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Mitigate or adapt? With climate change it’s both

If you’re dealing with the aftermath of the weather events, as many are, we wish you well. Adapting to climate change. Since the disastrous weather earlier this year, it’s a term we’ve heard regularly in the mainstream media. What does adapting involve? Why does it matter? As a manufacturer, do you need to keep reducing (mitigating) climate change as well as adapting to it? (The answer to that last question: an emphatic yes!) This article explains why mitigating and adapting to climate change must go hand-in-hand for New Zealand manufacturers. But first, the science Let’s start with the global picture. The Intergovernmental Panel on Climate Change is adamant: a 1.5°C increase in global temperatures over pre-industrial levels will adversely affect the world’s climate. A 2°C increase will be more serious still. The cause of this warming? Greenhouse gases (GHGs). Zoom in to Aotearoa New Zealand. Scientists at the National Institute of Water and Atmospheric Research (NIWA) and University of Waikato are convinced that Cyclone Gabrielle’s devastating rainfall is an example of climate change. The cause? Global warming, due to GHGs, increases air temperatures. Warmer air holds much more water vapour. When this vapour cools, it rains. Photo credit: Kelly Sikkema on unsplash. What does mitigating climate change involve? Think of mitigation as the fence at the top of the cliff. Mitigation is about addressing the causes of climate change by reducing the GHGs we emit. If you’re a manufacturer, it could involve reducing the carbon in your products or moving your factory to renewable electricity. To date, governments and businesses have focussed on mitigation – with good reason. We all benefit when we reduce climate change. What does adapting to climate change involve? If mitigation is the fence, adaptation is the ambulance. With a poorly maintained fence (an atmosphere damaged by […]

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 […]

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 […]

New white paper finds impending issues for NZ boards

A new white paper finds that New Zealand boards face many of the same issues and obstacles as their overseas counterparts, with a number of problems originating in the communications field – such as the collapse of the tech-sector backer Silicon Valley Bank after a bank run triggered by a convoluted, disastrously timed media release. Titled ‘2023: The Perfect Storm?’ and subtitled ‘23 Habits your Board Should Change in the Era of Polycrisis’, “2023: The Perfect Storm?” the themes of the white paper tip a hat to the buzzword emerging from this year’s World Economic Forum in Davos. Polycrisis refers to the rolling maul of global emergencies amid persistent geopolitical and economic instability; the white paper is designed to help boards plan for and grapple effectively with volatility of all kinds. The white paper observes there are commonalities in bad or unproductive habits among boards, and New Zealand governance follows similar patterns to boards in overseas markets. The common themes which have emerged globally include: Failing to develop or adhere to a coherent strategy Trying to declare ‘crisis over’ too early Acting without sober preparation and planning Letting ego into the boardroom Favouring short-term results over long-term objectives Another recent public example of board failings was the case of CEO and founder Simon Henry and the board of his company DGL. Henry and the board were castigated after Henry made offensive and derogatory remarks about a female entrepreneur in a media interview and it took days for the board to condemn his comments. Analysis of the matter found Henry, as the company’s majority shareholder, had an outsized influence on the board, whose slowness to respond to their CEO-made crisis – which drew comment from the Race Relations Commissioner and the Prime Minister, among others – likely contributed to the company’s […]

Glen Cornelius to lead Engineering New Zealand

Glen Cornelius FEngNZ CPEng has been elected the new president of Engineering New Zealand Te Ao Rangahau. “As President, I will ensure the Engineering New Zealand Board and members benefit from my proven leadership and extensive governance skills,” he says. “I will uphold Engineering New Zealand’s commitments of promoting the Te Tiriti o Waitangi principles by forming partnerships, being responsive and ensuring there are equal opportunities.” A civil engineer by training, Glen has been Chief Executive of engineering and consulting firm Harrison Grierson for the last 12 years. He will be stepping down from this role on 31 March providing more space for other pursuits, including as President of Engineering New Zealand. Prof. Jan Evans-Freeman DistFEngNZ has been elected Deputy President, and Kennie Tsui FEngNZ, CPEng Vice President, for the same term. Aidan Cooper CMEngNZ CPEng and Sarah Sinclair FEngNZ join Engineering New Zealand’s Governing Board as newly-elected Directors for a three-year term.

