Editorial

Editorial, December Magazine:Self-satisfaction is not all we have, can do better

Time to take a breather and get the work/life balance in order. To stop stressing about the business and turn the cell phone off. As 2016 becomes a distant memory, there is some decent wind in the sails of the NZ economy. On top of that, another unfortunate earthquake and Auckland’s development have guaranteed plenty of construction work for 2017. The challenge of course is to find enough skilled tradespeople to be part of all of this. This issue affects our national productivity overall and our export push into overseas markets. Productivity, as much as any other issue this year, is on everyone’s mind. From the Minister for Business Development, NZMEA, Manufacturing NZ, NZTE, the Productivity Commission, to the company bosses and the production manager on the factory floor. Lots is written about it. Analysis put forward. Suggestions made. And the grumpiness of under-performing companies is there for all to see. Some of what I have written about Productivity this year has included suggestions to make staff more inclusive in the decision-making processes, show them the plan and offer them incentives. Wages need to increase for the job well done and New Zealand cannot continue to be a low wage economy festering with resentment between the haves and the have nots. And there is my every year Christmas wish for a Minister for Manufacturing. We currently have enough diversification of activities that are truly bolstering our economy and the potential for a better way of life. If this financial boost cannot improve the livelihood of the population, then we need to think again. In all of this, we are embedded in isolation from the outside world – every day is Christmas on our islands – and in a mindset which is like theatre and politically orchestrated. If the government […]

The song remains the same: Buy NZ Made

New Zealand manufacturers are a sturdy, determined lot mostly pushing uphill against the surge of imported products that flood the country. Many of my conversations with them come down to this: We can’t make enough large volume products to be truly competitive with the same imported products. And imported products are difficult to compete against in price – not always quality. Small run manufacturers from around the regions have been describing their competitive advantage, or more accurately, how to find it. This matters because everyone wants to be successful. No company in New Zealand supplies an order for 100,000 widgets because the market just isn’t here. It comes down to: the right staff making the right product for the right market on a quality basis, at the right price. It also comes down to the (potential) New Zealand client buying New Zealand made. And when it comes to export markets locating the client, ‘sealing the deal’ is a real challenge. The world is full of options but sometimes through our quality we can make the products that make the difference. The world found that out recently with the All Blacks winning the world team of the year award. They performed…they were quality…they were the difference. -Doug Green, Publisher, NZ Manufacturer

Manufacturing never stands still

-Doug Green, Publisher, NZ Manufacturer www.nzmanufacturer.co.nz Revolutionary technologies are changing the face of manufacturing in New Zealand and around the world. Remember when the first mobile phones came out? They looked like bricks, were the weight (practically) of bricks and there was really no place to put them. Walking down the busy street talking on one – with lots of other people around you doing the same thing – took up quite a lot of space. And how it’s all changed. The phones we use now are so much better as is the technology we are using to drive our manufacturing environments. If you can get your head around the on-going, refined technology, there are loads of opportunities staring you right in the face. And you can do it all in one place. Design engineers with their own research and development departments are taking on the world, developing products that five years ago would have been pretty hard to comprehend. From Invercargill to Whangarei there are great examples of New Zealand companies finding success by rolling up their sleeves and getting stuck in – using the best of manufacturing equipment and technology. Manufacturers do need to focus on the TPP agreement. Currently sitting there like a very, very large pimple, this inter-arrangement may even see foreign workers in New Zealand performing jobs New Zealanders ought to be doing at cheaper rates. The control of many workforces using Orwellian pay rates in a time when the price of an ice-cream is way over the top! Ice-cream may be available using the latest technology – but who determines its price? Why should TPP serve us any better? Technopak and Nelson Honey are prominent in this issue of NZ Manufacturer, companies who have been making it for a number of years. They haven’t […]

