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Cluster theory fails to take hold in NZ manufacturing

Twenty-seven years after the Porter Project recommended New Zealand should pursue a “clusters” strategy to develop its manufacturing base, a government study of the manufacturing sector has found there are “few economically significant manufacturing clusters in New Zealand”. Without mentioning the government’s commercialisation accelerator agency, Callaghan Innovation, by name, the Ministry of Business, Innovation and Employment’s New Zealand Manufacturing Sector Report suggests that “new institutions may need to be established, or existing institutions modified”. Callaghan is expected to see funding cuts for direct grants to companies seeking research and development assistance in the May Budget, as the government moves to introduce a new R&D tax credits system. Economic Development Minister David Parker launched the report, the first such overview of the sector by the Ministry of Business, Innovation and Employment since it began publishing sector reports in 2013 under the previous government, in Auckland this afternoon. The report notes poor productivity persists in the sector and the long lead times required for new, higher value industries to emerge and appears to suggest changes are required to existing policy settings and government agencies to help deliver better results. “The development of a new industry typically follows an ‘S’ curve, similar to the stages a new technology goes through as it diffuses through society,” the report says. “There is usually a long gestation period – perhaps 10-20 years – while the skills and capability needed to succeed are learned and acquired by: firms; investors and service providers; and the education and government sectors. “New institutions may need to be established or existing institutions modified.” The government is also conducting reviews and reforms of the education system, including initiatives to improve the financial stability and quality of skills training through the country’s polytechnics. The manufacturing sector is a disproportionately large employer of tradespeople, […]

Australian state looks to New Zealand for export lessons

An Australian state is looking to follow the blueprint of neighbouring export powerhouse New Zealand in a bid to turn its economy around. Steven Marshall’s Liberal Government won the March 17 state election, ending 16 years of Labor Party rule in South Australia. Still in his first 100 days of office, Marshall has vowed to lower taxes, streamline approval processes and grow exports. Several aspects of his plan seek to follow the success of New Zealand when John Key was Prime Minister from 2008-2016. During this time Key lifted the country out of recession forged strong export ties with China and helped develop several strong export industries. Led by the dairy industry, six of New Zealand’s top seven export categories are food or drink related and include meat, fruit, seafood and wine. New Zealand’s exports hit a record high of A$50.2 billion (NZ$53.7 billion) in 2017, up 11 per cent on 2016 and beating the previous record of 2014. Despite having about 7 per cent of Australia’s population, South Australia only accounts for 4 per cent of Australia’s total exports. Marshall said this compared to 7.4 per cent of Australia’s merchandise exports in 2002. Like New Zealand, South Australia’s major export categories are dominated by primary industries such as wheat, meat and wine. China is the biggest trading partner of both jurisdictions with Asia accounting for more than half of all exports in both economies. However, Marshall said South Australia’s exports to China had lost ground against other Australian states in recent years. He said New Zealand’s success was in pinpointing sectors, such as the dairy industry, and aligning them with targeted export markets. He said he had already met with three of South Australia’s largest red meat exporters with a view to increasing their opportunities. “New Zealand had a […]

Hamilton and Waikato first to enjoy ‘Warm White’ LED street lighting

Hamilton and Waikato drivers and residents are the first in New Zealand to experience unique warmer streetlights that reduce spillover glare into houses, are less harsh on the eyes and more energy efficient. Over 15,000 new street luminaires have been custom-made by Philips for Hamilton and the Waikato’s conditions, with half already in place and the rest being installed by the end of the year. While numerous districts throughout New Zealand have replaced older HID lights with LEDs, Hamilton and Waikato are the first to specify a 3000 Kelvin luminaire which provides an atmospheric form of ‘warm white’ lighting. This is a less harsh and more welcoming light compared to the more common 4000 Kelvin LEDs which produce a cooler blue-white light similar to daylight. As a fast-growing city, many of Hamilton’s major arterial roads lie in residential areas with high housing density. The lighting must both provide safety for drivers while not spilling over into people’s homes. In addition, New Zealand street light poles are often more spaced out than those in other countries so light has to reach between poles but not outwards or upwards towards homes. The $7.2 million project, funded by the NZ Transport Agency with contributions from Waikato District and Hamilton City Councils, covers all roads throughout the council areas and is scheduled for completion in December. It is being managed by the Infrastructure and Waikato Alliances, a strategic partnership between the councils and Downer, with Cory’s supplying 16,000 Philips ‘Road Grace’ luminaires. Over 9,300 existing lights will be upgraded on the two council’s P category residential roads and 5700 along higher volume V category roads. The new LEDs fit into existing street light poles and infrastructure, are more energy efficient and require less maintenance, with Hamilton expecting to save over $250,000 in reduced power […]

