Business News

Lifting productivity: Why investment in talent and technology must go hand in hand

-David O’Connor, Head of Emerging Markets, The Learning Wave In the evolving landscape of the manufacturing sector in New Zealand, the adoption and successful implementation of smart technology are undeniably key drivers of productivity. However, without parallel investments in upskilling the workforce, the potential gains from such technological advancements may be left unrealised. At a recent industry event, a business owner shared their experience of raising significant capital to introduce cutting-edge technology in their food manufacturing business. The implementation, however, came to a halt as it became clear that the existing staff lacked the necessary skills to operate the new systems, which led to multiple challenges to meet production requirements. This scenario raises the question: Is this an isolated incident, or a reflection of a broader trend where businesses overlook the critical need for workforce readiness in their technology strategies? Investment in both areas —developing your talent and adopting the new advanced technologies— must be seen as complementary rather than separate business strategies. Business leaders must ensure that their HR and training teams are fully integrated with their Operations and IT efforts, creating a seamless approach to lifting staff capability that aligns with technology implementation plans. When these efforts are given equal priority, they create a cycle where skilled and engaged workers drive technological adoption, and in turn, the technology enhances the capabilities and productivity of the workforce—a win-win situation. One client likened their smart technology experience to “buying a Ferrari but then handing the keys over to kids on their learner’s license in full knowledge that they would crash it’. While this analogy might be an apt description of their workforce’s current skill level, it also serves as a cautionary tale for business owners. The cost and potential setbacks of implementing advanced technology without a focused and skilled workforce […]

Why BIM hasn’t reached its full potential in Aotearoa – yet…

From September issue of NZ Manufacturer magazine www.nzmanufacturer.co.nz By Dr Troy Coyle, HERA CEO Building Information Modelling (BIM) has been a promising tool in the manufacturing and construction industry for decades, yet it remains underutilised in Aotearoa. So, why isn’t it embedded more broadly in our industry? And more importantly, what can we do to unlock its potential? Since the 1980s, BIM has provided a comprehensive repository of data, enabling better decisions during design, build, and maintenance phases. Unlike traditional CAD models, BIM integrates information that allows computers to perform complex simulations. Yet in New Zealand, BIM’s capabilities are largely untapped. Old habits die hard One of the key issues is the way BIM is being used—or not used. Many in the industry continue to treat BIM as an enhanced version of 2D or 3D CAD, using it primarily for its visual modelling capabilities. While there’s certainly value in that, it misses the real power of BIM: its ability to drive collaboration across teams and improve project efficiency. To maximise BIM’s benefits, we need to adopt it as a process, not just a tool – one that promotes early involvement of all stakeholders, open communication, and collaboration. This means breaking down silos and ensuring all stakeholders, from designers to asset owners, work with the same integrated information. This means looking beyond isolated areas such as clash detection or design coordination, and instead – using it throughout the entire lifecycle of a project. Misconceptions around cost One of the reasons for slow uptake is the perception of BIM as a costly, complex tool that only large commercial projects can afford. The reality is that BIM can drive significant cost savings— with global studies suggesting time and cost reductions of 20% to 30% on projects that use it effectively. However, there’s hesitancy […]

