Further: Unleashed Manufacturing Performance Report Q1 2024, You Tube
To view the Unleashed Manufacturing Performance Report Q1 2024, presented by Greg Roughan of Unleashed Software, please visit the link:
Analysis
Tightening purse strings hit NZ SME manufacturers
The recession is taking a bite out of New Zealand manufacturers’ sales revenue, according to new data from inventory management software brand, Unleashed. Unleashed’s first Manufacturing Health Index since New Zealand officially entered a recession found sales revenue dropped by 7% in the first quarter of this year, but is still up 18% year-on-year, aided by superb growth in the Energy, Medical Supplies, and Personal Care subsectors. The report looks behind the curtains of SME manufacturers in New Zealand, Australia, and the UK, across 12 subsectors. Unleashed head of product Jarrod Adam says high interest rates will continue to put downward pressure on firms, but the data shows the sector is able to respond positively to these headwinds. “The beginning of the year has been a speed bump for Kiwi manufacturers, but we need to keep in mind that overall revenue is actually up on the same period as last year. These companies are nothing if not dynamic, and in this current environment it is crucial to react to the cards you are dealt,” said Adam. “One really positive sign in the data is the much lower lead times, which will help these businesses be as productive as possible when conditions change for the better.” The report notes that firms have drastically improved their lead days to just 14 to begin the year, from 30 days in the final quarter of 2023, and 37 in the same quarter of last year. Lead time improvements are both a sign of normalising supply chains globally and the knock-on effect of New Zealand business’ laser focus on logistics over the past three years. Tough times continue for Food and Beverage At the pointy end of the disposable income problem, local Kiwi Food and Beverage producers have been confronted with difficult times with little reprieve on […]
The scope 3 ripple effect
-Insa Errey In the ever-evolving landscape of regulations, New Zealand manufactures find themselves connected to the regulatory frameworks of key trading partners such as the European Union (EU). The EU has positioned itself as a global leader in climate action, with ambitious targets set under the European Green Deal and the European Climate Law. As part of its efforts to reduce greenhouse gas emissions, the EU has implemented regulations on Scope 3 emissions reporting through directives such as the Non-Financial Reporting Directive (NFRD) and the EU Taxonomy Regulation. Understanding the impacts of Scope 3 regulations in these markets is crucial for New Zealand manufacturing. Let’s delve into how regulations in the EU can shape the strategies and operations of New Zealand manufacturers. First, what is Scope 3? Scope 3 emissions refer to indirect greenhouse gas emissions that occur in the value chain of a company, including both upstream and downstream activities. These emissions often result from activities such as the production of purchased goods and services, transportation and distribution, and waste disposal. For any EU customer this may just be your manufacturing sites Scope 1 or 2 emissions. Meaning the emissions your site emits from use of direct combustion (scope 1) or indirect emissions on site from purchased electricity (scope 2). What does this mean for NZ manufacturers? Market Access and compliance pressure to adhere to these standards is required for exporting to the EU which governs Scope 3 emissions disclosure and reduction. Failure to meet these requirements can result in barriers to market entry. In a global market increasingly, prioritising emissions reduction is becoming an advantage, as exporters can face competition from countries with lower carbon footprints. Failure to manage or measure emissions can put NZ manufacturers at a competitive disadvantage and could impact market share. Even if you […]
Another great reason to understand your supply chain!
