Editorial

NZ’s productivity stagnation requires a long-term plan from politicians

– Dennis Wesselbaum, Associate Professor, Department of Economics, University of Otago In the ups and downs of the global economy over the last decade, New Zealand has had one relatively consistent challenge: persistent productivity stagnation. Productivity compares the amount of goods and services produced (output) with the amount of inputs used to produce them. Since the Productivity Commission was set up in 2011, annual productivity growth has averaged at just 0.2% – one of the worst in the OECD. In 2023, New Zealand experienced declines across key metrics: labour productivity dropped by 0.9%, multifactor productivity (which includes labour, capital, energy, materials and purchased services) fell by 2.2% and capital productivity by 3.8%. There has also been a sharp decline in small business productivity, with a 19% drop from its peak in November 2022. Productivity is not only an abstract concern. It directly impacts income growth, exacerbates inequality and hampers overall welfare. The productivity puzzle But New Zealand’s stagnation doesn’t have to be inevitable. There are tangible approaches the government can take to boost the country’s productivity. Here’s how. Human capital There are at least two ways New Zealand can improve human capital – the sum total of the skills and education a worker has to do their job. In the short-term, the government needs to allow more high-skilled migrants to enter the country. This type of migration can reduce skill mismatch and create knowledge spillovers. That is, migrants bring valuable knowledge, expertise and innovative ideas from their home countries, which can spread to local firms, industries, or individuals via collaboration and competition. Over the long-term, investing in education and cultivating STEM and digital skills will be crucial for combating the country’s productivity stagnation and future-proofing the workforce. Technology Technological advancement is a key driver of progress, yet its integration requires careful planning. Artificial intelligence (AI), in particular, holds immense potential to boost productivity. One […]

Q & A: Catherine Jones, Chief Executive, Creative HQ

Q: How long have you been CEO at Creative HQ? A: I’ve been at Creative HQ for six-and-a-half years now and in the Chief Executive role for the last four-and-a-half. Being part of an organisation with such a strong track record of impact over the past 20 years is a joy and a privilege. Q: What does your role involve? A: As CEO, my role is to provide strategic direction and leadership to ensure Creative HQ continues to deliver high-impact programmes that support startups and innovators to unleash their potential. This is important because we’re helping to shape the future of the New Zealand economy. Creative HQ’s strategy is aligned with the UpStart Nation report presented to Government late last year. This report states that Aotearoa requires 5,000 active, thriving, high-growth startups by 2030 to drive our economy on a global stage. Creative HQ’s goal is to enable 400 of these. Tech companies are fast becoming the biggest export sector for our nation, and the entrepreneurs and intrapreneurs who will build these companies are everywhere. They live within public and private sectors, universities, and Crown Research Institutes; and they have expertise in sectors such as engineering, manufacturing, agriculture, tourism, education, space, and medicine. Our expertise lies in teaching them to be entrepreneurs – helping them turn their ideas into scalable and investable businesses. In doing so, they create better economic, environmental, cultural and social outcomes for us all. At a B2B level, my team spends a lot of time helping organisations create a culture of innovation that is appropriate for the size and type of organisation we are working with, as well as building capability within existing members of that organisation to be able to innovate. Unlike traditional consultants who will come in and do that work for a business, […]

Schneider '25 Years Young' program launch

Schneider Electric Foundation turns 25, calling for projects around the world to apply for support

To mark the 25th anniversary of its foundation, Schneider Electric a leader in the digital transformation of energy management and automation, is launching a global campaign to celebrate both this key milestone and the next generation of young leaders committed to building a fairer, low-carbon-emissions society. Throughout 2024, the foundation is celebrating the world’s youth by raising awareness of their social and environmental impact and mobilising support from its employees. The high point of these celebrations is the ‘Youth Innovation For A Sustainable Future’ campaign, with a call for projects to be rewarded with funding. The campaign culminates in a €50,000 global prize awarded to the winning project during the COP29 climate summit in Bakou, Azerbaïdjan. Leading up to the global highpoint, each of five continents, including Australia and New Zealand in Asia Pacific, will also award five winning projects each with funding. All 25 winners will be eligible for the global €50,000 prize. The winning project for Asia Pacific will receive €30,000. Second prize is €20,000, third and fourth place will receive €10,000 each, and the final winning project will receive €5,000. Entries are open to young people aged 15-30 years old until 22 July and winners will be announced on 26 August 2024. The SE Foundation’s joint campaign with Ashoka is named ‘Youth Leading the Just Transition’ and is aimed at selecting the most innovative and impactful 25 youth projects across the world in the field of professional engagement as well as just transition. The joint campaign with Ashoka’s program Changemaker Companies will select 25 of the most impactful and innovative youth projects. The five continents include Africa, the Americas, Asia-Pacific, Europe, and the Middle East. In addition to jury selection, projects have an opportunity to be rewarded with €2,000 as a local audience favourite of Schneider employees. […]

