Editorial

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Circular economy: so much more than recycling!

Article: Part one The circle has been an important symbol since early times. To many ancient Eastern and Western civilisations, it represented unity, balance and stability. Fast forward to 2023 and the circle is the most talked about shape in sustainability. Why? Because it’s time to get serious about the circular economy and the business, environmental and social benefits it offers. What is ‘circular economy’? Circular economy (CE) is an economic system that can help your manufacturing business reduce risks and costs, become more resilient and build your brand. It can also help you identify new income streams. CE decouples using resources from economic growth. It recognises that the ‘linear’ economic system we use to produce and consume goods and services – ‘take-make-dispose’ – cannot go on forever. As manufacturers, you know that the resources you use are finite (‘take’). You may be facing shortages or skyrocketing prices, particularly with critical materials like lithium. Many of you will be looking for a more sustainable way to manufacture your product (‘make’). You may be concerned about what happens when consumers dispose of your product (‘dispose’). Are you contributing to landfilled waste? Could you be liable? Enter circular economy and solutions to these problems. Circular economy is based on three principles Principle 1: keep products and materials in use Circulating products and materials means keeping them in use at their highest value. It avoids the costs of extracting and creating materials, and of disposing of waste. A circular product is one that consumers can use for as long as possible (e.g. it is easy to repair). When the product wears out, its parts can be reused, or the product remanufactured (remade). At the end of the product’s life, its raw materials can be fully recycled. Principle 2: design out waste and pollution […]

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Hutt Valley manufacturer saving lives and expanding globally

-Rebecca Reed “I am proud to have spent more than 40 years of my life manufacturing products that save lives. I am proud that my company has remained competitive against international suppliers and most of all that we have managed to create products that add value to New Zealand.” Poignant words from the owner of award-winning high-tech manufacturing company Pertronic Industries, David Percy. What started with one person in Ngauranga Gorge, Wellington, has turned into quite the success story for Hutt Valley manufacturer Pertronic Industries. Fast forward forty years later, the company now employs 140 people and proudly operates out of a 6,000 square metre factory site in Wingate, Lower Hutt. Pertronic Industries manufacturing business, designs and makes fire detection systems that it sells to installation companies, who fit systems in commercial and industrial buildings such as hotels, hospitals, high-rise office blocks, schools, tunnels, and shopping malls. The company, founded by electrical engineer David Percy in 1982, has grown to be the largest manufacturer of fire detection systems in New Zealand. At least 50% of its business is now in Australia where it has offices in Adelaide, Melbourne, Sydney, Brisbane, and Perth. They have exciting plans in the pipeline to launch in the US market. “We are in the process of getting a product certified for sale in the large USA market. We have a small team of people based in the US who have been working tirelessly on our first US product which has been going through R&D / Certification to meet the local requirements. The opportunities in the US market are significant. With our recent investment in new technology and ongoing R&D, we are setting ourselves up for growth in the US market.” Investing in R&D and new technology With an eye to the future, David says the […]

Structural steel industry targets women with new initiative

Industry body launches initiative to foster gender diversity in the structural steel industry. WISS speakers: L-R, Nikki Hart, Michelle Gutierrez-Smith, Kelly Jeffries, Bridget Young. More than 50 women gathered at the Hilton Auckland recently for the inaugural Women in Structural Steel event. Hosted by industry body Steel Construction New Zealand (SCNZ), the event brought women together from different backgrounds, different industry roles and different stages in their careers to connect and learn from one another. “SCNZ is committed to supporting diversity and inclusion,” says Darren O’Riley, General Manager, SCNZ. “This initiative aims to encourage women into the industry by creating a welcoming and supportive environment, and showcasing the variety of opportunities within the sector. Ultimately, we want to grow the number of women engaged throughout the industry, year on year.” Last year, SCNZ Services Coordinator Michelle Gutierrez-Smith (pictured) attended a Women in Leadership summit and was inspired by all of the women and the diversity in the room – age, experience, background and industry. “I looked at the structural steel industry with fresh eyes,” says Gutierrez-Smith. “I want to see more women in our industry; I want to see more women in leadership roles in our industry; I don’t want them to be hindered because they are women. It was a catalyst for SCNZ to establish Women in Structural Steel.” Attendees at the event heard from three speakers: D&H Steel Construction’s Kelly Jeffries and Grayson Engineering’s Bridget Young shared their inspiring stories of thriving in the traditionally male-dominated structural steel industry; and nutritionist Nikki Hart offered some invaluable insights into how to maintain a healthy relationship with food and drink in our busy, modern world. SCNZ plans to build on the success of the first event and host regular Women in Structural Steel sessions in future. […]

