Smart Manufacturing Today

Developing the manufacturing sector

By Jane Finlayson; Head of Advanced Manufacturing; EMA A lot has changed in recent months. Not only have we had a change of government, and with it a change in policy direction, but we have also seen the establishment of Advanced Manufacturing Aotearoa (AMA). Led by Catherine Lye, AMA is tasked with working with key sector partners - including unions, researchers, educational institutions, industry organisations, and Māori and Pacific manufacturers – to gather information and supply feedback on the practical steps that can be taken to further develop the manufacturing sector. The AMA is an important initiative that we hope will be supported by the new government. It is industry-driven and independent, representing manufacturers across Aotearoa New Zealand. This positions it to deliver enormous benefit to the manufacturing sector at a scale not realised previously. The EMA is proud to support the AMA, alongside our other partners across the country. As the newly appointed Head of Advanced Manufacturing at the EMA I am looking forward to working closely with Catherine and the AMA to advance the interests of the manufacturing sector. Since taking up my new role, I have enjoyed the opportunity to attend regional manufacturing action group meetings, in Waikato, Northland, Bay of Plenty and Auckland and I’ve met with a wide range of innovative manufacturers who have adopted technology to enhance their businesses and improve productivity. Clearly the past year has been challenging for many manufacturers. The global economic slowdown, rising costs, supply chain constraints and critical skills shortages have all combined to create a difficult environment for the sector. This has been reflected in the steady decline of the BNZ – BusinessNZ Performance of Manufacturing Index (PMI), which has sat below 50 since March. This indicates manufacturing activity in New Zealand has been contracting throughout much of […]

2023 – The Year in Review

-Adam Sharman, Senior Partner, Dsifer For many New Zealand organisations, 2023 has been a year of navigating multiple headwinds, including increased cost of materials driven by exchange rate pressure and high levels of inflation, weakening demand from China as their domestic economy slows, and weakening consumer demand in some sectors. All of which has seen the NZ manufacturing sector contract across 2023. These challenges appear to have been particularly acute across the food processing sectors. Staffing continues to be a challenge for New Zealand manufacturers, particularly in the operational workforce. However, we are starting to see an easing in the market and, as the number of jobs being advertised drops and the number of applicants per job advert increase organisations are finding it easier to attract talent. There is a paradox to this however, as our clients frequently report that staff absenteeism is one of their biggest challenges and has a major impact on their ability to achieve potential performance. It is not all doom and gloom, however, and 2023 has been another standout year for New Zealand organisations in terms of innovation, creativity, and growth. In particular, developments in aerospace, agritech and health tech have seen Kiwi companies make significant impacts on the world stage as New Zealand continues to be recognised for its innovation in these areas. Increasingly, we are working with organisations who have recognised that security is a strategic asset for New Zealand and our organisation, and we have seen multiple examples of New Zealand based organisations winning work away from Asia, due to their ability to provide products that are trusted as secure. This is particularly true in the electrical component manufacturing sector, as for example, European car producers are willing to pay a premium for data security in the manufacture of their components. New […]

Is 2024 “the” year?

-Ian Walsh, Partner, Argon & Co I was reflecting, as you do at this time of year, on what were the highlights and key achievements of 2023. The key highlight is primarily that supply chains are starting to settle down, business is starting to return to normal, and we are starting to see some positivity. This has been a slow hard grind, and the job is not done. The recovery has been slower than expected, exacerbated by extreme weather events, a cost-of-living crisis, a labour shortfall as we ramped up and the gates were not open, and Kiwis leaving on their OE. Net a myriad of never-ending obstacles to overcome. In addition, many businesses learned in 2022 and 2023 just how fragile their supply chains were and how dependent NZ is on shipping lines. Many have and are investing in additional warehousing to buffer their supply chains and many products that have been offshored are suddenly viable, in this new light, to be manufactured locally. The research continues to reflect our slide down the OECD with the grim reality that we are 30-40% less productive than our nearest neighbours and key trading partners and significantly worse versus the Irish and Scandinavian countries. While this may seem remote, it is a key indicator of our future economic prosperity and ability to keep pace, retain talent, and provide the lifestyles and outcomes we desire for our children and future generations. So, given all this, here are my top 5 drivers for 2024: The labour crunch will continue, and many businesses are leveraged so capital options may not be as attractive or possible. This will drive a few key initiatives. Supply chain fragility will continue to drive boards to look at business continuity planning and risk mitigation strategies. Procurement and strategic sourcing will […]

Advanced Manufacturing for SMB: The path to smarter, modern and better operations