Balancing innovation and growth

-Adan Sharman, Senior Partner, Dsifer The EMEX Exhibition happens every other year at the Auckland Showgrounds and is both a chance for vendors to showcase the latest in manufacturing technology, systems and services, but also an opportunity for the industry to comes together to share perspectives on the challenges facing the industry, and the opportunities available through evolutions in approaches, technologies and markets. The 2024 edition of the EMEX Exhibition was no exception. Following on from the highly attended 2022 edition as the industry came together for the first time since the COVID pandemic, this year’s event had a more grounded feel to it as vendors and manufacturers alike seek to balance innovation and growth for the long term with capital and market constraints in the short term. One notable change since 2022 was the presence of New Zealand’s first minister for manufacturing, Andrew Bayly. Whilst it is still early days in the establishment of the portfolio, the fact that the industry now has ministerial representation is seen as a positive development as New Zealand struggles to keep pace with the investment in the industry that is being demonstrated overseas. Whilst there may have been little directly for manufacturers to shout about in the May budget (announced on the final day of the exhibition), Minister Bayly has indicated some positive moves already, notably an extension of the Smart Industry Readiness Assessment funding to support manufacturers identify opportunities for acceleration through the adoption of industry 4.0 technologies. This visibility of the industry at the ministerial level was welcomed by the exhibitors and visitors to EMEX this year. However, in speaking with attendees, the focus remains on navigating through a challenging economic environment, whilst not limiting potential future growth and agility for the long term. Whilst every business has its own context, […]

Transferable skills the key to unlocking productivity benefits

-David O’Connor, Commercial Manager, The Learning Wave Having had the opportunity to attend a number of industry conferences over the past few weeks and network with a variety of industry players, I can’t help but reflect on the role training plays in the Manufacturing sector. I find myself questioning whether there is a reset needed in order for the industry to see the desired value and outcomes from the training investment. Traditionally, the Manufacturing sector believed that ‘qualifications’ are the currency when it comes to training staff, and while there is a place for qualifications, we need to challenge ourselves on whether we are seeing the outcomes deemed so essential in the current environment through this means of training. The general feeling amongst the industry at the moment is that there is a need to lift productivity, create a more dynamic workforce and work on the softer skills which ultimately create a more engaged and efficient organisation. Unfortunately it’s commonly agreed that the current qualification based training is not hitting the mark. With increasing commentary about the need for NZ Manufacturers to invest and adapt to smart technology it has been encouraging to hear the conversation evolve into the importance of investing and developing in smart human capital as well. We need to start talking about how we create smart people, and in doing so create a NZ wide training approach that prioritises skills development and transferable skills , creating a team who are fully engaged and adequately equipped to meet the evolving demands of today’s work. Focussing on transferable skills in critical areas like leadership and problem solving, rather than task based, role specific skills is the step change the industry needs. Not only will this result in positive productivity and engagement benefits, but will no doubt improve employee […]

EMEX 2024 – One company’s reflections

From June issue, NZ Manufacturer www.nzmanufacturer.co.nz -Des Pitfield, Datum Machines, Lower Hutt The Datum Machines stand was the result of 11 months of design and prototyping. The last three months were very intense and at times very challenging. We learned a lot and realised some of our business processes and engineering production will need to change going forward. But that’s how we learn. As the crated machine left Waiwhetu on a Mainfreight Truck heading to Auckland, Zak commented that there was 11 months of our lives in that box. We have had a great deal of support over the last eight months or so with other small businesses helping and wanting to see Zak succeed. They recognised his determination, design talent and self-taught engineering skills which have resulted in the finished DGM-S1 Gantry Mill CNC machine. Support from others like Hutt Valley Chamber of Commerce and NZ Manufacturer magazine wanting gave Zak’s business exposure to help get the machine out there. Exhibiting at the EMEX Engineering and Mechanical trade show was an expensive exercise and such a venture always costs a big percentage more than what you first imagine. The stand alone was $11K but I think all up it would have cost us at least $16,000, probably more. Zak, his sister Jax and Des Pitfield. That said, the show was a great success. The contacts made with other NZ businesses, potential suppliers, future collaborators, as well as prospective customers was worth it alone. Everyone was impressed with the DGM-S1 and even more impressed to realise it has been Aotearoa New Zealand designed and manufactured. Pretty much single handed by Zak. Other exhibitors of CNC machines came by to check it out and meet Zak. They recognised and commented on the machines look and build quality. They congratulated Zak and […]

