Productivity

Harm reduction to take centre stage at EMEX 2024

From May issue, NZ Manufacturer magazine The Employers and Manufacturers Association (EMA) says it will be using its presence at EMEX 2024 this month to promote the urgent need for manufacturers to work together to help improve the sector’s health and safety record. EMA Head of Advanced Manufacturing Jane Finlayson says that the manufacturing sector has one of the country’s highest rates of workplace injury and there has not been the improvement in workplace harm that has been seen in other sectors such as construction and primary industries. “Simply put, too many manufacturing workers are being harmed at work. In fact, you are twice as likely to be injured working in a manufacturing environment in New Zealand than you are in Australia, and the economic and social cost is too high,” says Jane. “Every year there are about 30,000 injuries in the manufacturing sector and ACC pays out $50 million for acute injuries resulting in more than 240,000 lost workdays. But it’s not just about the economic costs. Each injury can have an impact on an individual, a family, and a community, “It also has a huge business impact, affecting productivity and morale. No one wants to see an employee, or a colleague, injured or seriously hurt at work. “That is why we’ve launched Project Whakahaumaru with support from ACC. This project aims to bring the sector together to develop a five-year action plan to reduce harm and improve the health, safety, and wellness of everyone working in manufacturing. Jane says the team are looking forward to engaging with manufacturers at EMEX to hear their ideas and encourage them to get involved in the project and share their experiences. “We don’t pretend to have the answers. The reasons for the high rates of harm in manufacturing are complex and, to […]

There are no silver bullets to sustained productivity

From May issue NZ Manufacturer -Ian Walsh, Argon & Co It’s great to see the recent upsurge in discussions regarding the need for New Zealand to be more productive. This discussion is long overdue. The problems with New Zealand’s productivity have been masked by employees working harder for longer hours, and a surge in immigration providing excess labour, rather than working smarter. This has kicked the productivity problem down the road, and masked the reality that almost all other countries in the OECD are more productive per labour hour than we are. It is a shame that we’ve waited until we’ve run out of levers to pull, the platform to burn, and for our economy to be in arguably its worst shape ever for us to confront this brutal reality. As ever in these situations there are many peddling solutions looking for a problem. They offer silver bullets with IT and digital solutions, which look great in demonstrative environments but often don’t deliver fully when implemented. With that said, this does identify a further problem – that we are behind in digital adoption, investment in R&D and technology. However, to suggest that by addressing the digital adoption gap we will also address the productivity gap is somewhat erroneous. Digital solutions aim to automate or improve the efficiency of existing processes and ways of working, and these tools can enhance productivity when successfully implemented with careful planning, training, and change management. However, to be effective these tools need efficient, consistent physical practices and operational processes to work alongside and model. This is where these solutions aren’t replicating the success of the demo environments they’re sold on – the real operations of our businesses aren’t the tidy and optimally-structured brainchildren of software developers. They’re chaotic factories, reactive back offices, haphazard warehouses, and […]

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 […]

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 […]

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 […]

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 […]

View from the top of the year: The picture for Christchurch Industrial Property in 2024

-Greg O’Brien and Mitchell Ryder, Associate Directors, Industrial and Business Services, Christchurch. Savills New Zealand. The current industrial property market in Christchurch is perhaps best described as a multi-layered beast. As a result of the Christchurch earthquakes and the need to complete structural strengthening, local vendors and landlords became some of the most experienced in the country when it came to understanding the performance of their asset. We are seeing this expertise play out as quality stock is sought and business cases for new builds wait for their moment. Against this backdrop, 2024 is already heralding good news. The market is buoyant, people are paying great money for land, and while demand is intense, we are steadily finding the stock to meet it. The state of the current warehousing market In the small to medium range – warehouses 250sqm to 1,500sqm – there is a steady flow of activity. Businesses are looking for opportunities to upsize and to consolidate multiple leased warehouse spaces, often located a few doors down from each other, or to split themselves across the city to service growing client bases. The lack of available stock across the city affects the amount tenants are being required to pay; this in turn drives the market rental evidence for valuers as they advise landlords as to the new rates when the time comes for the scheduled market review of rents. Some tenants have been encouraged to look for cheaper alternative warehouses as their existing landlords look to maximise their returns. Warehouse options in this range are tight, and properties listed on platforms such as TradeMe are often long spoken-for, as tenants find to their frustration. In the medium to large warehouse range – 1,500sqm to 3,000sqm – we are observing available stock being limited for a range of reasons, […]

The Productivity Dilemma – don’t wait for the government

John Luxton, RegenerationHQ Right here, right now New Zealand SME owners are well-positioned to boost productivity within their own operations, even amidst broader societal or governmental challenges in addressing productivity issues. This capacity for internal transformation is critical for driving business growth and setting a benchmark for productivity improvement. Embracing digital transformation is a key strategy for SMEs. By integrating technology into daily operations, such as project management tools, CRM systems, and cloud-based accounting software, businesses can streamline processes, reduce manual tasks, and free up time for strategic development. Additionally, leveraging digital marketing can significantly enhance visibility and customer engagement. Investing in employee engagement and skill development is another avenue for boosting productivity. Cultivating a culture that values continuous learning and improvement, through training opportunities and mentorship programs, can increase team motivation and efficiency. When employees feel valued and are equipped with necessary skills, their contribution to business success is amplified. Process optimisation is essential for eliminating inefficiencies and reducing waste. Adopting continuous improvement principles to focus on maximising customer value while minimising non-essential activities can help SMEs stay competitive and agile. Focusing on customer needs and maintaining a dialogue through feedback mechanisms can lead to improved service or product offerings and higher satisfaction rates. This customer-centric approach can provide valuable insights for innovation and business development. Lastly, fostering a culture of innovation encourages the exploration of new ideas, diversification of product lines, and sustainable business practices. Being open to change and willing to take calculated risks can uncover new growth opportunities and productivity enhancements. By leveraging technology, valuing their teams, optimising processes, focusing on customers, and embracing innovation, SME owners in New Zealand can significantly increase their businesses’ productivity, serving as exemplars of internal initiative in productivity improvement. Waiting for the government to “do something” is called hope and […]

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Productivity