The Circular Economy

Critical materials: the hidden supply chain risk for manufacturers

By Jim Goddin, Head of Circularity at thinkstep-nz The Iran crisis has exposed a hard truth for global business: supply chains are only as resilient as their weakest link. When conflict disrupts major trade routes, the effects spread quickly through the wider economy. The immediate shock may be geopolitical, but the underlying business problem is dependence. Too much reliance on fragile external supply chains leaves companies exposed when conditions change. This is where critical materials come into focus. For years, discussion has centred on critical minerals such as lithium, cobalt and rare earth elements. These matter, and governments are right to worry about them. But for business, the more immediate issue often sits further along the value chain. What matters operationally are critical materials: batteries, magnets, alloys, catalysts and electronic components that deliver the performance modern products depend on. These materials are often hidden within products, used in low concentrations and difficult to substitute without losing performance. They are also tied to long, complex and fragile global supply chains. That makes them a resilience issue, not just a resource issue. For New Zealand manufacturers, this matters because distance, scale and reliance on imported components can amplify disruption. Many manufacturers operate in specialised markets where a single component, supplier or shipping route can determine whether production continues smoothly. Resilience is not only about holding more stock. It is about understanding where value sits, where dependencies exist and how materials can be kept working for longer. The transition to renewables must also be resilient None of this is an argument against renewables. Quite the opposite. Greater use of renewable energy is critical because continued dependence on oil and gas leaves economies exposed to repeated price shocks and geopolitical disruption. But the transition brings a second challenge. Many renewable and low-emissions technologies […]

Data, Decisions, and the Drive for Productivity, A Digital Path to World Class Performance

Article 3: V2 –By Neil Robinson, a Senior Business Consultant with Argon & Co (Auckland) specialising in productivity improvement, Lean systems and capability building. If you’re reading this third article in the series, you already know that New Zealand manufacturers face a difficult reality: our productivity lags many of the countries we compete with. Labour is tight, costs continue to rise, and customers expect more value delivered faster and with fewer errors. This situation demands stronger, more reliable processes. Many operational leaders feel this pressure daily. The question is no longer “Should we improve?” It’s “How can we improve quickly, sustainably, and with the people we already have?” The good news is that there is a practical way forward. More leaders are turning to hands-on capability building, such as the 4×4 Simulation, to lift performance from the inside out. In Article 1, we explored how teams experience the shift from chaos to flow. In Article 2, we looked at how the deeper two-day version helps participants understand why improvements work and how to apply them in their own workplace. Now we arrive at the next evolution: the Digital 4×4 Simulation, where participants combine practical learning with real-time operational data to accelerate improvement. 1.1 Why New Zealand Needs This Now New Zealand’s productivity challenge is well documented. We work hard, often very hard, but too often our processes let us down. Unreliable flow, inconsistent standards, firefighting, quality escapes, poor teamwork, unbalanced workloads, and slow changeovers all eat into profit. Software alone is not the answer. Automation alone cannot fix this. Even continuous improvement programmes struggle if the foundation of process stability is not in place. This is why the Digital 4×4 matters. It helps teams see, understand, and improve the behaviours and systems that control productivity, then strengthens that learning with […]

