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From Survive to Thrive: FMCG Strategies for Growth and Profitability in 2025

From NZ Manufacturer magazine, February 2025. Chris Foord, Partner, Argon & Co New Zealand As we look forward to 2025 the outlook for business and NZ are improving. Many businesses in 2024 were focused on the “survive till 2025” mindset, controlling costs and avoiding discretionary spend. Very few though forgot about the consumer/customer and the need to continue to serve, surprise and delight with excellent product, service and pricing. Most FMCG businesses will be looking to return to better margin positions in 2025 and indications are favourable that this is achievable. The inflation beast has been tamed, so interest rates have fallen and are predicted to drop further (albeit not by a huge amount) through 2025. Business sentiment is on the rebound. Consumer confidence is at its highest level for two years, which in turn improves business confidence. Whilst the signs are positive, navigating from the survival mindset to a thrive mindset doesn’t happen without intent. So, what are some helpful tips to consider as FMCG businesses transition into what should be a period of growth, and importantly how to create value and embed sustainable profitability. Here are some areas to consider and explore: Align operations to execute your business strategy Plan to drive profitable growth Unlock, deliver and celebrate quick wins Create and embed a continuous improvement culture AI: Proof of Value Align operations to execute your business strategy Operations is where the rubber hits the road for your business strategy. Are your operational teams involved in the key decisions as you launch new products, drive innovation, review range, pricing and promotional plans? If not, they should be. They operationalise strategy, plans and tactics into reality. Get them onboard early and you will realise value faster and more effectively. Plan to drive profitable growth Continue your focus on productivity. […]

Manufacturing bottleneck: How Auckland’s land crunch threatens growth

From NZ Manufacturer magazine, February 2025 By Mark Devlin, Managing Director, Impact PR Auckland is the industrial heart of New Zealand, but an emerging scarcity of industrial-zoned land is poised to have far-reaching implications for the manufacturing sector. As businesses increasingly seek larger, purpose-built facilities to house state-of-the-art technology and automated processes, the land supply constraints could prevent growth and innovation in one of the country’s most essential industries. Manufacturing Under Pressure New Zealand’s manufacturing sector, which contributes over 10% to GDP and employs more than 240,000 people, is under increasing pressure to modernise and scale up. Global trends in automation, robotics, and smart logistics demand facilities that are capable of supporting high ceilings, expansive footprints, and advanced connectivity. Stephen Hughes, CEO of Drury South Crossing—New Zealand’s largest mixed-use property development—says that half of the second phase of their industrial development has already been sold. Manufacturing companies and industrial operators are vying for what remains of the land, recognising the unique advantages that sites like Drury offer. According to Hughes, “Large-scale manufacturing facilities require contiguous greenfield sites with close access to major transport arteries like motorways and rail. The diminishing availability of such land in Auckland is beginning to limit the options for industrial expansion.” Automation Driving Land Demand A major shift in the manufacturing sector is the adoption of Automated Storage and Retrieval Systems (ASRS) and other advanced technologies. These systems optimise operations by automating warehousing processes, reducing labour costs, and improving efficiency. However, the infrastructure for such systems cannot simply be retrofitted into existing warehouses; they demand purpose-built facilities with ceilings as high as 30 metres and footprints of two hectares or more. Ben Stewart, Associate Director of Property at Calder Stewart, explains that Auckland’s geography and regulatory landscape are significant obstacles. “The region is constrained by natural […]

Funding growth?

From NZ Manufacturer magazine February 2025 Ian Walsh, Partner, Argon & Co NZ I have been considering the approach to drive growth in NZ as we move into 2025. Overall, this is a positive direction, and business needs growth to fund investment, to improve its product and service and create a virtual cycle. This is very much what Dr Edwards Deming laid out to Japan in the 1950’s. However, he described this as a quality circle with the start being to focus on improving your product or service, leading to happier customers, better product, lower cost, then more sales and the cycle is virtuous and repeats. Expecting growth for growth’s sake by encouraging investors, without improving your product or service, or a clear strategy (Ireland or Singapore for example) is a recipe for failure. This investment is only one part of the puzzle. The other parts are aligning your businesses and universities and research capabilities with the areas in which the nation can win. The restructure of Callaghan and research institutes goes some way to this, but aligning universities and business and research, I would suggest is still a work in progress. This of course is common practice in Japan, America and other “successful” countries with major corporates invested in universities and research in a synergistic manner. As Doug Green outlined in his article, our top 10 exports accounted for over three-quarters (76.4%) of the overall value to global markets: Dairy, eggs, honey: US$12.2 billion (30.7% of total exports) Meat: $5.4 billion (13.6%) Wood: $2.9 billion (7.2%) Fruits, nuts: $2.2 billion (5.4%) Beverages, spirits, vinegar: $1.53 billion (3.9%) Cereal/milk preparations: $1.52 billion (3.8%) Modified starches, glues, enzymes: $1.4 billion (3.4%) Machinery including computers: $1.19 billion (3%) Fish: $1.19 billion (3%) Aluminium: $949.8 million (2.4%) These would seem to be a […]

