Analysis

New Zealand in the grip of a major skills shortage (With a wide range of industries struggling to fill key roles.)

-editorial, April issue NZ Manufacturer. www.nzmanufacturer.co.nz This from the Lead Article (Page 1) by David Downs, Chairman of the High-Tech Trust. And now Trans-Tasman flights have resumed, we are in danger of losing people with key skills which piles on more pressure. Overseas fruit pickers who have been here since last year now have a way of leaving us behind and going offshore to Australia, which has suffered shortages just as we have. This issue is addressed by Ian Walsh in his article in Business News (Page 7) “over the last few months, we’ve been made aware of the impending crisis in the horticultural sector – a crushing volume of produce languishing on the vine (or branch) due to a shortage of pickers.” Can you imagine putting all your energy, labour, fertiliser, sprays, pruning and thinning practices over a whole year and then watching helplessly as some, or even worse, most of your crop ends up as worm food? What an incredible waste, and yet this is what the industry has faced. David Downs is particularly concerned for the large part of our population cut off from training and upskilling, at a time when we have a matched skills shortage of 5,000 jobs in the digital tech space, with similar shortages showing up across the advanced manufacturing sector. Post-Covid-19 we need access to the widest set of skills we can, to transform our country and maximise the country’s potential. D & H Steel managing director, Wayne Carson in Company Profile (Page 5) says his company had to change its recruitment model, which combined some local training with sourcing skilled staff from offshore. The company is now even more firmly focused on its apprenticeship training programme and upskilling local people. “It is extremely hard to find the right people, so we […]

Asmuss talks to NZ Manufacturer

Interview with Dean Brown, CEO of Asmuss Steel & Flow Control What does your business do? Asmuss Steel and Flow Control supplies steel and flow control products to some of New Zealand’s biggest infrastructure and construction projects; Asmuss Steel supplies the construction and manufacturing industry through to a large array of Civil projects. Our dedicated team are adept at providing solutions in what is regularly a demanding environment, requiring tight lead times, material integrity and competitive pricing. Steel is procured from the most reputable mills around the world, to certify product quality and traceability. Asmuss Flow Control supplies to the water and wastewater industry; supporting water distribution, pump stations, treatment plants, reservoirs and irrigation, and to the industrial field; supplying to chemical processing sites, power and energy generation, pulp and paper, oil and gas sites. The Flow Control side of the business also supplies to the building industry for heating, ventilation, and air conditioning, siphonic, sanitary, trade waste, chemical waste and fire protection. Every day we live out our purpose to create a stronger New Zealand by helping our customers, communities and people succeed. How long has Asmuss been in business? Asmuss is a 100 percent New Zealand-owned business, founded by H J Asmuss in 1920. It is one of the largest privately-owned companies in its field. Family-owned for four generations, with the fourth generation of Asmuss family members now shareholders in the business, the Asmuss family continue what their predecessors did – directing profits back into the business, making smart acquisitions and supporting the NZ economy. Asmuss is one of the few companies in New Zealand that holds such an intergenerational legacy and has stayed loyal to what it means to be a New Zealand owned and operated company. In 2020 we marked 100 years in business, however due […]

Northland students embrace online learning

Launch of Kiwi Can Online proves vital to Covid19 response In the world of grownups engagement is critical to getting the most out of people. It provides organisations with understanding around what they can do to support workers in their mahi. It ensures consistency of effort and job satisfaction among other outcomes. As it turns out, reality isn’t too different in the world of our tamariki. When Covid19 sent schools into lockdown, keeping students motivated and their learning morale high much resembled the challenges workplaces faced. Remote learning required whānau, educators, community organisations and businesses to step up. Enter Kiwi Can Online, which the Graeme Dingle Foundation launched in 2017 with support from Moana New Zealand. Kiwi Can’s preferred delivery method of kanohi ki te kanohi (face to face) isn’t always feasible in schools located in more remote areas. The online learning portal was created to meet the needs of these tamariki. It now helps 961 students across 11 Northland schools and many more around Aotearoa. Kiwi Can promotes life skills, values and learning programmes which are about respect, resilience and fun. Tracy Walker, Graeme Dingle Foundation Regional Manager – Far North, says during lockdown focus shifted quickly to online delivery. “We rolled out weekly activity sheets and filmed video lessons around the theme of resilience, then sent these out to schools to include in online classroom platforms. Taipa Area School loved having online Zoom lessons during level two when we were unable to run Kiwi Can in person.” The success of Kiwi Can Online has led to innovation in how the Foundation’s programmes are delivered not only in schools but also within local communities to a wider range of age groups. One example is Stars, targeted at students aged between 13-18. Recent reports from the Education Review Office showed […]

