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Robot couple Xiaolan and Xiaotao carry food at a restaurant in Jinhua

NZ well positioned to be global player in alternative protein market

Eco conscious millennial consumers are reshaping demand for alternative sources of protein according to the country’s largest manufacturer of vegetarian foods. Mark Roper spokesperson for Life Health Foods – which makes plant based Bean Supreme and recently launched Alternative Meat Co. products, says growing concern for the environment is leading this demographic to seek out other options to integrate into their diet. A nationwide survey commissioned by the company has found that millennials aged 18-34 are the most likely demographic to adopt a mostly meat-free lifestyle in the next decade. “Among this age group, factors such as concern for animal welfare and the environment were some of the most important drivers of purchase choice; whereas if you look at older consumers, health considerations and cost of meat were the primary reasons for choosing vegetarian foods,” he says. Roper says New Zealand is well positioned to take advantage of this emerging trend – which has seen accelerated growth in the global meat substitute market. “Our research is showing that many consumers are not completely replacing meat in their diet – instead, they are integrating more meat-free options throughout the week. This makes development of a plant protein market complementary to our existing agricultural exports,” says Roper. He says the new consumer driven trend is something that farmers should not fear, but rather capitalise on. “As a producer we are looking at this growth as a promising future market. As well as a growth industry locally, there is increasing demand for these products in the more well-established markets of the US and Europe where there are potentially large export opportunities for us,” he says. Roper says at the same time, New Zealand is well positioned as a producer nation to capitalise on millennial’s demand for plant based products. “As a country, we […]

Business impacted by oil and gas ban

BusinessNZ says banning new petroleum and gas exploration will have significant implications for New Zealand business. BusinessNZ Chief Executive Kirk Hope said the Government’s decision to continue to recognise existing permits was important, as doing otherwise would have had a potentially devastating effect on investment into New Zealand. “It will be important to see what Government commitment is being made to affected businesses, and how quickly other high value businesses can be developed to fill the void. “Many businesses will be affected by this ban, particularly those using gas. It will likely mean higher gas prices because of the restriction in supply, raising costs for enterprises that use gas for their operations. “Exporters such as Fonterra, NZ Steel, Methanex and Refining NZ may find their products less competitive in world markets. “It is concerning that the ban has been imposed without any consultation with industry. “For the longer term, this decision may raise doubts among investors as to the viability of investing in New Zealand business. If a multi-billion dollar energy industry can be banned, what other industries might face the same fate? “Confidence among both overseas and domestic investors may be the longer-term casualty of today’s decision,” Mr Hope said.

Why a highly-skilled workforce is critical for success

Fiona Kingsford. “While employers may not be able to protect jobs from automation, we can collectively be responsible for protecting our people and preparing them for change through ongoing training and reskilling.” Ensuring staff have the right skills now and in the future is vital for the sustainability, productivity and global competitiveness of New Zealand’s manufacturing industry. Fiona Kingsford, chief executive of industry training organisation Competenz, says industrial changes, innovations and automation are changing the number and types of jobs in New Zealand and, more critically, the sort of knowledge and skills people in the industry need to develop. “We know that unqualified and low-skilled positions are predicted to have the highest probability of replacement by computerisation or machines. It’s challenging to keep up with the changes, let alone anticipate the workforce requirements to respond. “While employers may not be able to protect jobs from automation, we can collectively be responsible for protecting our people and preparing them for change through ongoing training and reskilling.” Data from economic research organisation Infometrics shows the manufacturing sector will need to find more than 12,000 people by 2022 to predominantly replace workers who retire or leave. Approximately half of the workforce has no post-school qualification. Training and education are essential for responding to rapidly advancing technology, succession planning and ongoing profitability and competitive advantage. “Through our ongoing dialogue with businesses, there is concern within the manufacturing sector about the lack of team leaders and tradespeople who possess managerial skills,” Kingsford says. “This is highly-relevant to workforce development as research consistently highlights that there is a link between quality of management and the productivity of the business.” Competenz works with more than 3,500 companies around New Zealand and more than 26,000 trainees and apprentices – more than 4,000 of those in the […]

