Editorial

Highly trained staff crucial to success

Fiona Kingsford, CEO, Competenz 2019 has been a year of extremes in the manufacturing industry, impacted by both a skills shortage and a government reform that will reshape vocational education. New Zealand is facing its biggest skills shortage in decades. By 2024, more than 18,000 people will be needed to fill new roles and replace those leaving the manufacturing sector, many of which could be filled by apprentices. In August 2019, the Government confirmed the details of its overhaul of vocational education. Specifically, the disestablishment of all 11 Industry Training Organisations (ITOs) whose current functions will be undertaken by two new entities, Workforce Development Councils (WDCs) and the New Zealand Institute of Skills and Technology (NZIST). By the end of 2022, WDCs will lead qualification development, standard setting, skills leadership, brokerage and industry advocacy, while the new national delivery agency, NZIST, will deliver all classroom, digital and on-the-job learning. The NZIST includes the merger of the 16 Institutes of Technology and Polytechnics and the training functions of the ITOs. How this new regime will impact the manufacturing industry is unclear. What we do know, is that the government has committed to ongoing support of apprentices and trainees undertaking on-the-job training. So, there is absolutely no reason for employers to stop signing their employees into training for fear apprentices and trainees won’t be able to complete because of upcoming changes. All qualifications remain, and everyone entering one will be able to complete them. While the training delivery landscape is definitely changing, these changes will be progressively implemented by December 2022. Right now, there is no interruption to the services Competenz provides to our employers, trainees and apprentices. No matter what form the new structure takes and how it is rolled out, the future of work in the manufacturing sector will still […]

The year in focus for manufacturing

-By EMA senior policy analyst Michael Burgess Despite the economic predictions, manufacturers have concerns with finding skilled workers, the bewildering speed of technological change, and how to make investment decisions in light of low business confidence. Internationally and domestically, a number of factors have put the brakes on the New Zealand economy in 2019. Domestically, the feeling is downbeat, with low levels of business confidence appearing relatively deep-seated. A number of key indexes that the EMA monitors continues to highlight that slowdown, with GDP also slowing to just over 2.1 per cent year-on-year. The Performance of Manufacturing Index is at levels not seen since the Global Financial Crisis, with forward orders also at their lowest levels since 2019. The October PMI result raises the prospect of the manufacturing sector’s recent negative results coming to an end in the final quarter of the year. However, most international economic agencies have downgraded their growth forecasts. The latest J P Morgan Global Manufacturing Survey is also in negative territory, with optimism dropping to its lowest level since first tracked in 2012. Despite the economic predictions, manufacturers have concerns with finding skilled workers, the bewildering speed of technological change, and how to make investment decisions in light of low business confidence. The Employment Relations Amendment Act introduced new duties on employers. Employers with more than 19 staff can no longer use the 90-day trial provisions and must now use probationary periods. The Employment Relations (Triangular Employment Act 2019 will take effect in June 2020. This affects triangular relationships where an employee is employed by an employer, but performs their work for another organization which controls the employer’s day-to-day work. The Holidays Act review is ongoing, any substantive overhaul has been delayed because the government taskforce needs more time to run tests. It is […]

MaDE2020: Synergies in New Zealand Manufacturing, Design and Entrepreneurship

The Fourth National Conference for Innovation in Manufacturing, Design and Entrepreneurship is brought to you by the University of Auckland’s Innovative Manufacturing and Materials Programme. Dates: Monday 25 – Tuesday 26 May 2020 Venue: Cordis Auckland Abstract submissions are now open to local and international industry representatives and researchers, including post graduate students, who work in the manufacturing, design and entrepreneurship sector. The abstract portal closes on 14 February 2020. Registration will be open by 20 January 2020. Delegate prices are available online. Sponsorship and support: A range of standard and specific sponsorship opportunities are available, and these are designed to provide maximum leverage during the event. The MaDE2020 Sponsorship Prospectus and Application Form is available online. Join us in Auckland for MaDE2020 to learn about exciting, new manufacturing, design and entrepreneurship research and to be inspired through examples of positive collaborations between industry and researchers. Engaging, short TED-Talk-Type presentations from researchers, industry and government representatives will enable productive communication between delegates from different backgrounds. In addition, MaDE2020 will showcase industry/research work by way of Poster presentations, to be displayed in the exhibition and networking area; local and international Keynote Speakers will set the tone; Panel Discussions and Breakout Sessions will provide topic specific engagement opportunity; and our ticketed MaDE2020 Conference Dinner will be our gala event on Monday 25 May 2020. The MaDE Network is a cross-disciplinary community of New Zealand researchers in manufacturing, design and entrepreneurship that works in close collaboration with industry to envision and shape New Zealand’s future manufacturing economy. The MaDE mission is to develop expertise and capability in translational research, to grow New Zealand’s high-tech manufacturing economy. The MaDE vision is for New Zealand to be recognised as a leading, technology empowered economy driven by innovative, high-value, niche manufacturing, design and entrepreneurship. The previous […]