Navigating the manufacturing technology landscape: MES vs MDH vs MMP

Adam Sharman, CEO LMAC Group, APAC As manufacturing organisations strive to optimise their operations, the adoption of technology has always been a key focus. In the last 10 years, developments in digital technologies for manufacturers have increased pace and, whilst most organisations recognise the opportunity presented by these developments, the rapidly changing ecosystem of systems can make it difficult to identify the best fit for the business. The landscape of manufacturing or operational management systems has evolved considerably in recent years, with multiple options available to fit the needs of the business based on scale, complexity and requirements. Three solutions that have gained significant traction are Manufacturing Execution Systems (MES), Manufacturing Data Hubs (MDH), and Machine Monitoring Platforms (MMP). Each offers unique benefits and comes with its own set of limitations. This article aims to provide a comprehensive comparison to help manufacturers make informed decisions on which of these solutions is the best fit when considering investment in OT software. Manufacturing Execution Systems (MES) MES is a comprehensive software solution that manages and monitors work-in-process on the factory floor. It operates in real time to enable the control of multiple elements of the production process, including: – Resource allocation and status – Production scheduling – Dispatching production units – Quality management – Labor and material tracking – Performance analysis MES serves as a bridge between planning systems like ERP (Enterprise Resource Planning) and the actual production processes, providing a holistic view of how current conditions on the plant floor can be optimised to improve production output. Benefits Comprehensive Production Management: MES provides end-to-end visibility and control over production processes, from order release to finished goods. Real-time Decision Making: Offers real-time data and analytics, enabling quick responses to production issues. Quality Control: Integrates quality management processes, reducing defects and improving overall […]

Manufacturers have unique opportunity to bank talent

With forecasts from the Hanga-Aro-Rau Workforce Development Council showing the manufacturing, engineering, and logistics (MEL) sectors will need to fill over 157,000 jobs over the next 5 years, existing recruitment strategies need to be widened to include those with transferable skills from other industries. As NZ Manufacturer business advisor and director of Auckland public relations agency Impact PR Mark Devlin has found, recent government cost-cutting measures could provide an opportunity for manufacturers to access a resource critical for the sector’s future growth. With thousands of government and private sector workers made redundant during the recession and from public sector cuts in recent months, the opportunity exists for the manufacturing sector to create a talent bank of skilled workers. This could help futureproof the sector by accommodating thousands of new employees in manufacturing firms nationwide. A large proportion of the 6,000+ Government workers who are losing their jobs as a result of public sector cuts have highly transferable skills that are in short supply and could be absorbed by a wide range of manufacturing firms that contribute directly to the country’s economic growth. What we know of government workers is that they are well-trained in many of the key competencies in desperate need within the manufacturing sector. This includes people from government departments with an existing relationship with industry such as WorkSafe, NZTE, ACC, and MPI. With Māori and Pacific Peoples expected to make up a growing proportion of the workforce the sector needs to be looking to bring in greater diversity and more cultural awareness – and the Government workforce has an abundance of expertise in this area. As a nation, we have invested heavily in developing our government workforce and it is critical we move to retain these skills, many of which are unique to our ethnic and demographic […]

Editorial: Fires everywhere

From September issue, NZ Manufacturer We lead this issue with an energy story (Page 1) to “empower energy sovereignty”, the purpose of Mackwell & Co of Christchurch, with a focus on energy resilience and fossil-fuel-free transport. Mackwell realise the two concepts to achieve this are the use of accessible and low value biomass as fuel and a technology that can safely and cleanly convert this to useful work without relying on existing infrastructure. I have been trying to get my head around the deep concern being felt around the country regarding the cost of energy and the damaging effects this is having on domestic and business users at this time. With companies not being able to see a way ahead and closing, with the exorbitant price to the domestic market (where those disconnected have to find the money to be reconnected when they cannot pay the bill) what is the country meant to do? One thing, the energy companies need to be challenged on their pricing and why the return to shareholders is, at this time, more important than the wellbeing of the future of business in New Zealand. Another thing, make it affordable for all New Zealanders to have solar panels on their buildings and homes. How does a smart, innovative country like New Zealand find itself in the situation where with high power costs, imports will become more expensive? Where our reliance on the rural sector to succeed on export markets becomes a challenge; when the price of energy means their products become more expensive on world markets? Higher energy prices assist government coffers. But at what cost?…regions lose the financial input of (now) closed businesses whose staff leave and look afield to Australia. Regards, Doug Green, Publisher www.jezmedia.net

