Developments

Editorial: Fires everywhere

From September issue, NZ Manufacturer We lead this issue with an energy story (Page 1) to “empower energy sovereignty”, the purpose of Mackwell & Co of Christchurch, with a focus on energy resilience and fossil-fuel-free transport. Mackwell realise the two concepts to achieve this are the use of accessible and low value biomass as fuel and a technology that can safely and cleanly convert this to useful work without relying on existing infrastructure. I have been trying to get my head around the deep concern being felt around the country regarding the cost of energy and the damaging effects this is having on domestic and business users at this time. With companies not being able to see a way ahead and closing, with the exorbitant price to the domestic market (where those disconnected have to find the money to be reconnected when they cannot pay the bill) what is the country meant to do? One thing, the energy companies need to be challenged on their pricing and why the return to shareholders is, at this time, more important than the wellbeing of the future of business in New Zealand. Another thing, make it affordable for all New Zealanders to have solar panels on their buildings and homes. How does a smart, innovative country like New Zealand find itself in the situation where with high power costs, imports will become more expensive? Where our reliance on the rural sector to succeed on export markets becomes a challenge; when the price of energy means their products become more expensive on world markets? Higher energy prices assist government coffers. But at what cost?…regions lose the financial input of (now) closed businesses whose staff leave and look afield to Australia. Regards, Doug Green, Publisher www.jezmedia.net

Improvement Snakes and Ladders

From September issue of NZ Manufacturer magazine. -Ian Walsh, Partner, Argon & Co NZ As we head into Spring 2024, it’s encouraging to see fresh growth – both in nature and in the economy. I appreciate it’s too early to celebrate from the rooftops, but I’m invigorated by the growing number of activities emphasising what matters most – productivity! The recently repurposed National Infrastructure Agency (NIA) has a remit to drive better practices through New Zealand’s industry sectors. Done right, the promotion of growth in capital investment should lead to an overall improvement in business performance. But to lock this in as a reality, we know that dedicated investment in people and processes is the only true way to lead to a better performance culture. I thought it might be timely to call out some of the “myths and misunderstandings to avoid” and to talk through what a good continuous improvement program looks like, as you may be contemplating what your business can do to ride this wave. Here is my Improvement Snakes and Ladders. Unfortunately, it is not a touch it once and let it go fix; like fitness, use it or you lose it! Improvement Snakes and Ladders We don’t need to do this. In NZ less than 20% of businesses know what a continuous improvement or transformation programme truly is. In more competitive markets it’s 100%. Can you wait to find out if you have a competitor who is significantly better than you? Your call, but it sounds risky. Why wouldn’t you do it? At this point, you haven’t even put your piece on the board. We did that. It didn’t work. If you believe you have “done” lean, you don’t understand lean. It is not a project; it is a continuous improvement programme designed to […]

How well are NZ companies reporting their climate impacts?

(Left)Sarah Walton, Professor of Sustainable Business, University of Otago (Right)Andrea Foley, Assistant research fellow, University of Otago Interpreting corporate reports on carbon emissions can be challenging. The current, adhoc approach to how businesses share this information makes it difficult to see whether they have set the right targets, have realistic plans to meet them or are being transparent about their progress. While there are frameworks for reporting climate and sustainability data, there are still big differences in the way the data is being disclosed. We developed the Climate Action Tracker Aotearoa (CATA) to address these issues. Based on the global Net Zero Tracker, CATA evaluates company reports and climate plans to share and explain their climate action. Using the tracker, we analysed 21 companies in Aotearoa New Zealand, focusing on the top emitters and companies in the energy, retail, agriculture and transport sectors, as well as the banking sector. We evaluated three aspects – targets, plans and reporting – by reading through publicly available information provided by the company. These three aspects help make sense of what a company is doing and going to do to mitigate climate change. Here is what we found. Setting targets While the majority of companies have 2030 targets (86%) and absolute targets (81%), only five companies of the 21 (25%) have targets that have been verified by the Science-based Targets Initiative. All but two companies include scope one (emissions the company creates directly) and scope two (emissions created indirectly from, for example electricity or energy it buys for heating and cooling buildings) – the areas companies have the most control and ownership over. But when it comes to scope three emissions, which come from company travel in planes, trains and taxis, and the supply chain, far fewer companies have set such targets. Scope three targets are […]

Feeding the Machine

From: September issue of NZ Manufacturer www.nzmanufacturer.co.nz The Hidden Human Labour Powering A.I. Callum Cant, James Muldoon, Mark Graham For readers of Naomi Klein and Nicole Perlroth, a myth-dissolving exposé of how artificial intelligence exploits human labour, and a resounding argument for a more equitable digital future. Silicon Valley has sold us the illusion that artificial intelligence is a frictionless technology that will bring wealth and prosperity to humanity. But hidden beneath this smooth surface lies the grim reality of a precarious global workforce of millions labouring under often appalling conditions to make A.I. possible. This book presents an urgent, riveting investigation of the intricate network that maintains this exploitative system, revealing the untold truth of A.I. Based on hundreds of interviews and thousands of hours of fieldwork over more than a decade, Feeding the Machine describes the lives of the workers deliberately concealed from view, and the power structures that determine their future. It gives voice to the people whom A.I. exploits, from accomplished writers and artists to the armies of data annotators, content moderators and warehouse workers, revealing how their dangerous, low-paid labour is connected to longer histories of gendered, racialised, and colonial exploitation. A.I. is an extraction machine that feeds off humanity’s collective effort and intelligence, churning through ever-larger datasets to power its algorithms. This book is a call to arms that details what we need to do to fight for a more just digital future.

