University of Auckland Announces Major Expansion of Digital Manufacturing Light Programme

The University of Auckland has secured significant government funding to scale up its pioneering Digital Manufacturing Light (DM Light) programme, aimed at helping small and medium-sized enterprises (SMEs) in New Zealand embrace affordable digital technologies. Announced on February 24, 2026, the expansion will receive up to $475,000 annually for three years starting April 1, 2026, enabling support for at least 180 manufacturers across Auckland and regions including Waikato, Northland, and the Bay of Plenty—covering around 55 percent of the country's manufacturing base.

This initiative, led by the university's Laboratory for Industry 4.0 Smart Manufacturing Systems (LISMS), addresses a critical need in New Zealand's manufacturing sector, where SMEs dominate but often struggle with legacy equipment and limited budgets for digital upgrades. By providing low-cost, practical solutions, the programme promises to unlock productivity gains, foster innovation, and create new opportunities in a vital economic pillar.

Origins and Inspiration: From UK Shoestring to New Zealand Shores

Digital Manufacturing Light draws its foundational concept from the United Kingdom's 'Digital Manufacturing on a Shoestring' framework, developed by Professor Duncan McFarlane and his team at the University of Cambridge's Institute for Manufacturing (IfM). This global model emphasizes using everyday, inexpensive components—like Raspberry Pi microcomputers and off-the-shelf sensors—to retrofit existing machinery without the need for multimillion-dollar investments.

The University of Auckland adapted this approach for local conditions through a pilot launched in April 2022, in partnership with Tātaki Auckland Unlimited (formerly Auckland Council’s economic development arm). Initial efforts involved workshops and trials with around 20 Auckland organisations, demonstrating how simple digital interventions could yield immediate results. A subsequent 12-month pilot starting July 2025 engaged 12 companies, validating the model's efficacy in a New Zealand context.

Professor Xun Xu, Director of LISMS, highlights the programme's relevance: "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."

Pilot Successes: Proven Gains in Productivity and Efficiency

The pilots delivered tangible outcomes, with participating firms reporting productivity improvements ranging from 5 to 12 percent through their initial digital solutions. These gains stemmed from targeted applications that enhanced operational visibility, reduced waste, and freed up staff for higher-value tasks. Dr. Jan Polzer, a key researcher at LISMS, emphasizes the practical focus: "Our aim is to help New Zealand manufacturers develop practical digital capability and apply proven technologies to improve operations."

Building on this, the programme has evolved into 'Shoestring ANZ,' a collaboration with the University of Western Australia and Cambridge's IfM, positioning New Zealand at the forefront of accessible Industry 4.0 adoption in the region.

Real-World Case Studies: Transforming Operations at Spiralweld and ABB

Two standout examples from the insights paper illustrate DM Light's impact. Spiralweld (Spiraweld Stainless Ltd), a tube and pipe fabricator, retrofitted legacy welding machines using a camera for computer vision to measure welding gaps, a stepper motor for automated adjustments, and a Raspberry Pi as the controller with a touch-screen human-machine interface (HMI). Hardware costs were under NZ$1,000, with development around NZ$5,000. Results included automated processes that previously took hours per pipe, boosting efficiency, quality, and reducing waste—while enabling marketing of superior products.

ABB New Zealand developed a portable quality inspection system using 3D-printed parts and machine vision for multi-sided part checks. Costing about NZ$2,500, it cut manual inspection times and errors, with minimal training required. These cases demonstrate how DM Light bridges the gap for SMEs wary of high-risk tech investments.

Core Technologies: Low-Cost Tools Explained Step-by-Step

DM Light leverages accessible technologies to monitor and automate processes. Here's a breakdown:

• Raspberry Pi and Arduino controllers: Affordable microcomputers that process data and control actions, like automating welding knobs.
• Low-cost sensors: Track speed, vibration, temperature, and energy use on legacy machines—deployed in minutes with open-source code.
• IoT devices and cloud computing: Enable real-time data dashboards for job tracking and remote monitoring.
• Internet-ready cameras and machine vision: For quality checks and process verification, powered by commercial AI.
• 3D printing and EtherCAT: Custom parts and future-proof communication for scalable solutions.

Implementation follows a four-step roadmap: assess needs, select from a solution library, adapt, and deploy with support. Off-the-shelf options require minimal changes, while custom builds involve university students or integrators.

Government Backing: Funding a National Productivity Lift

Small Business and Manufacturing Minister Hon Chris Penk announced the funding during a visit to the University of Auckland's Newmarket Innovation Precinct. "Backing programmes like Digital Manufacturing Light is a smart, targeted investment that helps smaller firms grow, innovate, and contribute to our economy," he stated. The rollout prioritizes Auckland (37 percent of national manufacturing GDP) before expanding regionally.

This aligns with broader efforts to tackle New Zealand's productivity slump, where manufacturing labour productivity lags OECD peers—US$102 per hour worked versus US$167 in Ireland.

University of Auckland's Leadership in Industry 4.0

LISMS, under Professor Xun Xu and Dr. Jan Polzer, drives the research and delivery. The lab showcases Industry 4.0 technologies like digital twins and smart systems, bridging academia and industry. Deputy Vice-Chancellor Research and Innovation Professor Frank Bloomfield hosted the announcement, underscoring the university's role in economic development.

Students contribute through projects like enhanced job-tracking dashboards, gaining hands-on experience. For those interested in such roles, research jobs and faculty positions in engineering are available via AcademicJobs NZ listings.

Tackling New Zealand's Manufacturing Productivity Crisis

New Zealand's manufacturing sector, contributing 10 percent to GDP and employing over 240,000, is dominated by SMEs: 96 percent have fewer than 50 full-time equivalents (FTEs), with 80 percent under 10 employees. Yet productivity growth has stagnated at 0.92 percent annually over the past decade, far below the national average and OECD benchmarks.

Digital adoption lags by about 10 years behind Europe, hampered by costs (61 percent of firms), time/resources (54 percent), and legacy systems (52 percent). DM Light counters this by offering solutions under NZ$2,000, with potential GDP boosts of NZ$8.6 billion from SME digitalisation.

Broader Economic Impacts and Job Creation

Beyond immediate gains, the programme fosters job creation in digital manufacturing, upgrades machinery for global competitiveness, and builds sector-wide skills. As firms scale, turnover increases, supporting supply chains. For career seekers, fields like smart automation are booming—check career advice or lecturer jobs in mechanical engineering.

Future Outlook: Scaling Innovation Nationwide

Year-one plans target 20-30 SMEs with three solutions, scaling to 150 annually by year three. Partnerships with Advancing Manufacturing Aotearoa, EMA, and Callaghan Innovation ensure sustainability. The University of Auckland envisions DM Light as a cornerstone for resilient, tech-savvy manufacturing, inspiring similar university-led initiatives.

Professionals eyeing this space can explore university jobs, higher ed jobs, or rate professors in NZ engineering faculties. For manufacturers, contact LISMS to assess readiness.

Photo by Niranjan Lamichhane on Unsplash