Analysis

Adapt or Perish?

-Ian Walsh, Argon & Co In these challenging times it’s useful to refer back to the lessons of the past to help navigate the future. Charles Darwin, considered to be ‘the father of evolution’, proposed the theory that a species’ survival was dependent on that species having adapted favourable traits to thrive in their natural environment. This theory is sometimes referred to as survival of the fittest. I’d argue this theory holds true in the business world too. In order to survive you have to adapt to your environment. Those that can adapt thrive and grow. Those that cannot perish, and are replaced by competitors more suited to the environment they find themselves in. The ability to adapt in the business world however, is not some random genetic mutation ability bestowed from the gods, but rather it is a competitive advantage: a set of practices and skills which better companies embed into their “DNA”. The average lifespan of a Fortune 500 company has fallen by 80% in the last 80 years from 67 years to 15 years, similar statistics in the UK. Of those companies with over 100 years, there are some common charactieristics: Stable purpose Servant leaders/stewardship Succession planning Embrace change and new ideas, open to sharing Continuous improvement in all things they do, learn from the best always Teamwork and change willingness through planned disruption Deeply embedded systems and processes to embody their “DNA” If you have these attributes built into your company then you should be able to adapt and survive. At this point, it’s important to not confuse adaptation with agility. Adaptation is a response, adjusting your business and processes to meet your customer needs in a changing world. It’s strategic, systemic, and embedded into the way your business operates. Agility is reactive, like a carpenter […]

Embracing equity for women in STEM

This year’s International Women’s Day (IWD), celebrated on 8 March, follows the theme of “embracing equity” — focusing on giving fair opportunities for everyone to succeed. This is not a New Zealand, or Australian story, nor a South East Asian story, it is a world story, showing the common thread going around the world. If you are wanting to be profiled – like Helen Blomqvist – get in touch publisher@xtra.co.nz An example of a business invested in its people is Sandvik Coromant and the experience of their President, Helen Blomqvist. One of IWD’s key missions is to forge inclusive work cultures where women’s careers thrive and their achievements are celebrated. This year, the campaign centres around equity and how providing equal opportunities is no longer enough. So how do we achieve equity? At Sandvik Coromant, the number of females in functional management roles currently sits at 43%. This is above the estimated industry average, which is considered to be 38%, according to the Chartered Management Institute (CMI). However, if we’re to look across the manufacturing industry, it’s clear there’s still a lot to be done to truly achieve equity. A recent report by the Manufacturing Institute found that females make up just 29% of the manufacturing workforce. Staggeringly, it also finds that 63% of women struggling to get into the field face challenges due to the sector’s lack of flexibility and almost half are deterred due to childcare issues, compared to just 8% of males. It seems, therefore, that females wanting to succeed in the manufacturing industry still face challenges that rarely affect their male counterparts. If the industry is to truly reach equity, it must be aware of the unconscious bias certain groups face and find ways of managing that bias. But first, businesses must realise that hiring diversly […]

The Interview: Caroline Su, quantity surveyor

Share what you actually do? I came to New Zealand as an international student and am currently a quantity surveyor at Bettabuilt, which is part of the Brosnan Construction Group of companies. I am working closely with the project team and key project stakeholders, managing the carpentry contract from project commencement through to completion. My duties and responsibilities include, but are not limited to, assessing payment claims and variations, enforcing adherence to contractual terms and risk management. I also manage relationships with clients, main contractors, and key project stakeholders, along with the project team to ensure all financial deliverable and outcomes are achieved. What drew you to your profession? I came to NZ just after the 2011 Christchurch Earthquake. The first time I went to the town centre I saw lots of damaged buildings and containers, hoardings and safety nets everywhere. Which potentially brought my interest in construction and thoughts of rebuilding Christchurch. Is this a field many women are working in? There were not many, but now there are more! I remember when I first became an intern I was asked if I minded being the only female in the office. That was in 2017-ish. Now, in my office, we have nearly half females and the percentage is increasing! How do you enjoy your work? My day to day work is not just using the construction knowledge that I have learned, we also have a lot happening on site every minute. I enjoy problem solving every day, which brings the joy of success. Is there a specific project you have enjoyed being part of? I am quietly enjoying my current project: UC Psychology Staff Building Refurbishment. How do you deal with issues like climate change…and what needs to be considered for the future? For construction, climate change will possibly affect […]