Nature is in the business news

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz With good reason. In the next few years, New Zealand manufacturers can expect to be called on to answer these two questions. How is your business reducing your impacts on nature? How will changes to nature affect your business? Who’ll be asking these questions? Governments, regulators and financiers like lenders. They’re realising that centuries of degrading nature (the ecosystems that make up land, oceans, freshwater and the atmosphere) is not only depleting biodiversity. It’s having financial and economic impacts on businesses too. These parties are adding weight to environmentalists’ calls for urgent change. In this article we explain what this means for manufacturers in Aotearoa New Zealand. The need for change The World Economic Forum’s 2024 Global Risks Report ranks dwindling biodiversity and collapsing ecosystems among the five most severe risks to business in the next ten years. The UK Green Finance Institute’s recent report makes sobering reading. It identifies and measures the country’s nature-related risks. The report confirms that these risks are as harmful as the risks of climate change, and that nature and climate are linked. Zoonotic diseases, declining soil health, slips, floods, food insecurity and lost production will affect all sectors – including manufacturing. The economic impacts could be worse than the Global Financial Crisis or Covid-19. The report concludes that the UK must transition its economy urgently to valuing and investing in the environment. As 50 percent of the country’s risks come from overseas (including New Zealand), UK regulators and financial institutions will require businesses to scrutinise their supply chains. We expect other trading partners, including the EU, to take a similar stance. Nature Positive, the global goal for nature The world has agreed a biodiversity equivalent for the global goal that limits global warming. Nature Positive is made up […]

NZ Wool Industry to benefit from multi-million dollar marketing investment

-Mark Devlin New Zealand’s rural sector is set to benefit from a multi-million dollar marketing investment by one of the country’s largest wool carpet manufacturers, designed to address misconceptions about the natural fibre and grow exports. New Zealand is the world’s third largest producer of wool, accounting for 9% of global production, however, the country’s export revenue from wool is projected to fall by 3% to $380 million over the coming year.[1][2] The planned $2 million plus advertising investment from Bremworth is believed to be one of the highest ever from a Kiwi company to support a wool product brand. The spend will also provide a financial boost for local print, billboards, online and broadcast media titles, in an otherwise flat local advertising market. The company has appointed New Zealand’s largest independent media agency, Together, to help develop and implement a series of new campaigns for the domestic and trans-Tasman markets to help elevate wool flooring. The move follows ongoing upgrades to the manufacturer’s supply chain, which are expected to lift production volumes and help meet growing domestic and global demand for Bremworth’s wool carpet. Rochelle Flint, chief brand and product officer of Bremworth, says it is hoped one of their largest-ever investments in developing their brand will also help stimulate demand for New Zealand wool and help address the decline in domestic production. She says their research shows while three-quarters of homeowners would prefer to have wool in their homes, a similar proportion are not actually purchasing wool – with synthetic flooring continuing to dominate the market. Flint says with their expanded supply chain now in place, manufacturing volumes can be scaled significantly in response to demand, presenting an opportunity to increase conversion and grow market share in both the domestic and Australian markets. “Our research has identified a […]

The Interview: Sam Cotter-Dephoff, Scale Studios, Wellington

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz How are you finding current business conditions? It’s been an interesting year. We have been fortunate enough to have been working on our largest project to date for the majority of the year (delivered at the start of July) which has meant that we have been unusually stable. A large percentage of our work comes from the film industry (specifically American productions looking to shoot here) and we have certainly experienced more challenging years, working through Covid and the 2024 Hollywood Writers Strike. Comparatively this year has been more reliable. We have noticed a change in the type of screen work entering the country since the writer’s strike ended. The large genre blockbusters we were famous for hosting have been replaced by more medium sized contemporary productions which offer less work to a prop house than the former. However, the volume of productions has certainly helped keep things from getting too concerning. Interesting projects currently being worked on? We are in the middle of a really fun project, building props and other elements for a New Zealand feature film. It is a hilarious genre comedy by a very talented team that we are really excited to be a part of. We can’t give too much away but we will say it’s not every day we get to work on such wacky builds. They’re the kinds of things that when we are discussing them in the workshop we sometimes have to just stop and wonder how what we are doing can be a real job. Where do you see growth opportunities for Scale Studios? We have just come off the back to back production of a large public sculpture for the Wellington Waterfront and several full size dinosaur sculptures for a museum in South Africa (the largest of […]

