Editorial

Mergers: The way to growth?

-Ian Walsh, Partner, Argon & Co With inflation at a high, the cost of capital has now caused the deferral of many projects, or to make the cost of any investment more palatable, the restructuring of them. In addition, many senior leaders, having navigated COVID and the associated supply chain disruptions, have already invested in additional storage and now find interest rates sky rocketing. In this environment many business owners (and baby boomers especially) are choosing to retire or find themselves needing to sell due to cash constraints, the interest rates, and difficult trading conditions. This, of course presents opportunities for growth-minded companies to acquire businesses and associated capital. The challenge is how to do this well. It is one thing to write a cheque, it is another to acquire and integrate a high performing asset quickly to realise the merger benefits. Unfortunately, I have seen many businesses do the former and struggle for years to achieve the benefit, if ever. In fact, only 6% of capital projects deliver target objectives in the first two months. But the prospect of merging can be enticing; an established footprint, brand, proven capability, established supply lines, existing capital, complimentary capability and so on. So, why do so few do this well? In my experience, it is a function of a number of things: The leaders of the purchasing business overestimate their understanding of the new business, and do not engage or retain adequate support. They do not create an integration team to manage all the aspects of the integration, and as they are inexperienced in mergers and integrations (it is not their core business) they do not know the pitfalls, heading blindly forward without a sherpa. If they do create a team, the brief is narrow, failing to consider all the elements of […]

Waikato company key carbon and stainless steel tube player

Precision component production ignited with 3D Tube Laser Cutter Industrial Tube Manufacturing, located in the Waikato, has established itself as a key player in the domestic market of carbon and stainless steel tube. Their dedication to constantly improving and expanding has enabled them to attain remarkable success in the industry. Bolstering its national reputation as a reliable supplier of high-quality steel tube, Industrial Tube commissioned its game-changing 3D Tube Laser Cutter last year – a one-of-a-kind in New Zealand that has sparked a surge in demand for its services and solidified the company’s position as a leader in the industry. Industrial Tube general manager Ian Foster says the company is proud to have been a cornerstone of the Waikato manufacturing community for almost four decades now, catering to a wide range of industries with its broad product offering and excellent service. “With the market demanding efficiency, versatility and extreme attention to detail, investment in automation and innovation has been a key focus for our business,” says Foster. Known as ‘Pro-Tube services’, Industrial Tube offers 3D laser cutting, CNC Drilling, deburring, tapering, swaging and telescoping of tube, including carbon steel, pre galvanised steel and stainless steel, in addition to its extensive milled tube offering. “Pro-Tube raises the bar in terms of what’s possible in tube processing and manufacturing. New technology like the 3D Tube Laser Cutter, coupled with the experience and knowledge of our engineers, means we can deliver more options and alternatives to New Zealand businesses that are seeking high-quality, customised components,” he says. Since its integration into Industrial Tube’s manufacturing processes, the 3D Tube Laser Cutter has unleashed a wave of opportunities for local manufacturers. The precision, speed, and versatility offered by this cutting-edge machinery have elevated the capabilities of businesses, enabling them to create intricate components with precision […]

Will the election matter?

Comment is welcome on this post. What are you looking for? Do you have expectations from the upcoming election? Editorial, July issue, NZ Manufacturer www.nzmanufacturer.co.nz Yes, if the party you want to get in, gets in. How about the rest of it – what will the victor do to work closely with the business community? What will the victor do to keep business moving forward, to stabilise the economy and bring about greater equality? We are in the ‘silly season’, the time before an election that allows lots to be written and outcomes suggested. Businesses always has a plea – for solutions to help them to be more competitive in the marketplace. This means having the financial tools to invest in the technology required to do so, engaging with Industry 4.0 and keeping an eye on AI and what that will mean soon. Dealing with climate change. Confidence to invest in innovative technology, because it is a risk, especially if there is no guarantee of contract manufacturing on a financially viable level. Greater access and identification on world markets for our products, creating business opportunities, engaging with some of the excellent innovators in the country, who take financial risks by putting their ‘stake in the ground’ to become be a success story. Innovators with bonafide credentials are what we are talking about. Those from such companies as Buckley Systems, The Gallagher Group, Fisher & Paykel, Fonterra, Stabicraft who have the expert knowledge required. A new government will take time to settle in. A year of consolidation of processes and getting to know each other. NZ businesses punch above their weight. Within our small population are lots of people who develop great products. A Minister of Manufacturing could help them to succeed. Back to the beginning…will the election matter? Not […]

