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World class applies to government too!

From August issue NZ Manufacturer -Ian Walsh, Argon & Co Over the last few years, I have written about the need for business, government, and educational institutions to come together to address NZ’s productivity crisis. Recent actions by government show the extent of the work to be done. Funding has been cut for trade training and apprenticeship funding (TTAF) and fees free funding is nigh on impossible to access if you have ever done any level 3 or above training or a degree anywhere. These funds have now been redirected to universities to help with their funding gaps due to lower overseas enrolments etc. Whilst I understand the need to support institutions through this post covid period as they re-establish their new reality and business models it should not be at the expense of training and developing our future leaders in productivity! It is instructive to note that the UK is funding productivity training directly and reviewing university funding based on contribution to the economy. Of course, this creates arguments about how you value this, but the UK is clearly prioritising the need to build capability to ensure they can be more productive and competitive in future. They have stiff competitors, Ireland is setting new benchmarks, Brexit has challenged traditional relationships. It could be argued this is not relevant to NZ so for a more local comparison, Australia. On a per head basis, they train twice as many people in post graduates diplomas as we do! Over 15 years ago the UK drove the adoption of lean as a key strategy of Highways England, with documented savings as an outcome. Over the last few years, they have delivered significant projects on time and on budget with billions of pounds of savings. The key point to this is government and the […]

Maori in Engineering podcasts proving popular

Alyce Lysaght, a graduate water engineer at WSP, produces and hosts Maori in Engineering podcasts, that are proving to be very popular. This is an ideal way to influence and reach community and provide a popular picture of the engineering profession through storytelling. The podcasts can all be viewed on the one site https://www.maori-in-engineering.com/podcast

How to select a standout sustainability team

Dr Barbara Nebel, CEO, thinkstep-anz Keen to make progress on your sustainability programme? Enlist the right team! Our clients – large and small – often ask us whom to shoulder-tap when they set up their in-house sustainability team. Our answer sometimes surprises them. Yes, their team members’ skills and networks are important. But how their people think and what they value matter too. Our thinkstep-anz sustainability professionals are a good example. Our almost fifty-strong team come from many different backgrounds including product design, economics, engineering, science, law, and journalism. Their careers span many sectors and industries. What do they have in common? How they think and what they value. Pick people who see the ‘big picture’ Your sustainability programme should be part of your business strategy. So involve team members who see the ‘big picture’. Make sure they understand that becoming a more sustainable manufacturing business is about more than ‘saving the planet’ (critical though this is). It’s about future-proofing your business. A well-run sustainability programme will keep your supply chain cranking along, reduce the waste you create, keep your customers loyal, and attract talent in a tight labour market. Big-picture thinkers offer other skills too. They understand trade-offs and can set priorities. They’ll help you focus your sustainability effort so you have the greatest impact. Pick ‘systems thinkers’ Sustainability is about systems. Change one thing and you’ll change another. Pic credit: Andrew Moca on unsplash. Why does this matter? Because you want your sustainability programme to succeed. For example, before you redesign your product to use lower-carbon materials, you need to be confident you’re not adding to your waste. (Waste can emit carbon too.) Team members who see your products and business as connected ‘systems’ can identify potential issues like these. The good news? Manufacturing businesses are full […]

Mergers: The way to growth?

-Ian Walsh, Partner, Argon & Co With inflation at a high, the cost of capital has now caused the deferral of many projects, or to make the cost of any investment more palatable, the restructuring of them. In addition, many senior leaders, having navigated COVID and the associated supply chain disruptions, have already invested in additional storage and now find interest rates sky rocketing. In this environment many business owners (and baby boomers especially) are choosing to retire or find themselves needing to sell due to cash constraints, the interest rates, and difficult trading conditions. This, of course presents opportunities for growth-minded companies to acquire businesses and associated capital. The challenge is how to do this well. It is one thing to write a cheque, it is another to acquire and integrate a high performing asset quickly to realise the merger benefits. Unfortunately, I have seen many businesses do the former and struggle for years to achieve the benefit, if ever. In fact, only 6% of capital projects deliver target objectives in the first two months. But the prospect of merging can be enticing; an established footprint, brand, proven capability, established supply lines, existing capital, complimentary capability and so on. So, why do so few do this well? In my experience, it is a function of a number of things: The leaders of the purchasing business overestimate their understanding of the new business, and do not engage or retain adequate support. They do not create an integration team to manage all the aspects of the integration, and as they are inexperienced in mergers and integrations (it is not their core business) they do not know the pitfalls, heading blindly forward without a sherpa. If they do create a team, the brief is narrow, failing to consider all the elements of […]

Will the election matter?

