The Creative Class

NZ’s economy to take three decades to double without intervention – OECD Data

New OECD data shows NZ’s economy will take more than 30 years to double in size unless major structural and cultural changes are made to how organisations operate. The modelling shows New Zealand’s real GDP, currently at US$216 billion, is not expected to double until 2055.[1] While the nation’s economy is projected to grow by nearly 48% by 2040, this expansion is largely driven by population growth and increased labour input, rather than meaningful improvements in productivity. New Zealand’s GDP per hour worked, once comparable to Scandinavian countries like Denmark, Finland, and Sweden, is now on average 40% lower than those economies. This long-term underperformance highlights the depth of NZ’s productivity challenge and signals a widening gap not just in economic output, but in living standards, wage potential and long-term competitiveness.[2] Experts say that the rapid adoption of AI will not be enough on its own to reverse this trend and significantly boost productivity. Despite the transformative potential of AI and automation, they say that without a simultaneous shift in how organisations lead, structure and empower their people, the implementation of new technology risks amplifying the structural inefficiencies holding back productivity gains. Craig Steel, a workplace performance expert from Vantaset and author of Transforming New Zealand’s Productivity, says the country has overestimated what technology alone can deliver without first building the leadership capability and workplace culture needed to make those tools effective. “There’s a misguided belief that AI will close the gap for any organisation that applies it. But what we’ve seen is that when organisations adopt technology without modernising their leadership and culture, the gains they were seeking rarely occur “If AI is layered on top of disconnected leadership models and compliance-based systems, it won’t lift people, it will marginalise them,” he says. Steel warns that New Zealand is at […]

The world wants Kiwi manufacturing: Turning acquisitions into advantage

By Sean Doherty,Manufacturing Commentator | NZ Industry Trends Global investment is reshaping the future of Kiwi manufacturers—and the outlook is surprisingly positive. It has been a historic couple of years for New Zealand’s manufacturing and food processing sectors. From Invercargill to Auckland, a remarkable string of large manufacturing companies have been acquired by overseas buyers—or are in the process of changing hands. Fonterra’s consumer brands, Alliance Group, Synlait Milk, MHM Automation, Robotics Plus, Bremworth, Rakon, and a host of others have all attracted international attention. At first glance, headlines about foreign buyers snapping up New Zealand businesses can feel unsettling. The instinct is to ask: are we losing jobs and intellectual property? But when you dig into the details, a more encouraging picture emerges — one of fresh capital, global market access, jobs protected, and innovation accelerated. Here’s what’s really going on, and why there’s reason to be optimistic. The world wants what we’ve built The sheer scale of interest in New Zealand companies tells a story of success, not failure. In the third quarter of 2025 alone, 52 deals were announced, a 41 percent increase on the same period a year earlier. International investors from France, Ireland, the United States, Japan, South Korea, Switzerland, Australia, and Sri Lanka have all been writing cheques. Why? Because New Zealand companies have built something genuinely valuable. Robotics Plus, a Tauranga-based agricultural robotics company, attracted Yamaha Motor—one of the world’s leading industrial conglomerates—because its autonomous orchard vehicles and AI-powered systems are among the best in the world. Yamaha has now made Robotics Plus part of the foundation of its new global agricultural automation company, Yamaha Agriculture Inc. That’s not a loss. It’s a global validation of Kiwi ingenuity. Similarly, Christchurch’s MHM Automation caught the eye of Fortifi Food Processing Solutions because its post-harvest, […]