Kemppi Australia’s Art of Welding Competition now open

Kemppi Australia’s annual Art of Welding Competition is now open for 2023. The competition showcases “welding art” which can take the form of a welded sculpture, pattern design, a motif or an object. The welding process involved to create the art piece can be manual or use more advanced techniques such as robotics, lasers or friction welding. The competition is open to both professional artists and amateurs. It encourages individuals, whether they are welders, apprentices, teachers, hobbyists or professional metal artists to exhibit their creativity. “There is an abundance of creativity in both Australia and New Zealand, not just among our great professional artists, but also among ordinary individuals, and we are really proud to be able to again run this competition to showcase their flair,” said Paul McVicar, Managing Director, Kemppi Australia. This year, the competition will again feature a dedicated amateur category. Entrants can win from a pool of four great prizes that include Kemppi welding equipment, helmets, clothing and gloves. The competition will run until Friday 29th September and is open to anyone in Australia and New Zealand over the age of 18. For more information on how to enter visit the Kemppi Australia Facebook, Instagram or LinkedIn pages or message Kemppi Australia’s social media pages directly or email skettos@skettos.com.au for a copy of the competition flyer. Alternatively, visit https://www.cognitoforms.com/KemppiAustralia/KemppiArtOfWelding2023CompetitionEntryForm for access to the entry form.

Kuva: Aki Loponen, 2023Pictuner Oyaki.loponen@pictuner.fiwww.pictuner.fi

The rise and rise of portable welding machines

It is not that long ago that portable welding machines were seen as heavy, clunky equipment. Limited in their capability, they could usually only perform one type of welding, such as stick, TIG or MIG. And because of their power output, were mainly relegated to performing light and small welding tasks. Over the last 20 years however, portable welding machines have evolved significantly. While single-process welders are still available in the marketplace and no doubt have a place in the industrial landscape, operators can now also choose from a wide range of multi-process machines. These provide greater convenience and flexibility as they can be used to tackle various fabrication or construction jobs and projects both in the workshop and out in the field without the need to switch power sources. Greater productivity Apart from the ability to tackle a wider variety of work, quality portable welders also help deliver excellent welding results. According to Paul McVicar, Managing Director, Kemppi Australia, this is because of the machine’s stable arc. “Quality portable welding machines usually provide a very stable and even arc that allows the user to deeply penetrate various metals and produce consistent, high-quality welds. This reduces the need for reworking the weld as well as post-weld cleaning, which allows the operator to increase their output, while saving them both time and money,” explains Paul. Also contributing to improved productivity is that modern portable welders are far more powerful than their predecessors. Today, operators can choose a portable multi-process machine that has a 320 A with a 40-60% duty cycle. Or a 200 A with a 40% duty cycle. The greater amperage combined with the higher duty means that machines such as the new Kemppi Master M 205 let the welder safely create quality welds for a longer period of time […]

Is your network ready for industrial digital transformation?

The Internet of Things (IoT), the cloud, and artificial intelligence (AI) are the most popular and most common referenced industrial digital transformation technologies. Thanks to these technological advances, preventive maintenance, production optimization, defective rates reduction, energy savings, carbon reduction, etc. are easily achieved. Supporting these technologies, however, requires a secure foundation that continuously deliver reliable operational (OT) data. Simply put, reliable industrial networking. Evolving OT Networks Industrial digital transformation continuously adds value to OT data, changing it both qualitatively and quantitatively. Alongside these core changes, industrial networking technology has also begun to evolve. In the beginning, most machines on factory floors were stand-alone operations, and OT data was mostly used to monitor and control the operation of specific equipment. Most of the data was confined to the devices in which they were generated and only transmitted through simple serial-based communication structures. However, as the need for automated systems arose, factories connected a variety of machines to communicate with each other. Two trends emerged: the amount of transmitted data increase tremendously and communication moved from a simple serial-based communication structure to a more complex one that integrated regional Ethernet. Industry 4.0 Era, a.k.a. the industrial digital transformation era, made it possible for customers to optimize the operation of their machines and move beyond the mere monitoring of them. One significant outcome is OT data’s new status as a building block of industrial digital transformation. To achieve the required levels of optimization, OT data needs to be transmitted to IT systems or the cloud for further analysis. So, we can no longer confine OT data to the devices that generate it. These developments have set in motion three significant transformations in industrial networking: From Intranet to the Internet: Breaking the Confines To allow OT data to flow smoothly between OT and IT […]

Using single-use packaging in your business – read on

– Natalie Martin, 3R Group Materials Innovation Manager Rightly or wrongly, single-use plastic packaging gets the lion’s share of attention in terms of sustainability and waste reduction. While much of this is focused on consumer goods, it’s far from a problem faced exclusively by retailers. Single-use plastic packaging is so pervasive throughout supply chains that just about all industry members deal with it in some way or form. As a result, they will all be affected by regulations aimed at reducing plastic waste, increasing recyclability and getting an industry-funded, regulated product stewardship scheme off the ground. In July 2020 single-use plastic packaging was declared a priority product under the Waste Minimisation Act 2008. This means it’s one of the six product categories that must have regulated product stewardship schemes established. Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of. Why single-use plastic packaging? This product category is by far the widest ranging of those declared priority products, covering thousands of products. Plastic also isn’t simply ‘plastic’ but is split into seven different types depending on its chemical makeup. That makes recycling it, or even establishing collection systems much more complicated. Its negative environmental impacts when littered are well documented and are most frequently in the public eye. Despite this, single-use plastic packaging has an important role to play in reducing waste by keeping food fresh and safe and preventing goods from being damaged. It’s low weight and durability means it can also offer a lower carbon footprint than other materials when it comes to transport. In line with circular economy principles, the key is to ensure its use is minimised, that it’s used as effectively as possible and then recovered and recycled. […]

