Industry 4.0

Building a comprehensive business case for factory technology investment – Beyond the numbers

From NZ Manufacturer magazine, February 2025. Adam Sharman, CEO LMAC Group, APAC As the imperative for technology adoption in manufacturing increase, investment decisions are becoming increasingly complex. Gone are the days when a simple ROI calculation could justify major capital expenditure. Forward-thinking manufacturers are now developing comprehensive business cases that look beyond immediate financial returns to consider broader strategic implications, particularly around workforce sustainability and competitive positioning. The Demographic Imperative One of the most compelling arguments for technology investment lies in addressing the looming demographic crisis facing manufacturing. Across developed economies, the manufacturing workforce is aging rapidly, with experienced workers retiring faster than they can be replaced. This isn’t just a temporary staffing challenge – it represents a fundamental shift in labour market dynamics that will persist for decades. Modern automation and digital technologies offer a powerful response to this demographic challenge. Rather than viewing technology merely as a cost-saving measure, manufacturers should consider how it helps future-proof their operations against workforce scarcity. Advanced robotics and automation systems can maintain productivity even as skilled labor becomes harder to find. More importantly, they can make manufacturing more attractive to a new generation of workers who expect to work with cutting-edge technology. Transforming Work, Not Eliminating It When building a business case for technology adoption, it’s crucial to move beyond the simplistic narrative of automation replacing workers. Instead, focus on how technology transforms and elevates human roles. Modern manufacturing technologies create opportunities for workers to develop new skills and take on more engaging responsibilities. Repetitive, physically demanding tasks can be automated, allowing workers to focus on higher-value activities that require human judgment and creativity. This transformation has important implications for workforce development and retention. Younger workers are often more attracted to workplaces that offer opportunities to work with advanced technology. By investing […]

From Survive to Thrive: FMCG Strategies for Growth and Profitability in 2025

From NZ Manufacturer magazine, February 2025. Chris Foord, Partner, Argon & Co New Zealand As we look forward to 2025 the outlook for business and NZ are improving. Many businesses in 2024 were focused on the “survive till 2025” mindset, controlling costs and avoiding discretionary spend. Very few though forgot about the consumer/customer and the need to continue to serve, surprise and delight with excellent product, service and pricing. Most FMCG businesses will be looking to return to better margin positions in 2025 and indications are favourable that this is achievable. The inflation beast has been tamed, so interest rates have fallen and are predicted to drop further (albeit not by a huge amount) through 2025. Business sentiment is on the rebound. Consumer confidence is at its highest level for two years, which in turn improves business confidence. Whilst the signs are positive, navigating from the survival mindset to a thrive mindset doesn’t happen without intent. So, what are some helpful tips to consider as FMCG businesses transition into what should be a period of growth, and importantly how to create value and embed sustainable profitability. Here are some areas to consider and explore: Align operations to execute your business strategy Plan to drive profitable growth Unlock, deliver and celebrate quick wins Create and embed a continuous improvement culture AI: Proof of Value Align operations to execute your business strategy Operations is where the rubber hits the road for your business strategy. Are your operational teams involved in the key decisions as you launch new products, drive innovation, review range, pricing and promotional plans? If not, they should be. They operationalise strategy, plans and tactics into reality. Get them onboard early and you will realise value faster and more effectively. Plan to drive profitable growth Continue your focus on productivity. […]

How do we turbocharge manufacturing?

From NZ Manufacturer magazine February 2025 By EMA Head of Advanced Manufacturing Jane Finlayson Economic growth appears to be the focus for 2025 following a tough year of recession and rising unemployment. One of the key drivers of national growth, our manufacturing sector, has been struggling due to high operational costs, increasing global competition, outdated technology, skills shortages and a lack of R&D to drive innovation. The BNZ-Business New Zealand Performance of Manufacturing Index (PMI), a monthly survey providing insight into levels of activity in the sector, has been in contraction for 22 consecutive months. This signals declining production, low new orders, and falling profits across the manufacturing landscape. Recent government efforts to fast-track infrastructure development, stop wasteful spending, push through RMA reforms, sign new trade deals, and make foreign investment easier have laid the foundation for a more competitive future, but that’s peripheral to the direct challenge facing manufacturers. A key task facing incoming Manufacturing Minister Chris Penk is to assess how the government can help the sector stay competitive with our global peers and drive productivity. For many New Zealand manufacturers, the path forward is clear: investment in technology, particularly software and hardware, is essential. As we progress deeper into the Fourth Industrial Revolution (Industry 4.0), the convergence of artificial intelligence, cloud connectivity, and real-time data analytics will prove crucial in shifting New Zealand’s manufacturing sector from lagging to leading in the global market. Yet, many manufacturers are struggling to keep up with international standards and this particularly, but not exclusively, affects our smaller companies. New Zealand’s manufacturing sector includes some very advanced manufacturers, but many small and medium-sized businesses have fallen behind our Asian and European counterparts. As a result, despite the government’s aspiration to double the value of exports in the next decade, manufacturers are at […]

Productivity is the only game in town!

