Sustainability

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larger firms are beginning to modernise their operations, many small and medium-sized enterprises (SMEs) still rely on outdated systems, manual processes, and fragmented workflows.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 […]

Looking forward to SouthMACH 2025

-Adam Sharman, CEO LMAC,APAC As we look ahead to SouthMach 2025, it is hard to avoid the national and global context in which this year’s event is set. Global volatility and uncertainty, combined with a slow domestic economy are providing significant headwinds for New Zealand’s manufacturing industry. With the country’s industry coming together in Christchurch, we are provided with an opportunity to learn from each other, share ideas and collaborate for the benefit of the industry and country as a whole. Having recently attended the Australian Manufacturing Week exhibition in Melbourne and hearing the themes of digitisation, diversification and decarbonisation as priorities for Australia’s manufacturers, we will be paying close attention to see if these themes are replicated in the attendees, speakers and visitors to SouthMach. With the shift in the support landscape occurring in the last 6 months e.g. the disbanding of Callaghan Innovation and, with it, the Industry 4.0 Demonstration Network, at LMAC we are proud to be playing an active role in the continuing awareness and capability development of the industry. With this goal front and centre, we are pleased to be collaborating with the EMA, ASB and AspectPT to bring the Smart Manufacturers Workshop to SouthMach on both days. I will be presenting, as part of the seminar series on ‘Getting Started with Digital Transformation’, providing a practical guide to the first steps of a digital transformation in manufacturing and how this can be achieved in cost-effective way. The new addition of the Minister for Manufacturing Awards is a fantastic initiative and we congratulate all the nominees and finalists who have been recognised so far across all categories. The announcing of the award winners at SouthMach is sure to be a highlight as we celebrate the amazing people and organisations working across our industry. LMAC have […]

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 […]

Double materiality: What it is and why it matters to manufacturers

Sustainability isn’t just about ticking boxes for your next report. It’s about seeing the big picture – how the world is affecting your business and how your business is affecting the world. That’s the idea behind double materiality, and it’s something manufacturers across New Zealand should start paying attention to. Read our Need to know: Double materiality guide or get in touch with thinkstep-anz’s expert Martin Fryer to talk through what this could look like for your business. This approach goes beyond compliance. It can help you build a more resilient business, unlock opportunities and manage risks – whether you’re exporting food and beverages, building homes or making parts for machinery. What is double materiality? Double materiality means looking at sustainability from two perspectives: Impact materiality: how your activities affect the environment, society and economy. Financial materiality: how environmental and social issues affect your financial performance, risks and long-term success. This approach is already required in some parts of the world. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) mandates it. Even if you don’t export to the EU, it’s likely your customers or investors will start asking for the same level of transparency. Why does this matter in New Zealand? Even though New Zealand’s reporting regulations currently focus more on financial materiality, there’s growing interest in taking a broader approach. Why? Because it makes business sense. Let’s look at a few examples: Food and beverage manufacturing Impact materiality: The way you source ingredients matters. Are you contributing to deforestation, water stress or unethical labour practices? Financial materiality: If global retailers tighten their supply chain standards (as many already have), you could lose access to key markets unless you can prove your practices are sustainable. What you can do: Use certified ingredients, invest in traceability, or switch to […]

Navigating the tariff maze: How NZ manufacturers can thrive amid trade tensions

Adam Sharman, CEO LMAC Group APAC Tariff turbulence: Understanding the impact on kiwi manufacturers. As trade tensions escalate globally, through the introduction of heavy tariff from the U.S. New Zealand manufacturers find themselves navigating increasingly complex waters. The United States is one of New Zealand’s key export markets worth approximately NZ$9 billion annually, and New Zealand products provide key components in other countries’ supply chains into the USA. The ripple effects of U.S. tariff changes extend far beyond simple price adjustments. When tariffs increase, manufacturers face immediate margin pressure, but also longer-term strategic questions about market positioning and investment priorities. For New Zealand’s primary sector, dairy processors, which have developed specialised ingredients for U.S. food manufacturers, tariff increases could undermine carefully cultivated market positions. Similarly, premium meat exporters who have invested heavily in sustainability certifications and farm-to-table traceability to command premium pricing, could see their value propositions challenged. The impact extends beyond agricultural processing. New Zealand’s high-tech manufacturing sector, including medical device manufacturers and precision agricultural equipment producers, faces similar challenges. For organisations that have established niches in specialised global supply chains where even modest tariff increases could significantly alter competitive dynamics, a focus on IP protection and maintaining certifications required for market access, for example in aerospace, pharmaceuticals and defence help protect market position, and reduce price sensitivity. Strategic pivot: Capitalising on trade war opportunities While tariff increases present challenges, they also create strategic opportunities. As tensions escalate between the United States and other major trading blocs, particularly Europe and China, New Zealand manufacturers could benefit from “tariff arbitrage” – situations where Kiwi products become relatively more competitive due to higher tariffs on competitor nations. Exporting organisations are required to think differently about their global market positioning, both in terms of direct market tariffs and the relative position […]

Hydrogen electric flight prepares for lift off in New Zealand

Stralis Aircraft, Fabrum and Ara Ake are collaborating to advance hydrogen-powered aviation by designing, developing and testing liquid-hydrogen storage tanks and a fuel system for Stralis aircraft. The partnership aims to enable Australasia’s first liquid-hydrogen-powered flight – and support the transition toward zero-emission aviation. Australian company Stralis Aircraft, which develops high-performance, low-operating-cost hydrogen-electric propulsion systems, will integrate Fabrum’s tanks and fuel system into its aircraft. New Zealand company Fabrum, which specialises in zero-emission transition technology, will provide lightweight composite tanks and dispensing systems, essential enablers for hydrogen-powered aircraft. The project is supported by Ara Ake, New Zealand’s future energy centre, and aligns with Fabrum’s recently announced hydrogen testing facility at Christchurch International Airport. “Our hydrogen liquefier provides readily available liquid hydrogen onsite, allowing the capability to access the critical fuel source to prove and test the tanks and fuel system we are developing for Stralis and their fixed-wing fuel-cell electric aircraft,” said Christopher Boyle, Managing Director of Fabrum. “With Ara Ake support, we are excited to be delivering our light-weight composite tanks and fuel system for Stralis to advance the future of hydrogen-powered flight.” The collaboration also aims to strengthen industry ties between New Zealand and Australia. The project will build expertise in liquid-hydrogen storage refuelling, and aircraft integration, contributing to New Zealand’s growing role in hydrogen aviation. In the picture: Ara Ake CE Cristiano Marantes (middle) with Stralis co-founder and CEO Bob Criner and co-founder and CTO Stuart Johnstone. “This project is a strong example of Ara Ake’s role in connecting leading organisations across countries to advance real-world clean energy solutions,” said Cristiano Marantes, CEO of Ara Ake. “By enabling this initiative, we’re supporting the first hydrogen-electric demonstration with liquid hydrogen and positioning New Zealand as a global testbed for sustainable aviation innovation.” Stralis’ fuel-cell technology is significantly lighter […]

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 […]

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