Electronic governor enhances marine engine speed control

Due to a failure of a Caterpillar Hydraulic Governor on the Tug Vessel “Te Matua”, operated by South Port NZ, Emee NZ Ltd of Mossburn, was consulted to check out the possibility of an improved, reliable, readily available, cost-wise and serviceable system. Having deliberated and sourcing suitable and reliable hardware involved to substitute the original system, it was found that the movement of the Caterpillar 3606 Engines Fuel Injection Pumps mechanisms demanded a high torque to move such from idle to full throttle. The requirement was also to have a system that originally was air control to the Bridge, superseded by simple “Rotational Dial” and have simple 4–20mA wiring connection. Other air control levers and parts subject to age failure were removed. Recommendation and Solution It was decided to use a combination of a GAC ACB 2001 12Ft Lb Actuator and an AXIOMATIC AX100310 Unidirectional Digital Control for each engine to supersede the original equipment. The combination of both these products together with suitable developed programed firmware and a mechanically driven encoder has now made reliable use of this vessel. This equipment was fitted to both Engines and to date has more than proved their worth in speed control which incidentally this vessel is used extensively for moving large ships within the Island Harbour complex and narrow channel entrance. Installation Installation of the Emee System is very simple, with a Manufactured Actuator Bracket fitted to each engine with linkage, also an enclosure for the required wiring and having the Axiomatic Controllers externally mounted for access. The Axiomatic units are totally encapsulated protecting the internal hardware from the sea environment. This is a major plus to eliminate corrosion and damage. A further feature is an emergency “override key switch” which in the event of Bridge Control failure will put the engine […]

The Scope 3 ripple effect

From June issue, NZ Manufacturer magazine. -Insa Errey In the ever-evolving landscape of regulations, New Zealand manufactures find themselves connected to the regulatory frameworks of key trading partners such as the European Union (EU). The EU has positioned itself as a global leader in climate action, with ambitious targets set under the European Green Deal and the European Climate Law. As part of its efforts to reduce greenhouse gas emissions, the EU has implemented regulations on Scope 3 emissions reporting through directives such as the Non-Financial Reporting Directive (NFRD) and the EU Taxonomy Regulation. Understanding the impacts of Scope 3 regulations in these markets is crucial for New Zealand manufacturing. Let’s delve into how regulations in the EU can shape the strategies and operations of New Zealand manufacturers. First what is Scope 3? Scope 3 emissions refer to indirect greenhouse gas emissions that occur in the value chain of a company, including both upstream and downstream activities. These emissions often result from activities such as the production of purchased goods and services, transportation and distribution, and waste disposal. For any EU customer this may just be your manufacturing sites Scope 1 or 2 emissions. Meaning the emissions your site emits from use of direct combustion (scope 1) or indirect emissions on site from purchased electricity (scope 2). What does this mean for NZ manufacturers? Market Access and compliance pressure to adhere to these standards is required for exporting to the EU which governs Scope 3 emissions disclosure and reduction. Failure to meet these requirements can result in barriers to market entry. In a global market increasingly, prioritising emissions reduction is becoming an advantage, as exporters can face competition from countries with lower carbon footprints. Failure to manage or measure emissions can put NZ manufacturers at a competitive disadvantage and could […]

Efficiency Over Productivity: The Strategy for Modern Success

Stephanie Pretorius, Argon & Co In today’s fast-paced world, businesses and individuals often chase productivity, believing it to be the hallmark of success. However, the relentless pursuit of productivity—defined as the sheer volume of tasks completed—can overshadow a more crucial metric: efficiency. Efficiency, which emphasises the optimal use of resources to achieve desired outcomes, offers a more sustainable and effective path to long-term success. The Lure of Productivity Improving productivity is a common catch cry for many organisations heard from Governments to Boards and CEO’s. Productivity measures how much work is done in a given period. It’s a quantity-focused metric, often leading to a “more is better” mentality. It’s also an internally focussed metric ultimately linked to the sales growth aspirations of most organisations. Productivity growth leads to more output, therefore more sales, therefore more revenue. Who wouldn’t want to grow and improve productivity? However the caveat is: Does productivity lead to higher profitability, financial sustainability and adequate margin? Does it lead higher customer satisfaction that will create a long-term success? In contrast, efficiency measures the quality of the work done – including how well resources, such as time, money, and effort, are utilised to achieve desired outcomes. As a quality-focused metric it prioritises doing things right rather than merely doing more. There are some pitfalls of prioritising productivity alone. Productivity-driven models often ignore process optimisation, resource optimisation and right first time considerations which can inadvertently create higher cost. For example, using overtime to achieve an increase in output can harm profitability but tick the productivity box, or perhaps the production or planning process has not been optimised so more output results in more defects, wasted material or other inefficiencies that already existed. Producing more without regard for optimisation can lead to higher cost and increased waste ultimately harming the […]

Kemppi Australia’s Art of Welding Competition is on again

Kemppi Australia has launched its Art of Welding Competition for 2024. 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. Now in its fifth year, the competition is keenly contested by both professional artists and amateurs alike. “It’s great to see the artistic talent that is flourishing not just among professional metal artists but also welders, apprentices, teachers, tinkers and hobbyists,” said Mark Shaw, Managing Director, Kemppi Australia. This year, the competition again features a dedicated amateur category. Entrants can win from a pool of four great prizes. The prizes include state-of-the-art Kemppi welding equipment and helmets, as well as clothing and gloves. The competition will run until Monday 30th 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. Alternatively, email skettos@skettos.com.au for a copy of the competition flyer.

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