Editorial

  John Walley. The past year has generally been more positive for manufacturers and exporters than we have seen for a while. John Walley, Chief Executive, New Zealand Manufacturers and Exporters Association The past year has generally been more positive for manufacturers and exporters than we have seen for a while. A significantly overvalued currency continues to be an issue for margins and competition pressure, but some recovery in export markets and improving domestic conditions, for some, have provided a lift in activity. Our own survey has shown a trend of improving year on year export sales, with falling domestic sales throughout 2014, coupled with consistent expectations of improving future conditions. 2014 has been a very mixed year for international markets, with new opportunities, ongoing uncertainties and new risks emerging. Europe has struggled with stagnating growth and facing a very real risk of deflation, exporters to this area have experienced soft and falling demand coupled with intense competition as producers elsewhere search for sales. This risk of deflation and continued stagnation prompted the European Central Bank to add further stimulus, and they are considering starting a U.S style bond purchasing (quantitive easing) programme. Trade between New Zealand and China continues to grow. However we have seen the start of a potential slow down in China’s growth, which could see lower growth rates in the future – this is a greater risk going forward as we become more reliant on trade with China. The U.S market has improved during 2014, and the Federal Reserve finished their tapering, marking an end of their massive bond purchasing programme for now. The recovery of the U.S economy and their monetary policy decisions will have an impact on the level of our currency in the coming years, as will our own domestic policy decisions. In […]

– Doug Green We all want to be like Sebastian Vettel. Successive wins on the trot, lots of space between us and our rivals, utilising a fantastic product that keeps us in the lead. In Vettel’s case 13 wins in a season which probably means the manufacturing technology used to put his car together is pretty damn good. Made me wonder recently when I heard the talk of making a car of part paper, thanks to 3D developments. Maybe there is such a thing as horses for courses and the song Blowing in the Wind was ahead of its time. John Walley (Page 1) has an article entitled, Is Manufacturing Important? My answer to this is, Is there water in Lake Taupo? Manufacturing is pretty serious stuff. The nation wouldn’t be a nation without it and if there was no manufacturing (nigh impossible!) we’d all be wandering around wearing sarongs made from banana skins Ð from bananas imported from Equador. I suppose this does raise the point of who makes the sarong? But let’s not dwell on that… The pride we have as a nation in what we do is seeing sustainable success now consistently occurring. New Zealand is currently sixth in the world for business optimism, our highest ranking since 2010. Along with the United Kingdom and United States we are playing a part in driving global business growth. Little old New Zealand, I hear you say. How can we be…an influencer? Lots of factors play into this; security as a nation, stable democratic government, a reasonably decent standard of living and an environment – most important – for designers, developers and manufacturers to get on with making great products. There are a few downers, however. The wages we take home aren’t that flash, and frankly, some employers are […]

-By Doug Green We are already half way through the year. The momentum, so far, for manufacturers, has been steady and improving. The trick is to keep it going as we look down the road towards Christmas (who would have thought it was creeping up on us so fast?). NZ Manufacturer is pretty much at the fore in fostering, supporting and encouraging the nation’s manufacturers. We constantly report on where the opportunities are for manufacturers and where the vacancies are for those looking to establish a career. The job market is still tight and that tightness has something to do with the cost of raw materials, the cost of finished product to local and international markets. Our competitiveness on the world stage. And there are plenty of opportunities out there. A recent trade mission to Indonesia, as reported in this issue by Gilbert Peterson, highlights how doing business there can be surprisingly straightforward. One of the mission delegate’s, on a first visit to Indonesia, chalked up what he is sure will turn into a million dollar plus order of kiwi made refrigeration equipment. And Indonesia will look to New Zealand for the likes of quality high protein food as well. 248 million people, certainly a growing market. In the USA there is a massive opportunity for our companies offering health solutions. The US military community is on the lookout for collaboration. This is an exciting development. Catherine Beard also writes on an exporting theme, sharing with readers some recent success stories, while John Walley asks if there is indeed a crisis in manufacturing. Apart from all of this riveting reading we focus on The Future of Manufacturing and the latest innovations and developments to make your workplace today ready for tomorrow and able to meet the challenge.  

I studied with interest the report out recently 2102 Smart Waikato Youth Employment Survey which was undertaken to gauge the work experience and employment situation for 15 to 24 year olds. Respondees to the survey were pretty mixed in their appreciation of what their youth have to offer. Comments from “They have no interest in working and a lack of aptitude or ethics” were common as was “expect top money for little or no return.” Another said: “While there are some stars out there, there are a lot of bad seeds. Too many young staff expect everything to be handed to them on a silver plate and the art of working for something has long been forgotten.” About 280 Waikato employers representing approximately 12,000 Waikato employees responded to the online survey. So how are you an employer, in other parts of the country finding the attitude of youth to work? Can you get, in your region, young staff when you need them? How do you find their attitude? Are there talented young people out there you are employing or considering employing? Let’s look at the whole thing. Young workers need training, they need leadership, they need inspiration and they need a light at the end of the tunnel. There are a lot of highly motivated young people doing good things in companies who have drive and ambition and want to get ahead in the world. They all don’t want to work for the youth wage; they want a fair return for a fair effort. As far as the unmotivated ones are concerned, well, there are always people like that. But at the same time the system is not meant to fail them; to cast them aside as the easiest thing to do. Being unmotivated and not self motivated may only […]

