Regional Manufacturing

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 […]

Regional Manufacturing: Screw Productions, Rotorua

Paul Adlam tells NZ Manufacturer of the unique process used in the business and where the company wants to be in five year’s time. Describe your company’s main areas of activity Screw Productions of Rotorua manufactures screws and has done so for 36 years. The process used is unique in New Zealand as it is a Cold Forging process which produces a strong, good quality fastener. The standard Self Tapping, Woodscrew and Machine screw are the main products made but Solid Rivets can also be produced. A wide range of product is held in stock. What area(s) of the business are currently being developed? Manufacturing of special (custom made) screws is made easier by the company, as to obtain special screws off shore can be difficult, mainly because of the quantities of 1 to 200,000 minimum quantities required, whereas we require much smaller quantities. So a special Custom Made Screw can include any of the following: – It may be Dimensional Head Diameter made smaller to fit in a specific space Head Diameter increased for greater under head contact Head Height reduced to give a low profile Length made to suit applications where length is critical Thread Diameters may need to be adjusted slightly, particularly in Self Tapping applications It may be the Recess Product being exported may require a Phillips recess, not Pozidriv (NZ Standard) To prevent people easily dismantling a Product, like electrical, Security Recess required Really positive Driving recess needed such as Squaredriv Many other types of Recess’s are available It may be to Enhance a Product Head shape altered to suit; say a raised countersunk head Head marked with customers’ name or initials More decorative, or unusual, Recess’s such as; 6-Lobe (Torx), Triwing, Phillips Other Combinations Unusual combinations of head, thread, recess Apply a “Shank Slot” […]

FWF after lucrative Japanese market

In the picture: David Musgrave managing director Functional Wholesale Products. From Regional Manufacturing a section of NZ Manufacturer www.nzmanufacturer.co.nz Eve Johnson sits on the board of Functional Wholesale Products and has come back into the company as Development Manager. Eve has worked with FWF for 11 years now and was formally CEO. She shares with NZ Manufacturer plans for the future. Functional Whole Foods Limited, based in Geraldine, South Canterbury, New Zealand specialises in the production of high quality, cold pressed flax seed oil and seed meal. The Company formulates these products with other natural extracts to produce and market a range of products with particular health benefits. The products are sold widely throughout New Zealand and a number of countries overseas. All products are made from New Zealand raw materials that are certified organic and are from sustainable production. The Company has established and built the flax seed oil market over the past 20 years and remains the market leader in New Zealand. Functional Wholesale Products is in partnership with The Herb Farm developing and producing a range of healing cosmetics that are building momentum. What area(s) of the business are currently being developed? Our partnership with Japan – we are exploring new avenues and revenue streams in this lucrative market for Flax Seed Oil. New routes to market in New Zealand with opportunities to expand the concept overseas. Does the company place much emphasis on R & D? Yes we do and have worked extensively in the past with Massey University and Crop and Food, Canterbury. More recently with Lincoln University through Charles Brennon. We have found the use of students an excellent R&D find! Where do you export to and where are future opportunities? Japan, Australia, Malaysia, Thailand, Vietnam and the Czech Republic. Future opportunities in the […]

RBNZ make the right call

Manufacturers and exporters welcome the decision by the Reserve Bank of New Zealand (RBNZ) this morning to cut the OCR to 2.25%, say the New Zealand Manufacturers and Exporters Association (NZMEA). NZMEA Chief Executive Dieter Adam says, “We are pleased to see the RBNZ reduce the OCR today – the effect on the currency will help maintain the relative competitiveness of our manufacturers and exporters in offshore markets and those competing with imports domestically. “The surprise of the decision helped to move the currency down further than we have seen in other recent OCR cuts – the currency has dropped by over a cent already on a trade weighted basis. We are hopeful this drop will be sustained, however, even if it does our dollar will still be well above what the RBNZ itself would consider appropriate. “We also support the RBNZ’s comments that further easing may be necessary, and we would encourage them to follow through on this in the next OCR decision if conditions allow, while keeping their careful eye on any building imbalances or financial stability risks. “The currency has remained stubbornly high, despite continued downward pressure on commodity prices. The RBNZ noted in their release that the exchange rate is over 4% higher than their December projections – 4% may sound small, but it is significant in terms of its effect on manufacturers margins and ability to be globally competitive – this drives manufacturers ability to re-invest in their businesses for future growth and innovation “Manufacturers welcome any changes that will help move the currency on its downward re-balancing trend towards a level playing field for them in export markets. On that note, we are concerned about reports that there is penned-up demand from off-shore investors to get back into the Auckland property market. The last […]

Public appeal for revolutionary new wheelchair

The inventor and manufacturer of a revolutionary new wheelchair has launched a public appeal to develop it further and build 10 prototypes. Kevin Halsall’s Ogo wheelchair was a finalist at the New Zealand Innovators’ Awards in Auckland last year and also won the BCC (Building Clever Companies) Innovate 2015 grand prize of $10,000. The invention blends cutting edge electronics with innovative body driven control which frees the user’s hands to do anything they want. As a result of publicity in 2015, Kevin received thousands of inquiries from around the world from people interested in either purchasing, investing in or distributing his machine. However by launching his appeal for $240,000 on Indiegogo, the largest global site for crowdfunding and fundraising, Kevin wants to give as many people as possible the opportunity to fund what they can afford, enabling him to take the development to the next level. He explains that, by keeping costs down, he can make his machine available to millions around the world at the lowest possible cost. “Our goal is to change as many lives as we can,” Kevin says. The crowd funding campaign, launched on March 8, will run for 30 days and Kevin is confident he’ll attract the money required. “It’s an achievable amount and with it we’ll build 10 prototypes, five for sale as part of the crowd funding campaign and the other five to be located in major centres around New Zealand for people to try out,” he says. Kevin, from his Otaki base, wants to start production before the end of the year because he’s aware there are 11,000 disabled people in New Zealand alone who rely on a wheelchair for mobility and 69 million wheelchair users worldwide. His interest in building the machine began nearly five years ago when he observed how […]

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