Cyber security no longer an IT problem

From February issue, NZ Manufacturer magazine It’s a reputation risk manufacturers can’t ignore With corporate cyber breaches in the spotlight increasingly, NZ Manufacturer magazine advisor and Impact PR director Mark Devlin looks at how firms can protect their brand in the event of an incident. For years, cyber security sat comfortably in the IT bucket. It was treated as a technical risk to be managed through software, consultants and compliance exercises, largely removed from day-to-day operational and commercial decision-making. That separation might once have worked. It no longer does. For New Zealand manufacturers, cyber security has become a frontline business risk, one that increasingly plays out in public. When incidents occur, the damage is rarely limited to systems or data. It shows up in halted production, delayed orders, disrupted supply chains and, critically, lost trust. The reputational consequences often outlast the technical ones. That reality has been reinforced by the way cyber incidents are now covered in the media. Stories that once appeared in specialist technology columns are increasingly leading business news. Journalists are less interested in the mechanics of a breach and far more focused on impact: what stopped, who was affected and how leadership responded. In that environment, cyber security is no longer just about prevention. It is about preparedness, judgement and communication under pressure. Why cyber incidents hit manufacturers harder than most Manufacturers are particularly exposed. They operate at the intersection of physical production and digital infrastructure, where disruption in one area quickly cascades into others. Production lines, logistics platforms, inventory systems, payroll and supplier portals are deeply interconnected. A cyber incident does not just inconvenience office staff. It can shut down machinery, breach contracts and place long-standing customer relationships under strain. Unlike many service businesses, manufacturers cannot simply work around the problem while systems are restored. […]

From data to decisions: getting more value from sustainability measurement

From February issue, NZ Manufacturer magazine The way manufacturers measure sustainability is changing rapidly. New tools, improved data and AI-enabled platforms mean businesses can now measure far more than they could a few years ago. Carbon, circularity, risk and supply chains — the list keeps growing. For manufacturers, this often shows up as long lists of metrics across plants, products and suppliers. Energy and fuel use on the factory floor, raw materials, packaging, transport and supplier emissions are all in scope. Without clear priorities, teams can spend months collecting data without clarity on what to act on first. Measuring everything is rarely practical, and it is not the goal. What matters is measuring the right things, at the right level of detail, to support decisions that reduce risk and create value. As Jeff Vickers, Technical Director at sustainability firm thinkstep-anz, puts it plainly: “You can’t manage what you don’t measure.” He also cautions that “we need to focus our efforts on measuring what matters most so that we don’t get lost in the detail.” Why focused measurement leads to better outcomes More data does not automatically mean better decisions. The real value comes from measuring what matters and using it well. A focused approach to measurement helps organisations: Keep priorities clear: A small set of meaningful metrics makes it easier to see what matters most and act with confidence. Put effort where it counts: Time and budget are spent on data that actually changes decisions, rather than information that sits unused. Protect credibility: Reported numbers are understood, can be explained and are clearly linked to actions being taken. Meet expectations: Measurement focuses on the issues regulators and investors care about most, reducing the risk of blind spots. This approach avoids the risks of over-measurement while strengthening insight, trust, and performance. […]

Election Year Excuses? Why Manufacturers Can’t Afford Them

From February issue, NZ Manufacturer magazine David Altena is Head of Growth & Partnerships at SmartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions We are entering a familiar three yearly cycle of hesitation. As we flip into another election year, a subtle but pervasive “hush” descends over factories from Penrose to Invercargill. Business cases for new CNC machinery get shuffled to the bottom of the pile. Recruitment for that much needed engineer is “put on hold until we know who is running the Beehive.” Election years tempt businesses to pause, waiting for policy clarity. But in manufacturing, hesitation is costly. Whoever wins, the fundamentals won’t change. Capability, capital confidence and innovation still matter. Waiting is the real risk. We have been waiting for the miracle decisions every three years for decades. It is no surprise that the MBIE and Foreign Affairs Long Term Insights Briefing released in December 2025 still describes New Zealand as being stuck in a low-productivity rut. Another report to feed the lack of progress on this subject over the last 40-years. “Wait and see” is not a strategy, it’s slow-motion surrender. (Ab0ve)Rob Bull is Director of The New Zealand Lean Academy. rob@nzla.nz Myth Busting: The “Pause Button” Election-year uncertainty is the ultimate security blanket. It’s the perfect, explainable excuse for inaction, but let’s look at the reality of the productivity gap. New Zealand has struggled with a tail of underperformance compared to our OECD peers[1] and according to The Economist, New Zealand’s economic performance is now ranked 33rd (of 37) in 2024[2] (we were as high as 3rd in the 1950’s!). That gap doesn’t take a holiday because there are billboards on the side of the road and policy ideas thrown about like a lolly scramble. The truth is sitting there right […]

Before the robots arrive: How Formthotics prepared its staff for the changes ahead