Talking point from Mayor Wendy Schollum: McCain and Wattie’s closures

When a major employer closes and another downsizes, the impact doesn’t stop at the factory gate. In Hastings it affects workers, growers, contractors, suppliers, transport operators, local businesses, and families across our region – because when steady jobs disappear, it is felt around kitchen tables, in local shops, and across the wider community. That is why the recent changes at McCain and Wattie’s matter to our community, and why Council has a role to play. Over recent weeks we’ve brought together growers and industry to understand the drivers and impacts, and successfully pushed for a national review of the issues that have resulted in these business decisions. Wattie’s is not just a factory. For many families in this district, it is part of their history. Parents and grandparents worked there. Growers built businesses around supplying it. Contractors and transport operators have relied on it. It is part of Hastings’ identity as a food-producing district. But it is also important to say this clearly: Hastings is not starting from a weak position. We have strong growers, manufacturers, exporters and businesses that continue to play a major role in our district. Hastings is a powerhouse in primary industry, manufacturing, health and technology for the region, which provide about 60 per cent of Hawke’s Bay jobs, and we must remain focused on continued growth. We have an opportunity and a responsibility to respond with urgency to these recent announcements. Since they were made, I have been working with Central Hawke’s Bay Mayor Will Foley, growers and industry, to advocate at a national level with one clear Hawke’s Bay voice. This is a regional and national issue, not just a Hastings issue. Many affected growers are in Central Hawke’s Bay. Workers come from across the region, including Napier. The consequences reach well beyond one […]

The most expensive decision you signed off

Why not investing still shows up on your P&L Not many of us would say it out loud at the next networking event or Friday drinks. The biggest barrier to growth in New Zealand manufacturing isn’t the banks, isn’t the government, and it isn’t Donald Trump. It’s us. David Altana is Head of Growth &Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions It’s the business owner who knows what needs to change but keeps the wallet closed. The operator who will spend sixty grand on a new ute without blinking, but won’t invest $5,000 in a consultant with the knowledge to fundamentally improve how the business runs. Yes, the environment is genuinely difficult. A 15% tariff on New Zealand exports to the US, ongoing US-China trade tension rattling our largest trading partner, and renewed inflationary pressure on input costs driven by conflict in the Middle East. Add unemployment at 5.4%, near a decade high, and it’s no surprise consumer confidence is slipping. Rob Bull is Director of the New Zealand Lean Academy. rob@nzla.nz But this environment also creates the perfect alibi for doing nothing. And doing nothing is still a decision — one with real, measurable consequences. Holding back feels sensible – But it isn’t Of course hesitation feels rational right now. When uncertainty is everywhere, restraint looks like discipline. Deferring a machine upgrade preserves cash. Pausing training protects short‑term capacity. Delaying external support feels responsible. Inside businesses, that restraint shows up in familiar ways. Capital projects slide into the next quarter. Improvement initiatives lose momentum. Capability gaps are acknowledged, then tolerated. Nothing dramatic happens — just a series of small deferrals that quietly become the status quo. But financially, this isn’t neutrality. It’s a position, and one your competitors can see. The […]

New Zealand manufacturers leaving value on the table in functional foods

As global markets shift toward science-led, high-margin nutrition, New Zealand risks missing a significant opportunity in functional foods, reflecting a sector that has been slow to move beyond its traditional commodity mindset, writes Mark Devlin, director of Impact PR and NZ Manufacturer business advisor. New Zealand is sitting on a high-value food innovation opportunity that it continues to under develop, as global food markets move away from commodity nutrition and toward targeted, function-driven products. Much of the sector still exports raw ingredients, while higher-value product development, branding and margin are captured offshore. Reports out of the US suggest that up to one-third of people may have low levels of a specific dairy-derived fatty acid should be viewed in that context – as an example of a potential opportunity for New Zealand manufacturers looking to take advantage of a broader shift in how food is understood, valued and commercialised. The compound in question, C15:0 or pentadecanoic acid, is naturally present in dairy fat and certain fish and was historically overlooked in favour of broad classifications of dietary fat. Current research is examining how individual fatty acids behave in the body, with studies linking higher circulating levels of odd-chain fatty acids to improved metabolic outcomes and lower risk of conditions such as type 2 diabetes and cardiovascular disease. At the centre of that shift is Dr Stephanie Venn-Watson, a veterinary epidemiologist who previously served with the World Health Organization and the US Navy and has spent much of her career advancing understanding of this nutrient. Her research, including long-term analysis of ageing dolphin populations, identified C15:0 as one of the strongest markers associated with healthier metabolic profiles, lower inflammation and reduced metabolic dysfunction. Those findings are directly relevant in New Zealand, where dairy consumption is shifting at the same time as rates […]

