Editorial

Development of Industry Brand Critical to Manufacturing Sector Growth – Expert

New Zealand manufacturers need to address systemic image issues to attract more workers to the sector, according to a marketing expert. The call comes following a recent Government study into the manufacturing industry which found the sector has a capacity gap of 17,000 roles – with the size of this gap likely to grow 38% to 40,000 workers within five years if action is not taken. Researchers found widespread agreement across the manufacturing, engineering, and food & beverage sectors the most effective way of reducing the future impact of skills shortages is to promote sector awareness to attract future talent. Mark Devlin, director at strategic communications and marketing consulting firm Impact PR, one of the more industry specialised PR agencies New Zealand manufacturers can utilise to grow their brand awareness, says the study’s findings show there is a growing need for the sector to reposition itself. He says the reputation of the sector is at stake due to a historical view that it is comprised of low-wage and low-skilled roles. “The research shows that the manufacturing industry lacks the aspirational appeal needed to attract and retain workers from other sectors of the economy that compete for the same skill set. ”This may be at least in part due to the fact many Kiwi manufacturers are primarily export-focused and have not seen the need to develop a local consumer-facing brand. “Since the pandemic, we have seen a seismic shift in demand for workers in the sector and with the growing realisation that these skills are highly transferable, they are now competing heavily with other industries for talent. Devlin, whose agency has represented dozens of New Zealand manufacturers over the past two decades, says the repositioning of the industry needs to be done at both a macro and micro level with individual […]

EMEX 2024 encourages manufacturing success

From May issue, NZ Manufacturer www.nzmanufacturer.co.nz Brent Spillane, Managing Director, XPO Exhibitions Ltd. EMEX 2024, brought to the productive sector by XPO Exhibitions Limited, is with us at the end of the month, providing the ideal platform for manufacturing and engineering decisionmakers and visitors to sample technology and expertise to assist them on their company’s journey to success. In these challenging business times, EMEX 2024 provides us all with an opportunity to collaborate, share stories on the journey and even find cohorts to work closely with for a better business future. New Zealand, small country, end of the world, needs to be smart. We have plenty of talented people working with advanced technologies who know what they are doing and where the opportunities are – on local or export markets. However, not enough of our manufacturing businesses are using the tools of the day to assist them on this journey, their journey, to work smarter. The issue can be price, return on investment, not being competitive enough in the marketplace or no guarantee of ongoing contracts. Let’s change that thinking! Overall, Kiwis make great products. The expertise, the skill set is there. Determination to get ahead, to be more aspirational, is not the issue. EMEX 2024 is the one place – the only place in NZ – to see this technology under one roof. Learn from the show, ask questions, move ahead. -Doug Green, Publisher, NZ Manufacturer

What is machine learning?

Machine learning is a form of artificial intelligence that is able to learn without explicit programming by a human. For most of our history, we’ve thought that learning—the ability to adjust our behaviour based on collected information—was something only humans did. The past few decades have changed all that. We now know that animals of all kinds learn from experience, teaching, and even play. But it is not only animals that learn: there’s increasing evidence that plants do,too . And if you’ve ever unlocked a phone with facial recognition, or interacted with a virtual assistant, you’ve experienced firsthand that machines, too, are capable of learning. Machine learning is a form of artificial intelligence (AI) that can adapt to a wide range of inputs, including large data sets and human instruction. Some machine learning algorithms are specialised in training themselves to detect patterns; this is called deep learning. The term “machine learning” was first coined in 1959 by computer scientist Arthur Samuel, who defined it as “a computer’s ability to learn without being explicitly programmed.” It follows, then, that machine learning algorithms are able to detect patterns and learn how to make predictions and recommendations by processing data and experiences, rather than by receiving explicit programming instruction. The algorithms also adapt in response to new data and experiences to improve over time. How did machine learning evolve into generative AI? Machine learning as a discipline was first introduced in 1959, building on formulas and hypotheses dating back to the 1930s. But it wasn’t until the late 1990s that machine learning truly flowered, as steady advances in digitisation, computing languages capable of greater nuance, and cheaper computing power and memory enabled data scientists to train machine learning models to independently learn from data sets rather than rely on rules written for them. The broad availability of inexpensive […]

Kiwi aeronautical firm Inks multi-million dollar export deal with Royal Thai Air Force

New Zealand’s aeronautical sector is set for a multi-million dollar export boost following the signing of an agreement to supply Thai Aviation Industries Co., Ltd (TAI) who provide aircraft maintenance for the Royal Thai Air Force. A new Memorandum of Understanding (MOU) signed between Thai Aviation Industries Co., Ltd (TAI), a leading maintenance, repair, and operations organisation (MRO) in Thailand and, NZAero, New Zealand’s only commercial aircraft manufacturer, will provide for the exclusive supply of parts as well as collaborating to expand TAI’s MRO capability for the service and repair of Government aircraft in Thailand. The agreement was signed during a seven-day mission led by Rt Hon Prime Minister Christopher Luxon with an accompanying business delegation to Singapore, Thailand and the Philippines. The diplomatic visit is designed to strengthen bilateral ties in the region, diversify trade and promote New Zealand’s strong expertise and innovation across key sectors including manufacturing and technology. Prime Minister, Christopher Luxon, said: “New Zealand has a serious ambition to lift our relationships with this region in ways that deliver real benefits and that advance our shared security and economic interests. The MOU signed by NZAero in Thailand is a great outcome on all fronts and I would like to congratulate NZAero on its success in South East Asia.” Stephen Burrows, CEO of NZAero, says Thailand’s government has launched plans to create a world-class aviation hub for the Asia-Pacific region. He says Thailand has the second-largest economy in ASEAN and an annual defence budget of over $10bn. “The new multi-year agreement signed between Thai Aviation Industries Co., Ltd and NZAero is set to triple the value of parts and maintenance exports to that market and help strengthen our relationship so that as their existing fleets are phased out, our new utility aircraft are seen as a viable […]

