Westpac's industry economist Paul Clark has produced a report addressing the future competitiveness of manufacturers. The core message emphasises the critical importance of embracing digital technologies for sustained growth.
The report highlights a striking disparity in automation adoption. New Zealand currently has approximately 55 robots per 10,000 manufacturing workers, compared to 371 in Germany and 934 in South Korea. This gap underscores the urgency for local manufacturers to invest in emerging technologies.
The report advocates for implementation of digital twinning, smart factories, artificial intelligence, robotics, and automation to enhance operational efficiency. Simultaneously, supply chain resilience must improve through digitalisation and networking capabilities that provide greater visibility and flexibility.
The analysis notes that manufacturing sector GDP has experienced prolonged decline. Manufacturers who fail to adopt these technological advancements risk obsolescence or acquisition by more innovative competitors. The path forward requires agile, flexible, and digitally-connected supply chains capable of adapting to market demands while maintaining operational resilience.