From NZ Manufacturer, December issue, focussing on ‘The Year in Review’ Catherine Lye – CEO, Advanced Manufacturing Aotearoa If you hate the phrase ‘we’ve always done it this way’ and lead your business/team with ‘we’re going to try different, we’re going to try this, we think this will be a better way to improve quality & efficiency’, then you may identify more readily with advanced manufacturing. After all, manufacturers are all about advancing their business every day and trying to find the next thing that will make them better, faster, more competitive. It is, however, important to recognise that not all small medium sized businesses (“SMB”) in New Zealand’s manufacturing sector may readily identify with the term “Advanced Manufacturing”. The majority of New Zealand’s SMB’s may be operating with traditional methods and technologies that have been effective for their specific needs. Factors such as limited budgets, resistance to change, distractions with a global pandemic or not knowing where to start with integrating Advanced Manufacturing tools and techniques can contribute to this reluctance to adopt – after all there is a lot that you could do but what should you do? In the context of a small to medium sized business (SMB), advanced manufacturing embodies a transformative approach that simply translates to “Smarter, Modern, Better” operations. “Smarter Manufacturing” entails harnessing data analytics and automation to make informed decisions in real-time, optimising resource allocation, and reducing waste. The higher value of thinking is around the integration of tools, knowledge, and data. The challenge is finding easier ways to manage and extract data in an easy-to-understand report for everyone. It can make your eyes bleed figuring out what’s going on with 10,000 rows of daily data – you can chart it one way and it is meaningless, chart it another way that […]

“Can my business benefit from networking and word of mouth?”

As a business owner, you’re constantly on the lookout for marketing strategies and platforms that can elevate your brand and generate more opportunities, right? What if we told you LinkedIn is one of the most underutilised tools for businesses like yours? Following feedback from many business owners like you, I’m pleased to introduce and invite you to participate in a complimentary Maximize Your Impact: The 5-Day LinkedIn Mastery Challenge for Entrepreneurs If you are not yet sure if LinkedIn is for you there is only one question you need to answer to gain certainty: “Can my business benefit from networking and word of mouth?” If the answer is YES then you know that building a strong network takes time and you’d better start right now. Curious to find out more? Book HERE to receive a special invitation to a private LinkedIn Group where this 5-day Challenge starts on Monday 11th of Dec 2023 Don’t let this opportunity pass you by – it’s time to make LinkedIn work for your business!

December issue NZ Manufacturer – The Year in Review

Our annual ‘The Year in Review’ December issue will be out soon. It includes stand-out commentary on achievements from some of our manufacturing companies, reflections on the year winding down and the new one ahead. Challenges that face us and suggestions for achieving success. There were a lot of articles competing for inclusion that could not be accommodated within the pages. Meaning the stories of many achievers – you know who you are – need to be re-read by revisiting monthly issues of the magazine. If you or your company are not receiving the magazine, nor on the subscriber database and want to receive December issue, email publisher@xtra.co.nz and we will get a copy to you.

A Step Forward in Safety – The New Rules for Smoke Alarms

New Zealanders’ homes are set to become safer with the implementation of a Building Code update by the Ministry of Business, Innovation and Employment. From 01 November 2024, it will be mandatory for all new homes to have a Type 1 Smoke Alarm System. C1-C6 Protection from Fire – Acceptable Solution C/AS1, published by MBIE on 02 November 2023, requires that “each household unit shall be provided with a minimum of Type 1 domestic smoke alarm system in compliance with NZS 4514.” What is a Type 1 Smoke Alarm System? A Type 1 is a smoke alarm or multiple interconnected smoke alarm devices, each containing a smoke detector and an alarm sounding feature. According to MBIE, interconnected smoke alarms alert occupants in residential fires faster and provide occupants more time to respond and escape from a fire. Where does NZS 4514:2021 require smoke alarms to be installed? Smoke alarms are required in all bedrooms, living spaces, hallways, and landings within the building. How Do Interconnected Smoke Alarms Work? Interconnected smoke alarms work by sending signals between the smoke alarms in a house. This means that if one smoke alarm in a particular room detects a fire, all the smoke alarms in that house will activate and sound an alarm – adding an extra layer of safety by letting everyone in the house know about a fire at the same time, even if they are further away or sleeping. Transition Period Changes From 01 November 2024, previous versions of acceptable solutions and verification methods will no longer be deemed to comply with the Building Code. For new buildings, a hard-wired interconnected smoke alarm system can be installed during construction while the house is being wired. For those who wish to upgrade to the new Building Code requirements in the course […]

