Smart Manufacturing Today

By not mining vital minerals, NZ is ‘offshoring its own environmental footprint’ – is that fair?

Martin Brook, Associate Professor of Applied Geology, University of Auckland, Waipapa Taumata Rau When Resources Minister Shane Jones recently unveiled his draft strategy for mineral mining, it was quickly criticised by the Labour opposition as “taking New Zealand backwards”. One environmental group even called it a “love letter to mining companies”. But the government’s ambition to double the sector’s export value to NZ$2 billion by 2035, with flow-on effects for local employment and regional economies, deserves a broader debate. In particular, New Zealanders opposed to mineral mining must ask whether it is ethically fair and reasonable to effectively outsource the risks of mining to other countries, while benefiting from the modern technologies those minerals make possible. The government’s mining strategy aims to produce a list of “critical minerals” for exploration. The International Energy Agency identifies minerals such as copper, lithium, nickel, cobalt and rare earth elements as essential components in many of today’s rapidly growing clean energy technologies – from wind turbines and electricity networks to electric vehicles. Indeed, according to the United Nations Environment Programme, these critical minerals are increasingly necessary for decarbonising energy systems. One of the three pillars of the draft minerals strategy is the delivery of minerals “for a clean energy transition”. How we source those minerals is an important question. Mount Aspiring National Park: many New Zealanders resist the idea of mining in pristine wilderness areas. Getty Images Environmental impacts of mining New Zealand has a rich mining history, with a wide variety of resources still extracted from underground and opencast mines. There is also a long history of opposition to mining, especially in national parks and on conservation land, as well as on privately owned hill country. And there are legitimate concerns about the environmental, social and governance implications of mining. First, it can have devastating environmental effects, especially the extraction of high-value critical minerals that often require enormous “strip […]

Mulcahy Engineering and Epicor comment on EMEX 2024

How did you find EMEX 2024? Kayne Mulcahy, Managing Director, Mulcahy Engineering Graeme Evans, Regional Vice President (ANZ), Epicor Kayne Mulcahy, Managing Director, Mulcahy Engineering: This was our ninth time exhibiting at EMEX, with our first being back in 2007. It is always great to reconnect with existing and potentially new customers, suppliers and business partners directly. Having the opportunity to share knowledge and experiences with industry peers is also an invaluable outcome of the show. Graeme Evans, Regional Vice President (ANZ), Epicor: We support manufacturers across Australasia to optimise their end-to-end operations through enterprise resource planning (ERP) solutions that deliver real-time intelligence. EMEX 2024 was a terrific opportunity for us and a wide variety of individuals and organisations to collaborate around the themes of engineering, manufacturing technology and electronics. As the largest trade show of its kind in New Zealand, it is integral for cultivating relationships and fostering a culture of innovation and growth, driving the entire sector forward. Was the energy positive, potential for sales? Mulcahy: There was a really positive energy amongst both exhibitors and attendees at this years show, which is pleasing considering the current economic conditions faced by many. A real sense that businesses are feeling that we may be past the bottom of the cycle and are looking forward to the climb back up to a more favourable trading environment. Evans: EMEX has now been in operation for more than 40 years – an incredible milestone. There were more than 200 exhibitors and an estimated 5,000 buyers in attendance. Naturally, there is always potential to drive sales at EMEX, but Epicor’s priority for the three-day event was to meet with our existing customers and establish new relationships with organisations that we can empower in the short and long term. How are you finding present […]

Further: Unleashed Manufacturing Performance Report Q1 2024, You Tube

To view the Unleashed Manufacturing Performance Report Q1 2024, presented by Greg Roughan of Unleashed Software, please visit the link:

Tightening purse strings hit NZ SME manufacturers

The recession is taking a bite out of New Zealand manufacturers’ sales revenue, according to new data from inventory management software brand, Unleashed. Unleashed’s first Manufacturing Health Index since New Zealand officially entered a recession found sales revenue dropped by 7% in the first quarter of this year, but is still up 18% year-on-year, aided by superb growth in the Energy, Medical Supplies, and Personal Care subsectors. The report looks behind the curtains of SME manufacturers in New Zealand, Australia, and the UK, across 12 subsectors. Unleashed head of product Jarrod Adam says high interest rates will continue to put downward pressure on firms, but the data shows the sector is able to respond positively to these headwinds. “The beginning of the year has been a speed bump for Kiwi manufacturers, but we need to keep in mind that overall revenue is actually up on the same period as last year. These companies are nothing if not dynamic, and in this current environment it is crucial to react to the cards you are dealt,” said Adam. “One really positive sign in the data is the much lower lead times, which will help these businesses be as productive as possible when conditions change for the better.” The report notes that firms have drastically improved their lead days to just 14 to begin the year, from 30 days in the final quarter of 2023, and 37 in the same quarter of last year. Lead time improvements are both a sign of normalising supply chains globally and the knock-on effect of New Zealand business’ laser focus on logistics over the past three years. Tough times continue for Food and Beverage At the pointy end of the disposable income problem, local Kiwi Food and Beverage producers have been confronted with difficult times with little reprieve on […]

