As some of you will know, I will be standing down as the Member of Parliament for Port Waikato at the upcoming election.

Representing the people of this electorate has been one of the greatest honours of my life, and stepping away is something I considered carefully over several months in consultation with my family, but as my wife and I intend to move to the South Island later this year, the decision in the end was a pragmatic one.

Before I go, I want to speak directly to those who have been at the heart of my work: our business owners, manufacturers, growers and innovators across Waikato. I have seen first-hand your grit, ingenuity and resilience – attributes that define this region’s economy. It has been a privilege to represent you.

When I first entered Parliament, my focus was clear: to ensure that the voice of business – especially small and medium enterprises – was heard. I saw that too often, policy was developed in Wellington without enough regard to the realities faced on factory floors, in workshops and across supply chains. My role was to challenge that and advocate for an environment where businesses could flourish.

During the early years as an MP and later as Opposition Spokesperson for Small Business, I spent a great deal of time with manufacturers across Waikato. Visiting food processors expanding their export lines, engineering firms investing in precision equipment, and timber processors adapting to changing markets left a lasting impression on me.

I recall standing on the floor of a dairy processing facility, watching how improvements in automation had lifted output and reduced waste. In another visit to a specialist fabrication business, I saw how adopting advanced machinery had allowed a small firm to compete internationally.

These were not abstract policy discussions, but real examples of Kiwi ingenuity at work.

Transitioning into Government and becoming the Minister for Small Business and Manufacturing – New Zealand’s first Minister of Manufacturing – gave me the opportunity to turn those conversations into action. One of my priorities was to lift the profile of manufacturing as a cornerstone of our economic future. It is a sector that underpins productivity, supports exports and anchors regional employment, yet for too long has not received the attention it deserves.

We worked to better support manufacturers through improved access to capability programmes, a stronger emphasis on innovation, and more practical engagement with industry. For many Waikato businesses, this meant greater support to modernise operations, whether through upgrading machinery, improving processes, or adopting digital tools.

One of the ideas I long advocated for, and was pleased to see delivered in Budget 2025, was Investment Boost – a targeted incentive to lift business investment and productivity. It allows firms to immediately deduct 20 per cent of the cost of new assets, alongside normal depreciation, improving cashflow at the point where investment decisions are made.

The concept was simple: if we want higher wages and stronger growth, we must make it easier for businesses to invest in the tools, machinery and technology that drive productivity.

In December 2025, Inland Revenue surveyed its business customers to gain an early indication of how firms are responding to Investment Boost. The results, released in March this year, suggested that it was early days regarding awareness and uptake, and that it will take time for the full effects of Investment Boost to flow through to economic activity.

Looking ahead, one of the biggest transformations facing manufacturing is the continued rise of artificial intelligence and automation. AI is not something for the future – it is already changing how businesses operate today. From automating routine administrative tasks to optimising production schedules and improving quality control, the potential gains in productivity are significant.

Many Waikato businesses are already beginning this journey. Some are using AI-driven systems to manage inventory more effectively. Others are exploring predictive maintenance to reduce downtime in their operations. But there is a considerable opportunity to go further, particularly for smaller firms that may not yet have the capability or confidence to adopt these tools.

We need to encourage and support businesses to embrace AI, not be intimidated by it. That means providing accessible guidance, sharing practical examples, and ensuring that training pathways equip people with the skills needed to use these technologies effectively.

AI does not mean less jobs. It means working smarter. In many cases, the biggest gains will come from automating everyday procedures, such as reducing manual processes, improving accuracy and freeing up time for higher-value work. For a small manufacturer, even modest improvements in efficiency can make a meaningful difference to the bottom line.

Of course, while progress has been made, there is still much to be done. Productivity remains a challenge and lifting it will require sustained effort – through technology adoption, infrastructure investment and smarter regulation. Despite some progress, many businesses still find the regulatory environment complex and time-consuming. That must continue to be addressed with a focus on simplicity and practicality.

Workforce shortages also remain a constraint. Time and again, Waikato businesses have told me that growth is being held back by the inability to find skilled staff. Strengthening vocational training, improving school-to-work pathways, and ensuring immigration settings are responsive to genuine shortages will all be critical.

Finally, we must continue to back our regions. Waikato and Franklin are central to New Zealand’s economic success, and future growth will depend on investment in transport links, digital connectivity, and the infrastructure that supports both manufacturing and distribution.

I want to acknowledge Don Good and the work of the Waikato Chamber of Commerce, who consistently champion policies that back investment and growth in our region.

As I leave politics, I do so with deep respect for those who take risks, invest in their businesses, and create opportunities for others. The visits I made – to factory floors, processing plants and engineering workshops – will stay with me. They are a reminder that economic policy is not an abstract exercise; it is about enabling real people to succeed.

Thank you for the opportunity to represent you. I am confident that Waikato’s business and manufacturing community will continue to lead, adapt and thrive – and I strongly encourage you to embrace the tools, including AI, that will shape the next chapter of that success.

Hon Andrew Bayly is the MP for Port Waikato. He can be contacted at andrew@baylymp.co.nz or follow him on Facebook @AndrewBaylyMP