology investment – Beyond the numbers

From NZ Manufacturer magazine, February 2025. Adam Sharman, CEO LMAC Group, APAC As the imperative for technology adoption in manufacturing increase, investment decisions are becoming increasingly complex. Gone are the days when a simple ROI calculation could justify major capital expenditure. Forward-thinking manufacturers are now developing comprehensive business cases that look beyond immediate financial returns to consider broader strategic implications, particularly around workforce sustainability and competitive positioning. The Demographic Imperative One of the most compelling arguments for technology investment lies in addressing the looming demographic crisis facing manufacturing. Across developed economies, the manufacturing workforce is aging rapidly, with experienced workers retiring faster than they can be replaced. This isn’t just a temporary staffing challenge – it represents a fundamental shift in labour market dynamics that will persist for decades. Modern automation and digital technologies offer a powerful response to this demographic challenge. Rather than viewing technology merely as a cost-saving measure, manufacturers should consider how it helps future-proof their operations against workforce scarcity. Advanced robotics and automation systems can maintain productivity even as skilled labor becomes harder to find. More importantly, they can make manufacturing more attractive to a new generation of workers who expect to work with cutting-edge technology. Transforming Work, Not Eliminating It When building a business case for technology adoption, it’s crucial to move beyond the simplistic narrative of automation replacing workers. Instead, focus on how technology transforms and elevates human roles. Modern manufacturing technologies create opportunities for workers to develop new skills and take on more engaging responsibilities. Repetitive, physically demanding tasks can be automated, allowing workers to focus on higher-value activities that require human judgment and creativity. This transformation has important implications for workforce development and retention. Younger workers are often more attracted to workplaces that offer opportunities to work with advanced technology. By investing […]

How do we turbocharge manufacturing?

From NZ Manufacturer magazine February 2025 By EMA Head of Advanced Manufacturing Jane Finlayson Economic growth appears to be the focus for 2025 following a tough year of recession and rising unemployment. One of the key drivers of national growth, our manufacturing sector, has been struggling due to high operational costs, increasing global competition, outdated technology, skills shortages and a lack of R&D to drive innovation. The BNZ-Business New Zealand Performance of Manufacturing Index (PMI), a monthly survey providing insight into levels of activity in the sector, has been in contraction for 22 consecutive months. This signals declining production, low new orders, and falling profits across the manufacturing landscape. Recent government efforts to fast-track infrastructure development, stop wasteful spending, push through RMA reforms, sign new trade deals, and make foreign investment easier have laid the foundation for a more competitive future, but that’s peripheral to the direct challenge facing manufacturers. A key task facing incoming Manufacturing Minister Chris Penk is to assess how the government can help the sector stay competitive with our global peers and drive productivity. For many New Zealand manufacturers, the path forward is clear: investment in technology, particularly software and hardware, is essential. As we progress deeper into the Fourth Industrial Revolution (Industry 4.0), the convergence of artificial intelligence, cloud connectivity, and real-time data analytics will prove crucial in shifting New Zealand’s manufacturing sector from lagging to leading in the global market. Yet, many manufacturers are struggling to keep up with international standards and this particularly, but not exclusively, affects our smaller companies. New Zealand’s manufacturing sector includes some very advanced manufacturers, but many small and medium-sized businesses have fallen behind our Asian and European counterparts. As a result, despite the government’s aspiration to double the value of exports in the next decade, manufacturers are at […]

2024 : We are experiencing the bust, are we prepared for the boom?

Dr Troy Coyle, CEO NZ Heavy Engineering Research Association (HERA) 2024 was a difficult year for construction and therefore manufacturing supply chains supporting it. Our levy, which is legislated under the Heavy Engineering Research Levy Act, 1968, is a reliable indicator of sector activity (at least in the segments that use structural steel, such as multi-storey residential, commercial and bridges). In June this year, we experienced the lowest levy level of any month in more than ten years. Boom and bust cycles are a pattern that is pretty consistent, and which we are not really learning how to avoid (e.g. through planned, transparent and sustainable infrastructure investments). The consequence is that in the bust, which we are certainly in, there is a significant reduction in the employment of our skilled workforce. Then, in the boom, we no longer have the available skilled workforce available to meet demand. They have mostly gone offshore. It would certainly help the sector if there was a bilaterally supported pipeline of national infrastructure projects, with a secured budget allocation, that were consciously timed to ensure stability of construction. Combine a construction bust with an inexplicable proposed “reform” of the Vocational Education System introduced by the Hon Penny Simmonds, Minister for Tertiary Education and Skills in 2024, and things are not looking good for the future of our sector. The link between boom and bust cycles and instability in our vocational education system means that looking ahead (possibly in 2026), construction-related manufacturing could experience an unprecedented skilled labour shortage when the market recovers. Our industry is reliant upon skilled apprentices and concerningly, at the moment, there doesn’t seem to be a lot of Government support for work-based learning appearing within the planned “reform”. For steel, there are also potential concerns with the proposed Building (Overseas Building Products, […]

