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Room for RBNZ to cut rates

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during February 2016, shows total sales in January 2016 decreased 18.58% (year on year export sales decreased by 25.06% with domestic sales decreasing 1.45%) on January 2015. The NZMEA survey sample this month covered NZ$216m in annualised sales, with an export content of 67%. Net confidence fell to 12, down from 18 in December. The current performance index (a combination of profitability and cash flow) is at 99.3, down from 101 last month, the change index (capacity utilisation, staff levels, orders and inventories) was at 97, down from 100 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 102.83, down on the last result of 107.83. Anything over 100 indicates expansion. Constraints reported were 59% markets, 24% skilled staff, and 18% production capacity. There was no net change in productivity for January. Staff numbers for January increased 2.07% year on year. Tradespersons, supervisors, managers, and professional/scientists reported a moderate shortage and operators/labourers reported a minor shortage. “There appears to be some struggles showing for manufacturers in terms of export demand, with year-on-year export sales staying negative for four months. This is likely reflecting a continuing uncertain international environment and a number of soft export markets dampening demand. Domestic sales were slightly down, after positive year-on-year increases the last two months.” says NZMEA Chief Executive Dieter Adam. “In recent months, despite some challenges in export markets and international conditions, confidence and indexes of performance, forecast and change, have been showing positive expectations of the future. However, January results showed the performance index, which includes profitability, cashflow and exchange rate, as well as the change indexes, moving down into contraction. The forecast measure, which has been exceptionally positive in recent months, moved […]

Growth for manufacturing exporters in 2015

Data released by Statistics New Zealand yesterday reflected the improvements felt by much of the manufacturing and exporting sector in 2015 compared to the previous year, with increases across a number of high-value manufactured export categories, say the New Zealand Manufacturers and Exporters Association (NZMEA). NZMEA Chief Executive Dieter Adam says, “Annual values of mechanical machinery and equipment exports increased 5.7% on 2014, electrical machinery and equipment exports increased 15.7%, optical, medical, and measuring equipment exports improved by 18.5%, and plastic and plastic articles exports increased 2.3% on 2014. “Manufacturers and exporters have battled through some rough years following the GFC, with soft international markets and an overvalued currency hitting sales volumes, competitiveness and margins. The changes they had to make to their business to survive in that environment started to pay off in 2015, as conditions improved. This is contrasted by a drop in the primary sector, with export values of milk power, butter, and cheese down by 20.6% on 2014, for example. “This is not a case of pitting manufacturing exports against others, however. New Zealand needs to grow its exports across the board in order to become a wealthier country where we can afford to pay for expensive new medical treatments, for example. But we know that commodity prices are inherently prone to strong cyclical fluctuations, and it is time more of us recognise the stabilising and value-adding influence high-value manufactured goods exports have in this environment. Prices and volumes for manufactured goods exports are far less volatile. “Jobs in manufacturing generate on average 1 to 3 jobs elsewhere in the economy, and every $1 of value added in manufacturing creates $1.4 of additional value in other sectors. “New Zealand needs to get much better at creating an environment where we can grow export values across sectors […]

Solar innovation a relief for drought-stricken farmers

A solar water pump system is helping get much needed water to stock on remote hill country farms and has captured international interest from water-stressed countries. Central Hawke’s Bay electrical and pumping business Isaacs Pumping & Electrical has been developing the technology over the last two years with support from Callaghan Innovation. Isaacs Electrical directors Gavin Streeter and Shane Heaton were continually being asked by farmers what options were available to reliably get water to stock without electricity, especially in remote hill country properties. “Solar was the ideal alternative but we needed to ensure we had a motor and pump that farmers could rely on to keep stock troughs full. “We didn’t need to look too far and we selected a pump with a proven track record and has been servicing farms for over 50 years,” Mr Streeter said. The Callaghan Innovation funding helped developed the controller or the “brain”, which is a circuit board that optimises the use of solar power and monitors water pressure, run times and faults logs. “The system is fully automatic, it operates like a standard pumping system and we have just design some clever features to maximise the pumping time and protect the motor,” he said. The development of the epump has been a mix of international and Hawke’s Bay suppliers providing equipment and componentry. An Italian company developed the industrial continuous rated motor, Hawke’s Bay engineering firm McLaren Stainless designed and manufactured the outer protective shell and another local firm, some of the Intellectually Protected circuitry. The epump can pump up to 120 metres of head and up to 20 litres per minute in daylight hours and can withstand the harshest environments. It can fill stock troughs on hillsides up to 120 metres on hill country and unlike other options it can draw both […]

