Editorial

What do we do about manufacturing?

From April issue of NZ Manufacturer www.nzmanufacturer.co.nz By Brett O’Riley, Chief Executive EMA *Brett O’Riley is stepping down from his role at EMA in June. What follows are his present reflections on manufacturing in New Zealand. Our manufacturing sector is struggling, and it pains me to say it. The release of this month’s Performance of Manufacturing Index (PMI), a global measure of manufacturing activity, shows manufacturing activity in New Zealand has been shrinking for the past 12 months. While this might not be a surprise given the global economic slowdown, what is concerning is that manufacturing in New Zealand is underperforming most other major economies. Other countries have taken very deliberate steps to modernise and strengthen their manufacturing sectors; from an aggressive Accelerated Depreciation business taxation regime for investing in new hardware and software in Singapore, to the massive Inflation Reduction Act in the United States. Manufacturing is critically important to the New Zealand economy, and it is important we get the sector functioning as effectively as possible. The sector contributes more than $23 billion to our economy, or about 10% of GDP. It accounts for 60% of our exports and employs 12% of our workforce, with the potential to grow those metrics. Manufacturing isn’t just concentrated in one part of the country. It plays a critical role in our regional economies, accounting for more than 10% of jobs in almost every part of the country. Every day, more than 220,000 Kiwis go to work in manufacturing businesses in Te Tai Tokerau, Southland and everywhere in between. Therefore, it is no surprise that when manufacturing isn’t doing well, our economy doesn’t do well. This is demonstrated by the latest economic numbers, which saw the economy shrink off the back of a sharp fall in manufacturing activity. But it’s not […]

Women in Business: Hildy Kovacs, co-owner, Kovacs Design Furniture

Tell readers just what it is you do? My brother Johnny and I own the furniture manufacturing business, Kovacs Design Furniture. We still make all our furniture in our New Zealand factory based in Christchurch and our tag line is “Made. Right. Here.” Which the team is immensely proud of. My main role is as our furniture designer. Taking an idea through the concept stage to the prototype stage, completing the initial costings and making it ready for production release. However, my typical workday could also cover marking, sewing, quality control, photography, marketing, sales, and production management. Designing furniture – is it a passion of yours? It wasn’t but is now. It started off with me learning all the different manufacturing aspects of the business, so I have developed a really good understanding of how things go together and what is important in creating a product that not only looks great but has to be comfortable and built to last. I really started designing furniture to prove to myself that I could do it and from that it has become my passion. How long have you been in the family business? I started doing small tasks with my brother for my father like making buttons from as young as I can remember. So, I guess I was born into the industry. However, I have worked fulltime in the business for the last 44 years. What is the satisfaction you get from being involved in a family business? Designing furniture where every piece is unique with its own handwriting is hugely challenging. They all have different prerequisites one must overcome for the product to be aesthetically pleasing, comfortable and viable. I am constantly learning and getting it right is the biggest buzz ever. Where does Kovacs sit in the furniture scheme […]

Dave Pham_Senior Solutions Architect at Yubico

Tips to maximise your consumer-facing passkey implementation

Dave Pham, Senior Solutions Architect, Yubico Passkeys have taken the online security world by storm since their inception in mid-2022, even if the underlying technology can technically be traced back to FIDO2 and its breakthrough onto the world stage in 2018. Popularity has no doubt exploded due to their widespread adoption by the world’s largest tech companies – who also happen to be the most used identity providers collectively – as millions of users begin to make the shift. They are seemingly heading towards becoming the new de facto standard of secure authentication for both apps and websites alike. This is a massive leap forward for account security considering the underlying fundamentals are grounded in cryptography, which makes them extremely resilient to hackers and represents an approach that is magnitudes more secure than the traditional password. Although the distinction between passkey and FIDO2 credentials is extremely subtle, and many will often use the terms interchangeably, it should be clarified that passkey can refer to both classic FIDO2 credentials that are strictly device-bound (such as with hardware security keys) or syncable credentials that reside across multiple devices, generally via a cloud service or identity provider. But regardless of whether or not they are device-bound or syncable, passkeys are still a relatively new concept, and many software developers and security experts are scrambling to understand how to best integrate them into existing services and products (especially for those transitioning from password-based implementations). The nuances and best practices that lead to an optimised flow within a robust passkey implementation are still being fine tuned, and the most seamless UX possible may not yet be fully realised. While the passkey landscape is nebulous and still evolving, the aim of this post is to highlight a few staple considerations to get the most out of any consumer-facing passkey implementation and guide […]