From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Are you 100% sure you know what’s in your supply chain? Do you fully understand the work practices involved? Yes and yes? Then you’re in good shape to keep selling to the European Union when the new European Supply Chain Act takes effect. No and no? Then you’ve work to do! New EU legislation will require many suppliers to EU companies to better manage their social and environmental impacts. Here’s the acronym: Corporate Sustainability Due Diligence Directive (CSDDD or CS3D). Even if you don’t trade with the EU, expect to see more focus on supply chains, right around the world. Why? Because supply chains are notorious sources of social and environmental ‘hotspots’. Wages below subsistence. Forced labour. Treacherous working conditions. Toxic chemicals. Polluted waterways. Deforestation. The list goes on. The draft European Supply Chain Act Read on for general information about the changes. What’s happening? The European Parliament has voted for the draft bill. Parties are now negotiating a common position to pass the bill into law. What’s the aim of the new law? It’s one we can all sign up to: a fairer, safer, more sustainable global economy. Who does the law cover? It covers many larger companies based in the EU. Some companies outside the EU are covered if their EU turnover is large. Small and medium-sized businesses are not directly affected. However, the law will affect them if they supply to larger companies. What does the law require? Affected companies must manage social and environmental impacts across their value chains. (This is currently voluntary.) These value chains include the companies’ direct suppliers (maybe your business?) and indirect suppliers too (your business’ suppliers?) The law is stricter than most existing national legislation. What does the law mean in practical […]
EMEX is a big deal…
May issue, NZ Manufacturer includes our second Preview of EMEX 2024. Click on the link below to read. Because it is the premier trade fair in the country for the manufacturing sector. Where visitors can see the best of the best all in one place. An example of an exhibitor is Datum Machines Ltd of Wellington, a manufacturer, who has been designing and engineering over 18 months the Series One Gantry Mill CNC machine from the ground up. NZ Manufacturer May 2024 by Media Hawkes Bay Limited – Issuu This machine is for companies wanting to add CNC automation to their production workflow and increase productivity. At an extremely competitive price. A labour of love, devotion and lots of money, the machine, an example of great Kiwi ingenuity, is on display at EMEX 2024, on Stand 4115. As much as it is an event to discuss business – buying or selling, export opportunities etc – it also benefits visitors who want to discuss industry trends and share stories of success. New Zealand has a rich history of inventions and product development, something that became clear to me a little while back when I produced for this show’s organisers a History of Manufacturing in New Zealand document which went back as far as the early 1900’s. Today’s innovators, using different technologies and equipment, manufacturing for the needs of the times, have a rich history to fall back on, on the path to success. So, let’s keep manufacturing strong. We certainly do have our challenges in today’s environment. But they are only challenges. We adapt, we change, we keep moving forward. We keep making the next ‘big thing.’ -Doug Green, Publisher
Improving workplace literacy skills: A key to unlocking staff potential and lifting productivity
From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -David O’Connor, Commercial Manager, The Learning Wave There is no shortage of evidence – both research-based and practical examples – that productivity continues to be one of the main challenges to the long-term growth and success of the Manufacturing sector here in New Zealand. Coupling this challenge with an aging workforce, and barriers to attracting new skilled labour means that many businesses have significant skills, capability, and capacity issues that are holding them back, or restricting their ability to adapt and respond to market opportunities. One of the constants that we hear from our clients is about how to address the underlying literacy challenges in both their frontline staff and supervisors. While many businesses might have ‘done’ literacy training (often in small numbers) in the past, they often have not seen the benefits of this training in terms of changes to the shop floor or seen any flow-on effect to productivity. Workplace literacy is more than just someone’s ability with basic reading and writing skills. Today’s workplace demands mean that workplace literacy needs to include comprehension of complex work instructions, critical thinking and problem-solving, strong verbal and written communication skills, numerical and analytical skills, and the growing need for everyone to have to digital mindset and skills to work in our ever-growing digitally rich workplaces. Misinterpretation of instructions, inability to comprehend safety guidelines, or errors in recording data can lead to costly delays and rework. Imagine a scenario where a worker misreads a critical measurement or mishandles a machine due to a misunderstanding of operating procedures. The repercussions extend beyond mere inconvenience; they affect the bottom line. According to the 2016 Survey of Adult Skills, around one in five people in the New Zealand Workforce have very low literacy skills and a further […]
Embracing the Future: How Digital Twin Technology Can Accelerate Manufacturing Operations
From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -Adam Sarman, Senior Partner, Dsifer In an industry in which flexibility, agility and innovation are no longer competitive advantages, but tickets to the game, the ability to make responsive, agile decisions, predict future requirements and innovate without impacting operations are critical. In this dynamic industry context, digital twin technology has emerged as an important but underutilised technology. Digital twins are software models that represent the attributes and operating behaviour of physical assets, product designs and/or processes. They support better decision making by simulating how these applications behave given certain inputs. A digital twin’s ability to enable progressive learning and capture tacit knowledge provides a key, differentiating benefit: it stores and structures information in a way engineers and operators can understand. Digital twins, are reshaping how products are designed, manufactured, and optimised across all process and design-drive industries. Three key applications of digital twin technologies are process optimisation through simulation, product design simulation, factory/operation design and predictive maintenance. Process Optimisation: Enhancing Efficiency and Accuracy Process simulation lies at the heart of manufacturing and supply-chain optimisation, and digital twins provide an unparalleled platform for achieving this. By creating virtual replicas of production processes, manufacturers can simulate and analyse operations in real-time, enabling them to identify bottlenecks, optimise workflows, and improve efficiency. For instance, in automotive manufacturing, digital twins are used to simulate assembly lines, allowing manufacturers to test different layouts and production scenarios before implementation. Moreover, by integrating IoT sensors and data analytics, manufacturers can collect real-time data from equipment and processes, feeding it into the digital twin for predictive maintenance and continuous improvement. Product Design: Accelerating Innovation and Iteration Digital twins play a crucial role in product design by enabling engineers to create virtual prototypes and simulate their performance under various conditions. This […]
What matters more, excellence or impact?