Making an apprenticeship work for your manufacturing business

130 companies share their tips Competenz, the industry training organisation (ITO) for New Zealand’s manufacturing industries, know that apprenticeships are a practical way to help you build a capable team. They know, too, that manufacturing employers who train apprentices make major investments in time and money. So they thought you’d value some tips to help make the most of these investments. They come from the people who know best how it’s done: employers in 130 companies who train apprentices, including wood, food and beverage, furniture, and general manufacturers. You can read more in the recent Competenz research report: Getting the best from your investment in training an apprentice (October 2015). Recruit your apprentices carefully. It’s all about attitude. Does the person have a passion for manufacturing and your industry? Are they keen to learn? Will they fit in with your team? Get your apprentices off to a good start. Explain how your business works and buddy them up with someone who can answer their questions. Set clear expectations: it’s their apprenticeship, not yours. Explain what your apprentices need to do, and how you’ll support them. Then start apprentices on some simple tasks to build their confidence. Set clear goals for your apprentices’ learning. Explain what they need to learn and by when, and how you’ll measure their progress. Offer your apprentices challenging, varied work. Structure their work and training plans so they build skills in a logical way, work on ‘real life’ issues, and take on increasing responsibility. Support your apprentices on-the-job. Responsive supervision from an experienced, approachable tradesperson is key to a successful apprenticeship. Review apprentices’ progress regularly. This will help you keep their learning on track and resolve issues quickly. Talk about career opportunities early in the apprenticeship. This will motivate your apprentices and help you retain them […]

EMEX 2016 set to be the biggest in over a decade

With still nearly 3 months to go until kick-off, one of New Zealand’s largest industry trade events EMEX (Engineering, Manufacturing and Electronics Exhibition) is well on its way to being a sell-out event making it one of the largest for many years. Over 140 national and international exhibiting companies have already confirmed they’ll be there showcasing the latest technologies, products and services that will Inspire Manufacturing and Innovation Excellence. Add to this plans to further capitalise on a strong 2014 event that achieved over 25% growth in industry visitors, EMEX 2016 is once more shaping up to be the leading event for the engineering, manufacturing, machinery, electronics and technology industries. The latest high tech and innovative equipment, in some cases Southern Hemisphere firsts, will be showcased at the ASB Showgrounds on the 31st of May, 1st & 2nd of June this year. Companies such as AmProm, Plazmax, Haas and many others will be bringing to the event the very latest innovations with cutting edge products and technology. Amprom, for example, will be bringing the latest fibre laser cutting machine which visitors can see in full action. The EMEX 2016 theme of Inspiring Manufacturing and Innovation Excellence will be dominant over the three days through live product demonstrations, special features and a very full schedule of industry led education and learning Seminars. The schedule will cover a variety of topics such as ‘Additive Manufacturing’, which also includes a Callaghan Innovation Network event, ‘Robotics’, ‘Workplace Health & Safety’ and Keynote presentations by Industry leaders from NZMEA, Metals NZ, MESNZ and NEIDA. ‘There is very strong industry support for EMEX 2016’ says EMEX sales manager Aad van der Poel ‘which I believe reflects the current industry and economic sentiment. We see many exhibitors returning after a more challenging period’ as business is gaining […]

IIoT gateways allow communication with power grids

A new family of Industrial IoT gateways for Smart Grid applications, the Anybus SG-gateways, enable communication between industrial applications and energy protocols. This communication is the very basis for the so called “Smart Grid” where power plants and energy equipment are interacting with industrial applications. The SG-gateways are yet another example of how HMS realizes the Industrial Internet of Things. Anybus SG-gateways make the Smart Grid possible The new SG-gateways enable communication between industrial devices running Modbus, PROFIBUS, PROFINET, EtherNet/IP, or M-Bus and energy protocols (IEC61850 and IEC60870-5-104). This means that a power plant control room which is using the IEC protocols, can connect to industrial devices such as generators, drives, filters and protection equipment. Since the SG-gateways can act both as a master and slave, it is also possible to connect Intelligent Electronic Devices (IEDs) which communicate over IEC-standards, to industrial networks, allowing them to be controlled by PLCs from e.g. Siemens, Rockwell or Mitsubishi. The Anybus SG-gateways can also be used to enable remote control and management of electrical equipment in power grids. Data is sent over Ethernet or the 3G cellular network using the telecontrol protocols, after which the data can be presented by a software application in the power plant control room. Different versions – same configuration The Anybus SG-gateways are available in different versions for handling various industrial networks and communication standards. These include I/O, Modbus, PROFIBUS, PROFINET, EtherNet/IP, or M-Bus. All versions use the same web-based configuration tool where commands are dragged and dropped, allowing for a quick and easy installation. No additional engineering tools are needed, only a standard browser. Anybus SG-gateways are very powerful tools for handling the conversion between energy and industry standards. The Smart Grid can offer substantial energy savings and optimisations and there is a great demand in the […]

What is smart manufacturing?