Net-zero steel in building and construction: The way forward

As the world transitions to lower greenhouse-gas emissions, construction companies have a major role to play. In making the green buildings of the future, they have a chance to tap into demand that spans geographies and architectures. Indeed, greener business models are potential magnets for trillions of dollars earmarked for sustainable investment. In addition, companies that adapt effectively will ensure they are aligned with an increasingly stringent regulatory agenda. The decisions made by construction executives now will determine how they are positioned for the transition over the coming decade. Those that prepare astutely are likely to seek out emerging pockets of innovation and dial up investment in sustainable technologies and capabilities. To be sure, new materials such as green steel are more expensive, and will therefore demand a new pricing model. However, they can significantly reduce embodied carbon—in commercial buildings by as much as 70 percent by 2030. Amid tight industry margins, a priority for decision makers will be to ensure that there is a solid business case for change. The key in that regard will be to establish market position, while adjusting to a new cost base. They must also ensure that greener business models are aligned with demand that will rise at an uncertain pace over time. A tricky calculation is required, but the prize is a chance to get ahead in a market that is set for a potentially rewarding future. Construction industry emissions From houses to bridges, hospitals, and skyscrapers, the construction industry is responsible for approximately 25 percent of global greenhouse-gas emissions. A third of these are associated with materials and the construction process, or so-called “embodied carbon.” One reason for the industry’s high emissions is that it is a voracious consumer of steel, accounting for more than 50 percent of global demand.2Due to the energy required for its […]

Decarbonising steelmaking

This article, one of many NZ Manufacturer will be sharing on the subject, comes as a result of conversations with companies in the steel industry who require information on decarbonising steel and steelmaking. Seventy five percent of steel is made from high-emissions plants Nearly three-quarters of crude steel today is made from iron ore in blast furnace–basic oxygen furnace (BF-BOF) plants. These plants release carbon when coking coal is burned and used as a reducing agent. One key decarbonisation action could be to replace blast furnaces with electric arc furnaces fed by scrap and/or H2-DRI; powering EAFs with 100 percent carbon-neutral electricity would eliminate energy-related emissions. Moving to low-emissions production would require $4.4 trillion spending over the next 30 years, with the top end spend coming between 2030 and 2040. In this scenario, three-quarters of investment will likely be on new hydrogen-powered DRI-EAF plants, and the rest to equip existing BF-BOF plants with CCS. Thirty percent increase in unit production costs for steel Costs for steel in the net-zero scenario could increase because of up-front capital spending and higher operating costs associated with CCS and hydrogen-based DRI-EAF production. Market opportunities The shift toward net-zero steel production would likely depend on a collaborative effort among regulators, governments, and industry stakeholders to change the economics of production, facilitate access to required capital, and stimulate demand. First movers that manage the transition risks well stand to gain the most. Sixty five percent of steel will come from plants with electric arc furnaces in 2050 and there will be a ten percent increase in global demand for steel compared with today. Getting all the way to net-zero steel Recent developments in regulations, along with commitment among some governments to reduce CO₂ emissions, have led many steelmakers to set high decarbonisation goals in coming years. While […]

Regulated product stewardship driving transition to a circular economy

By Trevor Tutt – GM Innovation, 3R Group Something which will affect almost all New Zealand businesses has mostly flown under the radar since it was announced during the covid pandemic. A swath of products are set to fall under regulated product stewardship for the first time in New Zealand after they were announced as priority products in July 2020. This means, for the first time in Aotearoa New Zealand, regulated product stewardship schemes are being established for tyres, electronic waste, single-use plastic packaging, synthetic refrigerant gases, agricultural plastics, and agrichemicals. So, if you rely on refrigeration, transport, electronics, or plastic packaging for your goods, you may be affected. It’s a big range of products, with more likely to be announced following government consultation on ways to accelerate product stewardship in new waste legislation. What is regulated stewardship? 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. This usually means a stewardship fee is charged at the point of manufacture or import and is used by a scheme to achieve better environmental outcomes. The pay-off is improved environmental performance and brand reputation, as well as reduced risk from environmental harm. New Zealand has several voluntary stewardship schemes where participation is just as the name suggests – voluntary. These can suffer from limitations due to insufficient data and resources, and free riders – those who don’t contribute but whose products are stewarded through the scheme. Regulated stewardship sees all of industry required to participate. This provides a level playing field with no free riders. Schemes are therefore better resourced financially and through industry support such as knowledge sharing and collaboration. Data capture is also greatly improved. Regulated schemes are better equipped to reduce […]

Where to for sustainability in an economic downturn?

-Dr. Barbara Nebel, CEO, thinkstep-anz Is sustainability a ‘fair weather friend’ in your manufacturing business? Do you see it as something to cut back when recession calls? If so, you’re missing a business opportunity. Building a more environmentally and socially sustainable business can make your business more efficient and resilient and help you weather the storms ahead. The New Zealand government is forecasting a recession in 2023. This is difficult news for manufacturers already challenged by creaky supply chains and a tight market for skills. Make the most of the many opportunities sustainability offers. Business benefit: reduce your costs Understand your environmental impacts – and reduce them Everything that goes into making your product has an environmental footprint – and a dollar cost. Start by understanding your footprint. A Product Carbon Footprint study measures the carbon your products generate. A Life Cycle Assessment (LCA) considers other impacts too, including the water you use and the waste you generate. Food manufacturer Comvita’s LCA NZ Manufacturer October 2022 by Media Hawkes Bay Limited – Issuu will help the business understand the environmental impacts of its ‘honey in a pot’, from growing the mānuka forests the bees feed on to disposing of the honey’s empty packaging. Armed with information about your environmental impacts, look at whether you can cut some costs. Can you reduce the amount of energy you use? Use raw materials more efficiently? Cut the waste you generate and the costs of disposing of it? The beauty of LCA is that it shows trade-offs. It will help you understand how tweaking one aspect of your product (e.g. the energy you use) affects other aspects (e.g the waste you generate). Buy responsibly Purchasing goods and services produced in environmentally and socially responsible ways can save you money. For example, buying from local […]