How one local council helped 1,200 low‑income residents finance solar and home energy upgrades

Could this work in New Zealand? Feedback please. Paris Hadfield, Research Fellow, Monash Sustainable Development Institute, Monash University Most of Australia’s existing homes are old, uncomfortable and expensive to run. Too many are energy inefficient, and rising electricity and gas prices are making things worse. Mainstream programs are supporting home energy upgrades. But the transition isn’t happening quickly enough and risks leaving behind the households that could benefit most. Innovative finance models could help. Local initiatives can make solar and electrification more accessible. Darebin City Council’s Solar Saver program Running from 2014-2025, Darebin City Council’s Solar Saver program helped almost 1,200 low-income and vulnerable homeowners in the area get A$4.8 million worth of home energy upgrades. Council paid the upfront cost of installing solar and, in later iterations of the program, reverse cycle air conditioners and hot water heat pumps. Factoring in state government rebates, these costs were added to the homeowner’s property taxes as a “special rates charge”. The homeowner could then repay this money over ten years – interest-free. Suppliers were selected through council tender to make the process easier for homeowners, while ensuring quality products and services including component and performance warranties. This provided certainty for residents, one of whom said: the council’s not going to get involved with some shonky person who’s going to come in and tell you: “Terribly sorry, we’ve got to double the price because you’ve got a nail in the wrong place on your roof” or something. The scheme reduced financial risks and burdens for low-income homeowners. By using council rates to repay the money, the loan is attached to the property itself rather than the homeowner. This means any remaining debt is recouped if and when the house is sold, avoiding a situation where someone is paying a debt for solar […]

The cost of Deindustrialisation: How New Zealand’s manufacturing decline threatens our economic future

NZ Manufacturer magazine wants more business owners and decisionmakers to speak up and positively make suggestions on issues affecting the future of manufacturing. Dont be silent when your ideas can make a difference. Speak up for your country. Doug Green, Publisher By Sean Doherty, Manufacturing Commentator | NZ Industry Trends Manufacturing is not just another sector in New Zealand; it is one of the core systems that keeps regional communities alive and anchors our standard of living. When factories close in Whakatāne, or the outer suburbs of Christchurch, we do not seamlessly “move up the value chain.” We lose well‑paid careers, technical capability, and the dense network of firms and supply chains that make an economy resilient. The signs of deindustrialisation are already all around us Long‑standing manufacturing plants shutting, production shifting offshore, and investment decisions quietly goes against New Zealand. The immediate impact is job loss, but the deeper damage is structural. Manufacturing has long provided thousands of solid, mid‑skill, mid‑wage jobs for people who are prepared to learn a trade, run complex processes, and take responsibility for quality and output. As these roles disappear, the labour market splits into a small group of high‑income professionals and a growing pool of low‑paid service jobs in areas like tourism and hospitality. That mix locks in stagnant wages, weakens social mobility, and drives up fiscal pressure as more households rely on government support to close the income gap. For regions, the consequences are even more personal. A single plant in a provincial town can support hundreds of families directly and many more through suppliers—maintenance firms, transport operators, engineering workshops, automation integrators, local business services. When production ceases, these networks unravel. Young people see fewer reasons to stay, schools lose roll numbers, and community struggle. Once this cycle takes hold, it is […]

