Analysis

New Zealand manufacturing – Connecting for prosperity

Paul Clark, Industry Economist, Financial Markets, Westpac Institutional Bank It’s no secret that New Zealand’s manufacturing sector is struggling. Sales adjusted for inflation have been in negative territory for a while, while the much-watched PMI suggests that sector very much in the “bust” part of the cycle. And with the economy set to slow further, there are few signs of an imminent turnaround. Manufacturers have responded by going back to what they know. They’ve cut jobs, cut hours, frozen new hirings and clamped down on overheads. Some have rationalised product lines and canned projects, especially those that don’t deliver immediate benefits. Others have looked at how to retain their best customers, as well as coming up with ways to hold on to critical staff. These measures mostly represent a short-term fix. They are critical for survival. But they also ignore a fundamental problem facing the sector and that relates to its vulnerability to changes in the economic cycle. Fixing that is about increasing the resilience of the sector. There are two areas where manufacturers should focus on. The first is boosting the resilience of their supply chain chains – if they stop working or are significantly disrupted, manufacturers are in big trouble. The second is on operations – an inability to maximise operational efficiencies implies a loss of competitiveness which could prove terminal. Thankfully, advances in digital technology offer a way forward. That includes state-of-the-art software that allows for better communication, Cloud computing for more efficient data storage, artificial intelligence (AI), and data analytics to help make better decisions, as well as robotics, sensors, and Industry Internet of Things (Iiot) to automate processes. These technologies are making it possible for manufacturers to see every part of the supply chain, and track products in real time as they progress along the […]

Emotional Intelligence Campbell, Mel NEW

International Women’s Day: Emotional intelligence – the secret weapons women are using to drive change in construction

We speak to three women who are shaking up the construction industry with new ways of thinking. When Melissa Campbell visited a major construction project in central Auckland it was a team of female electricians who were the life and soul of the work site. “They were spectacular,” says the Health and Safety Manager from leading construction company LT McGuinness. “They had the best sense of humour, they worked hard, and they were personable, intelligent and strong – all the things you want from someone that you work with. We need more of that.” This crew of female sparkies are an example of how the growing number of women in construction are bringing a new way of thinking and a different perspective that is driving a culture of change in the traditionally male-dominated industry. And, believes Campbell and other influential women in the construction and trades sectors, this thinking and a woman’s unique skills, such as compassion and attention to detail, can help the industry to innovate, move forward, and build smarter. “The female voice in construction is definitely louder,” says Campbell. Campbell, who has worked in construction for 14 years, says companies are now looking to women for unique skills that brings something different to the industry. “You’ve got to have different perspectives to innovate and to do things differently. A mix of cultures and ages are important and together with gender diversity, it brings the chance to challenge each other, to be competitive, and to innovate and bring new ideas into the fold.” For Campbell, the unique skills females have, include empathy, planning capability, and attention to detail. “There’s a huge push in the industry to recognise these skills and differences women bring and to use them to our advantage. A woman’s way of thinking is so […]

International Women’s Day Profile: Kate Ricketts, developer of world first biofluorescent nit treatment

This year’s theme: Inspiring Inclusion Kate Ricketts, a Kiwi mother and entrepreneur has created the world’s first biofluorescent nit powder to improve visibility of head lice during treatment, address the stigma associated with the condition and increase access for vulnerable children. The product, which was recognised with a UN Sustainable Development Goal associated award, has now entered production for domestic and international markets. NZ Manufacturer caught up with Kate ahead of International Women’s Day to hear about her journey. What does International Women’s Day mean to you? It is a time to celebrate the amazing things that female innovators are currently doing and recognise the pioneers who have paved the way for change. It’s also a time to reflect on the areas where progress is still needed. In today’s business environment, do you see opportunities and also recognition for aspirational female entrepreneurs? Having developed my product with the University of Auckland, I’ve been fortunate to have experienced their entrepreneurship incubators and how they feed into the wider world of industry. You have access to amazing people who have helped when the training wheels came off and who understand some of the additional pressures that come with being a female founder. Tell us about what you do I’m the founder of ISpyNits, a company that produces a glow-in-the-dark head lice treatment product that allows you to better identify lice eggs and remove them to prevent reinfections. We have developed a supporting education programme using biofluorescence to destigmatise the condition among children. How did the idea for a biofluorescent powder come about? The product was developed in response to a frustrating problem that many parents have faced treating head lice and missing eggs. As a vet nurse I used UV light to confirm the presence of ringworm and read an article suggesting […]

