Posted: 03 November 2020
How Kiwi businesses benefit from NZ's contract manufacturing services
Covid-19 is still with us, and we've discussed its effects on New Zealand's manufacturing sectors, and how it's been a major driver for bringing manufacturing back home to NZ shores. But as we all adapt to the 'new normal' caused by Covid-19, manufacturing in New Zealand is continuing to evolve. Increasingly, Kiwi manufacturers are turning away from offshore outsourcing because of the major shipping delays that are now part and parcel of outsourcing manufacturing overseas. What used to be a four-week wait has now increased to eight and sometimes twelve weeks; this is a huge cost for Kiwi manufacturers in terms of both time and money, to say nothing of the impact it’s having on customer relations.
Deciding to outsource to Kiwi contract manufacturers also has significant benefits when it comes to prototyping. Working with a local contractor means it's much easier to discuss design features face-to-face, as well as keeping up with progress.
Then there's the overall cost structure - something that all businesses are constantly aware of - if you own, design and manufacture a product, there's significant financial strain placed on your business. If you're able to downsize your premises, so that you're only doing the design, sales and marketing, you have the option of liquidating capital equipment and reducing costs. When you outsource the manufacturing to a local provider, you're utilising a viable strategy for achieving a ‘leaner’ approach.
Here's how businesses can save money by outsourcing manufacturing locally:
- Staff - there's no need to hire people with a specific skill set. Not only that, but the business is also not burdened with the administrative factors such as holiday pay, sick leave, training costs, and staff turnover
- Health and safety costs - this isn't an issue if the manufacturing is being done off-site, and there aren't any compliance headaches either.
With what a business can save on these costs, options open up as to how to invest those savings.
So when it comes to contract manufacturing services in New Zealand, what options are available? Short answer? A LOT. From clothing and textiles to electronics to food, health, cosmetics, wood and software, there are many choices available. The best place to find them is the ManufacturingNZ Directory, who have this to say about the manufacturing industry in NZ:
"New Zealand manufacturing contributed to 10% of ready GDP in 2019 ($23 billion), and is a large employer at over 242,000 people."
Further to this, there is a wide range of manufacturing capabilities available in New Zealand, including:
- Design - from prototypes to bespoke manufacturing
- Sheetmetal fabrication and welding
- Architectural metalwork
- CAD Services
- Laser profile cutting
- Punching and folding
- Power coating
The next question is: what attributes should you look for in a contract manufacturing partner? Key considerations to keep in mind are:
- Scale of the project – can the organisation complete the entire project in an end-to-end process, or do they only handle specific areas?
- Longevity – how long has the business been around? How much industry experience do they have?
- Previous customer testimonials – it’s essential to locate their other customers, especially those who are in a similar industry to you, to find out what their experience with the contract manufacturer was like.
- Partnerships – in much the same way as the above point, find out if they have long-standing, successful partnerships with other businesses.
- Flexibility and response times – a contract manufacturer should be flexible enough to handle a range of different requirements.
- Ownership of problems – you’re looking for a business that doesn’t pass the buck when problems arise. They need to view any issues as a new challenge and take ownership of them.
As a New Zealand born-and-bred contract manufacturer, ENI offers an end-to-end process - from concept to design to manufacture to assembly - a locally-based contract manufacturing service based on the latest technology and over two decades of experience. It's at the very heart of what we do. We understand your IP, and the security around it - there's no risk of your design being stolen. We can also help drive costs out of your manufacturing requirements; proving that going local is just as cost-effective as outsourcing offshore.
When it comes to prototyping and design, we're at the forefront of the industry. With over 25 years' experience, this is one of our core strengths. We undertake the whole process as your partner - from concept to the design of a prototype to building it, then testing the market, coming back and making changes, updating as necessary - it's a bespoke solution and we understand that each journey from concept to production is different.
At ENI Engineering our aim is to help our customers ‘make it big’. We have big ideas, big capacity and big hearts; so we can help you realise your goals – to make a big impression, a big impact, a big difference.
Keen to reduce your manufacturing costs? Check out our eBook on achieving leaner manufacturing through outsourcing.
Blog categories: Contract Manufacturing