Covid-19

– 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 $500 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 […]

Manufacturers are calling on the Government for a pre‐emptive decision to allow all manufacturing (including exports) to remain operating if there is a move to Level 4. New Zealand Manufacturing Alliance* spokesperson Rachel Barker, CEO of Plastics New Zealand, says New Zealand cannot afford to shut down its manufacturing again and businesses need a decision now. “Another shutdown of our manufacturing businesses would be devastating not just for sector businesses but for New Zealand,” says Barker. “The Government has had months to work on a decision to keep manufacturing open during Level 4. “Our businesses are prepared, with proven safe work protocols in place for operating under Level 3, keeping thousands of Kiwis in jobs and safe. It would be a smooth transition into operations under Level 4. “We need to see a proactive and pre‐emptive decision now from Government to allow all manufacturing businesses to remain operating ahead of any possible move into Level 4.” “Keeping all manufacturing operating will be critical to keeping people in jobs, domestic and export supply chains moving and helping our economy keep ticking over.”

By Richard Morgan, Country Manager, Genpact The Covid-19 pandemic has disrupted all facets of supply chains. Whether it is in the retail, telco, or transport industries both global and local supply chains have been severely tested, having to adapt to new demand patterns, supply constraints and logistical challenges.  This unprecedented disruption has only magnified changes in consumer behaviour, under-investment in supply chain tools, technology, and people that were already challenging organisations.  As the risk landscape is set to only get more uncertain and complex in the future, building resilient and more agile supply chains is crucial.  Learning the Covid-19 lessons If Covid-19 has taught us something is that the strength of a supply chain is only as good as its weakest link.  Organisations must use the current disruption as an opportunity to do a full audit and assess how well its supply chain functions can better respond to future disruptions. To build long term resilience companies must re-examine their old supply chain assumptions and evaluate the strength of their end-to-end supply chains. Businesses need to fine tune demand planning, search for deeper visibility of material planning, test supply planning technologies and continuously evaluate logistics plans.  Supply chains must move from executors and a cost centre to a source of competitive advantage that unlocks operational margins and builds stability in an uncertain world.  Stabilising supply chains: a cross collaboration with risk management teams  To address the volatile nature of current – and likely future – supply chain operations, organisations should start by mobilising a dedicated crisis and risk management team that can help advise supply chain teams.  A cross collaboration with risk management experts can help build focused risk scenarios and assessments, as well as design new processes and frameworks for rapid replanning, demand forecasts, supplied engagement and reporting and governance.  Working […]

New Zealand is set to see a rapid increase in large scale manufacturing in the coming months according to new figures from the country’s largest industrial and residential development. More than a fifth of the 170 hectares of commercial land available at Drury South Crossing in South Auckland has been sold to a wide range of manufacturing, logistics, fabrication, construction and industrial businesses. The development is expected to contribute $2.3bn to the economy, employ 6,000 in the manufacturing, distribution, food processing, tech and logistics sectors and provide affordable housing for 2,000 Kiwis when it is completed in 2027. According to developers, Drury South Crossing will be one of the first large scale manufacturing hubs to be designed and completed in a post-COVID-19 environment. Design and planning for a number of the new plants are already well underway with construction on the first of the new facilities expected to come on stream in 2021. Stephen Hughes, CEO of Drury South Crossing says interest from local and international manufacturers has been strong, particularly from the agricultural sector with several food suppliers looking to establish high volume processing capability locally. He says New Zealand’s success in controlling the virus has meant the country is well-positioned for an expected uplift in post-COVID demand for New Zealand made goods. “The agricultural sector is seeing significant growth potential for New Zealand branded products as the pandemic stretches supplies around the world and consumers focus their attention on where their food is sourced from,” he says.  He says increasingly a new generation of businesses operating at a high volume throughput need sizable footage and heights of 25m in order to accommodate robotic automation. “What we are seeing is a need from local food producers to store large volumes of export-ready product where it can be accessed using […]

BusinessNZ has welcomed changes to immigration settings announced today. More occupations have been added to the skill level exception test and criteria for Essential Skills work visas have been changed. BusinessNZ Chief Executive Kirk Hope (pictured) welcomed the plan for phasing in remuneration tests as criteria for entry, reducing reliance on ANZSCO, an outdated occupational classification system which is not fit for purpose in a modern, changing labour market. But he said Immigration NZ needed to urgently provide clarity to companies on bringing in critical workers. “Right now we need a range of high-skilled workers to support the economic recovery efforts. They are needed for company operations that will save and create jobs, e.g. specialist engineers for commissioning and installing new plant and equipment. “Immigration NZ needs to be able to approve the entry of highly specialised skills that cannot be found in New Zealand. There is no cost to the taxpayer for allowing these specialist workers in, and the businesses applying for the critical worker exemptions will need to put up an economic case for exemption. “From the cases we have heard of, there are hundreds of jobs on the line if Immigration NZ is not able to approve entry for such critical skills,” Mr Hope said.

-Doug Green, Publisher, NZ Manufacturer Business people have been thinking it, they have done it. The statement released today by Sir Peter Gluckman, former Prime Minister Helen Clark and former Air New Zealand chief Rob Fyfe is long overdue. Not necessarily by just them, but by New Zealanders concerned about the economy…and our going forward. Or by the 94% of SME’s who wonder what tomorrow is going to bring. They are saying – what many businesspeople are thinking – that Government does not have a plan for the difficult journey we all face. Maybe because its an election year Government is not sharing its plans for the economy until closer to September? In the meantime, however, business owners are looking for the way ahead. One example, Fletcher’s laid off 1,000 workers in New Zealand as the economy closed down. They abided by the decisionmaking process of ‘the Team of 5m’ to play their part in making the country safer through the time of the virus. What we need is a Business Council – bringing together representatives from key business sectors like EMA, the chambers of commerce, BusinessNZ to make the financial decisions to move the economy forward. Soon we will learn National’s and the coalition’s plans. Pity its an election year, the parties will put forward ideas that will not necessarily start immediately, but make them look good. Think the ‘Shovels Ready’ projects. The shovels are not ready yet.

Soul Machines has joined the World Health Organisation’s (WHO) Access Initiative (AI) for Quitting Tobacco to help share WHO’s life-saving information during the Covid-19 pandemic, combat misinformation, reduce the risk of Covid-19 and help over one billion tobacco users quit. Florence, the WHO’s first digital health worker, was created using Soul Machines technology and WHO technical guidance, with support from Amazon Web Services and Google Cloud. Florence will help provide clarity and expel damaging myths around Covid-19 and will specifically address smoking and its consequences – heart disease, cancer, diabetes, and respiratory diseases – all of which are comorbidities with Covid-19. With Florence, smokers can engage with a digital health worker to develop a quit plan and rely on a trusted source anytime and anyplace, to help them feel confident to reach their quit goals. Initially available in English, Florence will, over time, be available in all six official UN languages. Smokers are more exposed to the Covid-19 virus and are at greater risk of having severe disease complications. Although around 60% of the 1.3 billion tobacco users globally want to quit, only 30% of them have access to tools that can help them quit. As a digital health worker for WHO, Florence will help give the increasing numbers of people globally who have a desire to quit smoking during the Covid-19 pandemic a new, safe, easily accessible and engaging channel. Florence can scale seamlessly and to talk to many individual people around the world and is available 24/7 with no wait times, as a simple video stream from the cloud to any device. This frees up critical people resources and provides a user-friendly solution to an overwhelming demand for clear, concise information that can be relied on. Florence will always be available when needed and ready to engage to […]