Covid-19

NZ economy better than expected

The BusinessNZ Planning Forecast for the December 2020 quarter shows the economy in better shape than expected following Covid-19’s massive hit mid-year. It shows a bounce-back after the 11 percent GDP drop over the June quarter, suggesting a V-shaped rather than a more prolonged U-shaped recovery. Today’s figures from StatsNZ show GDP rebounding 14 percent in the September 2020 quarter, the strongest quarterly GDP growth on record in New Zealand. The BusinessNZ Economic Conditions Index now sits at 10 for the December 2020 quarter, up 2 on the previous quarter and up 6 on a year ago. BusinessNZ Chief Executive Kirk Hope said the huge fiscal stimulus package of around $50 billion has cushioned some of the worst impacts of Covid-19, and the continued monetary stimulus package – around $100 billion of quantitative easing, the slashing of the OCR and the introduction of the Reserve Bank’s $28 billion Funding for Lending programme – should ensure businesses and households can continue to borrow to support growth. “New Zealand continues to face risks – including rising debt levels, inflated housing values and an ongoing regulatory burden – but new signs of economic growth and recovery are most welcome,” Mr Hope said. The BusinessNZ Economic Conditions Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, and business and consumer confidence. The BusinessNZ Planning Forecast for the December 2020 quarter is on www.businessnz.org.nz

Growing our World Class Industries

-Ian Walsh, Managing Director, Intent Group Over the last few years, I have been asked by aspiring NZ companies – ‘Who is world class?’ ‘What are we best at in NZ?’ Or even more insightfully, ‘what could we be best at?’ The current industries that have been resilient throughout COVID, where demand has remained strong and in some cases shown significant growth, provide some clues. It is clear there is huge demand for our food produce, especially kiwifruit, apples, wine and of course the perennial meat and dairy. Over the years I have had the privilege to work in all of these industries. The world sees us as a clean, green, high-quality food producer and, whilst we have areas for improvement, the horticulture industry is a shining example of this. In the last decade we have seen significant growth in wine, kiwifruit and apples to name a few, with wine on a 24-year growth trend! There is significant potential to provide the world with high quality, high margin food and reinforce our global image. Given this, it behoves all parties (employers, government, unions and other stakeholders) to work together to provide a roadmap to a green, profitable, and more sustainable industry. COVID has heightened our awareness of the current challenges the horticultural industry faces and, to be frank, has been grappling with for a long time. Being a seasonal business, there are certain times of the year when there is a higher demand for labour. This is typically around picking and packing (February through to June). Historically, many harvest operators have worked with the Ministry of Social Development (MSD), youth schemes, recruiters and so on, to fill the needs, with many a despairing operator/employer explaining that finding good people to fill roles was near impossible. The issues were not so […]

Empowering the manufacturing workforce to survive the pandemic and thrive beyond it

Before the Covid-19 pandemic, labour flexibility, digital transformation and operational excellence were key pillars of an emergent Fourth Industrial Revolution. Now, these areas provide vital lifelines to build resilience during the crisis and beyond. There is now more global recognition of the need for ongoing agile operations to accelerate the adoption of modern digital tools to improve the status and proficiency of frontline work. The industrial companies that take bold action to shore up their workforce and technology investments will emerge more resilient, and more likely to succeed no matter what uncertainties come their way. Ten months ago, the first cases of Covid-19 were detected. In the time since, companies, supply chains and entire economies have been disrupted and forced to adapt to a “new normal” where change is constant, and agility is critical. More than 48% of respondents in a recent survey of the world’s top risk experts said they were most worried about a disruption of global supply chains. Another report states that the Covid-19 crisis has impacted more than 75% of the world’s manufacturing outputs. As important as it is to address immediate needs and concerns while Covid-19 case rates fluctuate around the world, manufacturers must prepare for recovery and the Great Reset ahead. “Now more than ever, industry leaders have realised that they need to transform towards agile and sustainable manufacturing. Companies must be ready for a skill shift with a rising demand for technological, social, and higher cognitive skills.” — Valérie Ferret, 3DEXPERIENCE Edu Vice President, Dassault Systèmes Even before the pandemic, labour flexibility, digital transformation and operational excellence were key pillars of an emergent Fourth Industrial Revolution. Now, these areas provide vital lifelines to build resilience during the crisis and beyond. A profound sense of urgency has organisations seeking more pragmatic solutions and approaches to identifying the skills, […]

Designing for Additive Manufacturing

Over the last six months, RAM3D have seen an unprecedented increase in both large and small companies interested in trying 3D metal printing as an alternative to other forms of manufacturing. This is possibly because they have had time to work on projects during the COVID-19 lockdown. RAM3D works closely with their clients offering them advice on how to alter the part’s design to make the part stronger, lighter, and therefore cost competitive using dedicated design for production, using additive manufacture. When designing a part for metal 3D printing, the biggest thing to consider is the material properties of the part you want to 3D print; if the mass doesn’t need to be there, get rid of it! Traditional manufacturing and design methods tend to be constrained by tool paths, machine time, material shapes and sizes. This means, if you can’t remove the material, it stays there. With AM you are less tied to these constraints allowing you to do cut outs, pockets, fillets, undercuts and even combine part assemblies, where traditionally you couldn’t. Some CAD programs even contain part optimisation for additive parts. This is a great way of reducing the part cost, while creating innovative and interesting looking parts. Where you cannot remove large surface areas or you need to keep a solid look to a part, there is the option of adding an internal lattice structure. Lattice Structures One of best ways to reduce mass without reducing too much structural integrity, is to add a lattice structure. The benefit of using a lattice over simply hollowing a part, is the lattice does not require internal support. When designed correctly, it can maintain good strength and performance. RAM3D can create a simple uniform wall thickness internal lattice structure using their Netfabb build software. This is great for those […]

Filtration face off: Melt-blown fibres versus electrospun nanofibres

New research into the effectiveness of melt-blown fibres and electrospun nanofibres has found nanofibre filter media provides significantly increased protection against bacteria and viruses such as Covid-19. The research, conducted by Dr Fabrice Karabulut from Revolution Fibres in New Zealand, contrasts and compares nanofibre filtration with traditional melt blown filters in light of increased global demand for PPE and the future need for more effective face masks. Dr Karabulut says melt blowing, a commercially successful and low-cost process for producing filtration microfibres, produces fibres with diameters in the range of 1-10 micrometres. “The structure of a melt-blown filter is like a non-uniform fishing net. Its pores are 1-3 micrometres in diameter which are much larger than bacteria and viruses which are just 0.1 micrometres.” He says the diameters of nanofibre range from 10 – 300 nanometres, which is 10 – 100 times smaller than conventional melt-blown microfibres, meaning they are very effective in protecting against viruses such as COVID, bacteria and other toxic particles. “Electrospun nanofibre is characterised by a very large surface area and small pore diameter which significantly increases the probability of particles in the smaller, submicron and nanometre range depositing on the fibre surface – thereby improving filter efficiency.” Increased breathability and reusable Dr Karabulut’s research is contained in the White Paper Melt-Blown Fibres vs. Electrospun Nanofibres as Filtration Media which outlines the differences between nanofibre filtration capability and melt-blown filtration. As well as increased filtration performance, he also found the breathability and reusable nature of nanofibre made it superior to melt-blown filtration. “The current pandemic has amplified the need for masks to be reusable but retain effectiveness,” he says. “A recent study testing the reusability of melt-blown and nanofibre filters when cleaned with ethanol showed melt-blown filters were only effective for single use due to the […]

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,” […]

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, […]

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.”

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