A new initiative from the University of Auckland will significantly enhance support for small and medium-sized manufacturers seeking to adopt digital technologies. The New Zealand government has committed up to $475,000 annually for three years to expand the Digital Manufacturing Light programme, effective from April 1, 2026. This funding aims to facilitate greater access to affordable digital solutions, ultimately improving productivity across the manufacturing sector.
The Digital Manufacturing Light programme will build on its current operations in Auckland, extending its reach into regions such as Waikato, Northland, and the Bay of Plenty. This expansion is anticipated to benefit approximately 55 percent of New Zealand’s manufacturing businesses, enabling them to embrace digitalisation more effectively.
Collaboration and Development
Led by Dr Jan Polzer and Professor Xun Xu from the Faculty of Engineering and Design, the programme is rooted in the Digital Manufacturing on a Shoestring framework developed by Professor Duncan McFarlane at the University of Cambridge. The initiative has been tailored for the New Zealand context through collaboration with Auckland Council, which began in 2022. A pilot programme launched on July 1, 2025, involved 12 Auckland companies, testing the programme’s effectiveness.
The partnership has also included input from Advanced Manufacturing Aotearoa and the Employers and Manufacturers Association, highlighting a collaborative approach to enhancing manufacturing capabilities. Minister for Small Business and Manufacturing, Hon Chris Penk, visited the Faculty of Engineering and Design in July 2025 to learn about the programme’s impact and potential.
Practical Solutions for SMEs
Dr Jan Polzer stated that the pilot showcased how the University’s engineering expertise could be applied to provide practical solutions for New Zealand’s small manufacturers. “Most manufacturing firms are small, operating with limited capital and older machinery. Our Auckland pilot showed that accessible, low-cost digital tools can quickly improve productivity, operational visibility, and product quality,” he explained.
Professor Xun Xu emphasized the initiative’s accessibility, stating that Digital Manufacturing Light is designed to help SMEs take their first steps into digital tools without the burden of high costs or complex systems. “Our focus is on helping New Zealand manufacturers develop practical digital capability and apply proven technologies to improve operations,” he said. This approach aims to directly address the challenges faced by manufacturers and strengthen their technical capabilities.
Minister Penk announced the funding on February 24, 2026, at the University’s Newmarket Innovation Precinct. He described backing programmes like Digital Manufacturing Light as a “smart, targeted investment” that would assist smaller firms in growing and innovating, thereby contributing positively to the economy and local communities.
Pam Ford, General Manager of the Economic Development Office at Auckland Council, expressed enthusiasm for the programme’s next phase. “After four years of collaboration with the University of Auckland, the University of Cambridge, and other partners, we are excited to see these innovative digital solutions make a positive impact on businesses in Tāmaki Makaurau and across the country,” she remarked. According to Ford, by adopting these cost-effective digital solutions, businesses can effectively position themselves for the future of manufacturing.