View from the top of the year: The picture for Christchurch Industrial Property in 2024

-Greg O’Brien and Mitchell Ryder, Associate Directors, Industrial and Business Services, Christchurch. Savills New Zealand. The current industrial property market in Christchurch is perhaps best described as a multi-layered beast. As a result of the Christchurch earthquakes and the need to complete structural strengthening, local vendors and landlords became some of the most experienced in the country when it came to understanding the performance of their asset. We are seeing this expertise play out as quality stock is sought and business cases for new builds wait for their moment. Against this backdrop, 2024 is already heralding good news. The market is buoyant, people are paying great money for land, and while demand is intense, we are steadily finding the stock to meet it. The state of the current warehousing market In the small to medium range – warehouses 250sqm to 1,500sqm – there is a steady flow of activity. Businesses are looking for opportunities to upsize and to consolidate multiple leased warehouse spaces, often located a few doors down from each other, or to split themselves across the city to service growing client bases. The lack of available stock across the city affects the amount tenants are being required to pay; this in turn drives the market rental evidence for valuers as they advise landlords as to the new rates when the time comes for the scheduled market review of rents. Some tenants have been encouraged to look for cheaper alternative warehouses as their existing landlords look to maximise their returns. Warehouse options in this range are tight, and properties listed on platforms such as TradeMe are often long spoken-for, as tenants find to their frustration. In the medium to large warehouse range – 1,500sqm to 3,000sqm – we are observing available stock being limited for a range of reasons, […]

Maruiti Safe Haven: Empowering Māori Safety Leadership in New Zealand Manufacturing

Workplace safety statistics often paint a sobering picture. In New Zealand, Māori workers experience 31% more serious non-fatal work-related injuries compared to their non-Māori counterparts. ACC’s claim rate data, coupled with Stats NZ’s Household Labour Force Survey from 2019 to 2021, underscores a troubling reality: Māori injury rates stand significantly higher, ranging from 25% to 33% above those of non-Māori. With the New Zealand Manufacturing sector employing over 250,000 people, and Māori making up approximately 14% of the workforce, it is clear that a transformative shift is required to address these statistics and help build safer work, safer workplaces, and safer workers. Recognising the need for change, Nik Jessop and Katrina Tahi Tahi from Te Pou Ora – Northern Region Equity, Partnerships & Intervention Design at Worksafe New Zealand and The Learning Wave have developed Maruiti Safe Haven – a Māori Safety Leadership training programme that develops improved safety outcomes by integrating a Te Ao Māori cultural lens into safety leadership practices. Picture: From the HRNZ Awards. This marae-based experience incorporates Tikanga Māori principles to engage the hearts and minds of operational and production leaders and to deepen the connection to Māori perspectives on not just Health and safety but also well-being. Te Whare Tapa Whā is utilised as a framework to foster shared understanding and language of being a Safety leader, and their commitment to safety at a personal, operational, and business level. Since 2020, the Maruiti Safe Haven Kaupapa has uplifted the safety leadership skills of over 60 leaders from 14 manufacturing businesses across Te Tai Tokerau. This initiative has not only enhanced safety capabilities resulting in tangible improvements in workplace safety. It has equipped these leaders with the tools to support their kaimahi more effectively and create greater engagement and participation, which are key to lifting safety […]

