Analysis

Reducing manufacturing emissions

Hon Andrew Bayly, Minister of Manufacturing Manufacturing is a significant sector for New Zealand. It employs 230,000 people and accounts for nearly 10 per cent of GDP and 60 per cent of exports. I often describe it as a “sleeping giant” for New Zealand’s economy, because its significance is not well understood. When I travel around the country promoting the manufacturing sector, one of the things I often remind people is that a career in manufacturing is a career in a highly advanced, technical field. A lesser-known fact is that approximately a quarter of all New Zealand’s business-led research and development comes from the manufacturing sector, meaning manufacturing is a key driver of innovation. However, to support this innovation, manufacturers need the right tools and resources. I know from talking to manufacturers that access to information and expert guidance on how to upskill and improve productivity is challenging. Which is why I was delighted to recently launch a set of tools to help empower manufacturers to grow their business and reduce their emissions. Emissions and waste mapping The first is a report that identifies and maps the manufacturing sector’s emissions and waste patterns. Titled ‘Mapping Emissions and Waste Stream Profiles, and Opportunities for Achieving Net-Zero Circular Advanced Manufacturing’, the report is based on waste and emissions data from 2019 (the most recent data available). It provides a comprehensive picture of waste, emissions, and opportunities to improve sustainability across the seven main manufacturing subsectors: food and beverage, machinery and equipment, other manufacturing, metal and metal products, chemicals and refining, wood and paper, and plastics and rubber. The report details challenges and opportunities for the sector with a goal of helping manufacturers identify opportunities to adopt low-emissions technology and increase circular manufacturing practices which, in turn, will help us reduce our […]

Nature is in the business news

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz With good reason. In the next few years, New Zealand manufacturers can expect to be called on to answer these two questions. How is your business reducing your impacts on nature? How will changes to nature affect your business? Who’ll be asking these questions? Governments, regulators and financiers like lenders. They’re realising that centuries of degrading nature (the ecosystems that make up land, oceans, freshwater and the atmosphere) is not only depleting biodiversity. It’s having financial and economic impacts on businesses too. These parties are adding weight to environmentalists’ calls for urgent change. In this article we explain what this means for manufacturers in Aotearoa New Zealand. The need for change The World Economic Forum’s 2024 Global Risks Report ranks dwindling biodiversity and collapsing ecosystems among the five most severe risks to business in the next ten years. The UK Green Finance Institute’s recent report makes sobering reading. It identifies and measures the country’s nature-related risks. The report confirms that these risks are as harmful as the risks of climate change, and that nature and climate are linked. Zoonotic diseases, declining soil health, slips, floods, food insecurity and lost production will affect all sectors – including manufacturing. The economic impacts could be worse than the Global Financial Crisis or Covid-19. The report concludes that the UK must transition its economy urgently to valuing and investing in the environment. As 50 percent of the country’s risks come from overseas (including New Zealand), UK regulators and financial institutions will require businesses to scrutinise their supply chains. We expect other trading partners, including the EU, to take a similar stance. Nature Positive, the global goal for nature The world has agreed a biodiversity equivalent for the global goal that limits global warming. Nature Positive is made up […]

NZ Wool Industry to benefit from multi-million dollar marketing investment

-Mark Devlin New Zealand’s rural sector is set to benefit from a multi-million dollar marketing investment by one of the country’s largest wool carpet manufacturers, designed to address misconceptions about the natural fibre and grow exports. New Zealand is the world’s third largest producer of wool, accounting for 9% of global production, however, the country’s export revenue from wool is projected to fall by 3% to $380 million over the coming year.[1][2] The planned $2 million plus advertising investment from Bremworth is believed to be one of the highest ever from a Kiwi company to support a wool product brand. The spend will also provide a financial boost for local print, billboards, online and broadcast media titles, in an otherwise flat local advertising market. The company has appointed New Zealand’s largest independent media agency, Together, to help develop and implement a series of new campaigns for the domestic and trans-Tasman markets to help elevate wool flooring. The move follows ongoing upgrades to the manufacturer’s supply chain, which are expected to lift production volumes and help meet growing domestic and global demand for Bremworth’s wool carpet. Rochelle Flint, chief brand and product officer of Bremworth, says it is hoped one of their largest-ever investments in developing their brand will also help stimulate demand for New Zealand wool and help address the decline in domestic production. She says their research shows while three-quarters of homeowners would prefer to have wool in their homes, a similar proportion are not actually purchasing wool – with synthetic flooring continuing to dominate the market. Flint says with their expanded supply chain now in place, manufacturing volumes can be scaled significantly in response to demand, presenting an opportunity to increase conversion and grow market share in both the domestic and Australian markets. “Our research has identified a […]