How a data driven approach will achieve operational excellence

From March issue, NZ Manufacturer www.nzmanufacturer.co.nz -Scott Adams, Managing Principal, Argon & Co Many Kiwis have good instincts, or just good common sense, for our decision making. We might not be experts in all fields but we’re good enough to get by, and with a bit of focus we can adapt. We are, for example, certainly quite expert at managing rugby games from our couch: what combinations work, how to play against the opposition, and how much the interference of the TMO is destroying the game. But it would also be generally true that we are not so good with facts and data, where we often have high levels of distrust combined with a generally low level of competency in creating and utilising data. Whenever my consulting firm, Argon & Co, is asked to help a company to improve operational performance we always ask for data: how many projects and what scale, how many different services and products, how much waste, and how much margin. Then we ask for more data, and we will keep asking for more data until we have a clear idea of how much work is ahead of us because it usually does not take long before the well of data dries up and this is especially so with operational performance data. This lack of collecting and utilising data is one of the direct causes of our very low position on the OECD productivity (GDP per hour worked) list. If I am asked by a manufacturing company what is the best digital solution for them, my response is that the first step is to use digital, or automated, methods to collect and manage operational performance data to pick up process throughput, waste, and speed to deliver. Though the world of digital is more exciting if […]

Transforming industry– exploring the application of advanced manufacturing in Aotearoa New Zealand

By Dr Troy Coyle, HERA CEO Recently, HERA visited Australia with Manufacturing Minister Hon Andrew Bayly and heavy engineering industry representatives to better understand how Australia is responding to the “Industry 4.0” revolution. This visit included a tour of both the University of Wollongong’s Facility for Intelligent Fabrication (FIF) and the $81 million Australian Composite Manufacturing Co-operative Research Centre (ACM CRC). Gaining access to these impressive facilities demonstrated how the use of cutting-edge technology is revolutionising manufacturing in Australia and its potential to do the same in Aotearoa. It was also clear that long-term funding (in the case of the CRC program, which is ten-year funding) and industry-led research are key to successful industry transformation through the adoption of these technologies. We were also proud to see HERA acknowledged as a key partner in several of the ACM CRC’s projects, including the application of AI to quality systems, circular design of composite materials, technical and scientific barriers for robotics and automation in composite manufacturing, and waste management in the composite industry. Industry 4.0 – also referred to as the fourth Industrial Revolution, is a broad term for new technologies and data such as cloud computing, the Internet of Things (IoT), and artificial intelligence. The future of manufacturing will require widespread adoption of Industry 4.0 technologies to transform how goods are made by optimising processes and driving the potential for unprecedented efficiency and productivity gains. These advances have been a core focus for HERA to understand in order to drive the transformation of Aotearoa New Zealand’s manufacturing sector and its future readiness. We want to see our sector at the cutting edge of these developments, so we have been focused on developing our facilities and supporting research and services to help our manufacturing and construction sectors understand the potential for uptake. Knowing […]

Empowering Frontline Leaders: A Key to Boosting Productivity in New Zealand’s Manufacturing Sector

From April issue, NZ Manufacturer www.nzmanufacturer.co.nz -David O’Connor, Commercial Manager, The Learning Wave Much has been written about the need for New Zealand manufacturing businesses to increase productivity to remain competitive internationally, and subsequently, the benefits that adoption of new digital technologies and smart factories can deliver to NZ manufacturers. It is no great secret that the sector is in the midst of tough times. Many businesses are reporting having to cut back on shifts and overtime hours, pushing out innovation projects, and reducing their training spend to help manage costs and profitability. Strong leadership is the key ingredient of any high-performing organisation. Equally, a lack of it can spell disaster. A quick search of Google tells us the same thing- they lead upwards of 80% of the workforce, and their performance directly impacts their team’s productivity, quality, engagement, innovation, customer service, and safety. Getting it right is critical. The role of the frontline leader cannot all too easily be undervalued. Being a frontline leader isn’t just about keeping the production line running, and meeting today’s production targets; it’s about inspiring, motivating, and guiding their teams to perform better and juggling the ever-changing demands of staff, health and safety, quality, reporting and of course production and operational efficiency targets. No easy feat. The return on investment is clear – according to a 2022 Harvard Business Review article, organisations with high-quality leaders are 13 times more likely to outperform their competition. And yet with statistics like that, only 12% of companies surveyed in the recent 2023 Global leadership Forecast were confident in their leadership bench. Building a strong leadership bench is the obvious answer to unlocking productivity and performance. An investment in learning pays dividends. In a recent article in MBA news, the Forrester research report stated that one number stands […]