Sustainability tools for a circular economy

By Barbara Nebel and Caroline Noordijk, thinkstep-anz The business value of sustainability is well-known today, but the value of a circular economy is perhaps still less known and certainly less understood. Businesses can build resiliency against the volatility of raw material prices, supply chain risks, and changing legislation by creating circular products and services and moving towards a circular business model. The aim of the game is to move away from a linear economy to a circular one that ‘designs out’ waste and pollution — keeping materials in a continuous flow. A circular economy is designed to be restorative and regenerative. Following the strategic framework for a circular economy forces you to consider not just the impact of the product itself, but also the service it provides, the supply chain that enables that service, and even the broader economic, environmental, and social impacts of the whole system. Transforming the concept of circular economy into action can be achieved with help of circularity tools such as the Material Circularity Indicator (MCI), and complementary life cycle based approaches, including: Life Cycle Assessments (LCA) Cradle to Cradle (C2C) Environmental Product Declarations (EPDs). There are many tools and many approaches to assess the sustainability of your products — it can be overwhelming to know where to start. The good news is that many of the methods and tools out there are related and often inform each other. Fit for purpose — strategy first Before you engage with any of these methods or tools, it’s important to set out your objectives and have a sustainability strategy in place. Understanding what is important to your business and to your stakeholders is critical. You also need to think about what sustainability issues might affect your business and what your greatest risks are. This will help you build […]

Solving the tech sector skills shortage – How diversity and inclusion benefit industry and the N Z economy

By David Downs, Chairman of the Hi-Tech Trust New Zealand is in the grips of a major skills shortage with a wide variety of industries struggling to fill key roles. A recent report from NZ Tech (the technology industry group) shows the technology sector has a matched skills shortage of approximately 5,000 jobs in the digital tech space, with similar shortages showing up across the advanced manufacturing sector. Availability of skilled staff regularly features as one of the top growth constraints for New Zealand technology firms. But despite this dire predicament, a large part of our population remains cut off from training and upskilling as they are unable to access, or afford, the training ‘on-ramp’ to the high quality jobs the tech sector can offer. Regional New Zealand, lower socio-economic groups, and in particular, Māori, Pasifika and women are most affected. It’s shocking how few people from these cultural and demographic backgrounds are represented in the tech sector, despite years of handwringing and efforts to address the issue. As well as being socially just, increasing access and diversity is also economically smart. All the evidence shows that talent is evenly distributed across the population – but opportunity is not. We need to address the issues which stop full participation in technology careers and to maximise the talent pool. Imagine if we have our next Ernest Rutherford, Beatrice Tinsley or Peter Beck, living in New Zealand at the moment – but he or she is blocked from ever realising that potential because they can’t afford childcare, or the bus fare. Post-Covid-19 we need access to the widest set of skills we can, to help transform our economy and maximise the country’s potential. To this end the Hi-Tech Trust is putting its weight behind the effort to significantly boost inclusion and diversity, […]

D&H Steel – manufacturing in the construction game

-by Lisa van Beurden D&H Steel Construction is an Auckland-based structural steel contractor with its fingerprints over many of the largest structural steel projects nationwide. For almost 50 years it has led innovation in the steel industry, from being an early adopter of welded beams and on-the-ground erection techniques to, more recently, driving quality management systems in fabrication. The company straddles manufacturing and construction. “While we are a structural steel fabricator for the building industry, we consider ourselves a manufacturing operation as 70 percent of our work is undertaken in our workshop facilities,” says D&H Steel managing director Wayne Carson. Looking ahead at the next 12 months, D&H Steel has a very strong order book, of which some is a function of pent-up demand spilling over from COVID-related lockdowns and slowdowns, says Carson. Beyond that Carson says that there is less certainty but COVID and other market influences have led industry players to focus more on financial sustainability. “The industry is giving greater consideration to risk and making firmer decisions,” says Carson. “We have a more robust market as a result.” COVID has had other impacts. For the last few months, D&H Steel has been very disrupted by the effects of COVID, more than expected, especially around the shipping and supply of product, says Carson. As a result, the company has had to take a more conservative approach to procurement processes. “Just-in-time procurement has been shown to be very high risk across all industries so we’re having to carry higher stock levels, and having to allow for longer lead times to procure job-specific materials. “It means we need to get started on projects earlier than previously, which, in turn, means an earlier commitment from clients to get the procurement process underway.” D&H Steel has retail customers that are accelerating new […]

Waste: The Enemy of World Class

-Ian Walsh, Managing Director, Intent Group Limited Most practitioners of continuous improvement and “lean” thinking will explain the approach to world class as making value flow by eliminating waste and continuously improving processes, practices and systems to support this value. Over the last few months, we’ve been made aware of the impending crisis in the horticultural sector – a crushing volume of produce languishing on the vine (or branch) due to a shortage of pickers. Can you imagine putting all your energy, labour, fertiliser, sprays, pruning and thinning practices over a whole year and then watching helplessly as some, or even worse, most of your crop ending up as just worm food? What an incredible waste, and yet this is what the industry has faced. Clearly, this was not the intention of the orchardists; had they known this would be the case, they would have managed their orchards to reduce the costs, efforts and waste. The problem stemmed from the lack of available labour to pick the crop. When we went into Covid lockdown last year the harvest was nearing or had reached completion. The emerging problem of lack of labour, due to border restrictions on Recognised Seasonal Employer (RSE) scheme workers, was highlighted and well documented. Yet in a period of nearly 12 months we were unable to put a process in place to avoid this waste. The assumption appeared to be that there would be enough labour freed up from other sectors to fill the gap. With the unemployment rate climbing, mostly through cuts in the tourism and hospitality industries, surely there would be enough people crying out for any employment opportunity they could get? The reality is this was not the case. Firstly, you’d have to be willing and able to pick fruit. Our nation’s experience over […]

