The Creative Class

Building the Foundation: Preparing Your Manufacturing Business for AI Success

-Adam Sharman, CEO LMAC Group APAC The manufacturing sector stands at the precipice of an AI revolution that promises to transform everything from production efficiency to supply chain management. Yet for many business leaders, the question isn’t whether to adopt AI, but how to prepare their organisations to extract maximum value from these powerful technologies. The answer lies not in the sophistication of the AI itself, but in the quality of the foundation upon which it’s built. The Data Foundation Imperative Before any AI system can deliver meaningful insights, your manufacturing operation must first establish a robust data infrastructure. This begins with conducting a comprehensive audit of your existing data landscape. Map out where data is generated across your operation—from sensor readings on the factory floor to inventory management systems, quality control metrics, and customer order patterns. Many manufacturers discover they’re sitting on vast amounts of valuable data that remains siloed across different departments and systems. The key is achieving data integration and standardisation. Legacy systems often speak different languages, storing similar information in incompatible formats. A machine’s operational data might be recorded in one system while maintenance records exist in another, making it impossible for AI to identify patterns between equipment performance and maintenance needs. Investing in data integration platforms that can unify these disparate sources creates the coherent dataset that AI algorithms require to function effectively. Data quality represents another critical pillar. AI systems amplify the characteristics of the data they’re trained on—if your data contains errors, inconsistencies, or gaps, your AI will perpetuate and magnify these problems. Implement rigorous data validation processes, establish clear data governance protocols, and create systems for continuous data quality monitoring. This might involve automated checks for outliers, regular audits of data entry processes, and establishing clear accountability for data accuracy across teams. […]

Blending artistry with automation for strategic advantage

-Scott Adams, Argon & Co Manufacturing companies in New Zealand are most often owned, managed, and operated by engineers and therefore they often lack artistry, passion, and flair. I readily, and happily, accept there are exceptions to this statement, but for every exception there are 10 more that focus on precision, performance, and cost. Is this a problem? Sometimes it is, because we miss the opportunity of producing something wonderful rather than something utilitarian, but also because it limits opportunity and commercial outcomes. If we build a low-cost focused, and therefore often automated, manufacturing capability without creativity then it is very difficult to be innovative with product design and it therefore limits our ability to adapt to a changing market or to create opportunity in a new market. I frequently hear that the only reason a product has changed is because the client required it. This is satisfactory for many of our smaller national or regionally focused manufacturing companies as there are significant obstacles to change: there is not enough space, inflexible machinery, or people are scared to try something different. But if we were to examine a list of the NZ manufacturing companies that have been successful globally and nationally, it would be full of companies that have blended artistry with automation, admittedly in industry sectors where that combination is encouraged, which is generally high-value niche products. Another smaller list of successful companies will show they have primarily focused on the artistry. However, we have very few low-cost automation manufacturing companies producing volume that have been successful, primarily because there are too many barriers to be globally, let alone nationally, successful due to our small population and high labour costs. So, if there are benefits in blending automation with artistry then what steps would I take? I’d argue that […]

Adoption of smart practises by manufacturers across New Zealand

New Zealand’s manufacturing sector has stepped firmly into the fourth industrial revolution, with a 10.5 percent increase in the use of advanced manufacturing technologies since 2023, as shown in the final Industry 4.0 Insights Survey by Callaghan Innovation. The Industry 4.0 programme was launched to build awareness and educate New Zealand’s manufacturing sector about the powers of digitisation and connectivity in manufacturing. And, while it’s achieved this goal with 80 percent of Kiwi manufacturers aware of the programme, for Sean Doherty, Industry 4.0 Product Manager at Callaghan Innovation, the real impact has been how quickly that awareness has turned into action. “What seemed experimental five years ago, has quickly become business as usual for many Kiwi manufacturers,” he says. “Manufacturers are increasingly recognising the value of advanced technologies as essential tools for growth and resilience. We now have nearly 40 percent of the workforce implementing Industry 4.0 technologies.” From AI and robotics to real-time data tracking, manufacturers are turning to smart technologies to lift productivity, improve quality and modernise operations. It’s already seen that Industry 4.0 technologies such as AI, digital twins or cloud technology are able to increase productivity by 15-30%. Supporting this momentum, the recently introduced Investment Boost scheme offers manufacturers an immediate 20 percent tax deduction on eligible machinery and equipment purchases. “Capital investment often presents a significant challenge for manufacturers,” says Doherty. “This incentive helps lower that barrier to entry, making it more feasible for businesses to invest in automation, AI and other advanced tools. It’s a promising development and will help keep momentum built through Industry 4.0.” However, Doherty stresses that “technology alone isn’t enough, investing in people and company culture is critical for lasting success.” To view the full Callaghan Innovation Industry 4.0 Insights Survey report, visit: https://www.callaghaninnovation.govt.nz/assets/documents/Industry-4-0/2025_Industry4_Insights_Survey_FINAL.pdf