From July issue NZ Manufacturer www.nzmanufacturer.co.nz Ian Walsh, Partner, Argon & Co It is great to see that finally we are talking as a nation about the need to be more productive. Our poor performance in productivity terms is not a new issue or problem, but given the current economic environment, it has become clear to everyone that we have a significant gap to countries with which we compare ourselves. The consequences of this are significant, with many young New Zealanders leaving for foreign shores for better pay, conditions and quality of life. This problem has been disguised for decades by global financial crises, pandemics, earthquakes and media misdirection (“We are the most liveable country!”, “Auckland is one of the top 10 cities!” etc.). Like climate change it has been possible to ignore for a long time. However, most of us are aware that our infrastructure is creaking. We can’t invest in health education, police, transport and other programs to the extent that we would like to, as we can’t afford it. Productivity is essential for economic growth, competitiveness, profitability, job creation, resource efficiency, and work-life balance. Focusing on productivity improvements at individual, organizational, and national levels can lead to numerous benefits and contribute to overall prosperity. I have been to many business meetings, and the focus for any improvement drive is return on investment – they are asking whether investing in an activity makes the business more profitable, more competitive and ultimately whether it will result in better return for shareholders, so they can invest in future programs to improve the product or service, grow the business and offer better products or services. The same is true at a national level, the government can only spend what the economy generates (balanced budgets and low debt). Profit (or in more […]

Clearing the Way: Accelerating Industry 4.0 Adoption through Global Benchmarking

From March issue, NZ Manufacturer www.nzmanufacturer.co.nz Adam Sharman, Senior Partner, Dsifer Introduction As organisations look for productivity gains, competitive advantages in agility scalability and sustainability, more and more are looking to technology to support, augment or accelerate their operations. A recent report from Westpac identified that, whilst digital tech adoption is growing, New Zealand’s manufacturers have room to adopt these technologies and boost their productivity and the contribution of the manufacturing sector to New Zealand’s GDP. Overview & Adoption Through our work with manufacturers in New Zealand and the UK, it is clear that, whilst most organisations understand the value and the imperative of digitisation, the roadmap to achieve it can be overwhelming. A quick Google search can pull up examples like Ocado’s lights-out warehouses and it can be a seemingly impossible task to achieve that level of digitisation Most companies both globally and locally are grappling with the concept of Industry 4.0 and the value it could bring for them. For these companies, questions such as What is Industry 4.0, and how can it benefit my company? Where should I start? What are my gaps today and where are the opportunities tomorrow? remain unanswered. To help organisations start to unpick these questions, there are tools to help cut through the complexity and develop an industry 4.0 transformation plan that is specific to their business. In this article we will provide an overview of a tool that is gaining traction around the world. The Smart Industry Readiness Index (SIRI). The Smart Industry Readiness Index (SIRI) Framework and an accompanying Assessment Matrix tool were therefore developed to help organisations assess their readiness and prioritise the highest impact interventions in industry 4.0 adoption. The SIRI Framework covers the 3 core building blocks (Process, Technology, and Organisation) critical to achieving future-ready facilities, and […]

December issue NZ Manufacturer – The Year in Review

Our annual ‘The Year in Review’ December issue will be out soon. It includes stand-out commentary on achievements from some of our manufacturing companies, reflections on the year winding down and the new one ahead. Challenges that face us and suggestions for achieving success. There were a lot of articles competing for inclusion that could not be accommodated within the pages. Meaning the stories of many achievers – you know who you are – need to be re-read by revisiting monthly issues of the magazine. If you or your company are not receiving the magazine, nor on the subscriber database and want to receive December issue, email publisher@xtra.co.nz and we will get a copy to you.

Sean Doherty on Advanced Manufacturing

From November issue of NZ Manufacturer www.nzmanufacturer.co.nz Sean Doherty is an Industry 4.0 Product Owner at Callaghan Innovation. How can Advanced Manufacturing take NZ forward? Advanced manufacturing involves the use of technology to supercharge the manufacturing sector. Already an incredibly pivotal part of our nation’s economy and operations, there is real value to be found in unlocking the full potential of our manufacturers. The implementation of smart products and processes such as artificial intelligence, robotics and 3D printing are just some of the key ways we can look to automate, digitise and further develop operations. New Zealand hopes to reach the level of manufacturing represented by Industry 4.0 – a blueprint made up of a series of government initiatives from around the world. As a nation, reaching this goal would propel the nation forward in several critical ways. Manufacturers can harness new technologies to revolutionise their products and processes, effectively increasing their quality of output, and driving productivity forward. Economically, this creates an increase in profitability, enhances market competitiveness, and helps to generate higher-value jobs by automating lower-level tasks. Fostering innovation, this strengthens our supply chain resilience, and reduces our dependence on foreign sources. We can also work towards realising our full potential as a ‘clean, green New Zealand’, by encouraging resource-efficient, environmentally friendly practices. We are not a country rich with natural resources, except for dairy, horticulture and agriculture. We once made cars and TV sets. When that stopped it couldn’t be started again. So where can Advanced Manufacturing help to turn things around? Market demand, competition, global economic conditions and access to raw materials play crucial roles in the ability for a country to operate in a highly competitive industry – which is largely why dairy, horticulture and agriculture are particular strengths for New Zealand. However, advanced […]

