Beauty clinic chain Caci has returned manufacturing of skincare brand Skinsmiths to New Zealand after years of disruption in its international supply chain.
Skinsmith was originally manufactured in New Zealand, but in 2017 moved half of its production to South Korea, Taiwan and Switzerland.
However, Caci began moving all manufacturing back to Auckland in November after experiencing logistical problems getting the product here.
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Sheree Butchers, senior product manager at Caci, says there are logistical and sustainability benefits to moving all manufacturing back to New Zealand.
“Local manufacturing not only gives us more control over product development, but it also has the advantage of giving us more control over our supply chain and reducing supply chain risk,” Butchers said.
This is also why Otaki-based Horizon Paving sought to bring manufacturing to New Zealand.
The 20-employee paving stone company recently acquired a Chinese manufacturer, shipped sophisticated Italian machinery to New Zealand, and opened a factory on the Kapiti coast.
Owner John Roper said the 55-year-old company bought the machine because of concerns about manufacturing in China and the distance the paving stones had to be moved.
Chris McKean/Staff
P&O Pacific Explorer returns to Auckland’s Queens Wharf after a two-long hiatus with cruise ships (video released August 2022).
Roper said it made sense to do the manufacturing out of New Zealand.
The giant machine arrived in a 14,40 foot container and staff spent the past two months putting it back together. Roper said.
He wanted to start local production next month.
It wasn’t necessarily cheap to manufacture here, but Roper said it saved a lot of shipping costs.
“We can control our own destiny. Secondly, it means having much less environmental impact, dragging heavy slabs around the world with all the associated costs and climate impacts.” It is not.”
Roper said the move to start domestic manufacturing would eventually create more jobs.
The company recently hired four more staff members and plans to step up its hiring efforts this year, he said.
“Manufacturing in New Zealand allows us to export our products at a cost-effective rate.
“I don’t think the price will go down again because of the shipping changes and the increased shipping costs throughout Covid. You’ll save all that shipping as well,” he said, adding that millions of dollars have been spent on the project. rice field.
“We think we are doing the right thing by hiring more people and bringing our income back to New Zealand instead of exporting it and paying it overseas.”
Caci’s Butchers said the ability to manufacture locally gives the company more control over its business.
“[The shift] It was primarily to try to mitigate supply chain risks due to shipping delays. This was one of the biggest sources of confusion, not just in the manufacturing process itself. ”
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Sheree Butchers said there are cost advantages to having a local manufacturing facility.
Butchers said it would be much easier to develop new formulations from scratch here. said.
By bringing the product back to New Zealand, she said, shipping costs have been cut.
Caci wasn’t the only local company to save freight costs. The country is experiencing a bit of a renaissance in a wide range of industries with the aim of bringing manufacturing to New Zealand and back.
“All industries are experiencing significant supply chain disruptions throughout the Covid era and this has caused many to think about where their products are made and consider manufacturing in New Zealand.”
Chris Wilkinson, managing director of First Retail Group, said there has been a significant increase in the number of small artisan manufacturers entering the market or scaling up in recent years.
“Through Covid, retailers have increased their reliance on Chinese manufacturing for many, while Bangladesh and India are increasingly focused on providing resilience and greater continuity.
“[However] A major trend that has emerged since Covid is an increase in regional equity holdings and a decrease in reliance on vast, centralized distribution hubs. This is particularly prevalent in the building supplies sector, which was crippled when local lockdowns jeopardized the shipment of products from the Auckland and Waikato regions. We have expanded our warehouse and distribution facilities in key centers such as Church. ”
Honest Wolf, a wool bag and accessories company, is another New Zealand company that is currently exploring the possibility of manufacturing its products locally. We are exploring options such as purchasing machinery to allow us to manufacture wool felt and bags on our local beach.