McCain employees walking towards production facility

Turning manufacturing around

The announcement by McCains of their closure in Hastings and that of Heinz Wattie’s to close three sites around the country has come with a (wait for it) vacuum of comment, suggestions and concern. Neither does it affirm the benefits of having fifty cent cans of vegetables coming into NZ for sale in supermarkets. It shows greed is alive and kicking! Especially if growers need to readapt and align with the dairy and sheep sectors to survive. Where are the industry leaders, Government officials and ministers leading the charge to do something about the situation, so we do not continue to see the reduction in manufacturing throughout this and other sectors? Have any ideas been expressed and shared as to how this situation can be reversed because, after all, we do want home grown produce and continue to have pride in our land-based industries, don’t we? Is the lack of outrage down to the lack of belief in the ability to come up with concrete ideas to turn the sector around. This must at least be the bottom line to bring about change. Here are a couple you can feed back to me on. Or you might have an idea you want to share: Idea No.1 Is it possible for all affected growers to pull together their produce and start a grower’s co-op, on the North Island and on the South Island, to take on the supermarkets, get a decent return for their efforts and continue to have the populous support “home grown”? Idea No 2 The nation of 5m deposits $1 a week, for a month, into a bank account, NZ Future Manufacturing (for example). After the month there will be $20m in the account. A site is selected, central North Island (Palmerston North, for example) where a manufacturing […]

Ecostore: Building world-class sustainable manufacturing from Auckland

Offering environmentally responsible and eco-friendly alternatives to conventional products has been the goal of Ecostore since its foundation in 1993. That purpose is backed by a sophisticated manufacturing operation in Auckland, where ecostore develops, manufactures and packs its home cleaning, personal care and baby products at its own Toitū Net Carbon Zero-certified factory in Pakuranga. A B Corp-certified business with products sold across New Zealand and into multiple export markets, Ecostore’s growth story is one of continuous improvement. The EMA’s Nicholas Russell spoke to Ecostore Chief Operating Officer Tony Acland about how the company has used smart design, practical technology and better factory flows to lift performance, capability and scale. How does manufacturing support ecostore’s growth and export strategy? Tony Acland: Manufacturing is at the heart of Ecostore’s business model. By owning our production and packing, the company can move faster on product innovation, control quality, and continuously improve how products are made. As demand has grown over the past decade, the focus has been on redesigning layouts, upgrading equipment and improving material flows so the factory can scale efficiently while maintaining high environmental and quality standards. That mindset has driven major changes in how the site operates, from relocating and re-positioning key production equipment into brighter, cleaner, better-ventilated areas, through to re-engineering how raw materials and packaging move through the facility. The result is a manufacturing environment that better supports higher volumes, smoother workflows and more consistent output. What practical investments have made the biggest difference on the factory floor? Tony Acland: One standout example has been investing in equipment that improves both efficiency and accessibility. The installation of vacuum bag lifters means powder batches can now be manufactured without manual handling of large volumes, making production faster, safer and more inclusive for a wider range of workers. Space and logistics were another key focus. As […]

Exporting in 2026: Sustainability and proof

Exporters are not being asked for their sustainability commitments. They are being asked to prove them. Across global markets, sustainability is becoming a condition of doing business. Not because it is the “right thing to do” (although it is), but because regulators, retailers and procurement teams are building sustainability into the rules of trade. Eloise Joiner, Sustainability Lead at New Zealand Trade and Enterprise (NZTE), shared with thinkstep-anz team at our recent team days what NZTE is hearing directly from exporters and what this means for New Zealand businesses trying to grow internationally. Her talk was a timely reminder that while the sustainability conversation may feel noisy, complex and sometimes uncertain at home, the international direction is clear. Here are our takeaways Regulation is moving fast and it is not just climate Eloise highlighted that around 70% of New Zealand exports go to countries with mandatory climate disclosures either proposed or enforced. But climate is only one part of the picture. Exporters are also navigating requirements related to modern slavery, packaging, end-of-life responsibility and product design. For many companies, the challenge is not a single regulation. It is the growing number of overlapping requirements across multiple markets. The result is a system that is often fragmented and hard to interpret, particularly for businesses exporting to more than one region. \ The EU is setting the pace and everyone else is watching Eloise made it clear that Europe is setting the direction on sustainability requirements, and exporters will increasingly need to respond. Read more about the Europe’s sustainability demands on NZTE’s website. The challenge is not just the volume of regulation. It is the complexity, fragmentation and ambiguity, especially for companies selling into multiple markets. New Zealand’s domestic policy signals may not match what exporters face internationally. Despite any changes New […]

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