From February issue, NZ Manufacturer magazine Adam Harvey, Business Performance Partner – Manufacturing, The Learning Wave Running a manufacturing business right now can feel like standing on a moving walkway. If you don’t step forward, you fall behind. Customers want more for less, and Boards are pushing for efficiency, growth, and operational certainty. Automation and digital tools promise speed and scale, and on paper, the investment stacks up. But then you look across the floor, and the harder question sets in: “Are our people actually ready for this yet?” That was the question facing Formthotics when they first reached out in early 2025. An established manufacturer of custom orthotics, Formthotics was investing heavily in its future. New machinery, its first robot nearing commissioning, new digital tools queued for rollout, a refreshed brand and ambitious growth targets. The strategy was clear, and the investment significant. But the leadership team, led by Shane Heenan, alongside Amanda Gault and Carolina Santa, could also see the risk. “We knew the processes which had gotten us this far simply wouldn’t scale ahead for growth. A SIRI assessment confirmed it; paper-based processes and limited experience with digital tools.” shared Shane. They had seen similar stories play out elsewhere. Formthotics had watched the Argus journey closely. They saw what was possible when leaders recognised a simple truth: technology doesn’t run a factory, people do. So they made a deliberate choice. Before pushing harder on lean, digital, and automation, they chose to prepare their people. Choosing readiness over speed Rather than waiting for resistance to show up later, Formthotics invested early in building the mindset, confidence and communication skills of its 17 factory and supply chain operators. That decision led to Owning My Future, a learning journey designed to build the foundations the business knew it would need […]

Importing gas locks NZ into fossil fuels for longer – just as clean energy surges

Jen Purdie,Senior Research Fellow, Centre for Sustainability, University of Otago The government’s announcement that it would move ahead with plans for a new facility to import liquefied natural gas (LNG), potentially as early as next year, was framed as a way to shore up energy security. But the decision instead marks another major step backwards for domestic efforts to decarbonise. Notably, it comes as communities across the North Island – including Mount Maunganui – are recovering from just the kind of extreme weather events climate change is projected to intensify. With the United States now withdrawing from the Paris climate agreement, and New Zealand simultaneously weakening its own climate settings, it is easy to feel a sense of drift. Despite 89% of people globally wanting stronger climate action, the erosion of the international rules-based order risks pulling more countries away from cooperative solutions. But the energy transition now has real momentum. So how much difference does the US withdrawal from Paris – and New Zealand’s turn back towards fossil fuels – actually make? A setback, not a stop Before the US withdrew, 93% of global emissions came from countries with net-zero policies in place; that figure has now fallen to 83%. The drop would have been larger if not for pledges by 24 US states, along with many cities and corporations, to stick to Paris Agreement targets. So, while the US exit might be a massive blow, it is far from the end of global climate action. Current Paris Agreement pledges and targets would see global emissions peak in the next few years, if countries follow through. Many states – including the US, United Kingdom, China, Australia and Canada – are already recording declines. New Zealand’s emissions have flatlined since 2008 but it is still doing less than its fair share on a per-capita basis. Globally, the race is now on between avoiding dangerous climate tipping […]

XPO Exhibitions to launch new trade fair

From February issue of NZ Manufacturer magazine XPO Exhibitions is partnering with Hannover Fairs Australia to launch Logistics Automation New Zealand, powered by CeMAT. This will be held from 10-11 November at the Auckland Showgrounds. The trade fair will bring together world-leading logistics, automation, robotics, intralogistics, warehousing, and supply chain management solutions under one roof. A new era for logistics innovation in New Zealand XPO’s Managing Director Brent Spillane says that with the rapid growth of high-tech logistics and automation, the time is right to give the sector its own dedicated platform. “We are seeing a transformational technology expansion and growth of products delivering Robotics, Automation, Intralogistics, Warehousing, Supply Chain Management and Materials Handling. This cutting-edge technology is changing rapidly, yet it’s becoming more accessible and affordable for industry to bolt-on products and enjoy instant gains in productivity.” CeMAT is a world-renowned leader of exhibitions in this space, with deep relationships across the biggest brands whose R&D is redefining logistics automation across the globe. As Mike Nissen Commercial Director of Hannover Fairs Australia explains “This Joint Venture partnership, introduces new international brands into New Zealand. Brands that loyally participate across CeMAT exhibitions in Germany, North America, Australia and Asia Pacific. “That international participation creates buzz and more value for domestic exhibiting brands – something we are evidencing in other markets we are entering.” XPO have traditionally served the Materials Handling & Logistics NZ sector most notably alongside Foodtech Packtech, and while that industry (food manufacturing) have been early adopters, XPO’s Managing Director Brent Spillane says the time has come to broaden the scope to all industries where automation can play a pivotal role in streamlining processes, driving efficiencies, and improving health and safety practices. He adds, “Logistics Automation New Zealand, powered by CeMAT brings together a far wider attendance of […]