Editorial February issue NZ Manufacturer: Productivity

Aren’t you sick of talking about it? However, I do need to ask “Is your company highly productive, or not productive enough?” We need to talk about it – not in a “we need to talk about Kevin way” – because Productivity is front and centre for all the country needs, and stands for, to get ahead. Let’s be clear, there are plenty of companies hugely invested in the technology and specialist staff to enhance their Productivity. And then there are those, unsure of the investment, unsure of return on investment. Too small to fail, too concerned to move ahead. Overcoming this fear can put the world at their feet. The drive to place Productivity ‘front and centre’ is very much in the mission statement, of such organisations as EMA and HERA, and forward thinker Ian Walsh of Argon. These are all deeply committed to Industry 4.0 and assisting their members and clients to move forward with better tools and outcomes for the future. The crises that have affected New Zealand’s business momentum over recent years are numerous – the Christchurch earthquake, the terrorist attack, climate change and the war in Ukraine. Supply chain issues, inflation and the relentless search for qualified staff to keep moving business forward. Whenever money is needed for flood relief or a crisis, there is a scramble to find it. Whatever party is in power does not solve the reality: money will always be tight. We are a nation that does well with Productivity in a crisis, when we need to clean-up. It is not a financial return! Work with the specialists and experts who can assist move your company forward. If you need to form a conglomerate to share equipment and resources, do it. Do not get left behind without the technology and skilled […]

How good is your productivity?

-Ian Walsh, Partner, Argon & Co ANZ As I have covered previously, New Zealand’s GDP has been declining relative to other OECD countries for over 40 years, sitting at 21st out of 38 countries as of 2021. This concerning situation affects our quality of life, our ability to invest and the provision of the services and amenities we have come to expect. The root causes for this have been provided over many years: geographical separation, access to capital and, of course, productivity. To quote American economist Paul Krugman, ‘productivity isn’t everything, but in the long run, it’s almost everything’. We currently lag significantly behind many OECD countries in output and hours worked. It is simply not possible to work more hours. We are now in a tight labour market, with lack of skills and availability of resources and rising wages as a result and we can no longer rely on the number 8 wire, she’ll be right and just harden up attitude. To keep up with the Irish we would need an extra 10 hours a day! This is our climate change moment. The house is burning and throwing a bucket of water at it won’t fix it. A frontier study comparing us to similar countries in size and scale, and allowing for the geographic differences, found that the key shortfalls are: Industry, government and research/university collaboration Focus on key sectors which there is a natural advantage or capability Support through appropriate technology and capital investment Development of human capital through training, mentoring and adoption of best practices The outcome of having these things has been outstanding performance for Scandinavian countries, Singapore, Ireland and Denmark, amongst others. By contrast, in NZ we have: Underinvested in capital, as it is easier to use flexible labour and avoid the spend Underinvested in […]

Women in Engineering: Lydia Frater

NZ Manufacturer profiles women in engineering, supporting The Diversity Campaign and those who come forward. This profile on Lydia Frater, is a recommendation from HERA. –Doug Green, Publisher. Contact me to take part. What inspired you to pursue engineering? I was inspired by a trip with the rotary national science and mathematics forum. I took my first look into real-life engineering at work and fell in love with the environment and skill set, once this idea came into my life. I took the advantage to learn more about engineering disciplines and talked to engineers and students taking engineering to get a full view which inspired me more. I was mostly inspired by the people and how welcoming and fulfilled they were with their career choice. Civil/Structural engineering – does this mean large projects for you to work on? Being accepted into a Civil/Structural engineering degree at UC I hope in the future to work on large projects and to fill my career with challenges, large accomplishments and teamwork. I particularly enjoy using my people skills, which come in handy with large projects. What is an example of a completed project you admire? I do admire the Sky Tower in Auckland as it has a lot of character. And also the Ngāi Tahu building Te Whare o Te Waipounamu as I work part-time there and am amazed by it inside and out. What would you like to specialise in? I hope to specialise in structural engineering and pursue static and dynamic buildings as I enjoy using creativity with logic and building for the environment. How would you incorporate creativity? I enjoy structures that have character and stand out as a statement. I would like to bring in creativity, using ideas and knowledge already taught, but setting a goal of making it into something more personal. […]

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