New Zealand’s small and medium-sized manufacturers have delivered their strongest quarterly performance in years, bouncing back with an 80% increase in average revenue from Q4 2024 to Q1 2025.
According to new data from inventory software provider Unleashed, the surge showcases the growth in manufacturing revenue since the company began tracking data in 2018.
Manufacturing Revenue Reaches $310,000 in Early 2025
The findings are drawn from Unleashed’s Manufacturing Health Index which show that average revenue reached $310,000 in the first three months of 2025. The company’s Head of Product, Jarrod Adam, said the results reflect growing economic confidence after a prolonged downturn.
“Last year the pinch of a stubborn recession and widespread economic uncertainty resulted in a notable slump across virtually every sector but in this most recent quarter we saw the rolling annual average of revenue lift 7.5%,” Adam said.
The Beverage Sector Leads the Way
The beverage manufacturing sector is among the standout performers which saw an extraordinary 222% year-on-year jump in revenue. Profitability also surged by 200%, with average returns rising from 49 cents to $1.78 per dollar spent on inventory.
“These are great results for a beverage sector that has faced a steep slump for the past few years and which has been particularly hard on independent breweries,” Adam noted.
The food manufacturing sector also had a strong showing, posting its best quarter since 2023 with an average revenue of $282,000. Building and construction manufacturers followed close behind, recording a 95% revenue jump from Q4 to Q1, reaching an average of $369,0005.
Unleashed attributes this to aggressive year-end inventory clear-outs and pre-emptive responses to potential tariff changes.
The Fashion Sector Lags Behind
The clothing, footwear, and accessories sector was the only one to report a downturn, with average revenue falling 5.5% from $111,000 to $105,000 in Q1. Analysts point to a weakening New Zealand dollar and global retail trends as key factors, prompting businesses to clear excess stock instead of investing in new inventory.
Lean Purchasing Occurs Amid High Performance
The purchasing activity remained subdued despite robust revenue numbers. The average number of purchase orders issued per manufacturer dropped to 64 in Q1—an 11% decline from the previous quarter and the lowest recorded since 2018.
“The weakening dollar may have led manufacturers to defer purchasing and wait for a stronger dollar. That seems to be paying off as the NZ dollar trended upwards during Q1,” the report notes.
“Buyers may have also turned to local suppliers where possible. Accordingly, purchase order numbers are likely to increase in Q2 and beyond, especially if sales remain firm.”
New Zealand’s manufacturing sector starts 2025 with renewed vigour, driven by a well planned adaptation and improving market conditions. The rising consumer demand and leaner operations are setting the stage for a potential rebound from recent economic headwinds.