Business News

Collaboration and sector support builds sustainable supply chains

-Helen Down, Chief Executive, Hutt Valley Chamber of Commerce The local manufacturing sector continues to play a critical role in ensuring New Zealand has resilient and sustainable supply chains. The Covid-19 operating environment has caused significant uncertainty and disruptions to the global supply of product and goods, and opened up new opportunities for local manufacturing to re-examine and refocus networks and flows, and create new connections across the sector to stabilise supply chain reliability. Without a doubt, if well supported by government policy, the manufacturing sector will play a key role in the long-term Covid-19 economic recovery, including with job creation. “When products and services are scarce, it is often harder for a small country like New Zealand to compete in terms of buying power on the world stage. Overseas suppliers often favour markets with higher demand.” Helen Down said. The disruption of the global pandemic exposed gaps, but also opened up opportunities. “The Chamber has seen a spike in enquiries coming in for new product development from companies who would otherwise have imported product from overseas with the disruption to shipping and air freight.” The Chamber is now actively promoting and supporting opportunities for greater collaboration in the manufacturing sector, as well as continuing conversations with government to seek greater support. “It will be important to be smart about manufacturing those things that are going to be harder to get due to Covid-19, and as a manufacturing sector, work together to create domestic manufacturing capability. “Many manufacturers have demonstrated their ability to adapt very quickly, refocus skills and resources, and scale up as needed, or create in-demand products quickly. “This can include identifying products we haven’t previously, or are not currently manufacturing, but where there is likely to be a high demand such as health products, masks, and ventilators,” […]

What is World Class?

By Ian Walsh, Managing Director, Intent Group What do we mean by world class? Over the last few years, I have facilitated business sessions on productivity with business leaders, based on this fundamental question. What I have found interesting is the majority of them don’t know what world class is. They believe it is something to aspire to, that is probably unachievable, but they can’t actually define what it is. Of course, it is different if you ask them what isn’t world class, or to describe the last world class experience they had. If you were to ask them to list examples of companies they would consider to be world class, I’m certain that a range of great restaurants, Air New Zealand, Apple and others, would populate these lists. World class is not about perfection, but rather beating or outperforming your competition in the important things that your customers care about and are willing to pay for. Why do people buy Toyotas? They are reliable (quality) and people pay more for them because of this. Toyota has figured out how to make cars cheaper and more reliable than anyone else by focusing on delivering this value. For perspective, Toyota identifies over one million improvements per year, or over six per employee, and over 90% of those improvements are implemented. How do you compare? Unfortunately, over the last 10 years, when posed the question whether they have asked their own customers why they choose them or what they value, 90% of SME’s responded that they did not know! Almost none of them have segmented their customers to figure out what the different customer segments value. As a result, they have misaligned systems and processes and are failing to deliver value as efficiently and productively as possible. Consider the value proposition of […]

Southern regions to become collaborative industrial powerhouse

Can Southland and Otago’s manufacturing engineering sector be the fastest growing and most competitive of its kind in New Zealand? Despite the challenges being thrown at the sector, the Southland Otago Regional Engineering Collective (SOREC) believes it can. SOREC has launched its capability mapping project to establish these two regions as an elite collective of engineers and manufacturers who are able to execute projects across numerous industries and fields. SOREC was established by industry for industry, to ensure the sustainability of engineering in Southland and Otago. It is an incubator for industry to work together by growing and sharing the pie. As New Zealand cautiously claws its way to recovery post-Covid-19, it’s the country’s regions that can feel the greatest impact. However, those regions also have significant potential to drive economic recovery. SOREC has a plan to help build on that potential, and now that plan is being put into action. During the next few months, the organisation will be conducting research and surveying the manufacturing engineering sector in the two regions, to create a comprehensive matrix of all the businesses that fall into this industry and mapping their capabilities. SOREC general manager Ceri Macleod said this would create a database of skills and a prospectus of sorts for Southland and Otago. “This will effectively show potential clients what we can do, how vast our breadth of knowledge and skills are, and the value we offer in working collectively,” she said. “It’s going to give the southern region the ability to put forward compelling business cases for large manufacturing engineering contracts, in sectors such as defence, transport, infrastructure and high-tech production by working collaboratively.” If international and national contracts could be filled from the south, then the growth of the industry would mean more jobs, greater investment in new technology, […]

