New Zealand supply chains and the long arm of COVID

The COVID-19 pandemic fundamentally altered our lives in a myriad of ways: lockdowns and vaccine requirements created the sort of division that hadn’t been seen in New Zealand since the Springbok Tour of 1981. Mask-wearing became commonplace, air travel essentially ground to a halt, and even three years later it’s hard to shake the embarrassment of having a coughing fit in a public place!

From an industrial perspective, the pandemic also fundamentally disrupted global supply chains, and the repercussions are still being felt around the globe. Christchurch and the rest of New Zealand are no exception, with the pandemic affecting industrial repairs in Christchurch, production, transportation, and trade, leading to significant challenges around the acquisition of parts and materials for local businesses.

As countries worldwide went into lockdown in early 2020, factories halted production, and shipping routes were disrupted. For New Zealand, which relies heavily on imports for many of our parts and components—particularly in sectors such as automotive, manufacturing, and electronics—the ramifications were particularly serious.

With international borders closed, the flow of goods to the bottom of the world slowed dramatically. Suppliers from India, China, South Korea, and Japan faced factory shutdowns, leading to serious delays in the production of essential components that simply can’t be produced here.

As the pandemic progressed, the bottlenecks became more pronounced. Shipping containers became scarce due to congestion at major ports, and freight costs skyrocketed. The delays had a significant impact on our agricultural sector in particular, with its reliance on machinery and technology (and of course, anything that affects agriculture will always have a trickle-down effect on the rest of the economy).

Amidst the growing realisation that relying on a limited number of suppliers was risky, the pandemic prompted many Christchurch businesses to reassess their trade dependencies. Many began the process of diversifying their supply chains, seeking sources for parts and materials closer to home. This shift is helping to strengthen local industrial engineering in Christchurch and across New Zealand.

The pandemic also accelerated the adoption of new technology across several industries. Companies that had previously relied on traditional procurement methods were forced to explore digital solutions. E-commerce platforms and online marketplaces became essential for sourcing parts and machinery.

Most New Zealand businesses embraced these tools, making the most of their enhanced ability to manage inventory, track shipments, and communicate with suppliers effectively. This digital shift not only helped mitigate some pandemic-related challenges but also set a precedent for future procurement practices. We hope that this technology will render New Zealand industry less vulnerable to supply chain issues, should another global disaster eventuate.

Realistically, procurement delays look set to stay, at least for the next few years. Fortunately, savvy business owners are beginning to invest in local production facilities to reduce their dependency on foreign imports, particularly in critical sectors such as healthcare and technology. Government initiatives aimed at boosting domestic manufacturing will also play a crucial role in this shift.

And the good news? As companies rethink their supply chain solutions, there is a growing emphasis on environmentally friendly practices and ethical sourcing. A happy side effect of the pandemic, this shift reflects a broader trend that acknowledges not just the economic implications of supply chain decisions, but also their social and environmental impacts. In our opinion, this change in thinking is long overdue.

The lessons learned by our industry leaders over the past five years have been tough, but they’ve also helped to create a more resilient, diversified, and sustainable approach to supply chain management—and we think that’s a positive development.

On the flip side, the team at BTS Engineering is well aware that sometimes your parts simply need to come from Europe, and that’s okay too. Just be sure to place your order well in advance, as production is set to ramp up significantly, and you don’t want to be left twiddling your thumbs in January while waiting for that vital part to arrive.

Call Clint today on 0800 885383 or email bespoketradesolutions@gmail.com, and make sure your equipment is ready and raring to go for the summer.