The Productivity Dilemma – don’t wait for the government

John Luxton, RegenerationHQ Right here, right now New Zealand SME owners are well-positioned to boost productivity within their own operations, even amidst broader societal or governmental challenges in addressing productivity issues. This capacity for internal transformation is critical for driving business growth and setting a benchmark for productivity improvement. Embracing digital transformation is a key strategy for SMEs. By integrating technology into daily operations, such as project management tools, CRM systems, and cloud-based accounting software, businesses can streamline processes, reduce manual tasks, and free up time for strategic development. Additionally, leveraging digital marketing can significantly enhance visibility and customer engagement. Investing in employee engagement and skill development is another avenue for boosting productivity. Cultivating a culture that values continuous learning and improvement, through training opportunities and mentorship programs, can increase team motivation and efficiency. When employees feel valued and are equipped with necessary skills, their contribution to business success is amplified. Process optimisation is essential for eliminating inefficiencies and reducing waste. Adopting continuous improvement principles to focus on maximising customer value while minimising non-essential activities can help SMEs stay competitive and agile. Focusing on customer needs and maintaining a dialogue through feedback mechanisms can lead to improved service or product offerings and higher satisfaction rates. This customer-centric approach can provide valuable insights for innovation and business development. Lastly, fostering a culture of innovation encourages the exploration of new ideas, diversification of product lines, and sustainable business practices. Being open to change and willing to take calculated risks can uncover new growth opportunities and productivity enhancements. By leveraging technology, valuing their teams, optimising processes, focusing on customers, and embracing innovation, SME owners in New Zealand can significantly increase their businesses’ productivity, serving as exemplars of internal initiative in productivity improvement. Waiting for the government to “do something” is called hope and […]

Yes, greenwash matters to manufacturers too!

From March issue NZ Manufacturer www.nzmanufacturer.co.nz ‘Greenwashing is a marketing issue. What it’s got to do with manufacturers?’ A lot, actually. Many consumers (wholesale and retail) want to understand the environmental impacts of the products they buy – and every product is manufactured somewhere. So the claims you make about your products to your customers, or that your customers make about your products to their customers, need to stand up to scrutiny. Is my claim true? Is it accurate? Is it specific to my product? Can I prove it? Or is it ‘greenwash’ – a vague, meaningless statement that suggests you’re doing more to protect the environment than you are? Greenwash is everywhere In 2021 the International Consumer Protection and Enforcement Network carried out a global sweep of more than 500 websites that promote products and services. More than 40% appeared to be using greenwashing as a marketing tactic. Photo credit, Christopher Wilton-Steer. Scrutiny from consumer organisations and climate activists is growing globally and prosecutions continue to rise. Major retailers including H&M have been forced to backpedal on sustainability claims made about the products they sell. The business costs of greenwash are high Your manufacturing business has probably spent years and a lot of money building your reputation and brand. Look after them! Promising an ‘eco’ benefit that you can’t back up can damage both. (Social media is relentless.) Regulators have greenwash in their sights. The financial penalties are large. Companies convicted of greenwashing face fines of up to $600,000 in Aotearoa New Zealand and more in Australia. Eight tips to avoid greenwashing as a manufacturer Tip 1: know your numbers If you want to claim that your product is ‘low-carbon’ or ‘uses less water’, make sure you can back these statements up with data. Start by setting a baseline […]

Clearing the Way: Accelerating Industry 4.0 Adoption through Global Benchmarking

From March issue, NZ Manufacturer www.nzmanufacturer.co.nz Adam Sharman, Senior Partner, Dsifer Introduction As organisations look for productivity gains, competitive advantages in agility scalability and sustainability, more and more are looking to technology to support, augment or accelerate their operations. A recent report from Westpac identified that, whilst digital tech adoption is growing, New Zealand’s manufacturers have room to adopt these technologies and boost their productivity and the contribution of the manufacturing sector to New Zealand’s GDP. Overview & Adoption Through our work with manufacturers in New Zealand and the UK, it is clear that, whilst most organisations understand the value and the imperative of digitisation, the roadmap to achieve it can be overwhelming. A quick Google search can pull up examples like Ocado’s lights-out warehouses and it can be a seemingly impossible task to achieve that level of digitisation Most companies both globally and locally are grappling with the concept of Industry 4.0 and the value it could bring for them. For these companies, questions such as What is Industry 4.0, and how can it benefit my company? Where should I start? What are my gaps today and where are the opportunities tomorrow? remain unanswered. To help organisations start to unpick these questions, there are tools to help cut through the complexity and develop an industry 4.0 transformation plan that is specific to their business. In this article we will provide an overview of a tool that is gaining traction around the world. The Smart Industry Readiness Index (SIRI). The Smart Industry Readiness Index (SIRI) Framework and an accompanying Assessment Matrix tool were therefore developed to help organisations assess their readiness and prioritise the highest impact interventions in industry 4.0 adoption. The SIRI Framework covers the 3 core building blocks (Process, Technology, and Organisation) critical to achieving future-ready facilities, and […]