How manufacturers can adapt to workforce changes through flexible working environments

Liam Merrick, sales engineer, ECI Solutions New Zealand’s manufacturing sector faces a significant challenge amid an ongoing skills and labour shortage. The Employers and Manufacturers Association (EMA) reports that 71 per cent of employers can’t find skilled people, an increase from 40 per cent in 2022, and 90 per cent are struggling to fill vacancies (1). Employers also face difficulties in hiring trainees and apprentices due to the lack of technical staff to train them. This issue is exacerbated by the shifting preferences of workers, who increasingly seek flexible work arrangements. The nature of production processes has long dictated that the traditional manufacturing environment requires onsite work. However, workers across industries now expect greater flexibility in their work arrangements, and manufacturers must respond to these changing expectations to remain competitive in the labour market. Consequently, manufacturers must adapt their practices and embrace flexible working models that can attract and retain talent, such as exploring innovative solutions to maintain productivity and growth or investigating hybrid models for supporting staff. This is particularly relevant for manufacturing workers that will benefit from modern technology augmenting their onsite responsibilities, while administrative roles may not require workers to be onsite. For example, certain roles will always require a physical presence on the factory floor, particularly in smaller operations, though some supporting functions can be partially or fully performed remotely such as finance, management, and even sales staff in the field. Offering hybrid options for these less-fixed roles lets manufacturers expand their talent pool beyond geographical constraints to attract professionals who may not have considered a career in manufacturing due to perceived inflexibility. Onsite, this may involve creating more collaborative spaces, improving ergonomics, and enhancing safety measures. Offsite, it involves providing employees with the latest technologies to perform their duties remotely and create an innovative environment […]

Navigating a Reputation Crisis

Business leaders rarely expect a reputation crisis, but these situations do arise, often attracting media scrutiny. Facing media inquiries in challenging times can be daunting, particularly when potential brand damage is involved. Director of Auckland public relations agency Impact PR Mark Devlin discusses how manufacturers can navigate a crisis in front of the media. For many businesses, lacking a crisis response plan means CEOs and senior leaders might struggle to manage a sudden call from a journalist or an impromptu press conference. Some executives opt for a “no comment” response, which can imply a lack of transparency or unwillingness to address issues directly. In most cases, declining to comment isn’t the best strategy. Although there may be rare instances where silence is justifiable, generally, it’s more effective to respond with honesty, offering information where possible. The key to successfully managing media during a crisis is having a pre-existing plan, pinpointing potential crisis scenarios, and identifying who will address reporters’ questions. This spokesperson must be well-prepared and trained in media engagement to deliver a clear, impactful message. Preparation is the best defence against negative press. Most can recall a situation where a CEO’s or spokesperson’s mishandled responses amplified a crisis, but there are also cases where skilled media handling turned potential setbacks into reputation-building moments. The company’s most senior leaders, especially the CEO, should ideally be the face of media responses during a crisis, signalling that the situation is taken seriously. The CEO’s presence shows the company values the matter and is ready to act, as they are seen as the ultimate authority who can credibly commit to solutions or offer a genuine apology. Whoever is chosen to interact with the media must understand how to positively influence both the interviewer and the broader audience. An interview is an opportunity to […]

Tech isn’t the Hero, it’s the plucky sidekick

Frank Phillips, Director, Fulcrum NZ The Tale of Two Manufacturers Imagine two companies, both manufacturers here in New Zealand, standing on the brink of change. Company A embraced digital technology not just as a solution but as a stepping stone to reshape their operations. They invested in data analytics, IoT, and automation, with a clear vision to enhance their product offerings. They didn’t see tech as a shiny new toy; they saw it as a tool to make existing processes more efficient, reliable, and insightful. As a result, they grew sustainably, adapting each new piece of tech to complement their strategy. Company B, on the other hand, rushed into the world of digital with stars in their eyes and a sense of FOMO. They adopted everything from machine learning to augmented reality but hadn’t mapped out where these would fit into their overarching business vision. Within two years, they were drowning in tech debt and bloated processes, with digital “solutions” that solved nothing but looked impressive in investor presentations. The difference? Company A used tech as a supportive actor, not the main character. Company B? They gave tech top billing without considering how it fit into the wider story. The lesson here? Industry 4.0 should be the sidekick in your journey—not the destination. Tech as a Strategy or a Sidekick? It’s tempting to make Industry 4.0 your main strategy—after all, the tech is exciting! But if you’re all about tech and not about your business goals, you might end up with a whole lot of digital flash and little substance. In manufacturing, the real heroes are efficiency, quality, and customer satisfaction. Industry 4.0 tech—be it sensors, AI, robotics, or data analytics—is just the toolkit to help us get there. For New Zealand manufacturers, it’s about knowing that “the “cool factor” […]