Think outside the loop: Beyond the circular economy

-Barbara Nebel, CEO, thinkstep ANZ We are hearing more and more about the circular economy as a way to reduce our impact on the environment by getting the most use out of materials. Steel is often cited as a great example of a circular product, due to its recyclability and the option to reuse elements when “design for deconstruction” principles are applied. The circular economy also has economic benefits – to reduce the need to produce new materials, and the associated cost, we can reuse what has already been produced. However, to truly reduce our impact on the environment, we need data to inform our decisions and must look beyond a purely circular approach and take other environmental impacts into account too. Comparing tomatoes with tomatoes Stepping away from the hard structure of steel for a moment to something much more fragile: the example I most often use, tomatoes, are often packaged in single-use plastic. A circular economy approach would first look at reducing packaging, or producing it using recycled materials. However, the purpose of the packaging is to reduce food waste. Companies like Tesco’s have introduced strips containing ethylene remover to reduce how fast the tomatoes ripen, extending their shelf-life further. While this introduces another packaging element, it also means that fewer tomatoes have to be produced to meet demands, reducing the resources such as water, energy and fertiliser required to grow them. If we calculate the overall environmental impact of producing packaging against the reduced food waste, we quickly see that removing packaging altogether would actually increase the overall environmental impact of tomatoes. If we then decide to produce the packaging using recycled materials, will we need to use more energy to manufacture the packaging, or more water to clean the plastic before it is recycled? Circular economy […]

Ideas can come from everywhere

-Gemma Stanbridge, ViAGO International Limited Are the managers in your company empowering employees to pursue their broader passions, skills, and experience? Or are they pigeon-holing employees into a box defined by their current job title, taking them at face value of their job title, and restricting further development? These latter rigid typecasting behaviours serve only to limit employees from reaching their full potential and they discourage initiative and innovation within a company. An artificial limit is imposed on the value an employee can provide because the additional strengths or skills the employee has which are not required for the specific position are overlooked. Jack Stack, author of The Great Game of Business, shares in his introduction to the new edition, a story of a company he worked for where a drill press operator was actually a self-made millionaire who had built his wealth through real estate investments. “Here was this incredible entrepreneur working under our noses and all I had this guy doing was drilling holes. What a wasted opportunity.” Stack and the company failed to use the drill press operator’s full range of talents, asking the operator to only think about drilling the perfect hole, not about how they could build a better company. Why did this happen, and why does this still happen today, over 20 years later? Managers or recruiters look for and hire people to do a specific job or position that needs to be filled. Upon employment, the employee is labelled with their specific job title and job description. Managers (and even other employees) are often blinded by job titles, only giving each employee as much information as they feel is needed for their respective job title. Typically, operational and strategic decisions are handled by the appropriate higher managerial function and so many employees are […]

Just the right chemistry

New Zealand family-owned and operated, Chemfreight is a specialised 3PL distributor offering the complete solution of hazardous, non-hazardous and separate dedicated food storage and chemical toll blending backed by a national transport network. Started in 1989, it was the brainchild of Harry Price who, having worked in the chemical industry for many years, saw an opportunity and industry need for the specialist third party storage and distribution of hazardous goods. Three years ago, his son Joseph Price, took the helm as General Manager bringing his well-rounded business experience following years in insolvency and accounting. The business has undergone substantial changes and almost doubled in size from a staff of 40 to 80, and 100 clients to 200. Chemfreight does not have a sales or marketing function and has used their reputation for operating class leading facilities and delivering an excellent 3PL supply chain service to attract new business and also retain their existing valued clients. With their Head Office in East Tamaki, Chemfreight operates three Major Hazardous Facilities with two state-of-the-art storage facilities in Auckland and a large storage facility servicing the South Island located in Christchurch. They process approximately 3000 inbound containers per year and store in excess of 20,000 pallets across nine warehouses. Next year construction is planned to commence on a specialised concrete walled and roofed store for flammable substances with a capacity of 5,000 pallet spaces. Low staff turnover Many of the staff have worked at Chemfreight for years, and it is very much a family focussed business. “There are some families where as many as three family members are employed here as part of our team,” says Joseph. In an industry that sees a high staff turnover, Chemfreight has very low turnover. “Finding high calibre skilled staff is a challenge,” says Joseph, “and we have […]

Real Steel motivated staff drive success

A Lower Hutt manufacturing business, Real Steel, is a finalist in the Humankind 2019 Workplace Awards. What is interesting about Real Steel is that the business has maintained high employee satisfaction through a period of rapid growth, while also introducing automation. Growing up in Upper Hutt The company, a family run business, has seen thirty per cent growth year on year and tripled its head count to 70, hiring 30 new staff last year alone. The manufacturing business imports steel out of Sweden to make steel parts for road transport, forestry, and recycling industries. With clients nationwide, the company produces a lot of its work for the Waikato area such as steel for building truck trailers, wear parts, and materials for processing machines. Real Steel staff mostly live in Lower and Upper Hutt, with the 17-year-old company based out of Railway Ave for the last 10 years where it expanded its factory last year due to growth. It is owned by Managing Director Luke Mathieson. “It’s a great place to run a business, there is a lot of manufacturing history out here and a good work force,” says Mathieson. A Great Place to Work Mathieson believes the company’s people determine ultimately whether they succeed or fail in business. “It comes down to the quality of our team, it doesn’t matter how good our machinery is, how good our product is, if you don’t have the people to make it all happen, you are never going to make it happen.” Real Steel offers a flat structure and makes sure its managers are living and breathing company values. They also have a number of staff benefits that saw them named finalists in the award. These staff benefits include health insurance, free gym memberships and support with time off if staff want […]

