Regional Manufacturing

Unless we improve the law, history shows rushing shovel-ready projects comes with real risk

Alexander Gillespie, Professor of Law, University of Waikato If the road to hell is paved with good intentions, so too is the road to economic recovery if we don’t get it right. The Covid-19 Recovery (Fast Track Consenting) Bill, currently rushing through the parliamentary process, certainly has noble aims. In simple terms, the new law is designed to green light a number of projects that would normally take much longer to be approved under the Resource Management Act. In the process, its architects argue, it will boost employment and kickstart economic recovery. The trick will be balancing those aims with the law’s other lofty ambition “to promote the sustainable management of natural and physical resources”. History shows this is not always the way it goes. The past should guide us Governments often pass laws with vast powers during emergencies to drive economic recovery. The law of unintended consequences can take a lot longer to repeal. During the great depression in the 1930s, new laws to deal with mass unemployment were often degrading in practice. Unemployed people were sent far and wide from their homes to perform sometimes useless tasks. In the late 1970s, the National government of Robert Muldoon tried to reduce the country’s dependence on imports with so-called “Think Big” projects. Special laws were passed to circumvent normal planning mechanisms and we are still dealing with their economic and environmental consequences. The Clyde Dam, fast-tracked as part of the Think Big policy in the 1970s but with long-lasting problems. More recently, the Christchurch and Kaikoura earthquakes have pushed dozens of laws to one side. This resulted in citizens and communities struggling to be heard, be treated fairly and have their rights protected under the emergency recovery process. We are now inviting the same risks with the proposed fast-track consenting law. It will be the most radical shake-up of environmental regulation in […]

Christchurch package welcomed by local business community

Today’s announcement of a new $200,000 Business Support Subsidy package to help Christchurch businesses impacted by COVID-19 is welcomed by Canterbury Employers’ Chamber of Commerce Chief Executive Leeann Watson. The ChristchurchNZ Business Support Subsidy offers eligible Christchurch businesses up to $1000 each to seek professional advice to help navigate the economic and resourcing impacts of COVID-19. Over the past three weeks, The Chamber has engaged with thousands of organisations through their adviceline, webinars and website. Ms Watson says the majority of enquiries have been around seeking clarity on the wage subsidy and essential services, as well as businesses seeking human resource, employment relations, and health and safety advice. “During such uncertain and challenging times, it is essential that businesses have access to the right expertise and support to guide them through these complex issues and help them navigate and effectively apply general guidelines to their specific situation. Support provided through the Business Support Subsidy package announced today will continue to ensure that businesses can access that support.”

Igniting stalled labour productivity

-Doug Green, Publisher, NZ Manufacturer The Fourth Industrial Revolution is said to (it will) ignite stalled labour productivity in manufacturing through connected machines, people, data and value chains. The question is though; Is their stalled labour productivity or is there a reduction of manufactured product demand in the world in the current economic client? Maybe both? Or is labour productivity continuing to be low from workers, based on their ability to enhance workplace efforts? Meaning that today’s technology may not be being maximised in the workplace. We get all excited when the PMI Index shows manufacturing over 50 percentage points. When you consider the voting numbers for the recent local body elections…well, let’s not! Get the picture? There is a considered opinion that at the top end not enough development and manufacturing is going on with expensive technology equipment readily available. At the lower end, the same thing applies. Except that companies are not coming to grips with efficient use of the equipment. So, businesses may be setting up with the latest equipment ready to strike when opportunities arise, or they may be maximising right now to the best of their ability? On the other hand, the country has no shortage of creative and enterprising businesses contributing to the economy, with key staff realising their goals and dreams by being part of development teams involved in quite exciting projects. Productivity is good in these businesses. At present it seems that the land is where the most promise exists for product innovation. In horticulture and industry, it is ‘gang busters’. Enormous contributions to the country with quality goods, famous on world markets but still in need – and wanting to hear about – developments to make their businesses even more efficient. Stalled labour productivity may well be able to move by […]

AI can make a positive impact

AI technologies are beginning to have a major impact on New Zealand’s economy and society, NZTech chief executive Graeme Muller says. Reports show that changes brought by AI will be as significant as the ongoing changes that have brought computers and internet into all aspects of business, government and everyday life over the last 30 years, he says. Muller was commenting on the New Zealand AI Forum’s latest research report which highlights the importance of AI for New Zealand’s future growth. “Last year the AI Forum released a report that called for a national AI strategy, that would be nice, however technology is moving so fast we just need to get on with it. “It is excellent that this new report identifies we should immediately begin considering the role of AI to support all of the existing national strategies,” he says. “We need to consider AI in all sectors including health, education, agriculture and banking. AI will be useful in almost every way of life in New Zealand. “For example, how can AI reduce the road toll? According to this study, AI has the potential to save 64 lives a year, prevent 7200 injuries and more than $800 million in social costs. “The research clearly highlights the value of AI for achieving New Zealand’s wellbeing, sustainability and economic goals.” The report provides a showcase of AI case studies, analysis of what’s needed to boost acceptance and adoption and a first examination of Māori attitudes, perceptions of and engagement with AI. The research identifies that New Zealand urgently needs to increase its focus on areas such as investment in AI, skills and talent, research, trusted data, ethics and regulation. The report shows how AI solutions can be used to improve wellbeing, productivity and sustainability.