Circular Economy Awards launched in Australia & New Zealand

A new awards program, The Circle Awards, will celebrate and unite the businesses, organisations, projects and people shaping the circular economy in Australia and New Zealand. Established by The World’s Most Rubbish (TWMR) in partnership with NSW Circular, The Bravery, and Urban List, The Circle Awards aims to spotlight products and services adopting circular practices that span all aspects of our day-to-day lives. It also aims to grow awareness of the sustainable options available to more people, not just the ones who are already looking for them. In contrast to our current ‘take-make-waste’ linear model, a circular economy is regenerative by design. It’s about rethinking the entire approach in order to design out waste and pollution, keep products and materials in use and regenerate natural systems. Keeping resources in use for longer, and in a perpetual loop, or circle, reduces environmental impact and protects precious natural resources. Nick Hoskin, Co-Founder of TWMR and The Circle Awards said, “Many consumers and brands are already contributing towards a more circular world, sometimes without realising it. While we’re hearing the term ‘circularity’ or the ‘circular economy’ more than ever, the understanding of what this means, both in theory and practice, is limited.” “The Circle Awards showcases tangible examples of circularity in action, demonstrating to people that we can consume more consciously without compromising on quality, cost or experience. In fact, circular design thinking is behind some of the most interesting products and services on the market as a driving force for innovation. The result can be a far superior experience because every aspect in the process has been carefully considered to deliver the best possible outcome,” explained Nick. Importantly, The Circle Awards is here to recognise and celebrate those making progress in this space, not just those doing it perfectly or on a […]

Can you spend your way to world class?

-Ian Walsh, Managing Director, Intent Group Limited I was recently reflecting on a discussion with a company that, like a few at the moment, has seen rapid growth due to increased demand for their products. They reviewed their ability to meet this demand and concluded they need to expand their facilities. This makes sense – interest rates are low, banks are keen to lend, so why not invest in new plant and equipment? Indeed, why not? “Have you optimised your current plant and equipment?” was my response – even if capital is readily available, why spend it if you can meet your needs with what you already have? In my experience many companies don’t know their true process potential or capacity. Obvious moves such as crewing all shifts and running through breaks have not been implemented, let alone proper debottlenecking and flow improvements. These combined efforts can lead to significant increases in throughput (in many cases 2-3 times) and avoid the need for investment altogether. There’s an assumption that by buying new equipment all the problems will go away and a warm rosy glow will shine on the business – this is rarely the case. Not unless you have deeper pockets than your competitors can you outspend them to world class! I think back to discussing equipment with the plant manager of a world class facility in Japan. He explained to me that they hate new equipment, that they know and understand their existing equipment, and with it they are already stable and performing. Their competitive advantage wasn’t in buying new equipment, but instead innovating and operating with their existing equipment better than anyone else. Contrast this with most companies where they assume the first day of new equipment will be the best, and every day after their investment diminishes […]

High demand and growth puts pressure on manufacturing sector

The beginning of 2021 is proving a headache for the manufacturing sector and it could be some time before the pain relief kicks in. The cost of sourcing materials, increased demand, and supply issues are some of the areas industry is grappling with, according to Helen Down, Chief Executive of the Hutt Valley Chamber of Commerce. “It’s clear supply issues are continuing to have an impact as manufacturers are unable to source their raw materials in a timely or cost effective manner. With limitations to international travel, we are witnessing a dramatic change in customers buying habits, with people spending their money on home and recreational products. “This puts pressure on businesses who can’t keep up with demand in specific areas,” she said. “A wide range of businesses are finding it extremely time consuming to source raw materials. Some components are simply not available, and won’t be available, for many months, coupled with rapidly rising costs for materials.” Shane Lowe, National Sales Manager of freight forwarding company 360 Logistics, based in Lower Hutt, said they are they facing increased shipping and air costs, and there is a general slowdown at the moment in the ability to move goods. “The southbound rates from Asia continue to hold at peak levels as demand continues to outstrip capacity. “The USA congestion issues over many ports, and the capacity and congestion problems between New Zealand and Australia, are forcing the need to look at different options,” he said. “We are in the middle of the peak export season for New Zealand, and we are finding some route pricing has been pushed up and as a result we are struggling to find space to ship the product.” Shane Lowe said they are also seeing delays from suppliers because the factory supplying finished goods is also […]

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