Synlait Palmerston North officially opened

“We’re very excited to be opening Synlait Palmerston North, which is home to our new Research and Development Centre,” says John Penno, Managing Director and CEO. “We have some major opportunities in front of us. With the strong team and partnerships we’ve got in place to lead liquid innovation within our business, we won’t miss a beat,” he says. Vice Chancellor of Massey University, Professor Jan Thomas, opened the facility and highlighted the important new relationship between Synlait and the university. “The establishment of Synlait’s new Research and Development Centre at Massey’s Manawatū campus is an excellent example of industry and the university collaborating closely to achieve real, tangible outcomes,” says Professor Thomas. “Strategic partnerships like these are vital if we are to start and grow new industries, create new jobs, and to remain competitive in the global marketplace. Massey University is New Zealand’s premier provider of food research and education, and at the forefront of pioneering such partnerships with the food industry.” she says. Synlait Palmerston North is a partnership with Massey University and FoodPilot, one of the New Zealand Food Innovation Network’s four hubs. The Palmerston North team will primarily concentrate on innovative dairy liquid product development, as well as supporting processes and technology. They will also play an important role in developing innovative export-orientated cream opportunities that leverage Synlait’s upcoming $125 million advanced liquid dairy packaging facility at Synlait Dunsandel. Synlait plans to double their investment over the next two years, having committed around $7 million to research and category development in the current financial year. They will be investing around $2 million on additional equipment for the FoodPilot facility, which can be used by others. Synlait currently has around 35 staff members working within the Research and Development Team, but this will continue to grow as […]

Robotics Plus signs global deal for robotic apple packers

Jamie Lunam and Dr. Alistair Scarfe. Deal highlights demand for agricultural automation technology; follows recent investment from Yamaha Motor Co. to accelerate company’s growth Robotics Plus, a New Zealand agricultural robotics and automation company, has signed an agency and distribution agreement with GlobalPac Technologies which will see the company’s revolutionary robotic apple packers go global. The deal, which will initially target the US, Australian and New Zealand markets, is fuelling a period of accelerated growth for Robotics Plus as industry demand for its innovation grows. GlobalPac Technologies is a joint venture between United States company Van Doren Sales and New Zealand-owned Jenkins Group. Robotics Plus CEO Steve Saunders says between the two companies, Van Doren and Jenkins have a presence in almost every packhouse in New Zealand, Australia and the US. “We see enormous potential in our new relationship with GlobalPac Technologies. Naturally their global packhouse relationships offer exciting opportunities for us to expand distribution of our apple packers to markets beyond New Zealand, but more importantly, they share our vision for the future of packhouse automation. Together we aim to transform the global horticulture industry.” Jenkins General Manager, Jamie Lunam, says: “Apple packhouses already use automation extensively for sorting and grading, but the process of arranging apples in trays for export is still highly labour intensive. “Labour shortages are a major and growing concern in New Zealand and many other food producing countries. We see Robotics Plus and their packing technology as game-changing for the industry. It is a very exciting time to be involved in helping to affect this positive change.” Van Doren CEO, Brett Pittsinger says the global apple industry has been packing apples the same way for decades. “Labour shortages are now causing major headaches for packhouses in the United Sates. It’s exciting to see the […]

The Interview: FARO

Spokesperson: CHEW Beow Kwan, Product Marketing Associate Manager, Asia Pacific, FARO Technologies Please tell us what BuildIT Construction is all about? The BuildIT Construction software leverages on FARO’s cutting-edge 3D metrology capability. FARO is to first to offer this fully integrated building lifecycle Quality Assurance (QA) and Quality Control (QC) management tool empowering construction professionals to continuously evaluate projects with real time comparisons against CAD designs using 3D scan data. The software from FARO uniquely enables laser scanner users to perform immediate, real-time build and verify analysis throughout the entire project, and facilitates a new level of cost management and operational efficiency. BuildIT Construction can be fully integrated with 3D data collected from FARO Focus Laser Scanners, optimised for the FARO TracerM Laser Projector for placement and layout of structural components and is compatible with the FARO Laser Tracker for prefabricated modular positioning. It can also be used seamlessly with other third-party hardware. Where do you see this software being used most? Application areas that will benefit most from the BuildIT Construction software include Architecture, Civil Engineering/Surveying, Construction, Facility Management, Historical Preservation, and Mechanical, Electrical and Plumbing (MEP). AEC professionals will find the software useful for: Verifying accuracy of scan data to design models Detecting incorrect placement or missing features such as walls, columns, beams, pipes, etc. Performing important measurements accurately and quickly Inspecting construction for adherence to building standards Verifying shifts and movements within structural performance over time with 4D analysis Performing real time monitoring of adjacent structures throughout the project lifecycle Is there a lot of construction underway across ASEAN? Prospects for construction in the ASEAN region is generally bright. According to the Global Construction 2030 Report[1], the ASEAN construction market is expected to exceed US$1 trillion by 2030, with growth predominantly driven by labor intensive light […]