EMA embraces historical 24 hours for NZ trade

The EMA embraces the historical 24 hours in which a deal has been struck on an upgrade to our free trade agreement with China, and the Regional Comprehensive Economic Partnership (RCEP) agreement signed by all but India. Chief Executive Brett O’Riley says these agreements together will bring a boost to exporters and consequently the New Zealand economy. “Many of our members who are exporters will welcome the ability to reach larger economies across the other side of the world more easily, and the reduced tariffs and clear trading arrangements these two agreements bring will makes this much simpler,” he says. Key outcomes of the upgraded China free trade agreement include preferential treatment for many wood and paper products, less compliance costs for all exports and the highest level of commitment to environmental standards China has made in any FTA. New Zealand exports to China have tripled since 2008 when the original free trade agreement was signed. And while RCEP covers trade among New Zealand 14 other Asia-Pacific countries, it still excludes India, a market that Mr O’Riley is hopeful will eventually join. “India is an increasingly important market to New Zealand, where clearly there are close links with the large Indian population and number of businesses here. India’s huge population and growing middle class means our high-quality products will be in demand, and consistent rules across 15 countries would make it much simpler for our exporters,” says Mr O’Riley. “At a time when free trade is being challenged globally, it’s great to see these two agreements signed that plug New Zealand into the fastest growing economies in the world.”

Mirage OD mount flange facing machines deliver fast and accurate performance

Enerpac Mirage OD mount flange facing machine Enerpac is introducing a new range of external mount flange facing machines designed for fast installation and accurate machining of large diameter flanges used in applications throughout Australia, New Zealand and Papua New Guinea. The new Mirage branded OD mount facers are the perfect choice for machining flanges 30” to 80” (762-2032mm) diameter in industries such as oil and gas plant, offshore platforms, refineries, LNG, pipe spool, heavy industrial fabrication, shipbuilders, EPC contractors, industrial plant, power plants, service and maintenance, says Enerpac Channel and Product Leader – Australasia, Mr Andrew Marsh. Applications also include facing heat exchanger flanges, maintenance projects, large flanges such as crane pedestals and flanges where bore mounting is not preferred. “The simple Outside Diameter (OD) mount configuration of the new machines overcomes industry reluctance to bolt ID mount flange facers to the inside of heat exchanger tubes,” says Mr Marsh. Each of the 6 machines in the range includes a continuous variable auto-feed which enables on-site machinists to create a wide range of gramophone-surface finishes to ASME standards (regulating the design and construction of boilers and pressure vessels). Robust construction and the inclusion of heavy-duty bearings ensure all machines deliver high metal removal rates whilst delivering accurate results. Easier and quicker machining “These new products provide all of the versatility to carry out different flange facing projects you’d expect from an Enerpac product, but, when used for heat exchanger refurbishment, they go a step further. “Convenience for the user has been taken to the next level by providing the clever ability to attach milling rails while the machine is still mounted in-situ,” says Mr Marsh. This innovative feature makes it easier and quicker to machine heat exchanger division slots. Machining the back face of flanges can also be […]

Igniting stalled labour productivity

-Doug Green, Publisher, NZ Manufacturer The Fourth Industrial Revolution is said to (it will) ignite stalled labour productivity in manufacturing through connected machines, people, data and value chains. The question is though; Is their stalled labour productivity or is there a reduction of manufactured product demand in the world in the current economic client? Maybe both? Or is labour productivity continuing to be low from workers, based on their ability to enhance workplace efforts? Meaning that today’s technology may not be being maximised in the workplace. We get all excited when the PMI Index shows manufacturing over 50 percentage points. When you consider the voting numbers for the recent local body elections…well, let’s not! Get the picture? There is a considered opinion that at the top end not enough development and manufacturing is going on with expensive technology equipment readily available. At the lower end, the same thing applies. Except that companies are not coming to grips with efficient use of the equipment. So, businesses may be setting up with the latest equipment ready to strike when opportunities arise, or they may be maximising right now to the best of their ability? On the other hand, the country has no shortage of creative and enterprising businesses contributing to the economy, with key staff realising their goals and dreams by being part of development teams involved in quite exciting projects. Productivity is good in these businesses. At present it seems that the land is where the most promise exists for product innovation. In horticulture and industry, it is ‘gang busters’. Enormous contributions to the country with quality goods, famous on world markets but still in need – and wanting to hear about – developments to make their businesses even more efficient. Stalled labour productivity may well be able to move by […]

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