Northland lifestyle a big plus

Regional development is a phrase that’s getting plenty of airtime these days, especially with Government’s Provincial Growth Fund (PGF) promising to pump billions of dollars into forgotten corners of New Zealand. It has been nearly 18 months since the first allocations were made, and while there’s plenty of debate about whether the Fund is achieving its objectives, it has certainly sparked greater awareness that regions can play a much bigger role in “New Zealand Inc”. And also sparked some regional leaders to think about whether the Fund is meeting specific regional needs. Take Northland, for example: local leaders in Northland are pretty happy with the attention the region is getting from the PGF. With $130 million-worth of projects announced there, including $30 million for roading improvements, and funding for two infrastructure studies – the Fund could dramatically improve the prospect of attracting more business to the region. The first study is examining the Upper North Island Supply Chain and has reported some early findings that highlight the potential for Northport, New Zealand’s northern-most seaport at Marsden Point, to help ease congestion at Ports of Auckland. The second study on the North Auckland Rail line includes a strategic business case for building a spur to Northport, and signals are positive that the work will go ahead. Chair of the Regional Transport Committee for the Northland Region, Councillor John Bain, says the impact of transport infrastructure improvements will be a game changer. “Not many would argue that, historically, Northland has had to work hard for its share of Government investment. Finally, it looks like we’re getting some traction. The local economy is going through a bit of a boom, and there’s real opportunities available for both locals and ‘imports’. We’re ready to make the most of it.” He muses that Northland has been left […]

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.

Regions get boost with Provincial Growth Fund

The $1 billion Provincial Growth Fund launched by the Government 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 […]

Regional Manufacturing: Stabicraft, Invercargill

Paul Adams, Managing Director of Stabicraft based at Invercargill discusses the company’s boat manufacturing strategies and where to the future. Describe your company’s main areas of activity The design, manufacture and export of recreational and commercial trailerable aluminium boats What area(s) of the business are currently being developed? We have 3 key areas being reviewed; Internal Capability – is one of our key areas working on sound lean initiatives with a view of the continued removal of waste in our processes, upskilling of leaders and managers to better adapt to growing market demands. Innovation through “Design Thinking” – Working on creation and recreation of a consolidated range of craft throughout the current recreational areas we sell and market in. Sales & Marketing – being close to all the latest marketing trends to best connect with our wide and varied customers. Does the company place much emphasis/outlay on R & D? R & D has been the core on our innovation journey. Our design team of 5 is planned to grow by 50% over the next 3 years. Stabicraft has been part of the Government’s “Better by Design” program since 2007, this program is to help companies embrace “Design Thinking” throughout the organisation. “Design Thinking” is about putting the customers’ needs first and this is not only the end user but also the internal customers within the business. Where do you export to and where are future opportunities? 3 Key export markets are Australia, USA and the Pacific Islands. However we do also export to other counties around the globe, Australia is by far our easiest market being close and having similar needs and wants. While USA (having almost 12 million registered vessels) holds some real growth opportunities. Boating and fishing styles in the US are quite unique and different from […]

Regional Manufacturing:Microbrewtech, Oamaru

Simon Ross of Microbrewtech, based in Oamaru, shares with NZ Manufacturer his company’s role in manufacturing beer bottling machines for the craft beer market. Describe your company’s main areas of activity. Microbrewtech manufactures beer bottling machines designed specifically for the craft beer market. A significant gap was identified and we developed a machine to fill the gap. Breweries with capacity up to around 1800 litre batches are considered to be the target market. Microbrewtech has so far only sold into Australia and New Zealand because we are a small company, however there is a large international market and plenty of interest from further afield, even with though our advertising strategy is deliberately being limited trans-tasman. Microbrewtech has limited heavy manufacturing capability and most of our components etc. are outsourced from New Zealand and as far away as Germany. Final assembly, wiring, programming and testing is performed in house. What area(s) of the business are currently being developed? Documentation is constantly improving, as well as programming, streamlining assembly techniques etc. Each time a small issue is encountered an effort is made to improve the design, or process. An Australian dealer has been engaged to allow an increase in manufacturing capacity and sales. Does the company place much emphasis/outlay on R & D? Yes. This company is based on R&D, and is now growing manufacturing, distribution and sales roles. R&D outlay is difficult to quantify, as it began far before the company was formed. For example, I left my former job working for a company designing / manufacturing microlight aircraft and worked for 10 months with no income before selling the first unit and forming the company. Prior to that there had been a couple of prototypes as well. New product development has been put on the back burner at this stage […]

Ballance, the $1 billion co-op

Ballance Agri-Nutrients is a farmer-owned co-operative supporting New Zealand farmers to operate more productively, profitably and sustainably. CEO, Mark Wynne reflects to NZ Manufacturer on the way ahead and staying close to farmers. We’re close to a $1 billion business with roots that go right back to the 1800s when sulphur was mined at White Island in the Bay of Plenty and shipped to Tauranga for refining. Across our long history, our reason for being has remained the same – ensure farmers have sustainable, affordable access to quality nutrients to support their farm’s productivity. From our core business of fertiliser manufacturing, supply, sales and advice, we have grown to offer farmers a full suite of science-backed nutrient products and services. This enables us to help farmers achieve soil and animal nutrition and productivity with a minimal environmental footprint. Our agri-nutrient advice is complemented by award-winning technology products which provide a wealth of information to enable farmers to make the best management decisions for their business. We cover the country, with one-on-one specialist advice on-farm backed up by a network of rural merchant supply partners, services centres, consignment stores, manufacturing sites and our own agricultural aviation services. As a co-operative, we’re owned by farmers and they share in our success receiving annual rebates on fertiliser purchases, a share in our profits through dividends and increases in the value of their shares in us. In 2015 we distributed $76 million to shareholders. We’ve gone from strength to strength with more than 19,000 farmers signed on as shareholders. Our shareholders’ equity is $435 million and has grown by 31 percent over the past five years. Made in NZ for NZ We source raw materials from around the world and within New Zealand to produce high quality farm and animal nutrients designed for New […]

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Regional Manufacturing