Analysis

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 […]

Material World: The Six Raw Materials That Shape Modern Civilization

by Ed Conway Sand, salt, iron, copper, oil, and lithium. These fundamental materials have created empires, razed civilisations, and fed our ingenuity and greed for thousands of years. Without them, our modern world would not exist, and the battle to control them will determine our future. The fiber-optic cables that weave the World Wide Web, the copper veins of our electric grids, the silicon chips and lithium batteries that power our phones and cars: though it can feel like we now live in a weightless world of information—what Ed Conway calls “the ethereal world”—our twenty-first-century lives are still very much rooted in the material. In fact, we dug more stuff out of the earth in 2017 than in all of human history before 1950. For every ton of fossil fuels, we extract six tons of other materials, from sand to stone to wood to metal. And in Material World, Conway embarks on an epic journey across continents, cultures, and epochs to reveal the underpinnings of modern life on Earth—traveling from the sweltering depths of the deepest mine in Europe to spotless silicon chip factories in Taiwan to the eerie green pools where lithium originates. Material World is a celebration of the humans and the human networks, the miraculous processes and the little-known companies, that combine to turn raw materials into things of wonder. This is the story of human civilisation from an entirely new perspective: the ground up.

Productivity Works

I The year ahead, NZ Manufacturer will be following closely the policies of the new government and will, of course, invite the Minister for Manufacturing, Andrew Bayly, to share his thoughts and explain how New Zealand companies can enhance on their current situation for a brighter future. We invite readers to share their journey and methods they are using for efficiency and growth, leading to better business outcomes. We can talk about Productivity as much as we like…however, that talk needs to lead to action for change.

What is net zero?

Net zero is an ideal state where the amount of greenhouse gases (GHGs) released into the earth’s atmosphere is balanced by the amount of GHGs removed. Decarbonisation efforts are needed to reach net zero. If you follow sustainability and climate topics, you have probably heard the term net zero thrown around. Still puzzled? A net-zero gain of GHG in the atmosphere is achieved when the level of GHG emissions released into the atmosphere is equal to the amount removed. This is also referred to as carbon neutrality. CO2 is a gas found in the Earth’s atmosphere—and it’s part of the planet’s air, along with nitrogen, oxygen, methane, and other gases. CO2 helps to trap heat, but too much of it can cause problems, such as heat waves or flooding. It occurs both naturally and as a byproduct of human activities such as burning fossil fuels. All industries—not just the energy sector—must achieve net zero to avoid a permanently warmer planet. Read on to learn more about what net zero means, and how it can be achieved. What is decarbonisation? Decarbonisation is the mitigation, cessation, or reduction of carbon in the atmosphere. It is achieved by switching to energy sources or materials that emit less carbon, often from high carbon-emitting fossil fuels and by counteracting any carbon that is emitted. Keeping global warming to 1.5°C above preindustrial levels by limiting the buildup of atmospheric GHGs will be necessary to prevent permanent warming of the planet and catastrophic consequences. Those efforts are referred to as decarbonisation. Many companies, countries, and organisations have pledged to decarbonise, or to make the net-zero transition, in the coming years. The power, oil and gas, and transport industries are frequently cited as the biggest emitters, but all industries need to work toward decarbonisation to achieve net zero. Getting to net zero is most significant […]

Women in Business: Peri Drysdale

Tell readers what you do? I am the Founder/CEO of Untouched World Ltd, established in 1981 ( formerly called Snowy Peak Ltd). We are a sustainability focussed lifestyle company, we manufacture here in NZ (mostly in Christchurch); we design, develop, produce mainly knitwear but also woven clothing. We wholesale in NZ and Australia and in lesser amounts to seven countries around the world, sell online globally reaching over 49 countries, and have our own retail concept stores in NZ for the Untouched World brand. We also have our own café attached to the flagship store in Christchurch which has won best CHCH café for the last two years. We have the Merinomink brand too which is wholesale only. We are acknowledged for founding the highly successful possum merino industry in NZ. We won the Common Objective best global Sustainable Fashion Brand award this year ( there are 650,000 C.O. member brands worldwide) – ahead of Stella McCartney and Gucci who were also in the finals. We were the first fashion company in the world to be acknowledged by the UN for sustainability and invited to put the UNDESD logo in our clothing for the duration of the Decade for Sustainable Development. A lot of our materials for our knitwear, all natural fibres, come from within New Zealand, we buy most of our finest merino direct from Glenthorne Station in Canterbury. I also Chair the Untouched World Foundation which since 2002 concepts and runs Leadership for a Sustainable Future Programmes for Young Adults. We have now put 3000 students through these groundbreaking programmes. What other companies have you been involved with? I have been in this company since setting it up as a cottage industry in 1981. How are you finding current business conditions? 2023 has been a softer year for us and our […]

