NZ Manufacturing Hits Three-Year High, Signalling Momentum for Industrial Innovation in 2026

The latest BNZ–BusinessNZ Performance of Manufacturing Index (PMI) shows the seasonally adjusted index rose 4.4 points in December, climbing to 56.1.

New data showing New Zealand manufacturing activity at its highest level since December 2021 is being welcomed as a strong signal that the sector is entering a new phase of growth—one increasingly driven by innovation, technology adoption, and productivity gains.

The latest BNZ–BusinessNZ Performance of Manufacturing Index (PMI) shows the seasonally adjusted index rose 4.4 points in December, climbing to 56.1. A PMI reading above 50 indicates expansion, placing New Zealand’s manufacturing sector ahead of major global economies including the United States, China, Japan, the United Kingdom, and Australia.

“This is an incredibly positive signal,” Small Business and Manufacturing Minister Chris Penk said. “New Zealand manufacturing is not just growing—it is outperforming many of our key trading partners.”

A Critical Sector Powering the Economy

Manufacturing remains a cornerstone of the New Zealand economy, employing more than 220,000 people, contributing around eight percent of GDP, and accounting for 60 percent of total exports. After a challenging period for some manufacturers in 2025, the PMI results—alongside a 1.1 percent lift in GDP in the September quarter—point to renewed confidence across the sector.

“The Government is focused on fixing the basics and creating certainty so businesses can thrive,” Mr Penk said. “Manufacturers are responding by turning that certainty into growth through hard work, innovation, and resilience.”

For technology providers, automation specialists, and advanced manufacturing startups, the data reinforces growing demand for digital manufacturing tools, smart factories, AI-driven process optimisation, and advanced supply chain technologies.

Innovation Takes Centre Stage at 2026 Manufacturing Awards

Building on this momentum, the Government has confirmed the second annual Minister for Manufacturing Awards will be held at Auckland Showgrounds on 27 May 2026, celebrating excellence across the sector.

The awards will again recognise:

• Manufacturer of the Year

• Manufacturing Leader of the Year

• Apprentice of the Year

• Excellence in Process Innovation

Three new categories will be introduced in 2026, reflecting the evolving nature of the sector:

• Manufacturer of the Year (under 50 FTEs): recognising small manufacturers, which make up around 97 percent of the sector

• Emerging Manufacturing Leader of the Year: spotlighting the next generation of innovators and change-makers

• Manufacturing Lifetime & Legacy Award: honouring individuals who have shaped New Zealand manufacturing over decades

Call to Action: Innovators, It’s Time to Step Forward

Entries for the 2026 Minister for Manufacturing Awards open 23 February and close 31 March. Manufacturers—particularly small businesses, tech-enabled firms, and innovation-led operations—are encouraged to showcase how they are driving productivity, sustainability, and competitiveness through new ideas and technologies.

As global supply chains reset and advanced manufacturing becomes a competitive differentiator, New Zealand’s sector is positioning itself not just for recovery, but for leadership.