Scott Aylett, SEA Electrical a winner

Scott Aylett from SEA Electrical, a Master Electricians member, received a bronze for the Emerging Business Award at the recent Excellence Awards. A bit more about him here…

South Auckland logistics facility to support future infrastructure projects

A new multimillion dollar green logistics facility in South Auckland will help boost access to steel construction materials needed for New Zealand’s major infrastructure and renewable energy projects. Latest Government data shows more than $120 billion has been forecast to be spent on infrastructure by the Crown, Crown entities and KiwiRail over the next five years.[1] The investment is designed to address New Zealand’s infrastructure deficit and prepare the country for future challenges, including population growth and climate change. Key areas of investment include transport, regional infrastructure, resilience and emergency preparedness, public buildings and schools. Dean Brown, CEO of Asmuss Group, says with over 1,400 infrastructure projects valued at $10 million or more planned in the coming years, improving the construction industry’s supply chain capacity will be critical to the efficient delivery of these projects. He says the new $25 million, 15,400m2 purpose-built logistics facility at Drury South Crossing can store over 12,000 tonnes of steel, around 2.1 times the steel volume used in the Auckland Harbour Bridge. “Most of New Zealand’s structural steel needs are met by overseas suppliers and developing the capability to manage the rapid distribution of large volumes of these materials will help ensure that materials are sourced, transported, and utilised effectively to avoid delays. “The operating model at the new facility has been designed to move high volumes of steel across multiple bays simultaneously, significantly improving operational efficiency and customer service deliveries. “In practice, this could see us unload 1,000 tonnes of steel, around 42 truckloads, from the port in a matter of days. By introducing greater redundancy and reducing any supply chain bottlenecks we can help support the development of New Zealand’s infrastructure in a shorter timeframe,” he says. Brown says seven high-capacity, 32-metre-wide anti-sway gantry cranes can move large quantities of steel safely […]

Q & A: Frank Phillips, Managing Director, Fulcrum

We have all heard of our ‘productivity problem’. Adopting proven and well understood technology – not the bleeding edge risky stuff – will be key to tackling it. Anyone in manufacturing who has tried to search for technology solutions to solve a particular challenge knows the rabbit hole it can become. The associated lack of confidence in vendors (particularly when there’s no in country support) follows; so it goes in the too hard basket and progress stops. All this in a nation where Number 8 wire pedigree and ‘build it yourself’ solutions start to proliferate. This distracts from core business focus and can be a black hole of investment to develop and maintain. What does Fulcrum do? We save time; give confidence and ultimately help manufacturers get stuff done! Fulcrum connects New Zealand manufacturers to New Zealand technology partners. Part of this is a simple self-service platform, but we also act as your part time CTO, prioritising and advising to make sure the right things get done by the right partners. In New Zealand we have all the skills, knowledge and technology for manufacturing to thrive, but we often don’t do a great job of talking about it! Fulcrum works with manufacturers and primary industries of all sizes. We often find that our on-boarding and follow up sessions allow us to act as an unofficial ‘part time CTO’ – helping manufacturers to prioritise, build the foundations of their digital transformation and work with the right partners to deliver it. We’ve been conscious when onboarding Technology partners that their can be a right size fit to consider. A specialist contractor working independently may be the right fit for one manufacturer in agility and cost, but not right for another where long term support agreements are needed. Digitisation is the way forward? […]

Beyond the Status Quo: Rethinking Workforce Development for a Competitive Future

David O’Connor, Head of Emerging Markets, The Learning Wave As a nation, we take pride in our innovation and adaptability. However, when it comes to workforce development, we still find ourselves lagging behind. The challenges are clear: a widening skills gap, ongoing productivity issues, a growing need for both transferable and technical skills, and businesses struggling to meet global competition demands. Are we ready to push boundaries and adopt effective solutions for today’s workforce and tomorrow’s needs? Or are we content to tinker at the edges of a broken system? Recent conversations suggest the latter. So, what can we do? It’s easy to blame outdated educational structures, funding issues, inter-agency hurdles, and slow policy changes. But are we truly held back by the system, or are we reluctant to challenge the status quo? Current structures, though well-intentioned, often miss the mark when it comes to evolving business needs. We need a shift towards flexibility, continuous learning, and strong industry partnerships. We must stop waiting for the government to solve the skills gap; we require more business-led initiatives. Relying solely on government action is unrealistic and short-term thinking. Instead of waiting for mandates or funding schemes, the government should incentivize businesses with tax breaks for upskilling and training their staff. The business community must lead the way. Organisations can – and should- drive change by partnering to source and fund necessary skills training. Many companies recognize the value of investing in their workforce, and there’s an opportunity to create a coordinated, industry-wide effort that harnesses the best training available. Small businesses often claim they can’t make an impact, but we can transform isolated successes into a nationwide movement. Collaboration among businesses is key to creating a more agile and responsive training ecosystem that meets the needs of both employers and their […]

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