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Productivity – the only economic way forward

-Ian Walsh, Argon & Co New Zealanders are at a crossroads. Surely it is now apparent that continuing to do what we always did will not cut it in the next twenty years? Last month I shared that Ireland (once comparable to NZ) is now almost twice as productive as we are, whereas we now find ourselves in the bottom half of the OECD with our quality of life heading the wrong way. Just look at our nearest neighbour who can recruit our best and brightest, pay wages which match employee’s worth, and provide better work conditions and futures. How can this be? What are they doing differently? Why is their economy vibrant, enabling them to continue to recruit, attract, reward, and grow talent? We are now struggling to pay nurses, teachers, police officers and defence force the sustainable wages which encourage them to continue in the vital roles we need. Our infrastructure is not meeting the climate change challenge and we have major investments to make to future proof the country and help the global drive to curb the impacts of climate change. We have done many of the things that advanced economies have done to provide the environment to meet these challenges, including regulatory, taxation (still a work in progress, I note), committees, working groups and suchlike, yet we have not embraced the approaches larger more competitive economies have. The lower levels of competition due to distance, market size and cost to serve have been a barrier to entry, but since Covid this has changed. So, if we want to achieve the sustainable growing economy we need, then we must be internationally competitive. This means being world class. It means adopting proven best practices and relentlessly improving. What would it mean for your business to be able to […]

Engineering worth up to $18b a year to economy

Engineering New Zealand has released a report showing engineering contributes between $14.6 and $18.1 billion a year to New Zealand’s GDP – and that we will need almost 2,500 more engineers every year just to keep up with demand. The report by PwC shows engineering positions produce an average of about $228,000 of GDP per employee per year – nearly twice as much as the average New Zealand worker. Engineering New Zealand Chief Executive Richard Templer says, “It’s great to have an estimate of what engineering is worth to New Zealand.” “To understand how engineering contributes, PwC had to look inside every industry. Engineering spans the whole economy, from the things that most people associate with engineering, like structural and civil projects that build the infrastructure all New Zealanders rely on, to more niche areas, like food-processing engineering, artificial intelligence and biomechanical implants.” PwC estimates about 77,000 engineers are currently employed in New Zealand – around 3 percent of the workforce. The report says New Zealand will need almost 2,500 engineers every year assuming long-term economic growth of 3 percent. This doesn’t include the new engineers we need to replace those who retire, leave the profession or go overseas. Templer says, “In many ways the report has confirmed what we know – that engineers are of immense value to New Zealand’s economy, and that there’s a need for more engineering talent in New Zealand.” Templer also recognises the need to support diversity within the profession. “Only 18 percent of Engineering New Zealand’s members are women, and Māori and Pasifika are also underrepresented. In order to serve our communities effectively, engineers need to be more representative of those communities.” He points to initiatives like The Diversity Agenda and The Wonder Project, which aim to foster a more inclusive environment and show […]

NZ start-up FabriBotics poised to revolutionise metal manufacturing

FabriBotics, a new manufacturing start-up based in Tauranga, New Zealand, has developed technology in large-scale metal additive manufacturing. The company’s proprietary technology allows for the production of custom metal parts ranging from 1kg to 1000kg in size, using a variety of weldable materials, including stainless steel, aluminium, steel, and bronze. Founders Mike Fry and Ben Jackson began working on the 3D printing (Wire-Arc Additive Manufacturing, or WAAM) technology during an MBIE-funded research program at TiDA Ltd. The start-up has secured pre-seed investment from KiwiNet to further develop the technology and business. The applications for FabriBotics’ technology are vast with the ability to produce custom, large metal parts applicable across many industries, with 1kg to 1 tonne being the target size. Industries include heavy industry, power generation, marine, mining, agriculture, food processing, transport, and architecture. The technology offers a cost-effective solution for creating complex shapes and reducing the costs of machining. Using additive manufacturing to produce near-net-shape billets, the technology minimises material waste and maximises the efficiency of the manufacturing process. The technology also eliminates the need for expensive tooling required for traditional casting methods, making it an attractive option for replacing one-off cast components. Furthermore, the technology enables extensive repair options for broken metal products, offering a sustainable and economical alternative to replacing entire components. New Zealand is ideally placed to benefit from FabriBotics’ technology due to its long supply and logistics chains, high cost of labour and low value of metal waste. The ability to produce custom and niche metal parts on-shore will provide a much-needed solution for industries that currently have limited options for prototyping, spare parts and repairs. Commenting on the launch of FabriBotics, newly appointed Commercialisation Director Iain Hosie says “The potential for FabriBotics’ technology to revolutionise metal manufacturing in New Zealand is immense. With the ability […]