The Canterbury engineering business with trained staff who never want to leave

Training at the heart of exporter’s success story An unwavering commitment to upskilling its people has helped keep tool maker Sutton Tools (NZ) out in front despite a string of setbacks including an earthquake, a pandemic, and in 2022, a fire that gutted their Kaiapoi factory. Now though, the future looks brighter than ever with a brand-new factory in Rangiora and a forward-focussed masterplan that will drive expansion and power up their knowledge base. Sutton Tools manufactures its high-quality cutting tools in Rangiora, as well as at two sites in Victoria, Australia before exporting them globally. Adopting a proactive approach to training has been a critical factor in their success, and a long-standing partnership with industry training organisation Competenz has been pivotal to this work. For over 30 years, Competenz has collaborated with Sutton Tools, offering apprenticeship and traineeship opportunities to enhance skills and engagement. Production Manager Brian McCallum has spent just shy of 25 years with the company and in that time, he has completed a string of Competenz programmes including a New Zealand Certificate in Workplace Health & Safety Practices (Level 3), a National Certificate in Competitive Manufacturing (Level 4), and a National Certificate in Manufacturing (Metal and Related Products) (Level 3). Currently he’s working towards his NZ Apprenticeship in Mechanical Engineering (Trade) (Level 4) – Fitting and Machining. “I went to Sutton for work experience when I was 17 and I never left,” says Brian. “In that time, I’ve been given lots of opportunities and done lots of different things within the company, including gaining qualifications and temporarily relocating to Australia after the fire to help with running one of the manufacturing plants in Melbourne.” With a myriad of development and career prospects – and a highly supportive, encouraging employer – he can’t see a reason to […]

Industry 4.0 for SME manufacturers

Article 4 – from a series of 5 – From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -Frank Phillips, Director, Fulcrum Article 4: The Significance of Systems in Industry 4.0 and Automation Welcome to the next part of our Industry 4.0 series for SME manufacturer. We’re exploring various companies that can help you embrace advanced technologies and optimize your operations. Today’s focus: Manufacturing Systems. Let’s dive in and see how they can drive your business success. Systems: The Backbone of Modern Manufacturing In the dynamic landscape of Industry 4.0, systems are the backbone that supports and streamlines manufacturing operations. These companies specialize in providing software solutions such as ERP (Enterprise Resource Planning), MES (Manufacturing Execution Systems), CMMS (Computerised Maintenance Management Systems), APS (Advanced Planning and Scheduling), and various other tools designed to solve challenges and manage processes more effectively. Think of them as the digital frameworks that enable smooth and efficient manufacturing processes. Streamlining Operations: How Systems Add Value Manufacturers often grapple with issues like disjointed processes, lack of visibility, and inefficient resource management. Engaging a systems provider can address these challenges by implementing software solutions that integrate and optimize various aspects of manufacturing operations. By leveraging these systems, manufacturers can achieve better coordination, real-time visibility, and enhanced decision-making capabilities. Implementing Success: Typical Engagement and Resource Requirements The journey with a systems provider typically begins with a comprehensive assessment of your existing processes and systems. This phase involves site visits, technical evaluations, and collaborative discussions to identify pain points and opportunities for improvement. The systems provider then establishes to what extent their solution meets requirements, the optimal configuration and any customisation that might be required. Expect to allocate internal resources, including IT personnel, process engineers, and operations managers, to work closely with the systems provider. The engagement would typically take several […]