The scope 3 ripple effect

-Insa Errey In the ever-evolving landscape of regulations, New Zealand manufactures find themselves connected to the regulatory frameworks of key trading partners such as the European Union (EU). The EU has positioned itself as a global leader in climate action, with ambitious targets set under the European Green Deal and the European Climate Law. As part of its efforts to reduce greenhouse gas emissions, the EU has implemented regulations on Scope 3 emissions reporting through directives such as the Non-Financial Reporting Directive (NFRD) and the EU Taxonomy Regulation. Understanding the impacts of Scope 3 regulations in these markets is crucial for New Zealand manufacturing. Let’s delve into how regulations in the EU can shape the strategies and operations of New Zealand manufacturers. First, what is Scope 3? Scope 3 emissions refer to indirect greenhouse gas emissions that occur in the value chain of a company, including both upstream and downstream activities. These emissions often result from activities such as the production of purchased goods and services, transportation and distribution, and waste disposal. For any EU customer this may just be your manufacturing sites Scope 1 or 2 emissions. Meaning the emissions your site emits from use of direct combustion (scope 1) or indirect emissions on site from purchased electricity (scope 2). What does this mean for NZ manufacturers? Market Access and compliance pressure to adhere to these standards is required for exporting to the EU which governs Scope 3 emissions disclosure and reduction. Failure to meet these requirements can result in barriers to market entry. In a global market increasingly, prioritising emissions reduction is becoming an advantage, as exporters can face competition from countries with lower carbon footprints. Failure to manage or measure emissions can put NZ manufacturers at a competitive disadvantage and could impact market share. Even if you […]

Harm reduction to take centre stage at EMEX 2024

From May issue, NZ Manufacturer magazine The Employers and Manufacturers Association (EMA) says it will be using its presence at EMEX 2024 this month to promote the urgent need for manufacturers to work together to help improve the sector’s health and safety record. EMA Head of Advanced Manufacturing Jane Finlayson says that the manufacturing sector has one of the country’s highest rates of workplace injury and there has not been the improvement in workplace harm that has been seen in other sectors such as construction and primary industries. “Simply put, too many manufacturing workers are being harmed at work. In fact, you are twice as likely to be injured working in a manufacturing environment in New Zealand than you are in Australia, and the economic and social cost is too high,” says Jane. “Every year there are about 30,000 injuries in the manufacturing sector and ACC pays out $50 million for acute injuries resulting in more than 240,000 lost workdays. But it’s not just about the economic costs. Each injury can have an impact on an individual, a family, and a community, “It also has a huge business impact, affecting productivity and morale. No one wants to see an employee, or a colleague, injured or seriously hurt at work. “That is why we’ve launched Project Whakahaumaru with support from ACC. This project aims to bring the sector together to develop a five-year action plan to reduce harm and improve the health, safety, and wellness of everyone working in manufacturing. Jane says the team are looking forward to engaging with manufacturers at EMEX to hear their ideas and encourage them to get involved in the project and share their experiences. “We don’t pretend to have the answers. The reasons for the high rates of harm in manufacturing are complex and, to […]

Another great reason to understand your supply chain!

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Are you 100% sure you know what’s in your supply chain? Do you fully understand the work practices involved? Yes and yes? Then you’re in good shape to keep selling to the European Union when the new European Supply Chain Act takes effect. No and no? Then you’ve work to do! New EU legislation will require many suppliers to EU companies to better manage their social and environmental impacts. Here’s the acronym: Corporate Sustainability Due Diligence Directive (CSDDD or CS3D). Even if you don’t trade with the EU, expect to see more focus on supply chains, right around the world. Why? Because supply chains are notorious sources of social and environmental ‘hotspots’. Wages below subsistence. Forced labour. Treacherous working conditions. Toxic chemicals. Polluted waterways. Deforestation. The list goes on. The draft European Supply Chain Act Read on for general information about the changes. What’s happening? The European Parliament has voted for the draft bill. Parties are now negotiating a common position to pass the bill into law. What’s the aim of the new law? It’s one we can all sign up to: a fairer, safer, more sustainable global economy. Who does the law cover? It covers many larger companies based in the EU. Some companies outside the EU are covered if their EU turnover is large. Small and medium-sized businesses are not directly affected. However, the law will affect them if they supply to larger companies. What does the law require? Affected companies must manage social and environmental impacts across their value chains. (This is currently voluntary.) These value chains include the companies’ direct suppliers (maybe your business?) and indirect suppliers too (your business’ suppliers?) The law is stricter than most existing national legislation. What does the law mean in practical […]