IWD Profile: Andrea Broughton, Arotec Diagnostics Ltd

Inspiring Inclusion – International Women’s Day – 8 March 2024 What do you do? I am Workstream Leader for native Human derived antigens that we purify at Arotec Diagnostics Ltd. I manage a team of 8 alongside two other workstreams (Animal Derived and Recombinant Antigens). We prepare highly purified proteins that our customers use in diagnosing specific autoimmune diseases. What challenges does the job present to you? Every protein behaves differently, so it is important to recognise the particularities of each one and be mindful of anything that may cause the protein to become unstable or degrade. We want the customer to have consistent product, so its important that the quality is maintained throughout the manufacturing process. This is dependant on our source material, the equipment that we use, and the people we employ to carry out the purification process. How come your interest in the field of antigens? I have always enjoyed working in fields that focus on health and well-being, and this position allows me indirectly assist with helping people get a diagnosis, which hopefully will lead to a more effective management system for their condition and a better quality of life. As leader of a team of Production Scientists, at Arotec Diagnostics you must be well organised? It is critical that we are well organised; we have a Production schedule that is based on manufacturing particular proteins to meet customers needs when they require it; we also need to ensure we have the adequate resources (equipment and staff). It can be a bit like playing Tetris at times! I find keeping routines helpful both within the workplace and homelife as a way to stay on top of things. What are developments in this field that you are observing? And how do they impact society? With autoimmune disease, […]

“Inspiring inclusion” in the manufacturing industry

The start of our focus on International Women’s Day Helen Blomqvist, President,Sandvik Coromant – International Women’s Day comment. One of IWD’s key missions is to forge inclusive work cultures where womens’ careers thrive and their achievements are celebrated. This year, the campaign centres around inclusion and the importance of making every voice heard. Despite progress in gender inclusivity, the underrepresentation of women in the science, technology, engineering, and mathematics (STEM) fields still persists. According to a 2023 report from the Massachusetts Institute of Technology (MIT), women make up only 28% of the STEM workforce. Looking across the world, the MIT reports figures to stand at 24% in the United States, 17% in the European Union, 16% in Japan and 14% in India. Driving the shift While the STEM gender gap remains apparent, there are several factors at play that could bring about better inclusivity. Manufacturing stereotypes are moving away from perceptions of dirty, dangerous environments. As industry embraces digitalisation, the rigid, manual jobs of the past are being replaced by roles centred around innovation, collaboration and problem solving. The growing focus on experimentation, flexibility and hybrid working is making manufacturing a more modern and inclusive place to work for all. Changes brought about by the pandemic have invited a greater sense of flexibility, with an uptake in digital tools further fostering a more inclusive culture. There is also increasing recognition of the benefits of an inclusive workforce. According to a Wall Street Journal report examining diversity and inclusion among S&P 500 companies, “diverse and inclusive cultures are providing companies with a competitive edge over either peers”. What’s more, a pre-pandemic McKinsey report Delivering Through Diversity showed companies in the top quartile of their rankings for successful gender diversity on their executive teams were 21% more likely to have above-average profitability. For ethnic […]

Engineering and Manufacturing Cluster identifies key themes: Collaboration and innovation at the forefront

