Analysis

Additive Manufacturing: Re-thinking how we use materials in a circular economy

By Dr. Jim Goddin, Technical Director of Circular Economy at thinkstep-anz. The circular economy presents a more economically sustainable and lower-risk alternative to the highly wasteful, linear, take-make-dispose economy. The regenerative model proposed by the circular economy shows that when the things we make are designed to last, their economic value can be recovered for the benefit of the business. If delivered well, the circular economy can also provide significant environmental and social benefits. The circular economy presents key opportunities for products that rely on advanced manufacturing processes such as Additive Manufacturing. Additive Manufacturing (AM) — sometimes called 3D printing or near-net-shape manufacturing — is the process of building a part layer by layer through selectively fusing (or sintering) the material using a laser or electron beam. This layer-wise process delivers design freedoms that are unavailable in more traditional manufacturing techniques. World-leading AM collaborations are incorporating Life Cycle Assessment principles when developing AM processes and parts, including the €18M (NZD $30M) AMAZE project — Europe’s largest and most ambitious metal additive manufacturing research project. Many AM projects also have a strong focus on resource efficiency. Metrics, such as the Material Circularity Indicator (MCI), enable us to gauge resource efficiency and in turn, quantify how circular products are. How then might AM be promoted based on circularity? Recovering manufacturing value in a circular economy The circular economy is estimated to represent a $NZD $7.5T global economic opportunity. This massive economic value stems from the reduction of supply risks and the recovery of value that is currently lost through products which are designed inefficiently, under-utilised, or which otherwise go to waste. Recovering materials through recycling is a prominent part of the circular economy and serves an essential purpose in reducing waste. However, recovering raw material value only accounts for a tiny portion […]

Why haven’t construction companies demonstrated any notable improvement over the last 20-30 years?

-Stephanie Pretorius, Intent Group Globally, labour-productivity growth in construction has averaged only 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the case of manufacturing. McKinsey Report – Reinventing Construction through a productivity revolution.https://www.mckinsey.com/business-functions/operations/our-insights/reinventing-construction-through-a-productivity-revolution The construction industry has been quite resilient to the continuous improvement philosophy that has made large inroads in manufacturing. The pattern that emerged from the McKinsey report of lagging construction productivity will continue until the industry takes productivity improvement seriously. The industry cannot keep growing the way it is with more resources being tipped in to create poor or suboptimal outcomes, often for all of the parties involved. Striving to be the best is a wide-open field in construction and is going to generate huge opportunities for those who take action in coming years. What are the impacts if construction don’t make a significant change? The costs of an inefficient construction sector are already becoming more burdensome, for all parties including society in general. Poor planning processes create and enable disruption which affects large communities. The workforce who are working in an environment that accepts poor performance and is inefficient, or doing things because they have always been done that way, creates a workforce that is not engaged and not able to perform at their best. Infrastructure is not on time to meet the needs of the population. Value add delivery is constrained by mis-aligned processes, inadequate contracts and dysfunctional organisational relationships. Sub-contractors struggle to survive. The project mentality of ‘just get it done and move on to the next project’ means an ongoing cycle of reliving the same performance – different projects; the same issues. Why is the sector so resistant to improvement? From procurement through to planning and delivery, […]

Is NZ’s Covid response world class?

By Ian Walsh, Managing Director, Intent Group Limited The re-emergence of Covid-19 in our community has got me thinking, as I am sure it has many of you. Of course, our normal reaction is to leap to solutions to ‘solve’ or eliminate the problem we’re facing, including measures such as shutting the borders, denying travel and so on. Upon reflection, I’m certain we are thinking the wrong way about how we manage returning New Zealanders. Is it our objective to fill the available managed isolation capacity to maximise the number of people per capita returning? If so, we’re probably succeeding. Great! We’re truly world class. But, if our objective is to ensure that everyone who leaves managed isolation is COVID free, then we’re not so successful. There is a significant difference between a world class mindset and the ‘also-rans’. A world class company identifies its core objective and aligns all systems and processes to achieve this objective. Inputs, variables and outputs are measured and anything impacting the goal is eliminated. All leading indicators of failure are addressed. A great example which springs to mind is Alcoa. Paul O’Neil changed the focus of the organisation from output, to safety, with a goal of zero incidents. He was relentless in leading this approach and transforming the organisation, and achieved outstanding safety improvements and exceptional business outcomes, as a result. This leadership lesson is inspirational. I had the privilege of visiting Alcoa’s centre of excellence in Davenport, Iowa, a few years ago, and their culture of safety clearly underpinned everything. It still does. We can think of managed isolation as a processing facility very similar to a manufacturing or processing plant. The goal is not to maximise capacity, but to deliver quality (by being COVID free). If you were producing food, let’s say […]