The Interview: Sam Cotter-Dephoff, Scale Studios, Wellington

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz How are you finding current business conditions? It’s been an interesting year. We have been fortunate enough to have been working on our largest project to date for the majority of the year (delivered at the start of July) which has meant that we have been unusually stable. A large percentage of our work comes from the film industry (specifically American productions looking to shoot here) and we have certainly experienced more challenging years, working through Covid and the 2024 Hollywood Writers Strike. Comparatively this year has been more reliable. We have noticed a change in the type of screen work entering the country since the writer’s strike ended. The large genre blockbusters we were famous for hosting have been replaced by more medium sized contemporary productions which offer less work to a prop house than the former. However, the volume of productions has certainly helped keep things from getting too concerning. Interesting projects currently being worked on? We are in the middle of a really fun project, building props and other elements for a New Zealand feature film. It is a hilarious genre comedy by a very talented team that we are really excited to be a part of. We can’t give too much away but we will say it’s not every day we get to work on such wacky builds. They’re the kinds of things that when we are discussing them in the workshop we sometimes have to just stop and wonder how what we are doing can be a real job. Where do you see growth opportunities for Scale Studios? We have just come off the back to back production of a large public sculpture for the Wellington Waterfront and several full size dinosaur sculptures for a museum in South Africa (the largest of […]

Digital Factory Accelerator: Driving Northern Ireland’s Manufacturing into the Future

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz -Adam Sharman, Senior Partner, Dsifer As New Zealand’s manufacturing industry continues to evolve in the face of global challenges, it’s crucial to look beyond our shores for inspiration and insights. In this article, we review the approach taken in Northern Ireland, where a pioneering initiative is reshaping the manufacturing landscape. This case study offers valuable lessons for New Zealand manufacturers seeking to navigate the complexities of digital transformation and Industry 4.0. In an ambitious move to boost the competitiveness of Northern Ireland’s manufacturing sector, a groundbreaking initiative called the Digital Factory Accelerator (DFA) has recently concluded its pilot phase. This innovative program, spearheaded by the Advanced Manufacturing Innovation Centre (AMIC) and Invest Northern Ireland in partnership with the High Value Manufacturing Catapult (HVMC) and LMAC Group, aims to accelerate the adoption of Industry 4.0 technologies across the region’s diverse manufacturing landscape. The DFA pilot, which wrapped up in June 2024, involved 32 companies ranging from small enterprises to large multinationals. Using the internationally recognised Smart Industry Readiness Index (SIRI) assessment tool, the program provided participating companies with a comprehensive evaluation of their digital maturity and a roadmap for future transformation. One of the differentiators of SIRI is the ability to benchmark globally based on company size, and by sector. The DFA pilot used the XIRI analytics platform provided by INCIT to develop meaningful insights that are crucial in shaping strategies for manufacturing within regions. Key findings from the pilot revealed that Northern Ireland’s manufacturing sector, while producing world-class products and services, lags behind international benchmarks in terms of digital adoption. The average SIRI score for UK manufacturing companies was 1.12, significantly lower than the peer group average of 1.84 (on a scale of 0-5). This gap highlights both the challenges and opportunities facing the […]

Digital Capability – A Critical Lever for Success

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz David O’Connor, Commercial Manager, The Learning Wave One of the greatest challenges for any organisation is the cost and effort of onboarding a new employee . This is further amplified in a tight job market where you may need to recruit individuals who do not have the core skills you would normally deem essential to be productive and work safely in your environment. The need to have a pipeline of skilled and capable workers with a broad range of transferable skills, strong work ethic and the right attitude is critical to enable long term business success. The training and educational sector have a role to play in enabling access to the right training pathways to ensure the continual development and upskilling of the team to prepare them for that next career step or business change. In Manufacturing, the productivity challenge is clearly rooted in a skills deficit, with many individuals lacking the essential skills and capability needed to fully leverage modern manufacturing practices. This skills gap has a significant impact on team work, employee engagement, safety and operational efficiency, leading to poor staff retention, low efficiency, higher error rates and increased waste As Manufacturing plants become increasingly technology dependent, this skill gap is unfortunately amplified and an urgent fix becomes even more essential. Foundational digital literacy is often inaccurately assumed as a skill held by most kiwis. According to the 2014 Survey of Adult Skills survey (PIAAC) the reality of this is that 55% of workers do not have the right level of digital competency to be successful in their roles. Meaning that over half of our workforce has low/poor Problem solving skills in technology rich work environments. If Digital literacy is deemed critical to success, then we have to question why those who […]

It’s all about the people!

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz Ian Walsh, Partner, Argon & Co Last month, I wrote an article on productivity (Productivity – The Only Game in Town) and I received a few questions and comments relating to the skills gaps we have in New Zealand. I’d really encourage you to read that article if you haven’t yet, and I can hopefully address those questions and comments here. https://nzmanufacturer.co.nz/2024/07/productivity-is-the-only-game-in-town/ As I noted in my last article, a skilled workforce is vital for productivity growth. If we want to have a great place to live, bring up families and enjoy the best economy that both New Zealand can offer, then we must have great people with the right skills leading our businesses, creating value and growth. Of course I’m not the only person who knows this; I’m regularly asked by hiring managers whether I know of a good candidate to join their company. Sometimes I can help, but more often than not, I simply don’t know enough people to fill all the vacancies in these companies. Recent macroeconomic analysis is showing clearly that differences in education and skills explain much of the international differences in long-term growth rates. Improvements in skills at all levels of ability seem to matter. Increases in both the proportion of top achievers and the proportion with at least a minimal level of literacy and numeracy are correlated with higher economic growth rates. However, the current approach in industry seems to be to promote the best operator to foreperson, team leader etc. and assume they will know what to do and how to do it. The other approach is to hire someone, under the assumption that the market is teeming with highly capable and skilled individuals. Little-to-no training and development is offered by most employers, and we have […]