Propelling Smart Manufacturing in APAC to the next frontier with AI

Attributed to: Leonard Lee, President APAC, Beyond Limits As one of the global hubs for manufacturing, Asia Pacific (APAC) accounts for about 48.5% of the worldwide manufacturing output. In the region, opportunities are ripe for smart manufacturing to move to the next level, largely due to the well-developed manufacturing ecosystem and government support. Spending within the artificial intelligence (AI) market is also expected to grow to US$49.2 billion in 2026, with a compound annual growth rate (CAGR) of 24.5% from 2021 to 2026. The increased investments are expected to fuel the growth of automation through the use of technologies such as robotics and control systems, thus enhancing the performance metrics of the production processes. For APAC manufacturers, the most pressing challenges in the implementation of Industry 4.0 include the reluctance to embrace new technology, a shortage of skilled personnel to oversee its implementation, as well as difficulties in measuring the ROI of smart manufacturing digital solutions. There is also a sense that competitive differentiators are rising in importance. Manufacturers know they must step up on their digital investment, as those companies with higher digital maturity have shown greater resilience and are better able to adapt to supply chain challenges with increased supply chain visibility. Providing manufacturers with a competitive advantage AI has already transformed many enterprise processes, and the use of AI technology is now treated as a business imperative. Manufacturers are exploring ways to effectively utilise their existing data and insights, boost efficiency, reduce expenses, and achieve operational advantages. However, conventional AI technology that manufacturers still rely on acts as a “black box” that creates models from data without providing any explanations. To allow manufacturers to reap the full benefits of technology, they must pivot to Cognitive AI. Cognitive AI acts as a “glass box”, providing detailed justifications for […]

EMA & Industry 4.0: Company Profile -RML

RML has been providing high-performance innovative robotic and automation solutions to their customers for the past 40 years. From robotic automation systems, cartoning, case packing, conveyor solutions, custom assembly, palletising, lidders, closers and components. RML has worked with large and small production lines throughout New Zealand and Australia. Problem or Opportunity As a machine builder, RML have identified key issues which were stopping their customers from maximising the value of their investments. Primarily, it was difficult to be connected to machines from outside of the customers’ plant. This led to site visits being required to provide customer support and delivering upgrades that increased customers productivity. The lack of network connectivity also meant that machines were generally standalone, with limited integration with the customers business systems, thus not delivering the performance data to the teams that are. The Solution RML identified that current PLC technology is great for controlling plant, but is lacking in the ability to fully control machines and harness the full potential of Industry 4.0. To make their products Industry 4.0 ready, RML moved to using Industrial Controllers (IC’s) about six years ago. IC’s are similar to a Windows computer. They have the ability to run real-time control and allow a suite of additional programs to be installed, beyond simple machine controls. This has also helped them bridge the common access or security issues which machine builders face with PLCs. Using IC’s, it is now easier to support customers in real-time while ensuring security needs are met. The IC’s allow for the remote adjustment of settings to help when troubleshooting, allowing remote support and troubleshooting, and allowing RML to train new operators online. This ensures machines are back up and running quickly, effectively maximising production. Also of benefit is the ability to collect real-time data using the PLC […]

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Endeavour Fund awards more than $10m to HERA to build world-leading construction sector

HERA, the heavy engineering research association, has been successful in the 2022 round of the prestigious Endeavour Fund, which supports important scientific research projects seeking to address some of our biggest challenges. HERA has been awarded a grant of close to $10.3 million to support a four-year research project focused on transforming the construction sector in Aotearoa New Zealand using Construction 4.0 approaches. Fundamentally, it will improve productivity for the construction sector more broadly, with key outcomes including better economic performance, building and infrastructure affordability, and a larger workforce which is more skilled, innovative, and digitally literate. HERA CEO Troy Coyle says, “Our research team is both excited and thankful that the Science Board, assessors and the Minister of Research, Science and Innovation appreciate the significant contribution this project will make to the sector and New Zealand economy. “This programme not only addresses key challenges identified by our members and wider industry, but will be world-leading in creating data-driven decision-making for the future of construction. “Currently there is a profound limitation in the way we perform construction in Aotearoa New Zealand. Complex decisions are being made based on simple data inputs and in linear silos with little inter-connection or data-derived decision support. “This project will improve design to construction (and beyond) by bringing together industry and a team of global experts rigorously vetted, who will use complexity science to build upon developing nascent global Construction 4.0 knowledge. “We also recognise the Science Board’s focus on Vision Mātauranga as it is something that aligns strongly to our own commitment in this space. We see this as an opportunity to bring a more holistic approach to the key components of the program of Industry 4.0, sustainability and mātauranga Māori. Our linkages internationally, to industry, and to existing research programmes will ensure project […]

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Industry 4.0