Digital Factory Accelerator: Driving Northern Ireland’s Manufacturing into the Future

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz -Adam Sharman, Senior Partner, Dsifer As New Zealand’s manufacturing industry continues to evolve in the face of global challenges, it’s crucial to look beyond our shores for inspiration and insights. In this article, we review the approach taken in Northern Ireland, where a pioneering initiative is reshaping the manufacturing landscape. This case study offers valuable lessons for New Zealand manufacturers seeking to navigate the complexities of digital transformation and Industry 4.0. In an ambitious move to boost the competitiveness of Northern Ireland’s manufacturing sector, a groundbreaking initiative called the Digital Factory Accelerator (DFA) has recently concluded its pilot phase. This innovative program, spearheaded by the Advanced Manufacturing Innovation Centre (AMIC) and Invest Northern Ireland in partnership with the High Value Manufacturing Catapult (HVMC) and LMAC Group, aims to accelerate the adoption of Industry 4.0 technologies across the region’s diverse manufacturing landscape. The DFA pilot, which wrapped up in June 2024, involved 32 companies ranging from small enterprises to large multinationals. Using the internationally recognised Smart Industry Readiness Index (SIRI) assessment tool, the program provided participating companies with a comprehensive evaluation of their digital maturity and a roadmap for future transformation. One of the differentiators of SIRI is the ability to benchmark globally based on company size, and by sector. The DFA pilot used the XIRI analytics platform provided by INCIT to develop meaningful insights that are crucial in shaping strategies for manufacturing within regions. Key findings from the pilot revealed that Northern Ireland’s manufacturing sector, while producing world-class products and services, lags behind international benchmarks in terms of digital adoption. The average SIRI score for UK manufacturing companies was 1.12, significantly lower than the peer group average of 1.84 (on a scale of 0-5). This gap highlights both the challenges and opportunities facing the […]

Digital Capability – A Critical Lever for Success

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz David O’Connor, Commercial Manager, The Learning Wave One of the greatest challenges for any organisation is the cost and effort of onboarding a new employee . This is further amplified in a tight job market where you may need to recruit individuals who do not have the core skills you would normally deem essential to be productive and work safely in your environment. The need to have a pipeline of skilled and capable workers with a broad range of transferable skills, strong work ethic and the right attitude is critical to enable long term business success. The training and educational sector have a role to play in enabling access to the right training pathways to ensure the continual development and upskilling of the team to prepare them for that next career step or business change. In Manufacturing, the productivity challenge is clearly rooted in a skills deficit, with many individuals lacking the essential skills and capability needed to fully leverage modern manufacturing practices. This skills gap has a significant impact on team work, employee engagement, safety and operational efficiency, leading to poor staff retention, low efficiency, higher error rates and increased waste As Manufacturing plants become increasingly technology dependent, this skill gap is unfortunately amplified and an urgent fix becomes even more essential. Foundational digital literacy is often inaccurately assumed as a skill held by most kiwis. According to the 2014 Survey of Adult Skills survey (PIAAC) the reality of this is that 55% of workers do not have the right level of digital competency to be successful in their roles. Meaning that over half of our workforce has low/poor Problem solving skills in technology rich work environments. If Digital literacy is deemed critical to success, then we have to question why those who […]

Coming full circle

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz By EMA Head of Manufacturing Jane Finlayson Global demand for sustainable goods is increasing, and among New Zealand manufacturers there’s an urgent need to innovate to remain competitive. From SMEs up to huge multinationals, ‘business as usual’ won’t be enough to meet the sustainability challenges the world faces. Legislation both in New Zealand and overseas will force the hand of many manufacturers. In New Zealand, regulations such as the Emissions Reduction Plan will place an increasingly high cost on manufacturing emissions. Overseas, the likes of the EU’s Carbon Border Adjustment Mechanism (CBAM) will have an impact on our exported products. The CBAM is a tool that puts a price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. But sustainability is also good business. Like any strategic initiative done right, it can reduce costs, increase revenue and mitigate risks. Sustainability is about futureproofing. In late July, Minister for Small Business and Manufacturing Andrew Bayly launched a report with compelling new research on the circular economy. It is intended to support the growth and resilience of New Zealand’s advanced manufacturing sector by identifying and mapping the sector’s emissions and waste patterns and finding ways for businesses to adopt net-zero circular manufacturing practices. The aim is to move away from a linear economy to one that ‘designs out’ waste and pollution, keeps resources in use for as long as possible, then recovers and regenerates products. The EMA and other industry experts fed into the report, ‘Mapping Emissions and Waste Data in the Manufacturing Sector’, which found that circular economy practices do exist in New Zealand, within and across all the manufacturing subsectors, but they differ greatly. The key similarity was in challenges around waste. Of the 17 […]

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