May 2025
Listen to uniquely Kiwi stories contributing to New Zealand’s future
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9 ANALYSIS Is your value network world class?
10 EMA At the coalface
14 SOUTHMACH 2025
of technology adoption in manufacturing.
CHEMZ celebrates 25 years.
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ANALYSIS 30 Powering remanufacturing with AI.
Digital transformation on a shoestring: Auckland’s innovative approach to manufacturing A new insights paper from Tātaki Auckland Unlimited reveals how small manufacturers can embrace digital technologies without breaking the bank or risking disrupting their processes Manufacturing remains a cornerstone of Tāmaki Makaurau Auckland’s economy, contributing more than $11 billion to the region’s GDP and employing approximately 85,000 people. Despite this significant economic footprint, New Zealand’s manufacturing sector faces persistent productivity challenges compared to other advanced economies. A pioneering initiative called Digital Manufacturing Light aims to change this by helping small and medium-sized enterprises (SMEs) in the manufacturing sector take their first steps toward digital transformation. This month, Tātaki Auckland Unlimited (the region’s economic development and cultural agency delivering on behalf of Auckland Council) is releasing an insights paper that introduces the Digital Manufacturing Light concept and shares findings from a successful pilot programme. The Digital Manufacturing Light pilot, which began in April 2022, was led by the University of Auckland in collaboration with Tātaki Auckland Unlimited. Around 20 Auckland-based organisations participated in
the pilot, which included workshops and trial deployments of digital solutions. Pam Ford, Director of Economic Development at Tātaki Auckland Unlimited says, “Digital transformation doesn’t have to be expensive or disruptive. By adopting a phased approach using readily available technologies, manufacturing SMEs can create affordable and low-risk digital solutions that provide immediate benefits.” The Digital Manufacturing Light concept draws inspiration from the United Kingdom’s ‘Digital Manufacturing on a Shoestring’ programme developed by the Institute for Manufacturing (IfM) at the University of Cambridge, and is being developed in collaboration with IfM and partners across Australia and New Zealand. It follows similar principles but has been adjusted to suit the New Zealand business environment. This approach is particularly relevant for New Zealand’s manufacturing sector, which is predominantly composed of small businesses. Of the country’s 24,000 manufacturing businesses, only 1.6% employ more than 100 people, and 74% generate annual sales of less than $1.5 million. For these smaller operations, traditional approaches to digital transformation often seem out of reach due to cost and complexity. Dr. Xun Xu, a professor in smart manufacturing from the University of Auckland’s Department of Mechanical & Mechatronics Engineering, says “Recent research suggests that New Zealand lags at least 10 years behind many OECD countries in
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Hutt Valley focus on manufacturing’s future Patrick McKibbin, Chief Executive, The Hutt Valley Chamber of Commerce.
Just released is strategic report 35 BY 35, the ten-year roadmap for Hutt Valley business growth, with a strong focus on manufacturing. The ambitious 10-year plan is to grow the Hutt Valley’s GDP by 35%, increase productivity by 16%, and increase highly skilled jobs by 18% - putting our region at the heart of New Zealand’s manufacturing, research, science and innovation industries; delivering business and community prosperity. There are over 15,000 businesses in the Hutt Valley contributing $10 billion to the New Zealand economy and employing more than 70,000 people.
The plan wants to see: Productivity increase by 18.3% Increase highly skilled jobs by 16.5% GDP increase by 35% Higher average wages More jobs Greater wellbeing Better infrastructure
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