Southland Engineering and Manufacturing Cluster Manager Brendan Gray. The Southland Engineering and Manufacturing Cluster, a pioneering collective dedicated to transforming Southland’s industrial landscape, has identified key themes within the industry, emphasising collaboration and innovation as primary drivers for growth. Led by Brendan Gray, the Cluster is working to transform Southland into a united industrial hub for the engineering and manufacturing sector. Dean Addie, Chair of the Southland Engineering and Manufacturing Cluster, underscores the importance of collaboration within the industry, stating, “Our core objective is to ensure sustainable growth in engineering and manufacturing throughout the region. By fostering collaboration among industry players, we showcase the incredible capabilities of our region and empower our regions to bid for large engineering and manufacturing contracts with confidence.” The cluster is an initiative introduced from Just Transitions; a government supported initiative to develop an economic road map for Southland as it navigates the uncertainty of the future of New Zealand Aluminium Smelter. The Cluster has an important role to support local contracting firms to transition from reliance on NZAS business and participate fully in new economic opportunities, while also supporting existing major industries. Brendan Gray, Southland Engineering Cluster Manager, expressed his enthusiasm for supporting the engineering community, saying, “It has been enlightening working with industry, understanding the needs and desires of the engineering and manufacturing community to fully support their transition and growth into a new era of business opportunities.” The cluster’s recent findings highlight a true desire within the industry to collaborate and work together, coupled with an understanding and acceptance of the need to innovate, pivot, or change to foster growth. In an exemplar of collaboration, five key players within the Southland engineering community are joining forces to explore new energy opportunities. They will be attending a symposium next week to delve into collaboration potential and opportunities for the region, further […]

Eight tips to get your sustainability strategy pumping in 2024

From February issue, NZ Manufacturer It’s February and you’ve eleven months to make your manufacturing business more sustainable in the year ahead. These eight tips will help you create (or review) your sustainability strategy – and take action. Becoming more sustainable adds value to your business Sustainable businesses are excellent businesses. They create value in the short and long terms. That’s because sustainability is about much more than the environment. It covers every aspect of your business. (See tip 2 below.) Becoming a more sustainable business will help you reduce costs and risk, strengthen relationships with your suppliers, enter markets and grow market share. You’ll attract talented employees and investment, keep onside with your regulator (if you have one) and build links with local communities. That’s a lot of good reasons to act! A strategy focuses your efforts A strategy helps you tackle the right things, in the right order, to make your business more sustainable. While it’s tempting to focus on activities that yield fast, visible results or to do ‘a bit of everything’, you need to prioritise. For example, if you manufacture a product, tackling your packaging may seem a great place to start. But if your packaging accounts for just 5% of your environmental footprint, there are better ways to use your limited resources. A strategy will help you identify them. Tips to create your strategy Make sustainability part of your business strategy – not an ‘add-on’ Weave sustainability into everything you do so that acting sustainably becomes ‘how you do business’. For example, work with your suppliers to source lower carbon materials and identify risks of modern slavery. Redesign your product to reduce the energy you use and the carbon you emit. Train your team to cut waste and look to your local community when you […]

Harnessing the Power of Biogas: A Sustainable Opportunity for Industrial Manufacturing

From February issue of NZ Manufacturer -By Insa Errey While renewable energy has been making strides in various sectors, the potential of biogas in revolutionising industrial manufacturing remains largely untapped in New Zealand. This article explores the opportunities and benefits of exploring the opportunities of biogas in industrial processes. Biogas production involves the anaerobic digestion of organic materials such as agricultural residues, food waste, and wastewater. This process utilises microorganisms to degrade the organic material into methane. A byproduct from anaerobic digestion is digestate which can be utilised as biofertilisers. Reduction of Greenhouse Gas Emissions: Biogas utilisation has multiple advantage in reducing a site’s greenhouse gas emission. First, anaerobic digestion prevents the release of methane—a potent greenhouse gas—into the atmosphere. By capturing and utilising methane as biogas, greenhouse gas emissions from waste decomposition can be reduced. Secondly, biogas can be cleaned, known as green gas or biomethane. It can be used directly in on-site as process heat, reducing the need to purchase the required gas for heating from external parties and offering a cleaner alternative with lower carbon emissions. Waste Valorisation: The industrial sector generates substantial amounts of organic waste from processing residues that can end up in landfills or council wastewater treatment facilities. Biogas production provides a valuable solution by converting these waste materials into valuable energy and fertiliser resources. This waste valorisation not only reduces the environmental impact but also promotes a circular economy approach within the manufacturing process. Producing certified biofertiliser can contribute to increasing food production. Cost-Effective Energy Source: Biogas can serve as a cost-effective energy source for industrial manufacturing. By harnessing locally available organic waste, sites can create a steady and reliable source of useable energy, reducing dependence on traditional fossil fuels. Energy Independence: Most manufacturing sites rely heavily on external energy sources, making them […]

