Business News

Aotearoa’s Industry 4.0 journey

From November issue, NZ Manufacturer magazine (below) Sean Doherty, Product Manager, Callaghan Innovation The advent of Industry 4.0 has been a game-changer for the manufacturing sector and can deliver real returns for New Zealand businesses, through increased efficiency, productivity, and innovation. However, many manufacturers remain hesitant to embrace these technologies. This reluctance often stems from persistent myths that cast doubt on the practicality and benefits of Industry 4.0. Based on Callaghan Innovation’s experience working with New Zealand manufacturers who are on their Industry 4.0 journey, we’re keen to dispel some of these common myths and provide some evidence-based solutions to encourage Kiwi manufacturers to confidently step into the future with Industry 4.0. … Myth 1: Industry 4.0 is only for large manufacturing operations. The Reality: Industry 4.0 is not exclusive to large manufacturers. Small and medium-sized enterprises (SMEs) can also leverage these technologies to enhance their operations. Indeed, as a nation of SMEs, this is where Industry 4.0 technologies arguably have the most potential to boost this country’s productivity and economic output. Companies like Nautech Electronics, Gyro Plastics and Oasis Engineering, are all great examples of SMEs deploying Industry 4.0 technologies to good effect. The key is to start small and scale up. For instance, SMEs can begin by implementing IoT sensors and use data analytics to optimise their existing processes. Retrofitting new hardware systems to older equipment can be a cost-effective way to integrate Industry 4.0 technologies without the need for significant upfront investment in new machinery. Myth 2: Exorbitant costs outweigh the benefits The Reality: While initial investments may seem daunting, the long-term benefits of Industry 4.0 technologies can lead to substantial cost savings and increased efficiency. Several McKinsey and Company case studies show manufacturers gaining a 10-20% increase in efficiency, between 10-15% improvement in quality and […]

5S – Not That Old Chestnut

Ian Walsh, Partner, Argon & Co NZ I was reflecting recently on how many business owners have started an improvement program with 5S and failed. Before I talk about the “why” and the “how” 5S implementations fail in these businesses, and for those who haven’t come across 5S before, allow me to briefly explain what 5S is. 5S is a practice that was developed at Toyota in the 1960s. 5S consists of 5 “S’s” based on Japanese words and the associated anglicised word: Seiri (Sort) – Eliminate unnecessary items from the workplace. Seiton (Set in Order) – Organize the necessary items so they are easy to use and accessible. Seiso (Shine) – Clean the workplace and keep it clean. Seiketsu (Standardise) – Standardise the best practices within the workplace. Shitsuke (Sustain) – Ensure discipline and commitment to maintain the 5S processes. All the business leaders that I’ve talked to about failed 5S implementations were unable to maintain the “standardise” and “sustain” the initiative. After a period of time, standards slipped and then eventually (or quite quickly) returned to the previous level with a few artifacts remaining. Most of these leaders said “we tried that, it didn’t work”. This needs a deeper analysis. There are examples across the globe of world-class companies that rely on 5S as a core practice and have succeeded in sustaining the practice. On that evidence, surely it’s not that 5S itself fails, but that particular implementations fail? Many of these business leaders I talked to stated that they were told something along the lines of “if you can’t do 5S you can’t do anything”, and so they started their improvement journey with 5S, usually with help from a “mentor”. Typically, they would do a 5S exercise in an area in 1-2 days and then move into […]

Scott Aylett, SEA Electrical a winner

Scott Aylett from SEA Electrical, a Master Electricians member, received a bronze for the Emerging Business Award at the recent Excellence Awards. A bit more about him here…

Planet Electrical - Sustainability Award

Master electricians excellence awards rewarded talent

Wellington electrical company, Seven Electrical, won the top excellence award at the 2024 Master Electricians Awards ceremony at the Pullman Hotel in Auckland on Friday evening, 25 October, which was attended by Hon Chris Penk, Minister of Housing and Construction.(Pictured left with Alexandra Vranyac-Wheeler, Chief Executive Officer of Master Electricians New Zealand). In addition to scooping the Master Electrician of the Year Award, Seven Electrical took the Excellence Award for a Project (over $5 million) for its work on the purpose-built Tākina Wellington Convention and Exhibition Centre. Tākina is a multi-architectural award-winning building with an iconic design brought to life by customised LED strip lighting. Electrical companies were declared winners across this year’s other Excellence Awards categories – Emerging Business, Lighting Design, Sustainability, Innovation, and the other two Project Awards: $1 to $5 million and under $1 million. The winner of the Industry Champion Award was also announced, along with Apprentice Challenge winners. “We had a record-breaking 85 entries for the 2024 Master Electricians Excellence Awards,” says Alexandra Vranyac-Wheeler, Chief Executive Officer of Master Electricians New Zealand. “This was our largest event to date and our judges had their work cut out for them by the exceptional quality of entries. The judges undertook an intensive 3-week journey across New Zealand and were impressed by the innovation, leadership and commitment to sustainability that was demonstrated in many of the projects. Kinetic Electrical was awarded the Excellence Award for an Emerging Business – for outstanding achievement in the new business space within the last seven years. The Wellington-based company set up in mid-2018 inspired the judges with its business planning and bold commitment to growth through multiple challenges including the Covid-19 pandemic and ongoing business and stakeholder turbulence. The Sustainability Award went to Planet Electrical, which embeds environmental sustainability in every aspect […]