Engineering and Manufacturing Cluster identifies key themes: Collaboration and innovation at the forefront

From NZ Manufacturer, March 2024 issue. Southland Engineering and Manufacturing Cluster Manager Brendan Gray. The Southland Engineering and Manufacturing Cluster, a pioneering collective dedicated to transforming Southland’s industrial landscape, has identified key themes within the industry, emphasising collaboration and innovation as primary drivers for growth. Led by Brendan Gray, the Engineering and Manufacturing Cluster is working to transform Southland into a united industrial hub for the engineering and manufacturing sector. Dean Addie, Chair of the Southland Engineering and Manufacturing Cluster, underscores the importance of collaboration within the industry, stating, “Our core objective is to ensure sustainable growth in engineering and manufacturing throughout the region. By fostering collaboration among industry players, we showcase the incredible capabilities of our region and empower our regions to bid for large engineering and manufacturing contracts with confidence.” The cluster is an initiative introduced from Just Transitions; a government supported initiative to develop an economic road map for Southland as it navigates the uncertainty of the future of New Zealand Aluminium Smelter. The Cluster has an important role to support local contracting firms to transition from reliance on NZAS business and participate fully in new economic opportunities, while also supporting existing major industries. Brendan Gray, Southland Engineering Cluster Manager, expressed his enthusiasm for supporting the engineering community, saying, “It has been enlightening working with industry, understanding the needs and desires of the engineering and manufacturing community to fully support their transition and growth into a new era of business opportunities.” The cluster’s recent findings highlight a true desire within the industry to collaborate and work together, coupled with an understanding and acceptance of the need to innovate, pivot, or change to foster growth. In an exemplar of collaboration, five key players within the Southland engineering community are joining forces to explore new energy opportunities. They recently attended a symposium delving into collaboration potential and opportunities […]

If we’re all so busy, why isn’t anything getting done?

From MZ Manufacturer magazine, March 2024 Have you ever asked why it’s so difficult to get things done in business today—despite seemingly endless meetings and emails? Why it takes so long to make decisions—and even then not necessarily the right ones? You’re not the first to think there must be a better way. Many organisations address these problems by redesigning boxes and lines: who does what and who reports to whom. This exercise tends to focus almost obsessively on vertical command relationships and rarely solves for what, in our experience, is the underlying disease: the poor design and execution of collaborative interactions. In our efforts to connect across our organisations, we’re drowning in real-time virtual interaction technology, from Zoom to Slack to Teams, plus group texting, WeChat, WhatsApp, and everything in between. There’s seemingly no excuse to not collaborate. The problem? Interacting is easier than ever, but true, productive, value-creating collaboration is not. And what’s more, where engagement is occurring, its quality is deteriorating. This wastes valuable resources, because every minute spent on a low-value interaction eats into time that could be used for important, creative, and powerful activities. Three critical collaborative interactions Decision making, including complex or uncertain decisions (for example, investment decisions) and cross-cutting routine decisions (such as quarterly business reviews) Creative solutions and coordination, including innovation sessions (for example, developing new products) and routine working sessions (such as daily check-ins) Information sharing, including one-way communication (video, for instance) and two-way communication (such as town halls with Q&As) Decision making: Determining decision rights When you’re told you’re “responsible” for a decision, does that mean you get to decide? What if you’re told you’re “accountable”? Do you cast the deciding vote, or does the person responsible? What about those who must be “consulted”? Sometimes we are told input will be reflected in the […]

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