Transforming Supply Chain Planning: How to create resilience, efficiency and agility

From February issue of NZ Manufacturer -Chris Foord, Partner, Argon, New Zealand Post Pandemic we are seeing an essential change in how businesses review their supply chain strategy with a focus on integration and forward-looking planning. Advanced Planning Systems (APS) are at the heart of digital transformation when looking to improve operations management. Companies in Australia and New Zealand have traditionally lagged in investment in this area. However, with the market maturing and good options available for small to large organisations, it is worth considering the opportunity. The benefits of implementation that we usually observe are: 20% reduction in working capital 3% reduction in COGS 6% reduction in Logistics costs 10-20% improvement in forecast accuracy Improved customer service What necessitated companies to modify their supply chain planning? The global pandemic has fundamentally altered the landscape of supply chain planning. Prior to the pandemic, supply chains were focused on creating efficiencies based on a just-in-time model, with inventories kept intentionally low. Businesses relied on backwards looking data to evaluate decisions, and adjusted plans on most recent events. However, the global pandemic caused businesses to reconsider this approach, with inventories now seen as a buffer to unexpected disruptions, leading companies to consider moving to a just-in-case model. The result has led to a recalibration of how businesses consider suppliers, capacity, and inventory, with the focus now centred on resilience, efficiency and agility through the supply chain. How are companies refining their strategies and approaches? The key change has been businesses embracing sales and operations planning (S&OP). S&OP is an integrated planning process that aligns demand, supply, and financial planning, and is managed as part of a company’s master planning. Rather than just a supply chain process, embracing S&OP results in planning coming to the forefront of the business as the business planning […]

The year of digital transformation

From February issue of NZ Manufacturer -Adam Sharmer, Senior Partner, Dsifer If 2023 was the year of Generative AI, 2024 looks set to be the year of digital transformation. A recent survey of manufacturers found that 70% of those surveyed planned to increase spending on digital transformation in 2024. This is perhaps no surprise as organisations continue to review their operations to improve production efficiency, optimise supply chain and leverage data and analytics to shift to predictive, rather than reactive planning and improvement disciplines in response to high production costs, supply chain instability, workforce challenges and data security concerns. As industries transition towards Industry 4.0, defining a comprehensive digital manufacturing strategy is crucial, yet 42% still collect most or all of their data using non-digital processes and 63% collect less than half their data using digital processes. Through our engagement with organisations in New Zealand and the UK, we have identified 10 factors that are critical to the success of digital transformation. Clear Business Objectives Before diving into the world of digital manufacturing, it is essential to establish clear business objectives. Whether the goal is to enhance operational efficiency, reduce costs, or accelerate time-to-market, having a well-defined purpose will guide the entire strategy. Understanding the unique challenges and opportunities of the organisation lays the foundation for a tailored and effective digital manufacturing approach. Data Management and Integration In the digital era, data is the lifeblood of manufacturing. Efficient data management and integration are critical components of a successful strategy. Organisations need to invest in robust systems that can collect, analyse, and leverage data from various sources such as sensors, machines, and enterprise software. This enables real-time decision-making, predictive maintenance, and improved overall visibility into the manufacturing process. Technology Infrastructure Building a strong technology infrastructure is essential for implementing digital manufacturing […]

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