LCA: A powerful tool for change

In the early days of sustainability, we were often driven by a desire to “save the polar bears” or protect rainforests. Today, business leaders are asking a different question. It’s no longer “Is this the right thing to do?” but “Is this worth the investment?” The answer is yes, and Life Cycle Assessment (LCA) can help prove it. So, what exactly is an LCA? LCA is a tool that measures the environmental footprint of a product or service across its life cycle. It helps you understand your product’s environmental footprint, find opportunities to improve and communicate your sustainability credentials with confidence. This means LCA gives you a snapshot of your product or services’ footprint, both what goes into it and what comes out. That includes: what goes in, like energy and raw materials what comes out, like waste, water pollution and carbon emissions. The lower the impact, the smaller your product’s environmental footprint. Click here to learn more in thinkstep-anz’s Need to Know guide. From burden to business case LCA can seem complex and overwhelming. It’s sometimes seen as a data-heavy, costly exercise. But when you look at it through a business lens, LCA becomes a strategic tool. It can help you build resilience, drive innovation and gain market advantage. Around the world, LCA is gaining traction. In the EU, it’s a requirement for Horizon funding. In Australia, the 2024 Building Ministers’ Meeting endorsed LCA as part of the National Construction Code for commercial buildings. EPD Australasia just celebrated 2,000 Environmental Product Declarations. In China, national funding for LCA research is growing rapidly. Business success starts with transparency LCA takes a full-life approach. It looks at a product’s environmental impact from raw materials to disposal. This broad scope gives you visibility – and with visibility comes opportunity. One client asked, […]

Expect to Win: Raising the Bar and Aiming for Excellence

From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz In a Bay of Plenty workshop, the first press of the day starts up. Meanwhile, 18,000 kilometres away, its twin in Stuttgart is already changing over to the next job, 30% more parts out the door before smoko. Same equipment, same potential just different culture. David Altena is Head of Growth & Partnerships at SmartSpace ai & Co-Founder & Host of The Better SMB Podcast. david@altena.solutions New Zealanders already work around 15 percent longer than the OECD average while generating 20 percent less output per person. Our productivity gap has widened from 34 percent in 1996 to roughly 40 percent today. “Good enough for NZ” is quietly costing us millions every pay cycle. The Budget for manufacturers is a brand-new 20% “Investment Boost” tax deduction: buy qualifying plant or machinery after 22 May 2025 and you can write off one-fifth of the cost in year one, on top of normal depreciation. Rob Bull is Director & Principal Consultant at Plexus Consultant & C0-Founder& Host of The Better SMB Podcast. rob@nzla.nz Before racing for a purchase order, pause. A tax break multiplies whatever capability you already have, good or bad. Before you bolt a faster robot to yesterday’s habits, take ninety days to hard-wire a culture that expects to win. After all, every dollar you save on tax is wasted if the new kit sits idle for want of process discipline. Winning is a system, not a slogan In factories that outperform global peers, five habits show up in every shift and hum in the background like the compressor: Uncompromising clarity – three numbers on every wall, one for productivity, one for quality, one for innovation and improvement. The strategic goals are translated into performance metrics the whole team can understand and influence. Standard […]

SouthMACH 2025: Capability Is still the differentiator

From June issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Review from Caliber Design There was a strong sense of optimism at SouthMACH this year. The energy was good. People were open, engaged, and proud of the work they’re doing. Yes, there are still challenges—but the general feeling was that things are picking up, and that real progress is being made. Capability remains a key issue. “We’ve got the ideas. We just don’t have the resource.” The work is there. Priorities are clear. But teams are at capacity. There’s limited room to take on more—let alone deliver faster. Shifting the Dial Whether the focus is production, upgrades, product development, or compliance—it takes people to get things done. Not just more hands, but the right experience, at the right time. At SouthMACH, there was strong interest in how to keep momentum without overloading internal teams. Many are turning to flexible engineering support—people who can step in, contribute from day one, and help shift the dial. The common thread? Capability isn’t just about technical knowledge. It’s about judgement, communication, adaptability, and the ability to work well on-site, under pressure, and in step with the wider team. What We Noticed Amidst the usual challenges—capacity, backlog, deadlines—there was also a clear sense of optimism. Many have weathered tough years and come through more focused. Some of the best conversations we had were about what’s working: building long-term partnerships that help teams flex as needed; investing in project engineering—not just design, but full delivery; and embedding engineers into existing teams to remove bottlenecks and keep work flowing. We also asked our team: “What was the most exciting innovation or product you came across during the event?” The answers were varied—but all pointed to practical, clever engineering solving real problems. Dawn Aerospace stood out to several engineers—not just […]

