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From July 2026 issue, NZ Manufacturer magazine.We invite readers to feedback to us on this excellent article. How do you see things? How is Productivity in your workplace? Ian Walsh, Partner, Argon & Co New Zealand does not have a shortage of productivity commentary. We have reports, benchmarks, speeches, and strategies. What we lack is enough capability where productivity is created. In our factories, warehouses, workshops, farms, logistics networks, and service operations. Productivity does not improve because a strategy says it should. Instead, it improves when people can see waste, understand flow, solve problems, stabilise processes and make better routines stick. That is the practical work of operational excellence and New Zealand is not doing enough of it.  The numbers are hard to ignore. Stats NZ shows measured-sector labour productivity growth slowing across successive cycles: 2.8 percent per annum from 1997 to 2000, 1.3 percent from 2000 to 2008, 0.9 percent from 2008 to 2020, and only 0.1 percent from 2020 to 2024. Treasury makes the same point at whole-economy level: productivity growth averaged 1.4 percent per annum between 1993 and 2013, but only 0.2 percent per annum over the last decade. New Zealand Productivity Growth 1997-2026 Whilst some of the statistics reflect scale, distance, capital intensity, competition, and investment, they are not the whole story. New Zealand was once a much higher-income economy by OECD standards; in the early 1970s, Treasury had previously noted New Zealand’s GDP per capita was around 15 percent above the OECD average and ranked eighth in the OECD. Geography did not suddenly appear after that. New Zealand is falling behind partly because we have not adopted core operational disciplines. Lean, industrial engineering, operational excellence, structured problem solving, standard work, visual performance, root cause analysis, value stream thinking and daily management are not side activities. […]

Ian Walsh, Partner, Argon & Co For over 20 years, we have helped hundreds of New Zealand businesses improve productivity and increase EBIT. The outcomes are practical, measurable, and often achieved without significant capital investment. For example: A plastics manufacturer increased throughput by 60%, with the same labour cost A food manufacturer reduced waste by 50%, saving more than $1 million annually An electrical manufacturer improved assembly productivity by over 30% These results come from looking at the whole system: people, processes, technology, and the underlying causes of performance issues. By applying the right methodologies and tools in practical ways, we deliver meaningful outcomes within short timeframes. Working alongside businesses, we build internal capability, so improvements are sustained long after the initial work is complete. If you would like to know more, come and see us at EMEX. We will be running a competition to help you understand how productive you are today, and how much more productive you could be. We will also be speaking on these topics during the event. We look forward to seeing you there.

Success isn’t what you start. It’s what you don’t stop. When you spend time inside New Zealand’s best manufacturing businesses there’s a pattern that shows up again and again. They don’t launch more initiatives They don’t chase the latest tool They don’t rely on heroic effort or last‑minute pushes. They keep doing the basics. Day after day, week after week. Long after most other businesses have moved on to something new. David Altena is Head of Growth & Partnerships at SpartSpace.ai & C0-Founder & Host of The Better SMB Podcast. david@altena.solutions Not because they have better ideas. But because they’re more disciplined about the unglamorous ones and that is where the real performance gap opens up. Ask most manufacturers what separates the best businesses in their sector from the rest, it’s likely you’ll hear a familiar list: better equipment, smarter technology, bigger balance sheets, the best people. Attributes that feel largely out of reach.   Rob Bull is Director of the New Zealand Lean Academy. rob@nzla.nz Strip those answers back and they share a common thread, the belief that top performance is driven by circumstances you can’t replicate. The truth is harder, and more uncomfortable. The advantage of the 1% isn’t what they know. It’s what they refuse to let slide. World-class manufacturers don’t have better luck or bigger budgets. They do the hard, boring, strategic work, consistently. That should be the most motivating fact in New Zealand manufacturing right now. “Anyone can buy the equipment. It’s culture and operational excellence that set you apart.” Dave Bunting, Managing Director, Architectural Glass Products Dave Bunting put it plainly in an episode of The Better SMB Podcast: the equipment is not the advantage. Any competitor can buy the same press, the same CNC, the same ERP system. What doesn’t come off the […]

By EMA Manufacturing Programme Manager Sheenal Jokhan Industry 4.0 is reshaping the manufacturing landscape, offering New Zealand businesses tangible gains in efficiency, productivity and innovation. Yet despite its potential, some manufacturers remain cautious about adopting these technologies over concerns such as return on investment, workforce readiness, and a lack of clear guidance on the best way forward.   As part of our ASB Manufacturers Workshops, which the EMA ran with facilitation by LMAC, we took factory tours and offered manufacturers a chance to see these technologies in action, meet with their peers in the industry and pick their brains on the best way forward. This real-world approach provided confidence in the relevance and value of smart manufacturing. Our recent tours of Hansa Products in Hamilton and Donovan Group in Whangārei were excellent examples of Kiwi businesses tackling challenges head-on while adapting to a fast-evolving global manufacturing landscape. But what’s equally important is how these visits reminded attendees that these companies didn’t begin as tech giants. They started small, experimented, made mistakes and kept going. Watching a robotic welding system in action at Hansa or hearing about Donovan Group’s journey toward file-to-factory automation provides insight that attendees can take back to their own operations. Hansa’s story particularly resonated with visitors to our recent workshop. A family-run business founded in 1980, it has grown into a global leader in the design and manufacture of high-performance wood and brush chippers. Its approach to lean manufacturing, smart inventory systems, and visual process management is a textbook case of innovation driven by necessity. Their bespoke information system didn’t come off the shelf, it was built to solve specific problems. That’s a critical takeaway: there’s no one-size-fits-all solution, but there is a pathway. Hearing how others navigated it helps demystify the process. At Donovan Group, the […]

-Dominic Sutton, Stocktrim It’s crazy times for SME’s feeling overshadowed by corporations with deep pockets and established brands. But thanks to new technology, the playing field is finally leveling out. Tools like cloud-based software and smart inventory forecasting help smaller manufacturers run more efficiently, serve customers better, and even outpace much larger rivals. Using SaaS to cut costs and stay flexible  One of the toughest challenges for small manufacturers has always been the huge upfront cost of enterprise software. Installing and maintaining these complex systems often requires big budgets and dedicated IT teams. That’s where more agile smaller & easier to set up Software as a Service (SaaS) comes in. SaaS lets you access powerful software through the cloud on a subscription basis. Instead of buying expensive hardware and managing everything yourself, you simply pay for what you use. This approach helps manufacturers achieve the following: Scale up or down quickly as your business changes. Access the newest features and updates without interrupting your work. Save on IT costs so you can focus on production. Integrate seamlessly with other cloud tools to build a connected system. For example, SaaS platforms for manufacturing execution (MES), customer management (CRM), and enterprise planning (ERP) can help you standardize processes, track performance in real time, and streamline workflows, all without the steep price tag of traditional systems. Using inventory forecasting to streamline supply chains  Good inventory management is key to staying competitive. Having too much stock ties up money and warehouse space, while running out means missed sales and unhappy customers. Advanced forecasting tools can help you find the right balance. These tools use data analytics, machine learning, and historical sales trends to predict demand more accurately. With smart inventory forecasting (often part of SaaS solutions), you can: Plan production around actual demand. Avoid […]