How manufacturers can prepare for the ESPR

www.thinkstep-anz.com Image by Dinh Khoi Nguyen from Pixabay. As global sustainability regulations evolve, New Zealand manufacturers must stay ahead of the curve to maintain their competitive edge, especially with upcoming policies like the European Union’s Ecodesign for Sustainable Products Regulation (ESPR). But what is the ESPR, and how can manufacturers in New Zealand prepare for it? What is the ESPR? The ESPR is a new EU policy aimed at making products more sustainable and circular throughout their lifecycle, supporting the EU’s 2050 climate goals. The ESPR applies to products sold within the EU, setting specific sustainability requirements for design, use and disposal. It applies to most products sold in the EU, except for some like food and medicines. Non-compliant products may face fines or bans. Although it took effect in July 2024, the detailed rules will be developed over the next year. The regulation aims to make products more durable, reusable, repairable, and recyclable, while banning the destruction of unsold goods like electronics and textiles. A digital product passport will also be required, giving consumers direct access to sustainability data and exposing brands to greenwashing claims under the Green Claims Directive. Why should New Zealand manufacturers pay attention to ESPR? For manufacturers exporting to the EU or intend to: Failure to prepare for the regulations could result in loss of market access, fines, or even prosecution. Your products will face stricter comparisons on sustainability and circularity, which could impact your market share positively or negatively. Even if your business doesn’t currently export to the EU, the trends set by the ESPR are likely to influence regulations and purchasing decisions in other markets. As supply chains globalise, multinational corporations may enforce ESPR-style standards on all their suppliers, no matter where they are located. With more sustainability and […]

Ceto-Boost Prototype with Cetogenix engineer George Estcourt

Cetogenix: Building renewable futures — with no waste left behind

Each year, the world produces more than 100 billion tonnes of carbon-rich waste from food production, agriculture, sewage treatment and industrial manufacturing. Cleantech startup Cetogenix, a 2024 KiwiNet Research Commercialisation Awards finalist, has found a way to harness the untapped potential of organic waste to generate renewable energy and other circular economy products. The company’s Ceto-Boost™ system breaks down organic wastes and transforms them into valuable products like biomethane, fertilizers and biomaterials. Their patented process uses hydrothermal oxidation — leveraging temperature, pressure and air without any additional chemicals — to deconstruct waste with remarkable efficiency. This novel approach reduces organic waste volumes by 95% and eliminates contaminants like microplastics and pathogens. Globally, it’s estimated Ceto-Boost™ could replace up to 12% of fossil natural gas production and cut greenhouse gas emissions by 884 million tonnes of CO2e annually. The foundation of this innovation lies in over a decade of science and engineering research while the Cetogenix co-founders were working at Scion. They formed Cetogenix in July 2022 via a successful NZ$4.8 M capital raise with co-investment from Pacific Channel Limited, Angel HQ, Enterprise Angels, and Icehouse Ventures. Since launching, Cetogenix has grown to a team of twelve, who complement strong domestic and international R&D and commercialisation relationships. Within one year of founding, Cetogenix scaled up to a prototype Ceto-Boost™ pilot system in Rotorua, where they still maintain a strong collaborative research partnership with Scion. The company is initially focusing on the global municipal wastewater and agricultural biogas markets and has confirmed pilot trials with end-users in New Zealand and the United Kingdom. Maintaining application flexibility and aligning their technology development and intellectual property with evolving market needs has proven crucial for success. With its sustainable waste-to-resource technology, Cetogenix offers a powerful solution to the world’s reliance on fossil carbon — paving the way for […]

Q & A: Frank Phillips, Managing Director, Fulcrum

We have all heard of our ‘productivity problem’. Adopting proven and well understood technology – not the bleeding edge risky stuff – will be key to tackling it. Anyone in manufacturing who has tried to search for technology solutions to solve a particular challenge knows the rabbit hole it can become. The associated lack of confidence in vendors (particularly when there’s no in country support) follows; so it goes in the too hard basket and progress stops. All this in a nation where Number 8 wire pedigree and ‘build it yourself’ solutions start to proliferate. This distracts from core business focus and can be a black hole of investment to develop and maintain. What does Fulcrum do? We save time; give confidence and ultimately help manufacturers get stuff done! Fulcrum connects New Zealand manufacturers to New Zealand technology partners. Part of this is a simple self-service platform, but we also act as your part time CTO, prioritising and advising to make sure the right things get done by the right partners. In New Zealand we have all the skills, knowledge and technology for manufacturing to thrive, but we often don’t do a great job of talking about it! Fulcrum works with manufacturers and primary industries of all sizes. We often find that our on-boarding and follow up sessions allow us to act as an unofficial ‘part time CTO’ – helping manufacturers to prioritise, build the foundations of their digital transformation and work with the right partners to deliver it. We’ve been conscious when onboarding Technology partners that their can be a right size fit to consider. A specialist contractor working independently may be the right fit for one manufacturer in agility and cost, but not right for another where long term support agreements are needed. Digitisation is the way forward? […]

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