Ceto-Boost Prototype with Cetogenix engineer George Estcourt

Cetogenix: Building renewable futures — with no waste left behind

Each year, the world produces more than 100 billion tonnes of carbon-rich waste from food production, agriculture, sewage treatment and industrial manufacturing. Cleantech startup Cetogenix, a 2024 KiwiNet Research Commercialisation Awards finalist, has found a way to harness the untapped potential of organic waste to generate renewable energy and other circular economy products. The company’s Ceto-Boost™ system breaks down organic wastes and transforms them into valuable products like biomethane, fertilizers and biomaterials. Their patented process uses hydrothermal oxidation — leveraging temperature, pressure and air without any additional chemicals — to deconstruct waste with remarkable efficiency. This novel approach reduces organic waste volumes by 95% and eliminates contaminants like microplastics and pathogens. Globally, it’s estimated Ceto-Boost™ could replace up to 12% of fossil natural gas production and cut greenhouse gas emissions by 884 million tonnes of CO2e annually. The foundation of this innovation lies in over a decade of science and engineering research while the Cetogenix co-founders were working at Scion. They formed Cetogenix in July 2022 via a successful NZ$4.8 M capital raise with co-investment from Pacific Channel Limited, Angel HQ, Enterprise Angels, and Icehouse Ventures. Since launching, Cetogenix has grown to a team of twelve, who complement strong domestic and international R&D and commercialisation relationships. Within one year of founding, Cetogenix scaled up to a prototype Ceto-Boost™ pilot system in Rotorua, where they still maintain a strong collaborative research partnership with Scion. The company is initially focusing on the global municipal wastewater and agricultural biogas markets and has confirmed pilot trials with end-users in New Zealand and the United Kingdom. Maintaining application flexibility and aligning their technology development and intellectual property with evolving market needs has proven crucial for success. With its sustainable waste-to-resource technology, Cetogenix offers a powerful solution to the world’s reliance on fossil carbon — paving the way for […]

Embracing digital transformation: A strategic roadmap for Argus ManuTech Ltd

-Adam Sharman, CEO LMAC Group, APAC Argus ManuTech is a new name, but it has over 50 years of experience as an industry-leading manufacturer of electrical products. It specialises in cable and harness assemblies, viscous reheating products, and electrical medical devices. It has a rich history of supplying local and global customers from its facility in Christchurch. The global manufacturing sector is experiencing a major transformation fuelled by rapid technological advancements and an increasing demand for efficient, sustainable, and data-driven operations. Recognising the opportunities these changes presented, Argus ManuTech set out to tackle key challenges such as improving productivity, optimising supply chains, and remaining competitive despite rising labour costs. To address these issues, the company developed a clear roadmap for its digital manufacturing transformation. Argus ManuTech’s digital transformation strategy was developed through an initial two-step assessment process. Initially, a business survey was conducted with all employees to understand their challenges and needs regarding their work and the opportunities for the organisation. This survey proved invaluable in shaping the transformation strategy and identifying key insights and themes. Nathan Hay, General Manager, says, “I can’t stress enough how impactful and important it was to engage with staff before developing any strategy.” The second step involved using the Smart Industry Readiness Index (SIRI) framework to guide Argus ManuTech in prioritising initiatives for digital transformation initiatives. The SIRI framework, an Industry 4.0 diagnostic tool facilitated for Argus ManuTech by LMAC’s certified assessors, was employed to evaluate the current digital state of Argus ManuTech’s factories. This framework addresses three fundamental aspects of Industry 4.0: Process, Technology, and Organization. Based on this assessment, four high-impact areas were identified for ManuTech to focus its resources on: vertical integration, shop floor automation, shop floor intelligence, and inter and intra-company collaboration. Using these impact areas, Argus ManuTech developed a […]