Page Macrae’s new Port Products hopper a game-changer for materials bulk handling

From June issue of NZ Manufacturer magazine. Page Macrae Engineering is one of New Zealand’s most respected heavy engineering fabrication companies, with a legacy spanning more than six decades. Based in Mount Maunganui, the company was founded in 1955 and has built a reputation for large-scale projects in tank and piping fabrication for the energy, pulp and paper and water-treatment sectors; log and dry bulk solid handling equipment for ship loading and unloading; bulk storage for fuel and chemicals; and manufacture of forestry equipment. At the helm of Page Macrae is CEO Alan Sutcliffe, whose leadership has recently helped steer the company into new international markets. The Employers and Manufacturers Association’s Nicholas Russell sat down with Alan to discuss the company’s new world-leading hopper, which sparked huge interest during a recent sales trip to Europe. Can you tell us about your recent product launch and how it was received internationally? We recently launched our new Bulk Master Smart Dock Hopper in Mount Maunganui at an event attended by the Prime Minister and some of his Ministers. It’s a hopper full of smart technology that is designed to suppress dust emissions during bulk cargo unloading from ships. Traditional hoppers create large dust plumes, which harm the environment. Our design includes a vacuum system that captures the dust as cargo is released into the hopper and is automated, so operators can control the system remotely without having to be in a hazardous environment. We previewed the product at a conference in Australia recently, which had strong attendance from European buyers. The feedback was overwhelmingly positive. Based on that, we decided to test the product in the European market by attending the Breakbulk event in Rotterdam in May. That trip validated that our product fills a gap not currently met in the Northern […]

SouthMACH 2025 hailed as most successful event to date

From June 2025 issue of NZ Manufacturer magazine www.nzmanufacturer.co.nz SouthMACH 2025 has concluded with resounding success, marking the most impactful event since XPO acquired the brand in 2015. This year’s exhibition saw a record number of exhibitors and an impressive 22% increase in visitor attendance, highlighting the burgeoning strength of New Zealand’s manufacturing, engineering and technology sectors. The organisers extend their sincere gratitude to all exhibitors and visitors whose participation was instrumental in making SouthMACH such a dynamic and valuable experience. This year’s success would not have been possible without the invaluable support of SouthMACH’s esteemed partners and programme activators. A heartfelt thank you is extended to Catherine Lye from Advancing Manufacturing Aotearoa, Jane Finlayson from EMA, Dieter Adam from MAKE│NZ, John Hamilton from Business Canterbury, the University of Canterbury, Business South and Gina McMaster from IRHACE (HVAC&R South). Their continued collaboration is vital to the success of this event and the wider industry. Event highlights included Dawn Aerospace’s packed seminar, huge interest in the HamiltonJet HT1000, the launch of IRHACE’s HVAC&R South, and the inaugural Minister for Manufacturing Awards 2025, celebrating manufacturing excellence from apprentices to business leaders. Jack Heslin, sales and event manager for SouthMACH, commented on the event’s success, stating, “The success of SouthMACH 2025 is more than just numbers – it’s a clear signal that New Zealand’s manufacturing, engineering and technology sectors are gaining traction. A strong turnout from industry professionals, innovators and future talent reflects a sector that’s not only growing but also evolving.” He added, “I’m incredibly grateful to our partners, exhibitors and every single visitor who made SouthMACH 2025 such a vibrant and valuable event. Your support drives the future of manufacturing in Aotearoa.” Jack also expressed pride in the atmosphere of the event, remarking, “Seeing the Wolfbrook arena buzzing with energy, innovation […]

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