Setting the pace: Starting a step change in construction performance

By Stephanie Pretorius, Senior Consultant, Intent Group Lean in construction is still well behind manufacturing in terms of uptake in New Zealand. There are some key factors affecting the pace of change, including lack of an industry standard for ‘what good looks like’. Construction has just begun to realise the potential benefit that comes from a focus on continuous improvement to processes, maximising customer value and improving throughput. How can construction pick up the pace and make sustained progress towards performance improvement? Construction is a collaborative industry that has a number of recognised issues. A joint initiative between Government and Industry was started last year in an effort to address known issues and kick-start closing the gap towards better performance. The 2019 Construction Accord sent a clear signal that sector transformation is needed over a three-year span with improved performance being the goal. Downer’s Transport Services Northern business is an excellent example showcasing ways to actively realise the intent of the Accord. One of the objectives of the Accord is to lift performance through better business management practices. Downer started an improvement journey in 2017 that was aimed at introducing better practice and creating a stable foundation for continuous improvement (CI). Their culture was transformed over the last three years as the business pursued CI with dedication and commitment. While it is still the beginning of their journey, they have made remarkable progress due to strong leadership and wide team engagement towards the new direction. The initial driver for the business was a step change in culture with a focus on continuous improvement to better protect intellectual property across core processes within the business. Setting an intention to be significantly different in three years, the Northern Leadership team embarked on a transformation journey. The goal was to develop the capability […]

Post-Covid-19 construction crunch – From survive to thrive

-Stephanie Pretorius, Intent Group New Zealand’s construction industry has been heavily disrupted since the arrival of Covid-19 to our shores. A relief package is now available, with the New Zealand Government investing heavily in the industry to the tune of $3B. Funded infrastructure projects include a significant amount of ‘shovel ready’ projects identified to support the short-term pipeline over the next 12 months. Despite extra funding, certain segments of construction are likely to still be negatively impacted. As an example, Auckland alone recently lost $500m from Council revenue budgets; the flow on effects are still to be determined. The funding pipeline may be affected for multiple years and there is risk of misalignment of capacity as funding may swing between years. The intent of the fast tracked ‘shovel ready’ projects is to quickly stabilise cashflow, as well as the pipeline for the industry, and to help construction survive in the short term. But how can we take this further and help construction to thrive in the long term? As a sector, construction has been ‘sailing close to the wind’ for a long time with tight margins and low productivity. The Construction Accord (Accord) has set the tone for the future, outlining goals for improved productivity, capability and resilience. Now is the time for industry players to take ownership of the direction for their own long-term sustainability. If improving productivity is an Accord goal – who will be the first to take bold action? Staking a claim to become excellent at what you do, and getting better every day, is going to pay dividends in terms of preferred supplier status, higher profitability, people retention and development, and ultimately long term survival. Many construction businesses took away lessons learnt from their Covid-19 experience as the ability to respond and adapt to trying […]

Business, Covid, and the 2020 election

Most businesspeople approve of the Government’s handling of the COVID-19 outbreak, but many are uncomfortable with New Zealand’s resultant debt. And business wants a plan for raising economic performance to deal with Covid fallout. The key findings of the Deloitte and Chapman Tripp Election Survey hosted by BusinessNZ- were presented at the virtual Deloitte and Chapman Tripp Election Conference hosted by BusinessNZ in Auckland today. This year’s survey shows a clear view by business that the Government has done well in its initial response to the Covid-19 situation. There are mixed feelings about whether the Government has spent the right amount on business support, but there is strong support for the wage subsidy and leave schemes. Looking ahead to the period of Covid- and post-Covid recovery, businesses want to see the Government focused on economic well-being, with a coordinated plan for recovery that includes building infrastructure. For the general business environment, businesses want to see the regulatory burden on business reduced, the RMA overhauled, and 90-day job trials allowed for all businesses. A large majority don’t want tax increases. Deloitte Chief Executive Thomas Pippos says, “The survey defines the areas of interest to New Zealand business. This year’s results show a clear focus for future governments, even with the high levels of uncertainty caused by Covid-19. “There is an understanding that as a country, we are dealing with an unanticipated and disruptive situation. Overall, survey results suggest there is general support for the actions taken by the Government to date in dealing with the Covid-19 pandemic which is the key positive the Government can take from the survey findings.” Chapman Tripp Chief Executive Partner Nick Wells says, “With little sign of the pandemic easing in the short term, and an uncertain prospect of a vaccine, our collective focus needs to […]

Immigration changes “a great boost” to local businesses

Canterbury Employers’ Chamber of Commerce Chief Executive Leeann Watson says businesses in Waitaha Canterbury will welcome the news that valued workers that have been stuck offshore will now have the opportunity to return to Aotearoa New Zealand. The announcement by Minister of Immigration Kris Faafoi will help new residents stuck offshore keep their residency status while Covid-19 travel restrictions remain in place. This means that individuals whose travel conditions are about to expire will receive a 12 month extension to travel to New Zealand, and those whose travel conditions have expired on or after 2 February 2020 (when travel restrictions began) will be issued a new visa, also valid for 12 months. “The announcement that visa holders that are normally resident here and have retained their job can apply for a border exemption is a great boost to local businesses,” says Ms Watson. “Sectors right across the region have felt the impact of the loss of these workers, many of whom hold essential positions in their workplaces. Employers have indicated that many projects have been delayed or negatively impacted in infrastructure, health, and telecommunications without these critical workers. “Many of these visa holders have lived in New Zealand for years and make a strong contribution to our communities. “This is a really positive step towards establishing a balance between efficient border management controls and the importance of allowing the movement of people into the country for our economic recovery. It also provides businesses with a degree of certainty around this issue during what continues to be a very challenging and unsettling time.”

