Business News

2023 – The Year in Review

-Adam Sharman, Senior Partner, Dsifer For many New Zealand organisations, 2023 has been a year of navigating multiple headwinds, including increased cost of materials driven by exchange rate pressure and high levels of inflation, weakening demand from China as their domestic economy slows, and weakening consumer demand in some sectors. All of which has seen the NZ manufacturing sector contract across 2023. These challenges appear to have been particularly acute across the food processing sectors. Staffing continues to be a challenge for New Zealand manufacturers, particularly in the operational workforce. However, we are starting to see an easing in the market and, as the number of jobs being advertised drops and the number of applicants per job advert increase organisations are finding it easier to attract talent. There is a paradox to this however, as our clients frequently report that staff absenteeism is one of their biggest challenges and has a major impact on their ability to achieve potential performance. It is not all doom and gloom, however, and 2023 has been another standout year for New Zealand organisations in terms of innovation, creativity, and growth. In particular, developments in aerospace, agritech and health tech have seen Kiwi companies make significant impacts on the world stage as New Zealand continues to be recognised for its innovation in these areas. Increasingly, we are working with organisations who have recognised that security is a strategic asset for New Zealand and our organisation, and we have seen multiple examples of New Zealand based organisations winning work away from Asia, due to their ability to provide products that are trusted as secure. This is particularly true in the electrical component manufacturing sector, as for example, European car producers are willing to pay a premium for data security in the manufacture of their components. New […]

Is 2024 “the” year?

-Ian Walsh, Partner, Argon & Co I was reflecting, as you do at this time of year, on what were the highlights and key achievements of 2023. The key highlight is primarily that supply chains are starting to settle down, business is starting to return to normal, and we are starting to see some positivity. This has been a slow hard grind, and the job is not done. The recovery has been slower than expected, exacerbated by extreme weather events, a cost-of-living crisis, a labour shortfall as we ramped up and the gates were not open, and Kiwis leaving on their OE. Net a myriad of never-ending obstacles to overcome. In addition, many businesses learned in 2022 and 2023 just how fragile their supply chains were and how dependent NZ is on shipping lines. Many have and are investing in additional warehousing to buffer their supply chains and many products that have been offshored are suddenly viable, in this new light, to be manufactured locally. The research continues to reflect our slide down the OECD with the grim reality that we are 30-40% less productive than our nearest neighbours and key trading partners and significantly worse versus the Irish and Scandinavian countries. While this may seem remote, it is a key indicator of our future economic prosperity and ability to keep pace, retain talent, and provide the lifestyles and outcomes we desire for our children and future generations. So, given all this, here are my top 5 drivers for 2024: The labour crunch will continue, and many businesses are leveraged so capital options may not be as attractive or possible. This will drive a few key initiatives. Supply chain fragility will continue to drive boards to look at business continuity planning and risk mitigation strategies. Procurement and strategic sourcing will […]

Advanced Manufacturing for SMB: The path to smarter, modern and better operations

From NZ Manufacturer, December issue, focussing on ‘The Year in Review’ Catherine Lye – CEO, Advanced Manufacturing Aotearoa If you hate the phrase ‘we’ve always done it this way’ and lead your business/team with ‘we’re going to try different, we’re going to try this, we think this will be a better way to improve quality & efficiency’, then you may identify more readily with advanced manufacturing. After all, manufacturers are all about advancing their business every day and trying to find the next thing that will make them better, faster, more competitive. It is, however, important to recognise that not all small medium sized businesses (“SMB”) in New Zealand’s manufacturing sector may readily identify with the term “Advanced Manufacturing”. The majority of New Zealand’s SMB’s may be operating with traditional methods and technologies that have been effective for their specific needs. Factors such as limited budgets, resistance to change, distractions with a global pandemic or not knowing where to start with integrating Advanced Manufacturing tools and techniques can contribute to this reluctance to adopt – after all there is a lot that you could do but what should you do? In the context of a small to medium sized business (SMB), advanced manufacturing embodies a transformative approach that simply translates to “Smarter, Modern, Better” operations. “Smarter Manufacturing” entails harnessing data analytics and automation to make informed decisions in real-time, optimising resource allocation, and reducing waste. The higher value of thinking is around the integration of tools, knowledge, and data. The challenge is finding easier ways to manage and extract data in an easy-to-understand report for everyone. It can make your eyes bleed figuring out what’s going on with 10,000 rows of daily data – you can chart it one way and it is meaningless, chart it another way that […]

“Can my business benefit from networking and word of mouth?”