Improvement Snakes and Ladders

From September issue of NZ Manufacturer magazine. -Ian Walsh, Partner, Argon & Co NZ As we head into Spring 2024, it’s encouraging to see fresh growth – both in nature and in the economy. I appreciate it’s too early to celebrate from the rooftops, but I’m invigorated by the growing number of activities emphasising what matters most – productivity! The recently repurposed National Infrastructure Agency (NIA) has a remit to drive better practices through New Zealand’s industry sectors. Done right, the promotion of growth in capital investment should lead to an overall improvement in business performance. But to lock this in as a reality, we know that dedicated investment in people and processes is the only true way to lead to a better performance culture. I thought it might be timely to call out some of the “myths and misunderstandings to avoid” and to talk through what a good continuous improvement program looks like, as you may be contemplating what your business can do to ride this wave. Here is my Improvement Snakes and Ladders. Unfortunately, it is not a touch it once and let it go fix; like fitness, use it or you lose it! Improvement Snakes and Ladders We don’t need to do this. In NZ less than 20% of businesses know what a continuous improvement or transformation programme truly is. In more competitive markets it’s 100%. Can you wait to find out if you have a competitor who is significantly better than you? Your call, but it sounds risky. Why wouldn’t you do it? At this point, you haven’t even put your piece on the board. We did that. It didn’t work. If you believe you have “done” lean, you don’t understand lean. It is not a project; it is a continuous improvement programme designed to […]

How well are NZ companies reporting their climate impacts?

(Left)Sarah Walton, Professor of Sustainable Business, University of Otago (Right)Andrea Foley, Assistant research fellow, University of Otago Interpreting corporate reports on carbon emissions can be challenging. The current, adhoc approach to how businesses share this information makes it difficult to see whether they have set the right targets, have realistic plans to meet them or are being transparent about their progress. While there are frameworks for reporting climate and sustainability data, there are still big differences in the way the data is being disclosed. We developed the Climate Action Tracker Aotearoa (CATA) to address these issues. Based on the global Net Zero Tracker, CATA evaluates company reports and climate plans to share and explain their climate action. Using the tracker, we analysed 21 companies in Aotearoa New Zealand, focusing on the top emitters and companies in the energy, retail, agriculture and transport sectors, as well as the banking sector. We evaluated three aspects – targets, plans and reporting – by reading through publicly available information provided by the company. These three aspects help make sense of what a company is doing and going to do to mitigate climate change. Here is what we found. Setting targets While the majority of companies have 2030 targets (86%) and absolute targets (81%), only five companies of the 21 (25%) have targets that have been verified by the Science-based Targets Initiative. All but two companies include scope one (emissions the company creates directly) and scope two (emissions created indirectly from, for example electricity or energy it buys for heating and cooling buildings) – the areas companies have the most control and ownership over. But when it comes to scope three emissions, which come from company travel in planes, trains and taxis, and the supply chain, far fewer companies have set such targets. Scope three targets are […]

Feeding the Machine

From: September issue of NZ Manufacturer www.nzmanufacturer.co.nz The Hidden Human Labour Powering A.I. Callum Cant, James Muldoon, Mark Graham For readers of Naomi Klein and Nicole Perlroth, a myth-dissolving exposé of how artificial intelligence exploits human labour, and a resounding argument for a more equitable digital future. Silicon Valley has sold us the illusion that artificial intelligence is a frictionless technology that will bring wealth and prosperity to humanity. But hidden beneath this smooth surface lies the grim reality of a precarious global workforce of millions labouring under often appalling conditions to make A.I. possible. This book presents an urgent, riveting investigation of the intricate network that maintains this exploitative system, revealing the untold truth of A.I. Based on hundreds of interviews and thousands of hours of fieldwork over more than a decade, Feeding the Machine describes the lives of the workers deliberately concealed from view, and the power structures that determine their future. It gives voice to the people whom A.I. exploits, from accomplished writers and artists to the armies of data annotators, content moderators and warehouse workers, revealing how their dangerous, low-paid labour is connected to longer histories of gendered, racialised, and colonial exploitation. A.I. is an extraction machine that feeds off humanity’s collective effort and intelligence, churning through ever-larger datasets to power its algorithms. This book is a call to arms that details what we need to do to fight for a more just digital future.

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 […]

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