Applications open for ATNZ Apprentice of the Year 2020

The country’s largest employer of mechanical engineering apprentices, Apprentice Training New Zealand (ATNZ) is excited to announce applications are now open for their highly coveted Apprentice of the Year Award. ATNZ General Manager Susanne Martin said the award is open to all apprentices in their second year or more of mechanical engineering training who have signed a current training agreement with ATNZ and recognises the skills and talent of an exceptional all-rounder. This is the third year of the awards for ATNZ, a not-for-profit group training organisation that employs more than 340 engineering apprentices and places them with host companies around New Zealand. “This award celebrates an ATNZ apprentice who is not only a high performer thriving in their apprenticeship, but also has an outstanding attitude. They are proactive in their work, particularly around health and safety, and show obvious enjoyment in what they do,” Ms Martin said. Along with being crowned ATNZ Apprentice of the Year, the winner will receive $1,000 of tools and a $1,000 JBHiFi voucher – doubling the value of the prize pool of previous years. Ms Martin said applications come from across all spheres of the engineering trade. She believes the unprecedented challenges of 2020 will have further spotlighted extraordinary future tradies. “Every year we’re blown away by the calibre of applications, and the obvious talent we are nurturing as we grow the next generation of Kiwi tradespeople. With the impacts of the COVID-19 pandemic, now more than ever, we need success stories to celebrate. We know during the lockdown and restart, what assets our apprentices have been to our host companies. That’s why we ask host companies to recognise the valuable contribution they have made to their workplaces and encourage their learners to apply,” Ms Martin said. Applications must be received by no later […]

Manawatu and Palmerston North outperforms NZ

Infometrics latest Quarterly Economic Monitor shows that regional economies such as Manawatū and Palmerston North are performing almost twice as well as the national economy. “While the regions have been hit by COVID-19, Manawatū, Palmerston North and the wider Manawatū-Whanganui region have outperformed the national economy,” says Linda Stewart, Chief Executive of the Central Economic Development Agency (CEDA). “It shows how the regions are driving the economy in terms of primary-related exports. Due to Manawatū’s diversified economy we can add education, public administration, research, logistics and manufacturing as well. “While the Manawatū and Palmerston North economies have taken a hit, our economic diversity means that we are in a good position to weather the storm. It also shows the soundness of the economic development strategy that the region is following,” she says. A useful measure is non-residential consents, which points to both infrastructure and commercial activity. While the rest of the country contracted -8.8%, in Manawatū, non-residential consents were up 57.2% and a record 84.4% in Palmerston North. Housing consents in Manawatū are 2.5 times greater than the rest of New Zealand and an impressive 4.5 times in Palmerston North. Ms Stewart says construction activity is not a flash in the pan. “Construction sector jobs have expanded 86% in Palmerston North and Manawatū since 2000, creating thousands of jobs. With a multi-billion-dollar bow wave of infrastructure now starting, we have solid foundations underpinning this. “Another measure is jobseeker claimants. The increase in job seeker benefits due to Covid-19 restrictions on business is currently half the New Zealand rate in Manawatū and impressively, 63% less in Palmerston North.” “CEDA is not playing down the massive business impact that COVID-19 has and will continue to have upon businesses and people, especially once the […]

The Interview: Greg Kushnir, Founder, Emrod

Greg Kushnir. How are you finding current business conditions?Challenging. But there’s really only two things one can do about it. Complain (which doesn’t help much) or get busy doing whatever possible to persevere. We have been very busy all through the Covid-19 turmoil and actually hired additional staff during lockdown. Do you believe that through adversity opportunities exist?Competition is important and so is having an incentive to those who “win” it. It provides the sense of urgency which is essential for turning a good idea into a great start-up. This virus is not going to go anywhere soon. Has Covid impacted on your business plans? It has, unfortunately. It’s rather hard to build things like electronic systems and antennas if you can’t access your lab and test facilities. We have also suffered from delays in supply of components from overseas. But we have been luckier than most and I’m very grateful to be living in a country that has dealt with Covid so well. We have colleagues and friends overseas that have been under lockdown for months now. My heart goes to them. I wish we could do more to help those who have been less fortunate in dealing with the pandemic. Is your company utilising government financial assistance? We are. We have been utilising an R&D grant from Callahan Innovation. It would have been very hard to get to where we are without the consistent support we have been receiving from Callahan Innovation which extends far beyond the financial support. What are your short and long term plans for Emrod ? Develop deep IP in New Zealand and make sure we are providing maximum value to Kiwi employees and investors. In the short term we will be developing and delivering wireless power systems to electricity distribution companies. I would […]

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