Sustainability

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 […]

Artisan skill and technology a successful brew at Zealong Tea Estates

With 48 hectares of certified organic Camellia sinensis growing in the heart of the Waikato, Zealong Tea Estate is New Zealand’s only commercial tea estate. You can tour the estate and sculpture walk, sample a high tea at their Tea Room, have a luxurious French-inspired meal at their Camellia Restaurant prepared by a chef plucked from the Michelin-starred kitchens of Paris, or take part in a traditional tasting of their internationally awarded teas. As a visitor destination, it’s a major asset to the region and the teas have been served to the likes of China’s President Xi Jinping and Her Majesty Queen Camilla during official events, and the estate has been filmed for the BBC Earth documentary One Cup, a Thousand Stories, which highlighted the estate’s quality-based approach to producing certified organic tea. Behind the scenes, the process of manufacturing its teas blends artisan skill and technology. The EMA’s Nicholas Russell sat down with Zealong General Manager Sen Kong to find out where they have used technology to improve efficiency but also how the human touch remains irreplaceable. Zealong has invested heavily in both people and technology. Why is the human touch still so crucial in your industry? Sen Kong: Technology plays a huge role in streamlining parts of our operation, such as processing, drying and quality control, but when it comes to the actual picking of the tea, the human hand is still superior. Machines aren’t yet sophisticated enough to distinguish the top three leaves from the rest of the plant, and that matters. Those top three leaves are the most tender and flavour rich. A machine might take too much, or damage the plant, which affects secondary growth. A trained picker knows exactly how to pluck, preserving both the leaf quality and the health of the bush. In addition, tea […]

Make your emissions reporting easier with spend-based emission factors

Getting started with your carbon footprint doesn’t have to be complicated. Manufacturers across New Zealand are already sitting on one of the most powerful tools for understanding their emissions: their financial data. Spend-based emission factors turn dollars spent into practical emissions estimates, providing you with a fast, accessible way to start measuring and managing your impact. They’re especially helpful for scope 3 emissions from your supply chain, which are typically the hardest to track but often make up the biggest part of your footprint. In this article, we explain what spend-based emission factors are, how you can use them in your business, and where to find the most accurate and up-to-date data for New Zealand. What are spend-based emission factors? Spend-based emission factors are a type of emissions data that connect greenhouse gas emissions with how much money you spend on goods and services. They express emissions as kilograms of carbon dioxide equivalent (CO₂-e) per dollar spent (kg CO₂-e/$). They’re calculated using environmentally-extended input-output (EEIO) models. These models look at the total emissions of a sector (like “fabricated metal products” or “office furniture”) and divide this by the total revenue of that sector. The result is an average emissions intensity per dollar. In simple terms, they give you a ballpark figure: if you know how much you spent in a certain category, you can estimate the emissions that came with it. Why use them? Spend-based emission factors are especially helpful when: →You don’t have access to physical data (like litres of fuel or kilograms of steel) →You need an emissions estimate based on financial records →You’re starting your emissions reporting and want to cover as much ground as possible →You want to identify emissions hotspots in your supply chain before doing a deeper dive. They’re widely used for: →Scope 3 […]

New Zealand is poor because it chooses to be

-Sean Doherty Sir Paul Callaghan famously declared: “New Zealand is poor because it chooses to be.” Nearly 15 years on, with the decision to dissolve Callaghan Innovation the agency bearing his name, these words ring truer than ever in 2025. At this turning point, New Zealand must decide: Will we finally address the innovation deficit by embracing high-value manufacturing, or continue on a path of slow, incremental change? The productivity trap New Zealanders are admired for their work ethic and creativity. Yet, the nation continues to lag behind its global peers in productivity and prosperity. The key reason? An overreliance on low-value, commodity-driven industries rather than advancing technology-rich, high-value sectors. Despite technological progress worldwide, New Zealand’s per-capita prosperity growth has not matched high-value, knowledge-led economies over the past two decades. International comparisons Israel, Singapore, and Ireland are cited as examples of nations that have transformed through purposeful investment in advanced research, tech-enabled manufacturing, and robust support for innovation and entrepreneurship. These countries consistently invest in science, technology, and high-value manufacturing, creating dynamic economies with sustained prosperity. The power of innovation Sir Paul Callaghan stressed that true prosperity can only be achieved by focusing national efforts on innovation-intensive sectors. Efforts to “pick winners” in areas like biotech, agritech, and clean tech have delivered mixed results, highlighting that the most transformative advances come from empowering New Zealanders to innovatively solve challenges and seize opportunities—often in surprising, unscripted ways. “Prosperity doesn’t grow from following the script of what other Governments are doing; it emerges from innovators taking risks and building new niches.” Time for a new roadmap The closure of Callaghan Innovation and changes to science agencies will achieve little unless policy, business, and scientific leadership rally behind a new, bolder strategy. This pivotal moment calls for action: Backing High-Tech manufacturing Shift from […]

Carbon claims: Get the language right and the facts straight

-thinkstep-anz If you’re sharing your organisation’s carbon footprint, net zero goals or carbon neutral status, it’s vital to communicate clearly and accurately. Getting it wrong could damage your reputation, open you up to legal risk or erode trust with your customers and stakeholders. Strong carbon claims can show leadership, but only if they’re backed by real action and solid evidence. The good news is: once you understand the terms, it’s much easier to get them right. Why clarity matters more than ever In today’s fast-moving policy and regulatory environment, environmental claims are under increasing scrutiny. We’ve seen businesses taken to court for inaccurate or unsubstantiated claims. To stay on the right side of the law – and the right side of your customers – you need to be cautious and well-informed. This article explains the key carbon terms and offers practical advice to help manufacturers communicate responsibly. What the key carbon terms mean Carbon neutral Your business, product or service has measured its emissions, taken action to reduce them and used offsets to balance what’s left. You need: a defined scope (e.g. your head office or a specific product line), a timeframe, a verified carbon footprint and a credible reduction plan. Use offsets only for emissions you genuinely can’t avoid, after reduction efforts. Standard to follow: ISO 14068. Example: A manufacturer measures and verifies its emissions for 2023, reduces what it can and offsets the rest using certified carbon credits. It communicates: “Carbon neutral for our Christchurch site in 2023, certified to ISO 14068.” Net carbon zero This means deep emissions cuts first, and offsets only for what’s unavoidable. It’s typically applied to entire organisations. You need: to follow the Science Based Targets initiative (SBTi) approach – prioritising genuine emissions reductions. Offsetting alone is not enough. You must reduce most […]

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