Comment is welcome on this post. What are you looking for? Do you have expectations from the upcoming election? Editorial, July issue, NZ Manufacturer www.nzmanufacturer.co.nz Yes, if the party you want to get in, gets in. How about the rest of it – what will the victor do to work closely with the business community? What will the victor do to keep business moving forward, to stabilise the economy and bring about greater equality? We are in the ‘silly season’, the time before an election that allows lots to be written and outcomes suggested. Businesses always has a plea – for solutions to help them to be more competitive in the marketplace. This means having the financial tools to invest in the technology required to do so, engaging with Industry 4.0 and keeping an eye on AI and what that will mean soon. Dealing with climate change. Confidence to invest in innovative technology, because it is a risk, especially if there is no guarantee of contract manufacturing on a financially viable level. Greater access and identification on world markets for our products, creating business opportunities, engaging with some of the excellent innovators in the country, who take financial risks by putting their ‘stake in the ground’ to become be a success story. Innovators with bonafide credentials are what we are talking about. Those from such companies as Buckley Systems, The Gallagher Group, Fisher & Paykel, Fonterra, Stabicraft who have the expert knowledge required. A new government will take time to settle in. A year of consolidation of processes and getting to know each other. NZ businesses punch above their weight. Within our small population are lots of people who develop great products. A Minister of Manufacturing could help them to succeed. Back to the beginning…will the election matter? Not […]

Kuva: Aki Loponen, 2023Pictuner Oyaki.loponen@pictuner.fiwww.pictuner.fi

The rise and rise of portable welding machines

It is not that long ago that portable welding machines were seen as heavy, clunky equipment. Limited in their capability, they could usually only perform one type of welding, such as stick, TIG or MIG. And because of their power output, were mainly relegated to performing light and small welding tasks. Over the last 20 years however, portable welding machines have evolved significantly. While single-process welders are still available in the marketplace and no doubt have a place in the industrial landscape, operators can now also choose from a wide range of multi-process machines. These provide greater convenience and flexibility as they can be used to tackle various fabrication or construction jobs and projects both in the workshop and out in the field without the need to switch power sources. Greater productivity Apart from the ability to tackle a wider variety of work, quality portable welders also help deliver excellent welding results. According to Paul McVicar, Managing Director, Kemppi Australia, this is because of the machine’s stable arc. “Quality portable welding machines usually provide a very stable and even arc that allows the user to deeply penetrate various metals and produce consistent, high-quality welds. This reduces the need for reworking the weld as well as post-weld cleaning, which allows the operator to increase their output, while saving them both time and money,” explains Paul. Also contributing to improved productivity is that modern portable welders are far more powerful than their predecessors. Today, operators can choose a portable multi-process machine that has a 320 A with a 40-60% duty cycle. Or a 200 A with a 40% duty cycle. The greater amperage combined with the higher duty means that machines such as the new Kemppi Master M 205 let the welder safely create quality welds for a longer period of time […]

Using single-use packaging in your business – read on

– Natalie Martin, 3R Group Materials Innovation Manager Rightly or wrongly, single-use plastic packaging gets the lion’s share of attention in terms of sustainability and waste reduction. While much of this is focused on consumer goods, it’s far from a problem faced exclusively by retailers. Single-use plastic packaging is so pervasive throughout supply chains that just about all industry members deal with it in some way or form. As a result, they will all be affected by regulations aimed at reducing plastic waste, increasing recyclability and getting an industry-funded, regulated product stewardship scheme off the ground. In July 2020 single-use plastic packaging was declared a priority product under the Waste Minimisation Act 2008. This means it’s one of the six product categories that must have regulated product stewardship schemes established. Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of. Why single-use plastic packaging? This product category is by far the widest ranging of those declared priority products, covering thousands of products. Plastic also isn’t simply ‘plastic’ but is split into seven different types depending on its chemical makeup. That makes recycling it, or even establishing collection systems much more complicated. Its negative environmental impacts when littered are well documented and are most frequently in the public eye. Despite this, single-use plastic packaging has an important role to play in reducing waste by keeping food fresh and safe and preventing goods from being damaged. It’s low weight and durability means it can also offer a lower carbon footprint than other materials when it comes to transport. In line with circular economy principles, the key is to ensure its use is minimised, that it’s used as effectively as possible and then recovered and recycled. […]

