How To Turbocharge Your Manufacturing: Lessons from New Zealand

Manufacturing is a cornerstone of New Zealand’s economy, contributing billions to GDP and employing thousands of skilled workers. However, the sector faces challenges such as high operational costs, global competition, workforce shortages, and lagging technology adoption. The question is: How can manufacturers overcome these obstacles and achieve sustainable growth?

Experts suggest that success lies in embracing technology, fostering innovation, addressing workforce gaps, and aligning with global best practices. As Jane Finlayson, Head of Advanced Manufacturing at EMA, states, “As we progress deeper into the Fourth Industrial Revolution (Industry 4.0), the convergence of artificial intelligence, cloud connectivity, and real-time data analytics will prove crucial in shifting New Zealand’s manufacturing sector from lagging to leading in the global market.” (nzmanufacturer.co.nz)

1. Embrace Advanced Technologies

The adoption of Industry 4.0 solutions - including automation, smart manufacturing, and digital twin technology - can significantly enhance productivity and reduce costs. According to the Manufacturers’ Network, companies integrating advanced manufacturing tools see an average efficiency increase of 20-30%. In Germany, the adoption of AI-driven predictive maintenance has reduced equipment downtime by up to 50%, demonstrating how technology drives efficiency worldwide.

2. Foster Research and Development

Investing in R&D fuels innovation, leading to new product development and improved processes. New Zealand has been urged to boost R&D investment, which currently lags behind countries like South Korea and Germany. Mark Ewen, Managing Director of Nautech Electronics, emphasizes, “If we want to be competitive globally, we must prioritize R&D. It’s not just about catching up—it’s about setting the pace.”

3. Address Skills Shortages

Manufacturers worldwide are grappling with talent shortages. In New Zealand, 71% of employers struggle to find skilled workers, a sharp increase from 40% in 2022. The UK and US face similar challenges, highlighting the global nature of the issue. Solutions include partnerships with educational institutions, apprenticeship programs, and retraining initiatives. Finland, for instance, has successfully implemented lifelong learning programs, keeping its workforce adaptable to industry shifts.

4. Leverage Global Best Practices in Government Support

While government-backed initiatives vary by country, some universal principles can guide policy support for manufacturers:

• Incentivizing Innovation: Countries like Singapore offer tax incentives for companies investing in automation and digital transformation.
• Workforce Development Programs: Germany’s dual education system effectively prepares students for careers in manufacturing, providing a model for skill-building worldwide.
• Grants and Funding: The European Union’s Horizon Europe program funds R&D projects, enabling manufacturers to explore new technologies without financial burden.
• Encouraging Sustainability: Governments in Scandinavia provide green incentives, helping manufacturers transition to eco-friendly production methods.

The Path Forward

New Zealand’s manufacturing sector must act decisively to remain competitive, and global lessons can help shape its path. By adopting advanced technologies, increasing R&D efforts, addressing workforce challenges, and following proven government support frameworks, manufacturers can drive efficiency and innovation.

The opportunity is here not just for New Zealand, but for manufacturers worldwide to embrace change and build a more resilient, future-ready industry.

About MDCplus

Our key features are real-time machine monitoring for swift issue resolution, power consumption tracking to promote sustainability, computerized maintenance management to reduce downtime, and vibration diagnostics for predictive maintenance. MDCplus's solutions are tailored for diverse industries, including aerospace, automotive, precision machining, and heavy industry. By delivering actionable insights and fostering seamless integration, we empower manufacturers to boost Overall Equipment Effectiveness (OEE), reduce operational costs, and achieve sustainable growth along with future planning.