Editorial August Issue: Clean and green with natural energy

Our Lead Story this issue is ‘The engineering of solar flight’, in itself a mystery a mere few years ago and now seemingly a positive step forward for positive use of sunbeams! However, it is not going to answer the issue of flying in very large planes. Solar Impulse is a one-off example of energy efficiency for a crew of two people. Amongst all the technologies we use today none can be sweeter than a natural technology…which really isn’t a technology at all. Governments around the world – including New Zealand – are still coming to grips with the best use of our natural resources. The best way of diminishing coal as an essential product and providing a cleaner and better environment for humankind. Should we all have solar panels on or houses? Can we afford to continue to pay exorbitant power accounts…which, after all, come from using a natural source of energy? We also face the issues of fracking and the cause and effect it has on our environment and the consequences of this method of energy extraction on the earth on which we live. USA has reduced its need to import oil from the Middle East; primarily because of fracking. Under Obama, America has become more self-sufficient. Their internal energy levels from fracking is causing consternation as to its effect on the environment and the quality of life. This form of energy extraction takes place in other countries and realises everyone’s dream of a doomed planet. Also in this issue, we are delighted to welcome Dieter Adam, chief executive, New Zealand Manufacturers and Exporters Association to our Advisory Panel. Dieter, with his clear thinking and analysis, is already making a difference in the business community. And you can read about Emerald Foods, an East Tamaki country, who exports […]

The Year That Was

We are pleased to bring you our annual review of The Year That Was which you can read from Page 1 through to Page 13. NZ Manufacturer invited key business people to reflect on business and manufacturing in New Zealand to assist us to build a picture of just where the economy is going, where the opportunities are – both locally and internationally – areas that need a close eye and the skills required to make ours a more buoyant economy. NZ Manufacturer invited and received articles from some of our Trade Commissioners overseas who enthusiastically saw this review as an ideal opportunity to paint the pictures in their countries of representations as to where business growth for New Zealand companies are in their country. As with every review this is by no means complete; it may be a reflection of how you see current conditions affecting and benefitting the productive sectors. You are welcome to respond to the review and share your picture with fellow readers. The review at the end of 2013 was well read – judging by the responses that came in – and was ideal in that company managers, ceo’s, engineers, department heads, and amongst others, workshop managers told us where they were going and what it would take to get them there. Precisely what the review was all about. I can’t end the year without congratulating MS Newswire, EIN Presswire and the New Zealand National Press Club for their vision in developing a joint venture to publish New Zealand productive sector news in North America. (You can read about this on Page 5.) In a world of fluctuating fortunes for manufacturers this joint venture will increase the exposure for New Zealand manufacturers focussing on key sectors with the buying power to buy more from this […]

Positive year for manufacturers

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 […]

The state of manufacturing

-Doug Green In the picture: Matt Carrier, Helix Industries, Christchurch. His company offers services from product design, tool and die making, through to the manufacturing of one-off specialist parts or full production runs on sophisticated CNC machinery. In a land of small companies, making big things for domestic and overseas markets, it’s important to get to the heart of the matter. Which is, of course, how well are we all doing? Not just the large companies and the ones who provide much financial impetus to the New Zealand economy. But the little guy in the back of Dargaville or Invercargill, head down over a machine all day coming up with the answers for a client around the corner. A lot of manufacturers miss out on the big lights, the awards and commendations because they don’t go there or are too busy with their small company to pull out the suit and tie and dash off to Auckland for the awards ceremony. They are not ask how they are going and are too involved in running their enterprise to fill in the application form for (say) best small manufacturer of the year or manufacturer with the best idea. So this is an inside out situation – the companies we know about are the ones coming forward- or being approached – with the export success story on the latest breakthrough in milk or widgets, or whose R & D endeavours result in a great idea being snapped up by a company overseas. There are just as many other companies out there, making equally as impressive products that don’t scale the heights, or bother with the attention, who don’t apply for a grant from Callaghan Innovation – to go through the hoops – or enter the Exporter of the Year Awards. They fly below […]

Is there water in Lake Taupo?

– 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 […]

Trade mission member has early Christmas present

-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.

Youth unemployment a concern

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 […]

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