Sustainability and productivity: happy bedfellows

-Dr Barbare Nebel, CEO thinkstep – anz It’s good news for local manufacturers: investing in sustainability makes your business more productive. In this article, we look at how sustainability is helping New Zealand manufacturers achieve more with less. The traditional approach: more productive, less sustainable Many people view productivity and sustainability as yin and yang – connected, but opposite. Over the past 150 years, productivity has often grown at the expense of the natural environment, people and communities. For example, to increase output, many businesses have depleted natural resources like water and dumped growing amounts of waste in landfills. On the social side, greater productivity has often meant making people redundant or disrupting communities as factories expanded. It doesn’t have to be like this. Your sustainability programme can make your manufacturing business more productive too. Today’s approach: more sustainable, more productive too As a manufacturer you know the drill. To increase productivity, you need to generate more output for your inputs. In practical terms, this can mean using your raw materials more efficiently or ensuring your supply chain runs smoothly to avoid outages. In economic terms, it can involve reducing the costs of your inputs and cutting staff turnover. Here are six ways your sustainability programme can boost your productivity too. Use your raw materials as efficiently as possible Get more from your raw materials and you’ll be more productive. The circular economy is your go-to here. Your aims: to design out waste and pollution, keep products and materials in use and regenerate natural systems. Food manufacturer Sanford ensures that even low-value parts of its raw materials do not go to waste. Sanford partners with Auckland-based nanotechnology manufacturer, NanoLayr who use the collagen from the skins of Sanford’s sustainably caught hoki to make nanofibre facemasks. Tackle your carbon emissions and […]

Who is exporting?

NZ Manufacturer, June 2023 A mere 30 New Zealand companies, according to the Productivity Commission, account for over half of all exports. They say focus really needs to be on innovation and moving away from volume to value-added products. So, what are overseas trade visits for? Do business legations need to be vetted to determine that the ‘fact finding trip’ is not just an overseas holiday? Do they bring back business for the country? How much money has government invested over the years in trade visits that result in absolutely no return? Dairy is New Zealand’s biggest export earner – worth about $19 billion a year. The largest increase for the year ended December 2022 was for milk powder, butter, and cheese. This is New Zealand’s largest export commodity group, making up 28 percent of total exports over the year. This industry group, with a proven track record, doesn’t need to justify the trip; they have established markets and maintain them very well. To get more than 30 companies contributing to our export success, we need to increase productivity which needs: a positive attitude and involvement of management; proactive employees; good working conditions; tools and equipment available to raise productivity and the availability of input supplies. The four determinants of a nation’s productivity are physical capital, technology, human capital, and natural resources. Technology is a decisive factor in productivity, along with physical capital (equipment used to produce products), human capital (the knowledge of labourers), and natural resources. Now all of this sounds logical but obviously is not being put into practice(properly) if only 30 companies generate most of our export revenue. What are the restraints? At present, the shining light for export growth appears to be the gaming industry. What is everyone else doing? We are in a constant state of […]

Major international summit to boost Kiwi healthcare, tech & food exports

A major international healthcare summit to be hosted in New Zealand is set to boost export access for Kiwi health, tech and food product manufacturers into over 10 nations with a combined GDP of US$33 trillion. A number of foreign dignitaries will be among the projected 10,000+ international and domestic attendees at the event, which is also expected to benefit the tourism sector and the local economy. Guests include health policy specialists from United Arab Emirates, China, Indonesia and Singapore. Government and industry representatives from Vietnam, Japan, Malaysia, Thailand, Egypt, UK, Germany and Kazakhstan are also expected to attend. A number of the country’s healthcare organisations and largest food exporters including St Johns, Fonterra and Zespri have also confirmed they will use the event to promote their products to buyers from countries with a population of over 2 billion. In addition, buyers from China’s largest e-commerce platforms including Alibaba, JD.com, Meituan and Kuaishou are also set to attend – as they look to grow the number of their New Zealand suppliers. Tony Browne, former New Zealand ambassador to China and chairman of the Council of Next Federation, the event organisers, says the High 5 “Post Pandemic” summit, will include a series of seminars, forums, workshops and exhibitions focusing on economic recovery, mental health, telemedicine, ageing wellness, PPE and education. “The event will provide attendees with the opportunity to engage with industry leaders as they share industry policy research and market insights dealing with challenges facing the health industry. “We will also provide a centralised procurement platform for exhibitors to connect with international buyers and health experts. “While New Zealand has established trading relationships for food and beverages there is an increasing opportunity for us to look at growing health supplements and health tech exports. “The event will enable participants to […]

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