When EMEX 2021 comes to town

-Doug Green, Publisher, NZ Manufacturer In the 1860’s – way back then – New Zealand entered the world market as a trader, primarily through the agricultural sector. Growing things. Since that time, a lot has happened. Now, in 2021, we are celebrating the 40th anniversary of EMEX, the prime manufacturing trade fair in New Zealand being held at ASB Showgrounds, Geenlane from 15-17 February. Over those 40 years New Zealand manufacturers have appeared at the show all with enduring stories of success to share. These include Addington Engineering, Tait Electronics, Buckley Systems, Gallagher Engineering, Fletcher Steel, Brown Brothers Engineering, A & Price. Suppliers of equipment such as Techspan, Enerpac, Weldwell, Total CNC, Lucas Machinery, Tasman Machinery, Chevpac Machinery. Industry support has come from Callaghan Innovation, HERA, The Manufacturers Network, MBIE, EMA and the Chamber network. All groups working with the shared passion of making business better for their members. Exhibitors have come from Australia, Asia, Europe and the United States. Trade representatives from countries such as Australia, Germany and China work closely with XPO Exhibitions Ltd to share information and provide opportunities for trade between their countries. The strength of EMEX – apart from the enduring support of manufacturers and suppliers – is also seen in the speaker series which provide valuable insights and discussion into trends in the marketplace, regulations and assistance for manufacturers, forward thinking and vision- building pictures for the future (and direction) of manufacturing in New Zealand. And, of course, to inspire aspiration. In these times of the virus, we look at the future of manufacturing and what it means for a country like New Zealand, parked just above Antarctica and Stewart Island. It is essential that manufacturers, suppliers, decisionmakers have an EMEX to focus on, make business connections and working together to build on the […]

Where are the world class leaders?

For more than three decades, Ian Walsh, Managing Director of Intent Group, has been driving improvements in organisations around the globe. Ian understands deeply what is required to deliver and sustain improvement. Here he shares his thoughts on what New Zealanders can do to recover from the impacts of the Covid-19 pandemic. The media coverage of recent elections, and their results both here and overseas, have given us a fascinating exposition on leadership, with starkly different approaches as to how to manage Covid-19 and the changes required to get on top of this pandemic. In my experience, no change initiative can succeed without strong leadership. Great leaders articulate a compelling vision and provide a road map to define the way forward. They create coalitions of key people aligned with the same purpose (think JFK – where are we going?… Moon. When by?… End of the decade). They role model the behaviours. This is very Mahatma Gandhi – become the change you envision. When things are bad, they take responsibility. When things are good, they praise their team. They encourage everyone to participate and contribute without blame or fear. In doing so, they create a learning culture that sustains well beyond their tenure. Selfless, long-term thinking. During the 1990’s I had the privilege of working with Kimberley Clark in the USA. In the book ‘Good to Great’ by Jim Collins, Kimberley Clark was one of only eleven Fortune 500 companies to have achieved year on year growth for over ten years. During Darwin E. Smith’s twenty-year tenure through to the early 1990’s, the stock price increased from $5 to nearly $40. He created a compelling vision to move from paper mills into commodity paper, with brands such as Kleenex and Huggies, and to take on Scott Paper (who they eventually purchased) […]

Manufacturing in the age of sustainability

For companies to be truly sustainable, they not only need to limit the impact of the manufacturing process but create products that benefit society, writes Iain Hosie. Globally, the heat is on companies to continue to reduce waste and prioritise sustainability when developing or manufacturing products. Constantly fine-tuning processes and researching new, environmentally friendly methods is essential to making this change happen. So, using safer, less toxic solvents, or monitoring and changing production processes to reduce the amount of waste going to landfill, is great. But as a manufacturer, there is more to sustainability than being clean, green, and doing your bit for climate change. Key to being a sustainable business is creating a range of products and applications that make a difference in society – while also working to limit its impact on the planet. Companies and manufacturers also have an opportunity to influence and encourage sustainable customer behaviour through the way they design and produce their products. This needs to be an increasingly important consideration for manufacturers if they want to be taken seriously in the sustainability stakes. Take the unique technology behind Revolution Fibres’ nanofibre skincare product, ActivLayr, which uses collagen to deliver natural actives deep into the skin. This is in stark contrast to the excessive amount of chemicals found in traditional creams and serums. ActivLayr technology also has strong potential beyond the skincare industry. With the ability for different ingredients to be added to the ActivLayr formula it could one day enable a controlled drug dose to be delivered to a patient for more effective and efficient treatment. The beauty of nanofibre – a class of textile made from superfine fibres 1/500th the width of a human hair which can create vast changes in strength, reactivity, and absorbency – is that it can be used […]