HERA recognises leading Metalminds at Future Forum Awards

In the picture: Innov8taiao (steel is sustainable) Award. The heavy engineering industries’ top innovators and changemakers were recognised at the HERA Future Forum Nation Dinner on 5 May 2023 at the Christchurch Art Gallery Te Puna o Waiwhetū. Sponsored by New Zealand Steel, the awards celebrated the significant impact that individuals and teams are making across Aotearoa, honouring outstanding projects, innovations, and research that demonstrate leading vision and contribute to success within their respective industries. Dr Troy Coyle, HERA’s CEO, says, “I would like to congratulate the winners, finalists, and scholarship recipients for 2023. All of the work they do across the country invaluably contributes to the success of the industry and nurtures the values that will ensure we are servicing a better tomorrow. It is a privilege to acknowledge longstanding dedication, alongside new leaders and up and coming talent.” The 2023 award winners are: Keith Smith Memorial Award – Geoff Bird, Structural Technical Development Manager at Beca. Geoff’s contribution to the industry is a longstanding one, supporting HERA’s Structural Division in 1983 and moving on to become the Structural Manager of New Zealand Steel in 1992, where his work became instrumental in the widespread use of structural steel in multi-story buildings. Geoff is a significant knowledge benefactor for the industry, participating in HERA’s Steel Research Panel and SCNZ technical working groups. He is also an honorary lifetime member of the Structural Engineering Society (SESOC) and a Fellow of Engineering NZ. Next Gen Leadership, Leading Metalmind Award – Mike Ryan, GM of Operations at Farra Engineering. Mike impressed the judges with the breadth of projects for which he was able to achieve the seemingly impossible, as a result earning the informal title ‘guru of solving crazy engineering problems for the hydro industry’. His problem-solving work at the Burrinjuck Hydropower Station […]

SouthMACH 2023 – technology and manufacturing excellence

SouthMACH, the bi-annual technology trade fair returns to Christchurch Arena 24-25 May, in two weeks time. www.southmach.co.nz With on-going change in products and services for the manufacturing sector, some of it quite profound, it is important to visit trade fairs like this, to see the latest technologies available and mix and discuss business opportunities with your peers. IIvisitors Visitors include Canterbury University, progressive members of the chamber of commerce, industry leaders, engineers, technical specialists, operations managers, company decisionmakers and operatives who have a stake in the future of manufacturing in the South Island – and further afield. Students are warmly invited to visit, to view and consider potential career options for the future. Partake in… Make NZ’s ‘Listen and Learn’ manufacturing industry conference on May 24, as part of SouthMach which will focus on peer-to-peer learning opportunities for manufacturing leaders. It’s a one-day conference with presentations from well-known and exciting manufacturing leaders across three sessions,” says Aad van der Poel, exhibition sales and event manager for Xpo Exhibitions, organiser of SouthMach 2023. Sessions during Listen and Learn will include a focus on the local and global environment that New Zealand manufacturers operate in, innovation for profit – as well as products, processes and business models. Reducing waste and carbon footprint will be covered and many are looking forward to MESNZ’s James Neale with his presentation ‘If you want to reduce your carbon footprint, do your homework first’. Van der Poel says that the wide variety of key industry people with crucial information will help manufacturers meet customer expectations, become an employer of choice, and retain a social licence to operate, Industry 4.0, to name but a few. “You will walk away with plenty of new ideas for making the boat go faster in your factory, and future-proofing you manufacturing business,” […]

The steel industry – the next 10 years

The steel industry’s outlook for the next ten years remains fragile. Company leaders can adopt a strategic approach to ride out uncertainties and mitigate risk while the industry is being reshaped. Despite unprecedented volatility, the first half of 2022 remained strong for steel players, with prices and utilisation higher than historical levels and unprecedented levels of EBITDA margins across most regions. This cycle was driven mainly by positive demand outlook that followed the recovery from disruptions caused by COVID-19, as well as infrastructure spending that was both long overdue and anticipated as part of the recovery stimulus. However, several signs of market slowdown began to appear in early 2022. As a result, steel demand outlooks have been revised downward: in April 2022, the World Steel Association’s short-range outlook was less optimistic than the one from late 2021, and its October 2022 demand forecasts for 2022 and 2023 saw downward revisions of 2.7 and 1.2 percent, respectively. The steel industry is at a crossroads, and the warning signs should not be ignored. Amid many competing sources of change and uncertainty, adopting the right strategy in the years to come—and knowing how and when to recognise the opportunities for resilience—will differentiate the leaders from the laggards. Reasons for this include the ongoing war in Ukraine, waves of COVID-19-related lockdowns in China, and supply chain disruptions, as well as the overall macroeconomic situation, including repercussions from persistently high inflation and rising global interest rates. In steel markets, EBITDA margins and the margin over raw materials (MORM) have significantly declined from previously unseen highs, mainly due to negative market expectations and high energy prices, and players have reacted by idling capacities. In fact, more than 30 million metric tons per annum (MTPA) of capacities idled in Europe in the second half of 2022, while […]

Industry 4.0 a game changer for manufacturing at Douglas Pharmaceuticals

Through the power of automation, data analytics, and artificial intelligence, the company have improved operational efficiency, sustainability, and productivity. Using smart technology, the Douglas Pharmaceuticals team are no longer bogged down with manual or repetitive tasks. Now they can focus their efforts on work that adds real value to the business. Watch the video for the full story here – https://industry4.ema.co.nz/ If you’re wondering how Industry 4.0 technologues can help your business, a great place to start is by attending one of the free Smart Factory Showcase events happening around the country during May and June.