Manufacturing shows solid growth to end 2017

Manufacturing showed solid growth in the December quarter of 2017, with total manufacturing improving 1.8% on December 2016, while manufacturing excluding meat and dairy saw an impressive 3.2% growth on the December 2016 quarter. “This was a great way to end 2017 for manufacturing, which when excluding meat and dairy, experienced consistent growth throughout 2017 on the previous year in Statistics New Zealand’s Economic Survey of Manufacturing, released yesterday. This ranged from a low of 1.4% growth in the September quarter, to a high of 3.9% growth in the March quarter.” says Mr Dieter Adam, CE, The Manufacturers’ Network. “A range of subsectors of manufacturing experienced growth on 2016 in the December. Chemical, polymer, and rubber product manufacturing showed a 5.2% growth on the same quarter in 2016, and wood and paper product manufacturing saw an increase of 3.3%.” he says. “The high-value sector of transport equipment; machinery and equipment manufacturing experienced an increase of 3.1% on December 2016, coming off the back of an impressive result in the previous quarter – in September 2017, this sector increased 7.4% on the same quarter in 2016. “These results are encouraging, and we will need to see how they will hold up during 2018. There are some signs that the economy as a whole could be starting to cool, for example, the latest Truckometer data showing a fall in light and heavy traffic in February. “Manufacturing has the potential to provide some much-needed growth if the rest of the economy does start to cool off somewhat. “Manufacturing remains a vital contributor to New Zealand, in terms of the economic growth, exports it provides, and in the employment, it brings to our people. We hope the new Government will continue to show a willingness to work with our industry to strengthen it and […]

EMEX 2018 highlights hot topics in Engineering and Manufacturing

As EMEX 2018 is gearing up to be the largest event in its almost 40 year history, showcasing the latest technologies and products, it will also address the most pressing issues industry is facing. How do NZ companies address the growing lack of skilled labour and succession problems? What are we doing in areas as work safety and what practical steps are we making to improve our not so great record? What does all this talk about Industry 4.0 actually mean for you? Innovation is a fancy and very popular word but what qualifies as an innovative product? Who can help your business to become more innovative? You will find answers to all these questions at EMEX 2018 by talking to the experts and visiting the Innovation Quarter in the newly added Hall 1, where advisors from Callaghan Innovation are happy to discuss opportunities on how to tap into the Government R & D funds. You may even be the lucky winner of the $5,000 prize. The Innovation Quarter will showcase amazing technology that is revolutionising the industry. EMEX 2018 is proud to host the Employment & Training Hub where you can discuss your needs with ‘The Manufacturers Network’ and the Maintenance Engineers Society of New Zealand (MESNZ), who both are enthusiastic supporters of Competenz and M.I.T., who will run ‘speed meets’ will feature amazing technology and activities that include apprenticeship workshops and ‘speed meets,’ where employers are coupled to young upcoming talent, aiming for a career in Engineering and/or Manufacturing. The third reason why you should visit Hall 1 is the Work Safe Advisory Lounge, where you can have a meaningful conversation with specialist about the real workplace health & safety you’re required to implement. Myths are taken away really quickly when talking to one of the experts. If […]

Regions get boost with Provincial Growth Fund

The $1 billion Provincial Growth Fund launched by the Government today will give New Zealand’s regions a boost and help unlock the potential of our rural and smaller centres, Local Government New Zealand says. The Provincial Growth Fund, launched in Gisborne today by Prime Minister Jacinda Ardern and Minister for Regional Economic Development Shane Jones, detailed the Government’s plans to help New Zealand’s regions maximise their opportunities to boost local economies. New Zealand’s regions are significant contributors to the economy but a range of factors including population and technological changes mean some have struggled. While in recent times economic growth has returned to some areas, this has been uneven and has led to stark discrepancies between sometimes neighbouring regions. LGNZ President Dave Cull says the country’s economic growth strategy needs to consider the nation as a whole and the Government’s commitment to much greater investment in regions is a welcome step. The Fund aims to enhance economic development opportunities, create sustainable jobs, contribute to community well-being, lift the productivity potential of regions, and help meet New Zealand’s climate change targets. “Revitalising the regions, especially those that are not seeing some of the growth others are experiencing, will have benefits not just for those areas but also for the rest of the country,” Mr Cull says. “National success, and achieving our goals of strong and vibrant communities, relies on realising the full economic potential of all regions.” Doing this is a complex task that requires a partnership between local and central government, communities and the private sector. The Provincial Growth Fund acknowledges the important role of local communities in deciding where and how to invest, and LGNZ will work with councils to ensure communities get the most from the Fund. “The approach the Government is taking, with a genuine intent to […]

The Innovators Dilemma

– Clayton M. Christensen What do the Honda Supercub, Intel’s 8088 processor, and hydraulic excavators have in common? In The Innovator’s Dilemma they are all examples of disruptive technologies that helped to redefine the competitive landscape of their respective markets. These products did not come about as the result of successful companies carrying out sound business practices in established markets. In The Innovator’s Dilemma, author Clayton M. Christensen shows how these and other products cut into the low end of the marketplace and eventually evolved to displace high-end competitors and their reigning technologies. At the heart of The Innovator’s Dilemma is how a successful company with established products keeps from being pushed aside by newer, cheaper products that will, over time, get better and become a serious threat. Christensen writes that even the best-managed companies, in spite of their attention to customers and continual investment in new technology, are susceptible to failure no matter what the industry, be it hard drives or consumer retailing. Succinct and clearly written. The Innovator’s Dilemma is an important book that belongs on every manager’s bookshelf.