Information and operational technology a crucial strategy

From April issue of NZ Manufacturer www.nzmanufacturer.co.nz Adam Sharman, Senior Partner, Dsifer As manufacturers look to technology to support the productivity, efficiency and innovation of their operations, the convergence of Information Technology (IT) and Operational Technology (OT) stands out as a crucial strategy. As at 2024, the OT market is expected to expand at a CAGR of 8.69% and the solution options available to manufacturers to digitise their operations continues to grow. Whilst OT solutions provide significant benefit to manufacturers, it is the integration of OT and IT across the organisation that drives the highest value for these soluions. Historically, IT and OT have operated in silos, serving distinct functions within organisations. However, as Industry 4.0 reshapes manufacturing processes, the synergy between these two domains has become imperative for staying competitive and maximising efficiency. The integration of IT and OT involves breaking down the barriers between these two domains to create a unified ecosystem that leverages data from both operational and informational sources. This integration enables manufacturers to optimise production processes, enhance product quality, reduce downtime, and ultimately drive profitability. One of the primary benefits of integrating IT and OT is improved visibility and transparency across the manufacturing operations. By connecting OT devices to IT systems, manufacturers can gather real-time data on equipment performance, production rates, and resource utilisation. This comprehensive visibility enables better decision-making, as managers have access to timely and accurate information to identify bottlenecks, anticipate maintenance needs, and optimise workflows. Furthermore, the integration of IT and OT facilitates predictive decision making. For example, predictive maintenance, a proactive approach to equipment upkeep that relies on data analytics and machine learning algorithms to anticipate potential failures before they occur. In order to successfully integrate their IT and OT systems, organisations should consider the following key dimensions: Understand the Business […]

Lessons in collaboration from across the Tasman

From April issue NZ Manufacturer magazine www.nzmanufacturer.co.nz Andrew Bayly, Minister for Manufacturing In my February article, I announced the first meeting of my Manufacturing Productivity Advisory Group, a forum for business leaders keen to enable a brighter future for New Zealand’s manufacturing sector. I am pleased to say this group has already met again. Chaired very capably by Sarah Ramsay, chief executive of United Machinists and chair of the Advanced Manufacturing Aotearoa council, there are key themes emerging, which most people in the industry will already be well aware of. That education is needed to change the perception of the industry in people’s minds, especially those of parents with children who are contemplating their future careers and who think ‘manufacturing’ is still a dirty world. That our research centres focus on novel innovation without considering the manufacturing capabilities needed to produce them. That procurement for infrastructure is skewed towards lowest-cost international providers, thereby discouraging domestic suppliers from ramping up their manufacturing capability. And, of course, that investment is required in automation and Industry 4.0 technologies which will help drive productivity improvements. We are now in the process of finalising the finer elements of these initiatives that will help inform future policy announcements, which you will hear about in due course. In late March, I spent a week in Australia, during which I met with four ministers in the Australian Federal Government, including Senator Hon Tim Ayres, the Assistant Minister for Manufacturing and Assistant Minister for Trade. At the University of Wollongong Facility for Intelligent Fabrication. This was the second time I had met with Tim and I was keen to ask him how the Australian manufacturing sector organises and funds itself and its activities. We also discussed how the Australian Government has managed to secure successful partnerships with the country’s […]

What do we do about manufacturing?

From April issue of NZ Manufacturer www.nzmanufacturer.co.nz By Brett O’Riley, Chief Executive EMA *Brett O’Riley is stepping down from his role at EMA in June. What follows are his present reflections on manufacturing in New Zealand. Our manufacturing sector is struggling, and it pains me to say it. The release of this month’s Performance of Manufacturing Index (PMI), a global measure of manufacturing activity, shows manufacturing activity in New Zealand has been shrinking for the past 12 months. While this might not be a surprise given the global economic slowdown, what is concerning is that manufacturing in New Zealand is underperforming most other major economies. Other countries have taken very deliberate steps to modernise and strengthen their manufacturing sectors; from an aggressive Accelerated Depreciation business taxation regime for investing in new hardware and software in Singapore, to the massive Inflation Reduction Act in the United States. Manufacturing is critically important to the New Zealand economy, and it is important we get the sector functioning as effectively as possible. The sector contributes more than $23 billion to our economy, or about 10% of GDP. It accounts for 60% of our exports and employs 12% of our workforce, with the potential to grow those metrics. Manufacturing isn’t just concentrated in one part of the country. It plays a critical role in our regional economies, accounting for more than 10% of jobs in almost every part of the country. Every day, more than 220,000 Kiwis go to work in manufacturing businesses in Te Tai Tokerau, Southland and everywhere in between. Therefore, it is no surprise that when manufacturing isn’t doing well, our economy doesn’t do well. This is demonstrated by the latest economic numbers, which saw the economy shrink off the back of a sharp fall in manufacturing activity. But it’s not […]

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