As a business owner, you’re constantly on the lookout for marketing strategies and platforms that can elevate your brand and generate more opportunities, right? What if we told you LinkedIn is one of the most underutilised tools for businesses like yours? Following feedback from many business owners like you, I’m pleased to introduce and invite you to participate in a complimentary Maximize Your Impact: The 5-Day LinkedIn Mastery Challenge for Entrepreneurs If you are not yet sure if LinkedIn is for you there is only one question you need to answer to gain certainty: “Can my business benefit from networking and word of mouth?” If the answer is YES then you know that building a strong network takes time and you’d better start right now. Curious to find out more? Book HERE to receive a special invitation to a private LinkedIn Group where this 5-day Challenge starts on Monday 11th of Dec 2023 Don’t let this opportunity pass you by – it’s time to make LinkedIn work for your business!

December issue NZ Manufacturer – The Year in Review

Our annual ‘The Year in Review’ December issue will be out soon. It includes stand-out commentary on achievements from some of our manufacturing companies, reflections on the year winding down and the new one ahead. Challenges that face us and suggestions for achieving success. There were a lot of articles competing for inclusion that could not be accommodated within the pages. Meaning the stories of many achievers – you know who you are – need to be re-read by revisiting monthly issues of the magazine. If you or your company are not receiving the magazine, nor on the subscriber database and want to receive December issue, email publisher@xtra.co.nz and we will get a copy to you.

The Interview – Jill Cooper

From December issue of NZ Manufacturer www.nzmanufacturer.co.nz Tell readers what you do? My expertise is in high temperature materials and processes. When I left full time work at BlueScope NZ Steel to care for my premature baby, I found it difficult to fit back into the workforce. I expect it’s improved now but employers were not at all flexible with regards to family responsibilities, so I have been doing consulting work on whatever comes up; reline quality assurance and incident investigation for Ballance at their ammonia plant, process and containment for CarbonScape are two examples. I also formed my own company – Advanced Materials Technologies – NZ Limited – which was a collaboration with an ex colleague based in Queensland, Australia to supply Australian and New Zealand with materials sourced from Harbison Walker International, a US company renowned internationally for the quality of its products. Most recently, I am interested in the technologies which can be utilised to slash the (extremely high) CO2 emissions generated by the steelmaking industry and, have been advising and assisting Helios with their novel sodium-based reduction process. This has been a very fruitful relationship, unfortunately disrupted by the war that has broken out there. When I am not working, I am often out wingfoiling on the Manukau and Waitamata harbours. What has been your involvement in green steel making? I’ve been promoting the possibility of low emissions iron and steelmaking to whoever will listen for many years, including the outgoing Climate Change Minister, Hon James Shaw who has been politely listening to my representations since he became co-leader of Green Party. Although, numerous commentators have been claiming that the steelmaking sector would be hard to abate, there has been a small group of dedicated scientists and engineers working on alternative, non carbon, reductants for decades. […]

Lifting performance by eliminating data silos

-Adam Sharman, Senior Partner, Dsifer Organisations are collecting more data and this trend is only set to continue as IoT adoption accelerates. However, too often, this valuable resource is locked away in silos, inaccessible to the people who need it most. These data silos can stifle innovation, hinder collaboration, and prevent organisations from fully realising the potential of their data. In this article, why data siloes form and how to overcome them to create a more data-driven and agile organisation. Data silos are isolated pockets of data within an organisation that are segregated from the rest of the data ecosystem. These silos can emerge for various reasons, including departmental boundaries, incompatible data formats, or data stored in separate systems that don’t communicate effectively. When data is trapped within these silos, it can’t be easily shared, analysed, or leveraged for making informed decisions. Several factors contribute to the formation of data silos within organisations: Lack of Data Governance: Without a robust data governance framework in place, there can be confusion regarding data ownership, definitions, and quality standards, allowing multiple data repositories to form with multiple governance approaches which can exacerbate data silos. Departmental Barriers: Different departments within an organisation often maintain their own data repositories and systems. This division can lead to data silos, as departments may be hesitant to share their data due to concerns about data security, ownership, or privacy. Legacy and Rogue Systems: Outdated technology and legacy systems may not support modern data integration and sharing. This can result in data becoming stuck in older systems, inaccessible to newer, more agile solutions. Rogue systems are those that sit outside the organisation’s formal governance framework and, as such, are typically not integrated in to the organisation’s data architecture. Cultural Barriers: In some cases, a culture of information hoarding can […]