Amongst the turbulence of the current business climate we continue to focus on some great success stories. Hamilton-based Aduro Biopolymers, for example, a natural resource materials and biopolymer company, has secured investment to process a variety of co-products from the meat processing industry. The Auckland FoodBowl – which is holding Innovation in Action early next month – allows food and beverage companies to test their products, complete production runs and produce market samples before the bells ring and they head for overseas markets. Food manufacturing and production is one of our key areas and the Innovation in Action will surely see more companies bound for success. I want to talk about the manufacturing meetings which, as you all know, were held in Wellington, Christchurch and Auckland during February. Nothing is achieved by focussing on the exchange rate alone and thankfully a lot of pertinent issues affecting our manufacturers were discussed. If seventeen percent of business is unhappy with the exchange rate and others are unhappy with difficulty finding staff and finding markets for manufactured goods it sounds cyclical. Not every problem can be easily sorted; after all, we are part of a world business community which is going through difficult times to keep its balance. Some of these countries aren’t doing quite as well as us. Bring the issues into line more and realise that trade is ticking along with Australia our largest export market buying twenty three percent of our exports Ð something of everything we make. And Asia, Europe and the US are not backward in coming forward when they look for innovative, high tech Kiwi companies to do business with. So we keep marching forward. Our overseas debt level is far too high and the living wage for workers is – thankfully – being looked at by (initially) […]

    The BusinessNZ Performance of Manufacturing Index (PMI) was 55.2 for January 2013.Any reading over 50.0 is an indication of growth and this latest figure is 4.8 up from December and the highest since May 2012. How is your business going? Do you think this trend reflects your business activities? Have you increased your manufacturing work load?  Let us know. We can share your success with the market. Or we can talk about your company’s situation as you strive for growth. -Doug Green

  Sir Paul Callaghan was an inspiration to us all and the launching of Callaghan Innovation is to be applauded. Sir Paul was an advisor to this publication and in his own unassuming and thoughtful way contributed some great articles on New Zealand’s future through innovation and the development of high value manufacturing. The Callaghan Innovation Board includes some notables, businesspeople with the right mix of science experience and business skills needed for our manufacturing and services sector. In this issue we continue our focus on the Manufacturing Heartland and from Christchurch the views of Gordon Sutherland, A W Fraser on the company and how he sees its future are shared. Incidentally, Gordon attended the NZMEA arranged and opposition party’s gathering in Wellington this week which considered key issues for manufacturers including the exchange rate. Spread through the pages are some wonderful insights on tools and technology for enhancing the lot of our manufacturers. On Page 20 we discuss Manufacturing’s role in creating a smarter planet. On Page 29 3D ‘virtualisation’ software to empower quality decision-making, on Page 30 Laser-based production which revolutionises manufacturing and on Page8 a CADCAM software to make complex designs easy. And amongst these pages John Blakey CEO of Competenz looks at industry training and Nick Inskip tells us manufacturing is An all weather Industry (Page 31). Plus plenty of other news and developments to assist your company and its growth. NZ Manufacturer has always had a very clear position in the future of our innovators and developers. And that is we share with you information to make your ‘lot’ better and assist in your success by having your story read about on local and international markets. It’s a two way street for a brighter future.  

It’s been one of those frustrating years with the economy sitting ‘there and there about’, facing the same challenges that all nations face around the world. And through it all let’s not lose track of what manufacturing means to the country. In these troubling times, manufacturers keep going to work every day, making classy products for local and overseas markets. Big money (and investment) is at stake, careful planning required and a focus on the future needed. Of late, opposition political parties have called for an inquiry into the state of manufacturing in New Zealand. While this initiative is to be commended it’s a dog’s breakfast because unless there are decent (extra) incentives put in place for manufacturers like: lower exchange rate, lower company taxes, assistance on visits to overseas companies and trade fairs then the point will be missed. Opposition parties need to look at how to ensure incentives be put in place Ð acted on -and not just discussed with a furrowed brow for brownie points before the next election. They need to realise that their actions are not actions of the private sector (they do not have the concerns of the private sector personally affecting them) and that if they plan to assist and they can make a difference give some worthwhile, solid path for this to occur. Pressure the government and put that path in place today, not when its flag waving time! If their plan is that good, they will get business behind them. To bring about change. New Zealand companies are highly regulated and pay though the nose – consider transport of goods and road user taxes – and they continue to strive to succeed. What for? Why? Because they are good at what they do and continue to look for better times ahead. […]

-By Doug Green. Editorial from October 2012 issue of NZ Manufacturer. Greg Cross, Executive Chairman and Co-Founder, PowerbyProxi, puts it quite nicely in The Interview (Page 6) when he says in response to the question: Any thoughts on the super ministry? ‘ If it looks like a whale, smells like a whale and talks like a whale it is probably going to be a giant bureaucracy. By the time they figure it out we will probably have a new government who will want to change it again!’ The super ministry, which came into effect under the auspices of Hon Steven Joyce in July this year, combines the ministries of Economic Development and Science and Innovation with the departments of Labour and Building and Housing. They have a positive, forward-thinking strategy which includes making the country richer and they are selling it to the nation which is still not sure what they do. So let’s transfer this energy into the private sector and see how we can keep New Zealand moving ahead. Let’s look at the super ministry’s brief and feed into it. Let’s not depend on the super ministry to make all things right – because, when all is said and done, there is no guarantee it will exist in its current form if there is a change of government at the next election. I am a firm believer in the private sector driving the economy with The Department of Health providing the penadol and IRD the breaks every now and again to make life easier. However,I want to know that the super ministry can succeed with business development and that this amalgamation has not just been a government cost-cutting exercise.