Energy ministers and business leaders to meet at Resilience Summit

The growing importance of resilience is demonstrated in the calibre of delegates gathering in New Zealand’s capital next month for the Asia-Pacific Energy Leaders’ Summit hosted by the World Energy Council and BusinessNZ Energy Council. Energy resilience is emerging as a clear priority for both the private and public sector. The Asia-Pacific Energy Leaders’ Summit is attracting CEOs and senior executives from across the globe, including Shell, Rosseti Russia, Enersis Chile, Chevron, Honda and Fujitsu, and energy experts from Norway, US, UK, Japan, China, the Philippines and Australia. They will be joining over 50 major corporates and institutions from New Zealand and around the world, including the World Bank, Asian Infrastructure Investment Bank, Asian Development Bank, APEC Energy Working Group, International Renewable Energy Association and the APEC Sustainable Energy Centre. Energy Ministers and high level officials from across the Asia-Pacific will join New Zealand Ministers Bridges and Bennett to discuss the growing resilience risks and challenges presented by climate change, emerging technologies, extreme weather events, cyber security, and the energy-water-food nexus. Hon Simon Bridges, NZ Minister of Energy and Resources says, “Energy system resilience is key to supporting and growing a vibrant economy. The Asia-Pacific Energy Leaders’ Summit offers an opportunity for dialogue on transitioning to more sustainable and resilient energy systems, and I look forward to taking part.” The aim is to share insights and lessons about what can be done to address these challenges, including solutions available to the Asia-Pacific region. The World Energy Council will be launching a new report on the energy-water-food nexus at the event. Dr Christoph Frei, Secretary General, World Energy Council says, “Bringing business and policymakers together in this unique fashion is a vital step forward in finding solutions to building resilience in the Asia-Pacific region. I look forward to being part of […]

Construction sector forecast to remain a major economic contributor

New Zealand dwelling building activity to strengthen further post-Christchurch rebuild Driven by strong activity particularly in Auckland Amid housing demand from its population growth and a shortage in housing supply Infrastructure construction to be boosted by Accelerated Auckland Transport Programme The construction sector in New Zealand is forecast to continue to contribute positively to the country’s economy over the medium term, according to leading industry analyst and economic forecaster, BIS Shrapnel. While the sector will be led by a renewed surge in dwelling building activity to new highs in the second half of the five-year outlook period, overall non-residential and infrastructure construction activities are likely to remain at relatively high levels. According to the company’s Building and Construction in New Zealand 2016-2021 report, the value of building (residential and non-residential) is expected to peak in 2016/17, capping off a five-year upturn. However, following a modest decline in dwelling activity forecast for 2017/18, BIS Shrapnel expects reasonably strong rebounds in the activity level (led by Auckland) over the three years to 2020/21 to lift the value of new dwelling consents to a fresh high of around NZ$6 billion in real terms. The value of non-residential building consents (new, and alterations and additions) is expected to remain at relatively high levels, averaging NZ$3.3 billion per annum in real terms over the five-year outlook period – which is comparable to the level over the preceding five-year period. The next dwelling building upturn is likely to drive consents in New Zealand up to around 32,000 by 2020/21, which is comparable to the peak level during the 2003/04 building boom. “The ‘other’ dwelling segment (apartments, retirement units, town houses and flats) is expected to register strong growth, as high land cost especially in the Auckland region and the government’s plan to increase affordable housing […]

New innovations for NMW 2016

National Manufacturing Week, Australia’s largest, longest running manufacturing industry event, returns to Sydney (May 11 – 13), with industry ‘firsts’ to help propel the industry into the future. Key to this year’s program are co-located events, high profile industry figures presenting case studies and new ideas, as well as exhibitors from around the world with innovative products and services. To enhance the value of attending for industry professionals, NMW2016 will be co-located with headline events showcasing new possibilities for manufacturers, including the Safety First Conference & Expo. Safety First is Australia’s first one-stop safety event that provides a rare opportunity to see safety solutions and talk with leading safety thinkers. NMW will also co-locate with Inside 3D Printing Conference & Expo, the Australian education of the world-leading event that will bring new strategies, stories of success and more to help local companies make the most of game-changing 3D printing technologies. Inside 3D Printing will showcase next generation 3D printers and companies that can help businesses open up new worlds of possibility. The showcase will include Konica Minolta Business Solutions’, with 3D technologies that help companies create working prototypes, parts and custom-made products in a fraction of the time currently required, with industry leading service support by Konica Minolta’s national service organisation. The showcase will also include energetic local businesses – including Bilby 3D and Sydney 3D Printing – backing global technologies with advice and support for companies looking to leverage new opportunities from this game-changing technology. NMW to showcase innovations across the exhibition floor NMW will be home to over a thousand innovative products and services, from some 200 European, Asian and local companies. Among the new solutions on offer in 2016 will be – in the Welding Technology Product Zone – the latest in welding solutions from Kemppi. Kemppi […]

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doug

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