A straddle carrier moving through the container stacks

NZ-EU trade agreement is great news for sustainability

It’s been a long time coming! In July, New Zealand signed a free trade agreement (FTA) with the European Union. Good news for manufacturers too. New Zealand’s exports of goods to its fourth largest trading partner were worth NZD4.68b in 2022. These goods included many manufactured products – machinery, medical appliances, food products, plastics, aluminium and others. More than 91% of New Zealand’s trade into the EU will enter duty-free when the FTA comes into force (expected to be in the first half of 2024). Many goods, including some manufactured products, will have no tariffs at all from this date. This means many millions of dollars of tariff savings each year on exports to the EU. After seven years, when the agreement is fully in place, 97% of current trade will enter the EU duty-free. How the new FTA promotes sustainability The FTA will make trade more sustainable and create opportunities for businesses that deliver more sustainable products. The agreement is the first FTA built around the EU’s ’Together for Green and Just Growth’ approach to trade and sustainable development. It contains ambitious sustainable trade outcomes in many areas. Environmental outcomes include addressing climate change and subsidies on fossil fuel. Social outcomes include promoting labour rights and women’s economic empowerment. The upside for manufacturers – and some warnings The FTA will have a big impact on trade between New Zealand and the EU. The potential upside for local manufacturers is significant: easier access to one of the world’s most lucrative trading blocs; lower costs for materials imported from the EU. However, the FTA comes with warnings too. Firstly, local manufacturers will be competing with EU manufacturers who may have been making their products more sustainable for some years. As customers here and in the EU prioritise ‘responsible purchasing’, make sure […]

The Industry 4.0 Transformation – An update from the innovation frontline

From November issue of NZ Manufacturer www.nzmanufacturer.co.nz By Holger Heinzel, senior engineer- advanced manufacturing, HERA Where specific organisations are in their Industry 4.0 journey varies greatly, and many are already taking advantage of the benefits presented by the fourth industrial revolution. As the uptake of Industry 4.0 deepens and gathers pace, more data and case studies are emerging which show how the fourth industrial revolution is rapidly transforming the way things are made, improving quality and reducing waste, and making manufacturing and production processes more productive, flexible, and efficient. There is a major opening now to accelerate this uptake across many sectors,and acknowledge and support the pivotal role manufacturing plays in the New Zealand economy, by appointing a Minister for Manufacturing. A pan-material Minister could represent the industry broadly across all building materials, which would improve outcomes for those in the manufacturing sector and those who rely on its products and services. It would also send a message and help create the necessary structure to enable widespread innovation and adoption of Industry 4.0 methodologies and infrastructure. As we know, the challenges of implementing innovation include the cost and effort of change, especially for small to medium businesses which have fewer internal resources to scope and define the work and meet the initial workload. On top of that, established manufacturers face the expense of overhauling, replacing and integrating existing systems and upskilling their trusted workforce. HERA’s efforts to promote, assist, and effect the transformation are multifactorial, and sympathetic to the opportunities and complexities faced by manufacturers and fabricators. The steel fabrication industry is a specialised sector within manufacturing, concerned with creating large and intricate products that are made to the specific requirements of the customer, with welding the primary method of fabrication used to manufacture these items. Since they are […]

The Interview: Heidi Hannonen, Vice President, Markets, Kemppi Oy

How do you define success? I define success as being able to offer a solution to a customer need or problem that exceeds their expectations. Tell readers about your role at Kemppi? As the Vice President of Markets, I am responsible for global sales here at Kemppi. How is everything at Kemppi, what does tomorrow hold? Kemppi is doing well and we are quite happy about how far we have come. Next year marks our 75th birthday and it has been a journey filled with both challenges and rewards. We are now at the start of a new strategic period where we can take stock of our core competencies and build on these. We are also fortunate to be able to partner with world-class dealers and distributors to sell our innovative, top quality welding equipment and safety gear, so the future looks very positive in our eyes. How is Kemppi finding the present environment for doing business? As with any other company at the moment, Kemppi recognises the volatility within today’s markets. Europe is struggling to produce growth and the slowdown of the Chinese economy is also of concern. However, Kemppi is still recording healthy growth figures and these remain sound for 2024. Where are growth regions for Kemppi? Well, we have had very strong growth figures in Australia and New Zealand in recent years. The United Kingdom, Norway and Poland have also been doing really well, thanks to active investment schemes in these markets. Technology – how does it assist with better products? Technology assists with the development of better products in so many ways. It propels the continuous development of better hardware which is more precise, reliable and efficient. It has also given rise to welding software which can be combined with hardware to ensure quality welding processes […]

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