Focus on New Zealand brands needed in face of trade uncertainty

Uncertainty over Brexit means New Zealand needs to urgently focus on developing brands and differentiating our agricultural exports. However, the recently announced TPP agreement – which is to be signed on 1 March – offers potential for enhancing our markets. Senior lecturer in Agribusiness Management, Dr Nic Lees, said New Zealand produces some of the best fruit, wine, meat, seafood and dairy products in the world but around 70 per cent reaches the consumer with no identification that is sourced from here. “Sudden changes such as Brexit remind us that relying on undifferentiated commodity exports leaves us vulnerable to sudden changes in government policies,” Dr Lees said. “When consumers demand a branded product, it is difficult for governments to shut it out of the market.” Forty-four years ago, Britain joined the European Common Market. At the time Britain took approximately 90 per cent of our butter, 75 per cent of our cheese and about 80 per cent of our lamb exports. Britain had to adopt the European “common agricultural policy” which imposed tariffs and quotas on non-European agricultural imports This meant New Zealand was effectively shut out of our largest agricultural export market. At the time, most of these products were being exported as commodities, frozen lamb carcasses and blocks of cheese. The only branded product was Anchor butter. For the next thirty years the New Zealand economy suffered as we searched for new markets and attempted to develop alternative industries. China has replaced Britain as our largest market. However, 70-80 per cent of our food exports are still sold as commodity products. “We need to develop differentiated and branded products that consumers demand,” he said. “We can learn a lesson from Anchor butter, as it is a brand that is still strong in the British market.” However, he […]

Digital Transformation of B2B Commerce

Is your business ready? For manufacturers, distributors and wholesalers around the globe, ecommerce has become one of the key drivers for digital transformation and companies with a well-executed digital strategy are quickly becoming disrupters in their markets. In order to remain competitive, businesses need to be willing to adopt a new way of thinking and working – one that is digital-first. This approach embraces technological advances and puts digital at the core of all organisational initiatives, transforming key areas of the business, such as marketing, sales, customer service, external channels, operations, R&D and HR. Many companies underestimate the impact of an ecommerce venture, thinking of it as a channel operating in silo. In reality, it is the stepping stone to transforming into a digital business. With over 60% of B2B purchasing decisions being made online, the process of digital transformation is one that any company will have to prepare for. This starts with understanding the effects on different areas of the business. Marketing Marketing initiatives are no longer confined to traditional channels. A digital B2B firm needs to be able to market itself digitally. Marketers need to know how potential customers use the web to research and find what they are looking for. Sales With a digital platform for online ordering, a shift in the role of the sales department is inevitable. It is therefore important to monitor the impact and ensure the sales team can leverage on the efficiencies and opportunities of digital technologies throughout the sales process. Customer Service Online never sleeps. This can be a challenge, as businesses suddenly have to provide customer service around the clock. 80% of B2B customers expect responses in real-time.[i] As such, it is vital for a digital business to have tools, processes and people available to meet this expectation or risk […]

90-day trial period change concerning for manufacturers

The changes to the 90-day trial period announced by the Government will present additional challenges for medium sized manufacturers to finding the right staff they need, adding to the already critical skill shortage issues which hold back growth of the sector. “The 90-day trial periods have made it easier for manufacturers to bring on staff to fill skill shortages, knowing they have the ability to take a risk on a new worker. The proposed change will make it harder for companies to fill vacancies – the last thing they need right now.” says Mr Dieter Adam, CE, The Manufacturers’ Network. “At least we are still going to have the 90-day trial periods for companies under 20 employees, as for businesses of this size the risk and investment in bringing on a new staff member is very high. But the Government should have left these trial periods alone altogether.” he says. “If the Government is serious about growing the economy, it should focus its efforts on working with industry in addressing the short and longer-term skill shortages that are crippling the high-value manufacturing industry and many other sectors. These skill shortages are often in the area of highly skilled and experienced trade’s workers, with level 5 and 6 qualifications.” says Mr Adam.

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