Aotearoa diverts two million kgs of e-waste from landfill

Aotearoa’s leading e-waste recycler, Computer Recycling, has reached a remarkable milestone having processed over 2 million kilograms of e-waste for the year to March 2023. Estimates suggest New Zealanders produce up to 100,000 tonnes of e-waste per year, with only 2% of it being recycled. Through enhanced recycling capabilities, Computer Recycling is now capturing 2% of the country’s e-waste on its own. Through sustainable recycling and reuse practices, Computer Recycling has brought the nation one step closer to eradicating e-waste from general landfills. The scale of this waste reduction plays an important role in helping Aotearoa deliver on its future waste minimisation goals. This milestone has come on the one-year anniversary since Computer Recycling’s launch of the world’s eighth, and New Zealand’s only, BLUBOX e-waste shredder and MSS optical sorting machine. Patrick Moynahan, Computer Recycling’s Managing Director, says the implementation of the world leading BLUBOX technology has been an integral move forward in helping the company reach this point. “BLUBOX has played an important role in helping us achieve this incredible milestone, having processed hundreds of thousands of kilograms of e-waste since its launch. Combined with the great work of our team and the existing processing systems we have in place, we’re now capturing the equivalent e-waste produced by 80,000 Kiwis[1]. “In March alone, we received 300,000 kilograms of e-waste for processing, a figure which continues to grow month on month. As we enter a new phase of growth, it’s exciting see what we’ve accomplished and get a taste of what lies in store for the months ahead,” says Patrick. Since establishing in 2018, Computer Recycling has been committed to helping Kiwis reduce their carbon footprint and be more environmentally conscious, offering a range of services to help individuals and businesses recycle e-waste responsibly. “Aotearoa is one of the worst […]

Net-zero steel in building and construction: The way forward

By popular demand – from industries and industry organisations Trans – Tasman- NZ Manufacturer www.nzmanufacturer.co.nz brings you an industry expert article on reducing emissions in the steel industry. Rising demand for greener approaches creates an imperative for the industry to seize the moment, adopt new mindsets, and set standards for the transition to a greener future. As the world transitions to lower greenhouse-gas emissions, construction companies have a major role to play. The green buildings of the future are a chance to tap into demand that spans geographies and architectures. Indeed, greener business models are potential magnets for trillions of dollars earmarked for sustainable investment. In addition, companies that adapt effectively will ensure they are aligned with an increasingly stringent regulatory agenda. The decisions made by construction executives now will determine how they are positioned for the transition over the coming decade. Those that prepare astutely are likely to seek out emerging pockets of innovation and dial up investment in sustainable technologies and capabilities. Green steel,a new material is more expensive, and will therefore demand a new pricing model. However, significantly reducing embodied carbon in commercial buildings by as much as 70 percent by 2030. Amid tight industry margins, a priority for decision makers will be to ensure that there is a solid business case for change. The key in that regard will be to establish market position, while adjusting to a new cost base. They must also ensure that greener business models are aligned with demand that will rise at an uncertain pace over time. A tricky calculation is required, but the prize is a chance to get ahead in a market that is set for a potentially rewarding future. Construction industry emissions From houses to bridges, hospitals, and skyscrapers, the construction industry is responsible for approximately 25 […]

Sheren Omega_Head of Sustainability at GRP NZM

Building the roadmap to sustainable steel manufacturing

*Sheren Omega, Head of Sustainability, GRP Could the steel manufacturing industry be a major proponent for sustainability? The steel manufacturing industry is critical to global economic development and, according to S&P Global, the demand for steel is forecasted to edge up to 2.2% in 2023. Despite ongoing trade wars, geo-political conflict and supply chain bottlenecks, steel has yet to let up, owing to the rise in consumption, increased infrastructure construction and thriving automobile sectors. However, the steel industry is also one of the most energy intensive industries, accounting for around 8% of global carbon dioxide emissions. In today’s climate, regulators and consumers alike are more discerning of the toll this industry takes on the environment and societies. Collectively, there has been increased pressure for steel manufacturers to transition into more sustainable practices. The Paris Agreement calls for emissions to be reduced by 45% by 2030 and hopes to reach net zero by 2050. The European Union and its member states have further pledged to cut their carbon emission by at least 55% by 2030 and debated on making the pledge legally binding. With such ambitious goals for reducing carbon emissions, countries need all industries to innovate and transform into a more sustainable mode of production. Steel manufacturing and sustainable operations almost seem mutually exclusive. Nevertheless, as markets are on a rapid rise towards sustainability, there is no doubt that opportunities are vast and wide for the construction and manufacturing industries. To thrive and fulfil their corporate social responsibility, steel manufacturers must have the determination to not only invest their resources into acquiring new technology, but to completely transform their vertical integration to ensure green production. Within the steel industry, energy efficiency has become an increasingly vital strategy to address climate change challenges. According to EY, advancements in technology for over […]

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