Sustainability and productivity: happy bedfellows

-Dr Barbare Nebel, CEO thinkstep – anz It’s good news for local manufacturers: investing in sustainability makes your business more productive. In this article, we look at how sustainability is helping New Zealand manufacturers achieve more with less. The traditional approach: more productive, less sustainable Many people view productivity and sustainability as yin and yang – connected, but opposite. Over the past 150 years, productivity has often grown at the expense of the natural environment, people and communities. For example, to increase output, many businesses have depleted natural resources like water and dumped growing amounts of waste in landfills. On the social side, greater productivity has often meant making people redundant or disrupting communities as factories expanded. It doesn’t have to be like this. Your sustainability programme can make your manufacturing business more productive too. Today’s approach: more sustainable, more productive too As a manufacturer you know the drill. To increase productivity, you need to generate more output for your inputs. In practical terms, this can mean using your raw materials more efficiently or ensuring your supply chain runs smoothly to avoid outages. In economic terms, it can involve reducing the costs of your inputs and cutting staff turnover. Here are six ways your sustainability programme can boost your productivity too. Use your raw materials as efficiently as possible Get more from your raw materials and you’ll be more productive. The circular economy is your go-to here. Your aims: to design out waste and pollution, keep products and materials in use and regenerate natural systems. Food manufacturer Sanford ensures that even low-value parts of its raw materials do not go to waste. Sanford partners with Auckland-based nanotechnology manufacturer, NanoLayr who use the collagen from the skins of Sanford’s sustainably caught hoki to make nanofibre facemasks. Tackle your carbon emissions and […]

Productivity Training: The Missing Link?

-Ian Walsh, Argon and Co As I have raised previously there are a number of elements required to achieve a productive economy and the benefits that affords us as a country. These include: Collaboration between business, government, and educational institutions Access to best practice knowledge Access to funding to support trial and learning Examples, beachheads and benchmarks For those business leaders contemplating adopting best practises to transform their performance, there are a few key questions to answer: What is involved? Who else has done this? What does it cost in terms of dollars, resources? What can be achieved, and is it worth it? How long will it take? On the face of it these questions might appear to be simple enough, however the ways in which to answer them accurately, and to then use those answers to develop a plan for productivity improvement, are complex and highly specialised. For context, the body of knowledge around applying best practice to business is over 100 years’ worth of industry experience and learnings. Yet I still meet business owners who decide to give it a go themselves in true NZ style, only to waste years and countless dollars going down blind alleys, learning what is already known, through a process of self-inflicted trial and error. The roadmap to world class will vary depending on the business, process type, size, and structure. Not everyone has an assembly process like Toyota, but some elements might be applicable. The key to navigating your way through the task of developing a roadmap for your organisation is to engage an expert to help you. By doing so you are making the most diligent use of resources and giving yourself the best chance of success. You wouldn’t attempt to climb Everest without a guide, someone experienced, who knows the […]

Who is exporting?

NZ Manufacturer, June 2023 A mere 30 New Zealand companies, according to the Productivity Commission, account for over half of all exports. They say focus really needs to be on innovation and moving away from volume to value-added products. So, what are overseas trade visits for? Do business legations need to be vetted to determine that the ‘fact finding trip’ is not just an overseas holiday? Do they bring back business for the country? How much money has government invested over the years in trade visits that result in absolutely no return? Dairy is New Zealand’s biggest export earner – worth about $19 billion a year. The largest increase for the year ended December 2022 was for milk powder, butter, and cheese. This is New Zealand’s largest export commodity group, making up 28 percent of total exports over the year. This industry group, with a proven track record, doesn’t need to justify the trip; they have established markets and maintain them very well. To get more than 30 companies contributing to our export success, we need to increase productivity which needs: a positive attitude and involvement of management; proactive employees; good working conditions; tools and equipment available to raise productivity and the availability of input supplies. The four determinants of a nation’s productivity are physical capital, technology, human capital, and natural resources. Technology is a decisive factor in productivity, along with physical capital (equipment used to produce products), human capital (the knowledge of labourers), and natural resources. Now all of this sounds logical but obviously is not being put into practice(properly) if only 30 companies generate most of our export revenue. What are the restraints? At present, the shining light for export growth appears to be the gaming industry. What is everyone else doing? We are in a constant state of […]

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