Women in Engineering: Ankeeta Karmakar

Most of the programmes that I found were master of civil and/or structural engineering, so when I discovered the University of Auckland’s Master of Earthquake Engineering programme, I just couldn’t think of any other school.

Timoti Harris, Managing Director at Empowering Change:Te Tiriti in the workplace

While the broad strokes of Te Tiriti o Waitangi are now widely acknowledged, many people do not know its contents and intent. Much of HERA’s forward programme of research involves achieving industry focused solutions – but a much-needed change is that it now needs to be reviewed through the lens of te ao Māori. This is part of HERA’s commitment to acknowledge Te Tiriti o Waitangi and interfaces between Mātauranga Māori (Māori knowledge) and industry to expand knowledge and practice more generally. An example of this is HERA’s Endeavour Fund four-year research project focused on transforming the construction sector in Aotearoa New Zealand using Construction 4.0 approaches. The Mātauranga Māori research theme within it, aims to address the gap of knowledge that exists and build a uniquely Māori framework to address the challenges of Construction 4.0. This will create new knowledge domestically and will sit internationally as an example of indigenous knowledge being incorporated into sectoral transformation. HERA acknowledges that for industry, this will be confronting for some. Challenging the status quo of ‘doing’ business requires courage, even more so when the way to do it means looking through a cultural lens that may be unfamiliar. However, there are significant changes occurring in New Zealand that indicate HERA needs to focus on this, as does business. This includes from a government perspective, the development of the Vision Mātauranga strategy of MBIE; development of the Te Ara Paerangi Future Pathways White Paper on the future of the research, science and innovation system imbedding Te Tiriti as one of four key focus areas; the revisions to the Education Act that now require honouring of Te Tiriti; and changes to government procurement rules that call for business to consider how to create opportunities for Māori. As industry faces skills gaps and labour […]

Eagle Protect ensures high-performance disposable gloves

Christchurch-founded company, Eagle Protect, is challenging the disposable glove industry by bringing transparency to its supply chains through the launch of “Delta Zero”, the multi-layered proprietary glove quality testing program. As the world’s only B Corp certified company in the sector, Eagle Protect is on a mission to provide Kiwis and those across the globe with access to high-quality disposable gloves which are safe, durable and free of contamination. The global industry’s supply chains are plagued with malpractice such as reject quality, counterfeit and already-used disposable gloves being repackaged and sold to end-users as brand new, all of which can often lead to breakdowns in infection and hygiene control. Eagle Protect’s five-year microbial analysis study revealed the widespread risk of contamination within the disposable glove industry, with independent lab testing uncovering 50% of new and unused gloves analysed had human faecal indicators. To combat these issues Eagle Protect is establishing the global industry standard for compliance, providing a method for ensuring that vulnerable industries, including food handling and healthcare sectors, have access to clean gloves, free of harmful toxins and contaminants. “In the effort to mitigate glove contamination risks to multiple industries and glove users we’ve spent the last few years refining our Delta Zero verification process,” said Steve Ardagh, CEO and co-founder of Eagle Protect. “It’s a proprietary, multi-layered, five-point testing process that ensures Eagle gloves strictly adhere to the industry’s highest level of safety and performance.” Though most of the general public remains unaware, New Zealand relies on the United States Food and Drug Administration (FDA) regulations for the quality assurance of food handling gloves. However, there are significant limitations within the FDA’s current food glove compliance requirements. The FDA’s own code for imported gloves (FDA Title 21, Part 177) does not specifically require them to be intact, […]

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