Net-zero steel in building and construction: The way forward

As the world transitions to lower greenhouse-gas emissions, construction companies have a major role to play. In making the green buildings of the future, they have a chance to tap into demand that spans geographies and architectures. Indeed, greener business models are potential magnets for trillions of dollars earmarked for sustainable investment. In addition, companies that adapt effectively will ensure they are aligned with an increasingly stringent regulatory agenda. The decisions made by construction executives now will determine how they are positioned for the transition over the coming decade. Those that prepare astutely are likely to seek out emerging pockets of innovation and dial up investment in sustainable technologies and capabilities. To be sure, new materials such as green steel are more expensive, and will therefore demand a new pricing model. However, they can significantly reduce embodied carbon—in commercial buildings by as much as 70 percent by 2030. Amid tight industry margins, a priority for decision makers will be to ensure that there is a solid business case for change. The key in that regard will be to establish market position, while adjusting to a new cost base. They must also ensure that greener business models are aligned with demand that will rise at an uncertain pace over time. A tricky calculation is required, but the prize is a chance to get ahead in a market that is set for a potentially rewarding future. Construction industry emissions From houses to bridges, hospitals, and skyscrapers, the construction industry is responsible for approximately 25 percent of global greenhouse-gas emissions. A third of these are associated with materials and the construction process, or so-called “embodied carbon.” One reason for the industry’s high emissions is that it is a voracious consumer of steel, accounting for more than 50 percent of global demand.2Due to the energy required for its […]

Decarbonising steelmaking

This article, one of many NZ Manufacturer will be sharing on the subject, comes as a result of conversations with companies in the steel industry who require information on decarbonising steel and steelmaking. Seventy five percent of steel is made from high-emissions plants Nearly three-quarters of crude steel today is made from iron ore in blast furnace–basic oxygen furnace (BF-BOF) plants. These plants release carbon when coking coal is burned and used as a reducing agent. One key decarbonisation action could be to replace blast furnaces with electric arc furnaces fed by scrap and/or H2-DRI; powering EAFs with 100 percent carbon-neutral electricity would eliminate energy-related emissions. Moving to low-emissions production would require $4.4 trillion spending over the next 30 years, with the top end spend coming between 2030 and 2040. In this scenario, three-quarters of investment will likely be on new hydrogen-powered DRI-EAF plants, and the rest to equip existing BF-BOF plants with CCS. Thirty percent increase in unit production costs for steel Costs for steel in the net-zero scenario could increase because of up-front capital spending and higher operating costs associated with CCS and hydrogen-based DRI-EAF production. Market opportunities The shift toward net-zero steel production would likely depend on a collaborative effort among regulators, governments, and industry stakeholders to change the economics of production, facilitate access to required capital, and stimulate demand. First movers that manage the transition risks well stand to gain the most. Sixty five percent of steel will come from plants with electric arc furnaces in 2050 and there will be a ten percent increase in global demand for steel compared with today. Getting all the way to net-zero steel Recent developments in regulations, along with commitment among some governments to reduce CO₂ emissions, have led many steelmakers to set high decarbonisation goals in coming years. While […]

Regulated product stewardship driving transition to a circular economy

By Trevor Tutt – GM Innovation, 3R Group Something which will affect almost all New Zealand businesses has mostly flown under the radar since it was announced during the covid pandemic. A swath of products are set to fall under regulated product stewardship for the first time in New Zealand after they were announced as priority products in July 2020. This means, for the first time in Aotearoa New Zealand, regulated product stewardship schemes are being established for tyres, electronic waste, single-use plastic packaging, synthetic refrigerant gases, agricultural plastics, and agrichemicals. So, if you rely on refrigeration, transport, electronics, or plastic packaging for your goods, you may be affected. It’s a big range of products, with more likely to be announced following government consultation on ways to accelerate product stewardship in new waste legislation. What is regulated stewardship? Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of. This usually means a stewardship fee is charged at the point of manufacture or import and is used by a scheme to achieve better environmental outcomes. The pay-off is improved environmental performance and brand reputation, as well as reduced risk from environmental harm. New Zealand has several voluntary stewardship schemes where participation is just as the name suggests – voluntary. These can suffer from limitations due to insufficient data and resources, and free riders – those who don’t contribute but whose products are stewarded through the scheme. Regulated stewardship sees all of industry required to participate. This provides a level playing field with no free riders. Schemes are therefore better resourced financially and through industry support such as knowledge sharing and collaboration. Data capture is also greatly improved. Regulated schemes are better equipped to reduce […]

EMA & Industry 4.0: Company Profile -RML

RML has been providing high-performance innovative robotic and automation solutions to their customers for the past 40 years. From robotic automation systems, cartoning, case packing, conveyor solutions, custom assembly, palletising, lidders, closers and components. RML has worked with large and small production lines throughout New Zealand and Australia. Problem or Opportunity As a machine builder, RML have identified key issues which were stopping their customers from maximising the value of their investments. Primarily, it was difficult to be connected to machines from outside of the customers’ plant. This led to site visits being required to provide customer support and delivering upgrades that increased customers productivity. The lack of network connectivity also meant that machines were generally standalone, with limited integration with the customers business systems, thus not delivering the performance data to the teams that are. The Solution RML identified that current PLC technology is great for controlling plant, but is lacking in the ability to fully control machines and harness the full potential of Industry 4.0. To make their products Industry 4.0 ready, RML moved to using Industrial Controllers (IC’s) about six years ago. IC’s are similar to a Windows computer. They have the ability to run real-time control and allow a suite of additional programs to be installed, beyond simple machine controls. This has also helped them bridge the common access or security issues which machine builders face with PLCs. Using IC’s, it is now easier to support customers in real-time while ensuring security needs are met. The IC’s allow for the remote adjustment of settings to help when troubleshooting, allowing remote support and troubleshooting, and allowing RML to train new operators online. This ensures machines are back up and running quickly, effectively maximising production. Also of benefit is the ability to collect real-time data using the PLC […]

