Leabourne & Rose

News Ticker

How manufacturers can prepare for the ESPR
Tech isn’t the Hero, it’s the plucky sidekick
Finding Your True Competitive Edge: A Guide for Manufacturers
Fixing manufacturing’s billion-dollar harm problem
Steel awards showcase local industry’s expertise and sophistication
Aotearoa’s Industry 4.0 journey
5S – Not That Old Chestnut
Scott Aylett, SEA Electrical a winner

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How does New Zealand management measure-up?

Effective management practices are closely related to higher productivity and output in New Zealand manufacturing firms, according to an international comparative study released today. The study of 152 medium and large New Zealand manufacturing firms benchmarks New Zealand management practices against 16 other countries, including Australia, Britain, Canada and the United States, and was led by the London School of Economics and McKinsey & Co. The results show a strong relationship between New Zealand management practices and various firm performance indicators, particularly the profit per employee, firm sales and number of employees. Management practices in New Zealand are ‘middling to average’ by global standards according to the study.  It shows that, while New Zealand managers in manufacturing firms perform well on operational and performance management, they are relatively weak on people management, particularly when it comes to attracting and retaining talent and managing poor performers. Economic Development Ministry Acting Deputy Secretary Michael Bird said “This study demonstrates a strong link between effective management practices and various firm performance indicators.  The message for New Zealand firms is clear:  improving management practices impacts positively on the firm’s bottom line. “This report allows us to look at ourselves compared to other countries for the first time.  It also clearly identifies management practices that New Zealand firms can improve.” Michael Bird said that the Ministry was working closely with Business New Zealand, the New Zealand Institute of Management, and NZ Trade and Enterprise to help firms learn more about the research, and encourage firms to focus on improving their management practices. The study, commissioned by the Ministries of Economic Development, Labour and The Treasury, as well as New Zealand Trade and Enterprise, was undertaken by University of Technology Sydney (UTS).  UTS also did an equivalent study in Australia. nextSTEP Visit www.med.govt.nz.

An export NOT to be proud of

by HERA Industry Development Manager Nick Inskip On April 15, Minster for Research Science and Technology Wayne Mapp announced that the research vessel Tangaroa operated by the Crown Research Institute, the National institute for Water and Atmospheric Research (NIWA) would be heading to Singapore for an overhaul and conversion work. The vessel, which could have been ably handled by Devonport-based VT Fitzroy, is instead being sent to a Singaporean shipyard. New Zealand has a Closer Economic Partnership (CEP) agreement in place with Singapore which is similar to that with Australia. The agreement allows goods which are manufactured at least 40percent in either country to be traded duty free. The agreement says that “Under the CEP, contractors in each country have equal status when bidding for most government purchasing”. Andrew Little, Secretary of the Engineering, Printing and Manufacturing Union said that, “Even though the Government will show a small saving by getting the job done in Singapore it would have served New Zealand taxpayers better in the long run to keep such high-value high-skilled work in New Zealand. The investment in our own marine engineering sector would surely have been more valuable than the small saving to the public purse by sending the work overseas”. The implications of sending the Tangaroa upgrade overseas are simple: We export 40 skilled jobs, we fail to develop an industry capability that we can market to the world, we fail to attract the company supplying the technology for the upgrade to set up an office in New Zealand, and we forgo the income and company taxes that would have been paid. Meanwhile across the Tasman; the state of West Australia has just launched a A$60Million floating dock as part of A $170Million upgrade to their ‘Australian Marine Complex’ which is expected to generate A$2Billion to […]

Let’s talk about upsizing

It’s happening everywhere. Downsizing, that is. Since the economic turmoil of some 18 months ago, life hasn’t been quite the same, has it? And in a country as small as New Zealand there comes a time when the downsizing needs to stop before everyone goes nuts. The Government is currently cracking the whip through the public sector and cutting staff all over the place. It can be said that the public sector was too large and changes had to be made, but this government is not necessarily going to put the savings made into the private sector and create the environment for business to succeed. And there are concerns, of course, about local government spending being out of control throughout the regions. So the public sector is too big, too cumbersome, too problematic.  I hope that what is being saved by axing positions at AgResearch and reducing services throughout the Ministry of Education does not result in a lessening of quality delivery. Do you remember what John Key said before winning office?: “If National is elected and does a ‘half decent job’ at growing the economy, then increasing GST and the top tax rate will not be necessary.”Seems a long time ago since he said that and precious few signs are apparent of planning to make so much stronger the private sector. Is Government, then, not doing a decent job? Business  needs to continue to stand up and demand  better.. New markets and innovation  go hand in hand, surely?; Government needs to have a good hard look at manufacturing conditions – think incentives – and determine if they are enough to take the country forward. And business organisations – think the Business Roundtable – need to represent the greater good of the nation by helping secure a better future for […]

Global aluminium industry co-operating on climate change actions

The International Aluminium Institute.Chairman and Deputy CEO of UC RUSAL, Mr. Artem Volynets says “The biggest task for Governments is engaging and informing the community across all levels, from producer to consumer about the role they can play in improving the transformation of resources, including energy, from raw material to consumer goods and then to reuse.” Mr. Volynets noted “our industry is committed to maintaining the position of aluminium as one of the most sustainable and preferred materials in building, transport and packaging.” “Through its annual global surveys, the aluminium industry reports key sustainability indicators in greenhouse gas emissions, energy use, environment, health & safety performance, recycling and use phase benefits of aluminium applications. Some of our industry’s key achievements in reducing the environmental footprint, promoted by voluntary industry objectives and technology, process and product developments, include: Cumulative GHG savings from recycling, 1990 – 2008 1 billion tonnes CO2e Total PFC emissions (t CO2e) reduced by 70% – and no increase in total direct emissions – between 1990 & 2008, while doubling production GHG intensity per tonne of semi fabricated product, including savings from recycling, reduced by 22% between 1990 and 2008 300 million tonnes CO2e GHG emissions potentially saved through aluminium vehicle light weighting applications in 2008 9 million tonnes of aluminium recycled from post-consumer scrap annually, saving 80 million tonnes CO2e, with additional savings from the 9 million tonnes of pre-consumer (process/manufacturing) scrap recycled every year Mr. Volynets said “these are excellent achievements by any measure and demonstrate the value of governments engaging with industry. Industry has demonstrated that it is an integral part of the response to GHG mitigation. Government can improve the effectiveness of its policy response to GHG by engaging with industry early in the development process.” Mr. Volynets emphasised the “the IAI is ready […]

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