Company Profile: MSugar finds their sweet spot

“The less human intervention the better, that’s what customers want to see,” says MSugar Managing Director Jay Spittal. MSugar relocated to premises in East Tamaki in mid-2017, and just last month commissioned a new, state-of-the-art fully-automated liquid sugar processing plant to serve customers in the food and beverage manufacturing and beekeeping industries. “Humans make errors and errors can cause contamination, so we’ve built the highest spec plant we could to eliminate that risk,” says Jay. Building a new plant was the way forward MSugar has been trading cane sugars and other food commodities since 2009. Four years ago, the company also began supplying liquid sugar to beekeepers, who use it as a food supplement for bees, and to small-to-medium size food grade customers. “We used a contract manufacturer to start with and they were very good, but after two years we’d built the business up to a point where capacity was holding us back and building a new, automated processing plant was the only way forward.” “With financial analysis and the advice of our accountant and business adviser Karen Tobeck at Monteck Carter we built a business case and took that to our bankers, and thankfully they gave us their support and the funding we needed.” The market for liquid sugar is large in volume terms – millions of litres – but it’s not a spectacular growth market. The commitment to building a new processing plant was one piece in the strategy that MSugar is pursuing to carve out a competitive position in liquid sugar and to succeed by providing exceptional service and a quality product. “With our trading background we understand that ‘sugar is sugar,’ though we’d also argue there are quality differences determined by refining sources and processes. We identified ways to serve customers better by doing things […]

Chamber welcomes funding for Canterbury in Budget

The Canterbury Employers’ Chamber of Commerce has welcomed the announcement in the Budget of the delivery of Labour’s election promise of a $300m acceleration fund for capital investment in Christchurch rebuild projects, says Canterbury Employers’ Chamber of Commerce CEO Leeann Watson. “This funding is a welcome boost for Christchurch, with several projects strong candidates for acceleration, such as the Multi-Use Arena and the Metro-Sports Facility”, Ms Watson said. The Chamber has made clear in its submissions on the Christchurch Council’s LTP that businesses wish to see a strong pathway indicating investment in infrastructure to ensure we are on the events calendar again in Christchurch. The Chambers’ hope is this announcement will go some way to ensuring this is carried through in the LTP. “Business and private investors need certainty around these key anchor projects. This allows them to make their own investment decisions and bring jobs and growth to the Canterbury region.” “We are also pleased to see the investment of $62m in new capital for the Christchurch Schools Rebuild programme. This will be a welcome boost to both the education of our future skilled employees and extra stimulus for the Canterbury economy.” The confirmation of the Government’s commitment to the R&D tax credit for business is also good, says Ms Watson. “R&D tax credits will stimulate investment because innovation is a key to New Zealand growth. It clarifies and provides a more easily understood structure for businesses to invest in R&D.” The Chamber is also heartened to see the Government sticking to its fiscal targets. “It’s pleasing that we are seeing continuing responsible management of New Zealand’s finances. This will ensure we can continue to sustainably grow,” says Leeann Watson.

Budget impact on Exporters and Manufacturers

The 2018 Budget’s allocation of $1 billion towards R&D tax credits will be welcomed by exporting and manufacturing firms. Catherine Beard, Executive Director for ExportNZ and ManufacturingNZ, said innovation support was particularly valued by exporters and manufacturers “Setting up a tax credit scheme in addition to the support available through Callaghan Innovation will increase the support available for business. “While the firms that were getting Growth Grants under the Callaghan Innovation scheme were very happy with that support, there were a large number of companies that were getting little or no support. “This new approach should be more broadly targeted and we hope it will accelerate business investment in R&D across the board. “ExportNZ and ManufacturingNZ are working with industry and officials to ensure we get the scheme to be as effective as is possible for both the large and small businesses we represent. “Exporters will also be supportive of additional funding going to the Ministry of Foreign Affairs and Trade in these increasingly troubling times when it comes to talk of trade wars, and higher tariffs and non-tariff barriers. “New Zealand officials work hard on behalf of exporters and as a small country they have to do it with fewer boots on the ground, so this boost will be welcome. “With regard to greater investment in the Pacific to the tune of $714 million, ExportNZ and ManufacturingNZ would want to ensure that this is quality spending. “By ‘quality spending’ we mean that New Zealand firms are given good opportunity to tender for any building or infrastructure projects and that tenders are let on the basis of quality rather than cheapest price. New Zealand firms can compete on quality products and services and the Pacific Islands need quality that will last the distance and be enduring solutions. “Spending in the […]

Budget 2018 has no action on skills

The Industry Training Federation is disappointed to see no new investment in on-the-job training and apprenticeships in Budget 2018. Skills shortages are rampant, employment is high, technology is changing, the workforce is aging, and there are a lot of houses to build. Employers will need support to train workers in that industry and many others. New Zealand’s Industry Training Organisations are supporting industries to upskill. 25,000 employers across New Zealand are supporting 148,000 trainees and apprentices to gain skills and qualifications on-the-job across a wide range of industries. “Workplaces make excellent classrooms, and employers make excellent teachers” Mr Williams says. “Employers carry the bulk of the costs, subsidies are vastly lower, trainees and apprentices are taxpayers with jobs, industry gets the skills it needs, and every dollar supports training, not buildings and student loans. “We get that this is just one Budget, and that the Minister is progressing a series of reviews, including of vocational education. However, Labour’s Future of Work Commission recognised the need to upgrade the skills of the workforce through life-long education and training, delivered through the workplace. This is an international wave, and critical in the face of technological change. “Traineeships and apprenticeships turn workers into skilled workers, secure the future of industries, and create thriving and prosperous communities. This is a disappointing day for us.” Mr Williams says.

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