The Interview – Jill Cooper

From December issue of NZ Manufacturer www.nzmanufacturer.co.nz Tell readers what you do? My expertise is in high temperature materials and processes. When I left full time work at BlueScope NZ Steel to care for my premature baby, I found it difficult to fit back into the workforce. I expect it’s improved now but employers were not at all flexible with regards to family responsibilities, so I have been doing consulting work on whatever comes up; reline quality assurance and incident investigation for Ballance at their ammonia plant, process and containment for CarbonScape are two examples. I also formed my own company – Advanced Materials Technologies – NZ Limited – which was a collaboration with an ex colleague based in Queensland, Australia to supply Australian and New Zealand with materials sourced from Harbison Walker International, a US company renowned internationally for the quality of its products. Most recently, I am interested in the technologies which can be utilised to slash the (extremely high) CO2 emissions generated by the steelmaking industry and, have been advising and assisting Helios with their novel sodium-based reduction process. This has been a very fruitful relationship, unfortunately disrupted by the war that has broken out there. When I am not working, I am often out wingfoiling on the Manukau and Waitamata harbours. What has been your involvement in green steel making? I’ve been promoting the possibility of low emissions iron and steelmaking to whoever will listen for many years, including the outgoing Climate Change Minister, Hon James Shaw who has been politely listening to my representations since he became co-leader of Green Party. Although, numerous commentators have been claiming that the steelmaking sector would be hard to abate, there has been a small group of dedicated scientists and engineers working on alternative, non carbon, reductants for decades. […]

Lifting performance by eliminating data silos

-Adam Sharman, Senior Partner, Dsifer Organisations are collecting more data and this trend is only set to continue as IoT adoption accelerates. However, too often, this valuable resource is locked away in silos, inaccessible to the people who need it most. These data silos can stifle innovation, hinder collaboration, and prevent organisations from fully realising the potential of their data. In this article, why data siloes form and how to overcome them to create a more data-driven and agile organisation. Data silos are isolated pockets of data within an organisation that are segregated from the rest of the data ecosystem. These silos can emerge for various reasons, including departmental boundaries, incompatible data formats, or data stored in separate systems that don’t communicate effectively. When data is trapped within these silos, it can’t be easily shared, analysed, or leveraged for making informed decisions. Several factors contribute to the formation of data silos within organisations: Lack of Data Governance: Without a robust data governance framework in place, there can be confusion regarding data ownership, definitions, and quality standards, allowing multiple data repositories to form with multiple governance approaches which can exacerbate data silos. Departmental Barriers: Different departments within an organisation often maintain their own data repositories and systems. This division can lead to data silos, as departments may be hesitant to share their data due to concerns about data security, ownership, or privacy. Legacy and Rogue Systems: Outdated technology and legacy systems may not support modern data integration and sharing. This can result in data becoming stuck in older systems, inaccessible to newer, more agile solutions. Rogue systems are those that sit outside the organisation’s formal governance framework and, as such, are typically not integrated in to the organisation’s data architecture. Cultural Barriers: In some cases, a culture of information hoarding can […]

A straddle carrier moving through the container stacks

NZ-EU trade agreement is great news for sustainability

It’s been a long time coming! In July, New Zealand signed a free trade agreement (FTA) with the European Union. Good news for manufacturers too. New Zealand’s exports of goods to its fourth largest trading partner were worth NZD4.68b in 2022. These goods included many manufactured products – machinery, medical appliances, food products, plastics, aluminium and others. More than 91% of New Zealand’s trade into the EU will enter duty-free when the FTA comes into force (expected to be in the first half of 2024). Many goods, including some manufactured products, will have no tariffs at all from this date. This means many millions of dollars of tariff savings each year on exports to the EU. After seven years, when the agreement is fully in place, 97% of current trade will enter the EU duty-free. How the new FTA promotes sustainability The FTA will make trade more sustainable and create opportunities for businesses that deliver more sustainable products. The agreement is the first FTA built around the EU’s ’Together for Green and Just Growth’ approach to trade and sustainable development. It contains ambitious sustainable trade outcomes in many areas. Environmental outcomes include addressing climate change and subsidies on fossil fuel. Social outcomes include promoting labour rights and women’s economic empowerment. The upside for manufacturers – and some warnings The FTA will have a big impact on trade between New Zealand and the EU. The potential upside for local manufacturers is significant: easier access to one of the world’s most lucrative trading blocs; lower costs for materials imported from the EU. However, the FTA comes with warnings too. Firstly, local manufacturers will be competing with EU manufacturers who may have been making their products more sustainable for some years. As customers here and in the EU prioritise ‘responsible purchasing’, make sure […]

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