‘We haven’t the money, so we’ve got to think”

EDITORIAL: From August issue NZ Manufacturer www.nzmanufacturer.co.nz These words were spoken by Lord Sir Ernest Rutherford, Nobel Laureate. Since he spoke them, some inspiring products have been made. These include The Martin JetPack, The Yike Bike, The Springfree Trampoline, Woollen Shoes, The Pavlova, Richars Pearse’s Flying Machine, Hamilton Jet, The Buzzy Bee…and the list goes on. What is significant about these products is that they were made at a time when there wasn’t the money available. Through sheer determination and effort, they found markets and advanced New Zealand’s name on the world stage as an innovative and go-ahead nation. There are a lot more products that have made the country proud and celebrated the entrepreneurs determined to get ahead. However, times have been changing and their is a lack of attention focussing on the productive sector. Financial corrections have been made to get the books in order and, now, support is urgently needed for our manufacturers. Nowhere in the Budget did we hear of the importance of the manufacturing sector to the economy, that all efforts were appreciated and when times get better, assistance would be offered to keep the backbone of the country strong. It seems that Government has gone too far with its slash and burn. The country of 5,000,000 can’t all dance on the top of the designated pin. Anyway, back to the inventions: The Britten Motorcycle, Wave Power, Conducting Polymers, Carbon Nanotubes, The Electric Fence, the Hamburger Holder…

Ten tips to make your business case for sustainability stack up

This information is based on a guide we wrote with the Sustainable Business Council and Kaitiaki Collective. It’s a situation we know many manufacturers face. You want to make your business more sustainable. (Bravo!) You can see the many benefits of manufacturing products that reuse resources, avoid modern slavery and create fewer environmental impacts. But – here’s the kicker – you’re struggling to get the business case for making these changes ‘over the line’ with your accountant or finance team. These ten tips will help you. Tip 1. See becoming more sustainable as an investment Sustainable businesses are excellent businesses. They create value in the short and long terms – economically, environmentally and socially. Treat your sustainability programme as an investment and manage it as one. Tip 2. Identify your stakeholders Consider the many people who have a ‘stake’ in your business succeeding sustainably. You will naturally think of your investors, customers, suppliers, team, local community and regulators. Think longer term and wider too. Include the environment and people who will live many years in the future. Tip 3. Confirm where to focus with a materiality assessment Your business case needs to reflect the views of all these stakeholders and your business too. Start with a ‘materiality assessment’. It’s a practical way, using interviews and surveys, to home in on the sustainability activities that your stakeholders and business care about and to prioritise the ones that matter most. A materiality assessment takes a broad view of sustainability and covers environmental, social and economic topics. Include your top priority topics in your business case. Tip 4. Understand who you need to convince Who do you need to influence to get your business case over the line? What are they interested in? What are they concerned about? Who else has their ear? […]

Embracing digital technologies without losing craftsmanship

NZ Manufacturer July 2024 by Media Hawkes Bay Limited – Issuu Adam Sharman, Senior Partner, Dsifer In an era where digital transformation is reshaping industries across the board, bespoke engineering and machine shops face a unique set of challenges and opportunities. These specialised manufacturers, known for their ability to create custom, one-off products, are now grappling with how to embrace digital technologies without losing the craftsmanship that sets them apart. As they step into this brave new world, several key considerations emerge, along with significant benefits. At LMAC and Dsifer, we work with a lot of custom engineering organistions, and recognise the unique challenges these shops face. At the heart of the digital transformation is the need to maintain and enhance customisation capabilities, whilst optimising production and front-end processes to remain competitive on time to deliver and cost. Bespoke engineering thrives on flexibility, and any digital system must be flexible enough to accommodate diverse client demands. Advanced product configuration tools and parametric design software are becoming essential, allowing engineers to quickly adapt designs while maintaining the personal touch that customers expect. Data integration stands as another cornerstone of this digital revolution. By connecting design, production, and quality control systems, shops can create a seamless flow of information from concept to finished product. Product Lifecycle Management (PLM) software is increasingly becoming the central nervous system of these operations, ensuring that every stakeholder has access to the latest information. The adoption of advanced manufacturing technologies is reshaping the landscape, offering substantial benefits. With Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) systems well-established to significantly reduce design time and errors, additive manufacturing, opens new doors for prototyping and small-batch production, allowing for rapid iteration and reduced waste. These technologies enable machine shops to take on more complex projects and deliver them faster, increasing […]

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