Interview – Karen Swainson

Karen is Operations Manager for Mindful Money, a charitable social enterprise established in 2018. Mindful Money aims to make money a force for good. The current focus is on empowering members of the public to choose a KiwiSaver fund and/or investment fund that aligns with their values. Why do you do what you do? How long have you been doing it? I am committed to working towards an environmentally sustainable and socially just future, and one of the most effective ways of doing that, is by changing the flow of money. After all, money makes the world go round! Finance underpins all the solutions we need to create a future with a resilient economy where we can live in harmony with the planet and provide everyone with what they need to live a healthy, dignified life. So, when I heard about Mindful Money, I knew I wanted to be involved. My background is in project management, encompassing both IT and behaviour change, and I thrive on the challenge of small business and start-ups. I got involved with Mindful Money prior to the launch of the website, in early 2019, and I love the variety of my role – from finance and HR, to project managing the website and presenting to corporates about what we do. When I graduated with a maths degree 20+ years ago I swore I wouldn’t work in finance, but it’s managed to lure me in through the back door by appealing to my values! How are you finding current business conditions? It’s been a year of demonstrating adaptability for us, like so many businesses. With Covid came the market downturn, which put the brakes on anyone wanting to move their KiwiSaver. Our main source of income, through the referral fees we receive when people switch to […]

Timing wrong for minimum wage rise

The EMA says the long-planned minimum wage increase to $20 per hour is coming at precisely the wrong time for some of its members and many other New Zealand businesses. “Not raising the minimum wage was the second most requested change the government could make to assist business in the current environment in our just completed annual member survey,” says Chief Executive Brett O’Riley. “But you also have to look at the cumulative costs being applied to many struggling businesses with an additional five days of sick leave also planned for next year and another public holiday being floated. These additional costs are coming at precisely the wrong time with many businesses still just hanging on and many predictions suggesting the most uncertain period for business will be in the first quarter of 2021.” The EMA’s survey also found 82 per cent of its members would suffer impacts from the additional sick leave. “It’s encouraging that the economy is doing much better than expected but that doesn’t hide the fact we are not doing as well as we would like, and debt levels are soaring. Sectors such as tourism and accommodation are heading into a period where 70 to 80 per cent of their customers aren’t going to turn up because our borders remain firmly shut to them and to the large cohort of export dollar-generating international students.” Mr O’Riley says the EMA would rather work with Government, the unions, and businesses on improving productivity, and increasing skills in the workforce as a pathway to raising wages. “Simply raising wages does not improve productivity. As it is now, we’re aware of members who are not hiring younger people or who are choosing other options as minimum wage increases make the case for further automation at the expense of hiring people. […]

NZ economy better than expected

The BusinessNZ Planning Forecast for the December 2020 quarter shows the economy in better shape than expected following Covid-19’s massive hit mid-year. It shows a bounce-back after the 11 percent GDP drop over the June quarter, suggesting a V-shaped rather than a more prolonged U-shaped recovery. Today’s figures from StatsNZ show GDP rebounding 14 percent in the September 2020 quarter, the strongest quarterly GDP growth on record in New Zealand. The BusinessNZ Economic Conditions Index now sits at 10 for the December 2020 quarter, up 2 on the previous quarter and up 6 on a year ago. BusinessNZ Chief Executive Kirk Hope said the huge fiscal stimulus package of around $50 billion has cushioned some of the worst impacts of Covid-19, and the continued monetary stimulus package – around $100 billion of quantitative easing, the slashing of the OCR and the introduction of the Reserve Bank’s $28 billion Funding for Lending programme – should ensure businesses and households can continue to borrow to support growth. “New Zealand continues to face risks – including rising debt levels, inflated housing values and an ongoing regulatory burden – but new signs of economic growth and recovery are most welcome,” Mr Hope said. The BusinessNZ Economic Conditions Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, and business and consumer confidence. The BusinessNZ Planning Forecast for the December 2020 quarter is on www.businessnz.org.nz

Industry 4.0 Adaption to NZ Industry

Dr Mike Edmondson, Founder, Edge Robotics and Automation Ltd One thing I commonly find is the lack of widespread direction and grasping of “Industry 4.0” benefits in the context of NZ industry. The rapidly changing world is hard enough for technical experts, let alone for manufacturers to filter and identify how to use this potential. The drive for improvement from manufacturers and wider industries is certainly present and has been growing with the push from COVID. Here are three topics for our industry, with the hype removed and practical opportunities we could apply: Robotic Automation It is particularly surprising how big a disconnect there is between your typical production manager or GM and the actual costs and capability of robotic systems. Enquirers are often surprised at the modern cost of purchasing industrial robots let alone the opportunities offered with current state-of the-art. The total economics become even more prevalent when an integrator has the innovation skills to take a robot centric approach. This allows you to capture all the additional indirect benefits such as flexibility and reducing both the capital and operating costs. NZ has a great history of successful innovation and leading the world, however, part of the very fabric of that innovation mindset tends to hurt in scaling. Often, we do not value our time or get side-tracked away from our core business trying to reinvent the wheel. Industrial Robots are an easy way to scale and are highly advanced, flexible mass-produced units that come off a production line with 60 odd years of refinement. Leading brands have reliability statistics of 7+years between failure and depending upon the chosen manufacture local factory support. Then you factor in the indirect benefits such as being able to repurpose and reduce complexity of an overall system. The flexibility of robotics […]

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