The Learning Wave Free 90-minute taster: Accelerate team cohesion and performance in times of change

What happens when frontline teams are truly connected to each other and the business? You see fewer handovers going wrong, safer decisions on the floor, better problem-solving, issues owned and closed out properly, and people who actually speak up when something’s not right. This complimentary 90-minute taster gives manufacturing leaders a practical look at how that connection is built. Not through posters, slogans, or another toolbox talk, but through deliberate capability building where the work actually happens. In this session, we unpack what “connection” really means in an operational environment. You’ll see how trust, communication, confidence, and shared ownership show up in everyday behaviours that directly impact safety, quality, downtime, and productivity. We’ll share real examples of how frontline teams move from just turning up and completing tasks to thinking, contributing, and taking responsibility for outcomes. This is not theory and it’s not leadership jargon. It’s grounded in real manufacturing sites, real people, and real constraints like shift patterns, production pressure, and literacy challenges. If you’re an operational leader grappling with engagement, ownership, or change fatigue on the floor, this session will give you practical insight into what actually works, why it works, and how learning becomes the engine for performance, not a distraction from it. What you’ll experience in 90 Minutes: Across the 90 minutes, you’ll experience practical frameworks we use to accelerate team performance. You’ll explore a simple roadmap to identify where your team is at today and what it takes to move them forward, uncover how individual strengths build trust on the floor, and learn a clear, practical model for strengthening trust, accountability, and psychological safety. No cost. No fluff. Just insight that translates to performance. Click here to secure your spot: https://thelearningwave.com/free-taster-session-connecting-together-24th-feb-2026/ DATE: Tuesday 24th February, 2pm – 4pm VENUE: Level 3, 9 Hargreaves Street, Freeman’s […]

How CTEM, AI, and access control redefine OT security in 2026

By Carlos Buenano, Field CTO for OT, Armis As we step into 2026, AI-driven adversaries, supply chain fragility, and relentless digitisation are forcing Operational Technology (OT) security to mature into a force to be reckoned with. Here’s what 2026 looks like: AI-Powered adversaries demand autonomous defence AI is no longer an abstract threat vector; it’s an operational force multiplier that attackers are leveraging with frightening results. We’re witnessing adversaries use autonomous agents to probe networks, map exposed devices, and launch dynamic exploitation campaigns that run continuously. In 2026, those systems will act autonomously: isolating compromised segments, or enforcing multifactor re-authentication for operators under suspicious conditions. In OT, where minutes can mean millions, automation will be the only meaningful defence. CTEM becomes the operational centre of gravity A few years ago, “CTEM” was just another Gartner acronym. In 2026, it’s the organising principle for any serious OT security program. CTEM represents a shift from periodic vulnerability management to continuous, risk-based exposure assessment and management across hardware, firmware, network paths, and even supply-chain dependencies. But the key difference this year is context. We’re aligning exposures with what actually matters; the physical process, the human safety implications, and the potential operational impact. The cybersecurity landscape in 2026 is clearly set for a strong and necessary integration where vendors leverage the strengths of CTEM to directly inform actionable firewall enforcements, workflows, and reporting. This narrative is driven by the final “Mobilisation” step of the CTEM cycle, which demands that validated, confirmed high-priority exposures leads to an immediate, automated remediation. Specifically for firewalls, this means a CTEM platform will no longer just issue a general alert but will use its deep, risk-based context to trigger a Security Orchestration, Automation, and Response (SOAR) playbook that instantly pushes a micro-segmentation policy or a temporary block rule to […]

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