EMEX is a big deal…

May issue, NZ Manufacturer includes our second Preview of EMEX 2024. Click on the link below to read. Because it is the premier trade fair in the country for the manufacturing sector. Where visitors can see the best of the best all in one place. An example of an exhibitor is Datum Machines Ltd of Wellington, a manufacturer, who has been designing and engineering over 18 months the Series One Gantry Mill CNC machine from the ground up. NZ Manufacturer May 2024 by Media Hawkes Bay Limited – Issuu This machine is for companies wanting to add CNC automation to their production workflow and increase productivity. At an extremely competitive price. A labour of love, devotion and lots of money, the machine, an example of great Kiwi ingenuity, is on display at EMEX 2024, on Stand 4115. As much as it is an event to discuss business – buying or selling, export opportunities etc – it also benefits visitors who want to discuss industry trends and share stories of success. New Zealand has a rich history of inventions and product development, something that became clear to me a little while back when I produced for this show’s organisers a History of Manufacturing in New Zealand document which went back as far as the early 1900’s. Today’s innovators, using different technologies and equipment, manufacturing for the needs of the times, have a rich history to fall back on, on the path to success. So, let’s keep manufacturing strong. We certainly do have our challenges in today’s environment. But they are only challenges. We adapt, we change, we keep moving forward. We keep making the next ‘big thing.’ -Doug Green, Publisher

Improving workplace literacy skills: A key to unlocking staff potential and lifting productivity

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -David O’Connor, Commercial Manager, The Learning Wave There is no shortage of evidence – both research-based and practical examples – that productivity continues to be one of the main challenges to the long-term growth and success of the Manufacturing sector here in New Zealand. Coupling this challenge with an aging workforce, and barriers to attracting new skilled labour means that many businesses have significant skills, capability, and capacity issues that are holding them back, or restricting their ability to adapt and respond to market opportunities. One of the constants that we hear from our clients is about how to address the underlying literacy challenges in both their frontline staff and supervisors. While many businesses might have ‘done’ literacy training (often in small numbers) in the past, they often have not seen the benefits of this training in terms of changes to the shop floor or seen any flow-on effect to productivity. Workplace literacy is more than just someone’s ability with basic reading and writing skills. Today’s workplace demands mean that workplace literacy needs to include comprehension of complex work instructions, critical thinking and problem-solving, strong verbal and written communication skills, numerical and analytical skills, and the growing need for everyone to have to digital mindset and skills to work in our ever-growing digitally rich workplaces. Misinterpretation of instructions, inability to comprehend safety guidelines, or errors in recording data can lead to costly delays and rework. Imagine a scenario where a worker misreads a critical measurement or mishandles a machine due to a misunderstanding of operating procedures. The repercussions extend beyond mere inconvenience; they affect the bottom line. According to the 2016 Survey of Adult Skills, around one in five people in the New Zealand Workforce have very low literacy skills and a further […]

Embracing the Future: How Digital Twin Technology Can Accelerate Manufacturing Operations

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -Adam Sarman, Senior Partner, Dsifer In an industry in which flexibility, agility and innovation are no longer competitive advantages, but tickets to the game, the ability to make responsive, agile decisions, predict future requirements and innovate without impacting operations are critical. In this dynamic industry context, digital twin technology has emerged as an important but underutilised technology. Digital twins are software models that represent the attributes and operating behaviour of physical assets, product designs and/or processes. They support better decision making by simulating how these applications behave given certain inputs. A digital twin’s ability to enable progressive learning and capture tacit knowledge provides a key, differentiating benefit: it stores and structures information in a way engineers and operators can understand. Digital twins, are reshaping how products are designed, manufactured, and optimised across all process and design-drive industries. Three key applications of digital twin technologies are process optimisation through simulation, product design simulation, factory/operation design and predictive maintenance. Process Optimisation: Enhancing Efficiency and Accuracy Process simulation lies at the heart of manufacturing and supply-chain optimisation, and digital twins provide an unparalleled platform for achieving this. By creating virtual replicas of production processes, manufacturers can simulate and analyse operations in real-time, enabling them to identify bottlenecks, optimise workflows, and improve efficiency. For instance, in automotive manufacturing, digital twins are used to simulate assembly lines, allowing manufacturers to test different layouts and production scenarios before implementation. Moreover, by integrating IoT sensors and data analytics, manufacturers can collect real-time data from equipment and processes, feeding it into the digital twin for predictive maintenance and continuous improvement. Product Design: Accelerating Innovation and Iteration Digital twins play a crucial role in product design by enabling engineers to create virtual prototypes and simulate their performance under various conditions. This […]

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