Navigating energy intensity and energy efficiency in manufacturing

-By Insa Errey In advanced manufacturing, the concepts of energy intensity and energy efficiency play crucial roles in influencing both operational costs and emissions profile. While both terms are interconnected, they represent distinct parts of energy management. Understanding these dynamics is crucial as businesses seek to balance production demands with the imperative of sustainable energy use. Energy Intensity in Manufacturing: A Measure of Production Impact Energy intensity is a measure of the energy consumed per unit of output, such as the energy required to produce a certain quantity of goods. Typically expressed in terms of energy units per unit of physical output. Energy intensity provides insight into the overall energy consumption patterns within a manufacturing facility. High energy intensity in manufacturing suggests that significant energy resources are being used to manufacture a product. High energy intensive processes may use a disproportionate amount of energy to achieve their production goals, signalling inefficiencies that can impact both costs and emissions. On the other hand, low energy intensity indicates a more efficient use of energy resources. Trending this even monthly will enable visibility of process operations, signalling if processes are running differently and have shifted. Energy Efficiency: Improving Manufacturing Practices Energy efficiency, on the other hand, focuses on optimising the utilisation of energy inputs to maximise output. It is the ratio of useful energy out to the total energy in. In manufacturing, energy efficiency measures the effectiveness of processes in converting energy resources into final products, emphasizing the opportunities to reduce loss and waste. Energy efficiency in manufacturing involves optimising processes and technologies to minimise energy consumption while maintaining or enhancing productivity. Improving energy efficiency in this context includes adopting advanced machinery, implementing effective energy management systems, and embracing best practices. Often invest is required such as conducting energy audits, energy transition plans […]

2023 – The Year in Review

-Adam Sharman, Senior Partner, Dsifer For many New Zealand organisations, 2023 has been a year of navigating multiple headwinds, including increased cost of materials driven by exchange rate pressure and high levels of inflation, weakening demand from China as their domestic economy slows, and weakening consumer demand in some sectors. All of which has seen the NZ manufacturing sector contract across 2023. These challenges appear to have been particularly acute across the food processing sectors. Staffing continues to be a challenge for New Zealand manufacturers, particularly in the operational workforce. However, we are starting to see an easing in the market and, as the number of jobs being advertised drops and the number of applicants per job advert increase organisations are finding it easier to attract talent. There is a paradox to this however, as our clients frequently report that staff absenteeism is one of their biggest challenges and has a major impact on their ability to achieve potential performance. It is not all doom and gloom, however, and 2023 has been another standout year for New Zealand organisations in terms of innovation, creativity, and growth. In particular, developments in aerospace, agritech and health tech have seen Kiwi companies make significant impacts on the world stage as New Zealand continues to be recognised for its innovation in these areas. Increasingly, we are working with organisations who have recognised that security is a strategic asset for New Zealand and our organisation, and we have seen multiple examples of New Zealand based organisations winning work away from Asia, due to their ability to provide products that are trusted as secure. This is particularly true in the electrical component manufacturing sector, as for example, European car producers are willing to pay a premium for data security in the manufacture of their components. New […]

Is 2024 “the” year?

-Ian Walsh, Partner, Argon & Co I was reflecting, as you do at this time of year, on what were the highlights and key achievements of 2023. The key highlight is primarily that supply chains are starting to settle down, business is starting to return to normal, and we are starting to see some positivity. This has been a slow hard grind, and the job is not done. The recovery has been slower than expected, exacerbated by extreme weather events, a cost-of-living crisis, a labour shortfall as we ramped up and the gates were not open, and Kiwis leaving on their OE. Net a myriad of never-ending obstacles to overcome. In addition, many businesses learned in 2022 and 2023 just how fragile their supply chains were and how dependent NZ is on shipping lines. Many have and are investing in additional warehousing to buffer their supply chains and many products that have been offshored are suddenly viable, in this new light, to be manufactured locally. The research continues to reflect our slide down the OECD with the grim reality that we are 30-40% less productive than our nearest neighbours and key trading partners and significantly worse versus the Irish and Scandinavian countries. While this may seem remote, it is a key indicator of our future economic prosperity and ability to keep pace, retain talent, and provide the lifestyles and outcomes we desire for our children and future generations. So, given all this, here are my top 5 drivers for 2024: The labour crunch will continue, and many businesses are leveraged so capital options may not be as attractive or possible. This will drive a few key initiatives. Supply chain fragility will continue to drive boards to look at business continuity planning and risk mitigation strategies. Procurement and strategic sourcing will […]

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