Are we happy with a process that potentially knocks out the most impactful science before it can even be considered? By Dr Troy Coyle, HERA CEO The Aotearoa New Zealand research, science and innovation (RSI) system is one that purportedly values and rewards research excellence and research impact equally. Despite this, the current system favours an approach that focuses on excellent research that has impact vs impactful research that is excellent. It is a subtle difference but let me explain how that plays out in practice and why there is an inherent bias. For me, this is an important discussion to have as it has flow-on impacts for industry-led research – which is mostly impact-led. The road to funding According to MBIE “the Endeavour Fund plays a unique role in the science system through an open, contestable process with a focus on both research excellence and a broad range of impacts”. The indicative investment in the 2024 investment round is $57 million per year (projects range 2-5 years). This makes it a key, if not the key, research investment mechanism for research organisations in Aotearoa. It is highly competitive, with most Universities, Crown Research Institutes and Independent Research Associations competing for this pool of funding. As a result, the success rate is very low (usually below 20%). The application process is onerous and it is run in set rounds, with only one round per year. Missing out on funding can have crippling effects for many organisations. The two main criteria for assessment are excellence and impact. However, excellence is assessed first and then only the top ranking submissions are progressed to the next step where they are assessed for impact. Essentially, this means that research excellence is given priority in practice. There could be an amazingly impactful research proposal that […]
The relentless pursuit of “Better, Faster, Smarter”
-Catherine Lye, CEO, Advanced Manufacturing Aotearoa Having arrived late to the viewing of the latest Netflix series, “Drive to Survive,” I couldn’t help but notice the striking parallels between Formula One and our manufacturing/engineering industry. Both embody precision engineering, composites, CNC Machining, additive manufacturing, artificial intelligence, and, crucially, teamwork. Manufacturing is a team sport. Across manufacturing, achieving industry “fit for purpose” embodies the essential quest to align skills with the sector’s dynamic purpose-driven landscape. This necessitates a concerted effort towards upskilling the workforce, ensuring that competencies seamlessly merge with the industry’s fast-changing needs and objectives. Whether embracing advanced technologies, sustainable practices, or fostering innovation, being “fit” demands a workforce adept at navigating the intricate demands of a purpose-driven business. From mastering cutting-edge machinery to embracing sustainable production methods, the journey towards industry fitness entails a commitment to continuous learning and adaptation. Ultimately, by cultivating a workforce equipped with the right skills and mindset, manufacturing can assert its relevance, efficacy, and sustainability in fulfilling its broader purpose within the global economy – economic development, driving productivity, employment, a vehicle for social development, entrepreneurship and wealth creation. Fostering innovation and technological advancement, acting as a catalyst for progress across various sectors, driving growth and enhancing societal well-being on a local, regional and global scale. We must reimagine manufacturing for the next generation. They are the future drivers of our factories. Younger people are seeking problems to solve. You hear stories about them wanting to be YouTube SuperStars, Influencers, but they are just as serious as well as anyone else about earning good money and doing what they can to change and make a difference in the world. Manufacturing presents an intriguing and interesting career choice for them – a change to innovate and solve problems in new ways. To ensure industry competitiveness, […]
There are no silver bullets to sustained productivity
From May issue NZ Manufacturer -Ian Walsh, Argon & Co It’s great to see the recent upsurge in discussions regarding the need for New Zealand to be more productive. This discussion is long overdue. The problems with New Zealand’s productivity have been masked by employees working harder for longer hours, and a surge in immigration providing excess labour, rather than working smarter. This has kicked the productivity problem down the road, and masked the reality that almost all other countries in the OECD are more productive per labour hour than we are. It is a shame that we’ve waited until we’ve run out of levers to pull, the platform to burn, and for our economy to be in arguably its worst shape ever for us to confront this brutal reality. As ever in these situations there are many peddling solutions looking for a problem. They offer silver bullets with IT and digital solutions, which look great in demonstrative environments but often don’t deliver fully when implemented. With that said, this does identify a further problem – that we are behind in digital adoption, investment in R&D and technology. However, to suggest that by addressing the digital adoption gap we will also address the productivity gap is somewhat erroneous. Digital solutions aim to automate or improve the efficiency of existing processes and ways of working, and these tools can enhance productivity when successfully implemented with careful planning, training, and change management. However, to be effective these tools need efficient, consistent physical practices and operational processes to work alongside and model. This is where these solutions aren’t replicating the success of the demo environments they’re sold on – the real operations of our businesses aren’t the tidy and optimally-structured brainchildren of software developers. They’re chaotic factories, reactive back offices, haphazard warehouses, and […]