By Doug Green, Publisher, NZ Manufacturer
Sam Fulton, Sales and Marketing Director for wire loom manufacturer Fero sees specialist high-tech manufacturers benefiting from New Zealand businesses bringing their outsourced work back from Asia.
“It is easy to be beguiled by what on the surface appears to be a low price, but buying at the cheapest price always comes at a cost”.
“You get what you pay for in China so if the price too good to be true, then it is”.
Although its manufacturing is still cheap by New Zealand standards, rising labour and other costs are seeing China become more expensive to do business with. Its manufacturers are off-setting these costs through economies of scale. As a result, minimum run sizes are increasing beyond the reach of many New Zealand manufacturers
For every $1 of value added in manufacturing, $1.4 of additional value is created elsewhere in the economy, and every job in manufacturing generates between two and three jobs in the rest of the economy. Money brought in by both high-tech manufacturers and those in the sub sectors.
As far as categorising hi-tech manufacturers. Dieter Adam, Chief Executive of the New Zealand Manufacturers and Exporters Association, believes there are many businesses that should be considered high-tech due to their complex and innovative processes and products, but are not captured by the current definition.
Hi-tech manufacturing is considered the way to go for growth and innovation in the country. However there is considerable high value-added activity happening across the spectrum of manufacturing businesses.
Dieter Adam believes that focussing only on what is defined as high-tech can lead to missing or undervaluing all the innovation and growth that is created in other parts of the sector, just because they do not fit a specific definition.
By the way, high-tech manufacturers are defined as those who spend more than 8% of revenue on R & D.
As we know, the current dairy business climate is both challenging and promising, because regulations on infant formula are still very sticky and unclear. There is some good news…
Evergrande Group’s investment into GMP Dairy Limited’s business has given the company more opportunities.
GMP Dairy is currently working on four to six new productions mainly in their adult milk powder range.
The key markets for the products lay in Japan, Singapore, Russia, Korea, Hong Kong, Taiwan, and China. The Middle East and South East Asia are seen growth markets. GMP has put together a new team to focus on research and development for consumers in these countries.
And finally, all the best for exhibitors at SouthMACH 2015. The show with its keynote speakers and manufacturing expertise on display promises to be a real display case for South Island manufacturers and businesses to visit as they re evaluate their company’s direction and ‘push’ into enhancing their manufacturing expertise and efficiencies.