Editorial February issue NZ Manufacturer: Productivity

Aren’t you sick of talking about it? However, I do need to ask “Is your company highly productive, or not productive enough?” We need to talk about it – not in a “we need to talk about Kevin way” – because Productivity is front and centre for all the country needs, and stands for, to get ahead. Let’s be clear, there are plenty of companies hugely invested in the technology and specialist staff to enhance their Productivity. And then there are those, unsure of the investment, unsure of return on investment. Too small to fail, too concerned to move ahead. Overcoming this fear can put the world at their feet. The drive to place Productivity ‘front and centre’ is very much in the mission statement, of such organisations as EMA and HERA, and forward thinker Ian Walsh of Argon. These are all deeply committed to Industry 4.0 and assisting their members and clients to move forward with better tools and outcomes for the future. The crises that have affected New Zealand’s business momentum over recent years are numerous – the Christchurch earthquake, the terrorist attack, climate change and the war in Ukraine. Supply chain issues, inflation and the relentless search for qualified staff to keep moving business forward. Whenever money is needed for flood relief or a crisis, there is a scramble to find it. Whatever party is in power does not solve the reality: money will always be tight. We are a nation that does well with Productivity in a crisis, when we need to clean-up. It is not a financial return! Work with the specialists and experts who can assist move your company forward. If you need to form a conglomerate to share equipment and resources, do it. Do not get left behind without the technology and skilled […]

A story of transformation

Long-standing East Tamaki business, Facteon, is a world leader in planning and building intelligent factories for the internet age. The genesis Facteon’s story begins 40 years ago as the internal engineering divisional capability of Fisher & Paykel Appliances. At the time, New Zealand and manufacturing in general were in a very different place. Fisher & Paykel, by global standards, was a relatively small appliance provider and had a diverse range of markets which required small batch sizes and a wide variety of products. To achieve this, they needed a more flexible approach to manufacturing. The equipment and systems suited to this were not easily purchased then, so Fisher & Paykel Appliances decided to establish their own division of experts, Fisher & Paykel Production Machinery. Over the years, the company became very specialised in appliance lines as well as work in other industries. This work was varied and included such projects as alloy wheel production lines for Ford’s New Zealand factory, building materials and production lines for roof tiles, and even the machinery for pulp thermoforming which is used to make fruit trays and egg cartons. In 2012, Haier Group purchased Fisher & Paykel Appliances, acquiring the Facteon business in the process. During the initial years of the relationship, Facteon and Haier worked together to improve the performance of Haier’s manufacturing function, with a particular focus on automated welding and production lines. In 2018 Haier Group was looking to set up a much wider Industrial Intelligence Division and Facteon became a cornerstone of that group amongst other Haier robotics and software companies. This was the birth of the Facteon brand. The company wanted a name that signified automation and connectivity for Industry 4.0 and didn’t want any confusion with appliances. “We have been here for such a long time that it […]

How good is your productivity?

-Ian Walsh, Partner, Argon & Co ANZ As I have covered previously, New Zealand’s GDP has been declining relative to other OECD countries for over 40 years, sitting at 21st out of 38 countries as of 2021. This concerning situation affects our quality of life, our ability to invest and the provision of the services and amenities we have come to expect. The root causes for this have been provided over many years: geographical separation, access to capital and, of course, productivity. To quote American economist Paul Krugman, ‘productivity isn’t everything, but in the long run, it’s almost everything’. We currently lag significantly behind many OECD countries in output and hours worked. It is simply not possible to work more hours. We are now in a tight labour market, with lack of skills and availability of resources and rising wages as a result and we can no longer rely on the number 8 wire, she’ll be right and just harden up attitude. To keep up with the Irish we would need an extra 10 hours a day! This is our climate change moment. The house is burning and throwing a bucket of water at it won’t fix it. A frontier study comparing us to similar countries in size and scale, and allowing for the geographic differences, found that the key shortfalls are: Industry, government and research/university collaboration Focus on key sectors which there is a natural advantage or capability Support through appropriate technology and capital investment Development of human capital through training, mentoring and adoption of best practices The outcome of having these things has been outstanding performance for Scandinavian countries, Singapore, Ireland and Denmark, amongst others. By contrast, in NZ we have: Underinvested in capital, as it is easier to use flexible labour and avoid the spend Underinvested in […]

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