South Auckland logistics facility to support future infrastructure projects

A new multimillion dollar green logistics facility in South Auckland will help boost access to steel construction materials needed for New Zealand’s major infrastructure and renewable energy projects. Latest Government data shows more than $120 billion has been forecast to be spent on infrastructure by the Crown, Crown entities and KiwiRail over the next five years.[1] The investment is designed to address New Zealand’s infrastructure deficit and prepare the country for future challenges, including population growth and climate change. Key areas of investment include transport, regional infrastructure, resilience and emergency preparedness, public buildings and schools. Dean Brown, CEO of Asmuss Group, says with over 1,400 infrastructure projects valued at $10 million or more planned in the coming years, improving the construction industry’s supply chain capacity will be critical to the efficient delivery of these projects. He says the new $25 million, 15,400m2 purpose-built logistics facility at Drury South Crossing can store over 12,000 tonnes of steel, around 2.1 times the steel volume used in the Auckland Harbour Bridge. “Most of New Zealand’s structural steel needs are met by overseas suppliers and developing the capability to manage the rapid distribution of large volumes of these materials will help ensure that materials are sourced, transported, and utilised effectively to avoid delays. “The operating model at the new facility has been designed to move high volumes of steel across multiple bays simultaneously, significantly improving operational efficiency and customer service deliveries. “In practice, this could see us unload 1,000 tonnes of steel, around 42 truckloads, from the port in a matter of days. By introducing greater redundancy and reducing any supply chain bottlenecks we can help support the development of New Zealand’s infrastructure in a shorter timeframe,” he says. Brown says seven high-capacity, 32-metre-wide anti-sway gantry cranes can move large quantities of steel safely […]

Q & A: Frank Phillips, Managing Director, Fulcrum

We have all heard of our ‘productivity problem’. Adopting proven and well understood technology – not the bleeding edge risky stuff – will be key to tackling it. Anyone in manufacturing who has tried to search for technology solutions to solve a particular challenge knows the rabbit hole it can become. The associated lack of confidence in vendors (particularly when there’s no in country support) follows; so it goes in the too hard basket and progress stops. All this in a nation where Number 8 wire pedigree and ‘build it yourself’ solutions start to proliferate. This distracts from core business focus and can be a black hole of investment to develop and maintain. What does Fulcrum do? We save time; give confidence and ultimately help manufacturers get stuff done! Fulcrum connects New Zealand manufacturers to New Zealand technology partners. Part of this is a simple self-service platform, but we also act as your part time CTO, prioritising and advising to make sure the right things get done by the right partners. In New Zealand we have all the skills, knowledge and technology for manufacturing to thrive, but we often don’t do a great job of talking about it! Fulcrum works with manufacturers and primary industries of all sizes. We often find that our on-boarding and follow up sessions allow us to act as an unofficial ‘part time CTO’ – helping manufacturers to prioritise, build the foundations of their digital transformation and work with the right partners to deliver it. We’ve been conscious when onboarding Technology partners that their can be a right size fit to consider. A specialist contractor working independently may be the right fit for one manufacturer in agility and cost, but not right for another where long term support agreements are needed. Digitisation is the way forward? […]

NZ Manufacturer October issue out now

Read the best analysis and observations for the manufacturing future for New Zealand. Exchange opinions and experiences with your peers, who are enhancing Productivity and market share in local and international markets. Subscribe to the magazine and send your success stories to us. We will share them for you.Contact publisher@xtra.co.nz

Beyond the Status Quo: Rethinking Workforce Development for a Competitive Future

David O’Connor, Head of Emerging Markets, The Learning Wave As a nation, we take pride in our innovation and adaptability. However, when it comes to workforce development, we still find ourselves lagging behind. The challenges are clear: a widening skills gap, ongoing productivity issues, a growing need for both transferable and technical skills, and businesses struggling to meet global competition demands. Are we ready to push boundaries and adopt effective solutions for today’s workforce and tomorrow’s needs? Or are we content to tinker at the edges of a broken system? Recent conversations suggest the latter. So, what can we do? It’s easy to blame outdated educational structures, funding issues, inter-agency hurdles, and slow policy changes. But are we truly held back by the system, or are we reluctant to challenge the status quo? Current structures, though well-intentioned, often miss the mark when it comes to evolving business needs. We need a shift towards flexibility, continuous learning, and strong industry partnerships. We must stop waiting for the government to solve the skills gap; we require more business-led initiatives. Relying solely on government action is unrealistic and short-term thinking. Instead of waiting for mandates or funding schemes, the government should incentivize businesses with tax breaks for upskilling and training their staff. The business community must lead the way. Organisations can – and should- drive change by partnering to source and fund necessary skills training. Many companies recognize the value of investing in their workforce, and there’s an opportunity to create a coordinated, industry-wide effort that harnesses the best training available. Small businesses often claim they can’t make an impact, but we can transform isolated successes into a nationwide movement. Collaboration among businesses is key to creating a more agile and responsive training ecosystem that meets the needs of both employers and their […]

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