News Ticker

New Zealand establishing culture of collaboration with Vietnam industries

Vietnam has been New Zealand’s fastest growing export market in the ASEAN region over that five year period. Tony Martin New Zealand Trade Commissioner & Consul General to Vietnam 2015 marked 40 Years of relations between New Zealand and the Association of South East Asia Nations (ASEAN), with total exports from New Zealand to ASEAN standing at NZ$5.9bn as at June 2015. A growing number of New Zealand businesses in multiple sectors across food and beverage, ICT, geothermal, healthcare, agriculture and aviation sectors have been steadily increasing their presence in the region since the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) came in to effect five years ago. The agreement means a significant proportion of import duty tariffs have either been eliminated or reduced. Economic growth makes Vietnam viable market The ASEAN region is expecting to see GDP growth of 4.5% for the year ending 2015 and Vietnam is a key contributor to this with an expected year-on-year growth rate of over 6.5%. The medium-term prospects for economic growth in Vietnam remain strong and with Air New Zealand’s recent announcement of direct flights between Auckland and Ho Chi Minh City there is plenty of cause to see our trade relationship with Vietnam and indeed ASEAN as a region go to another level. Vietnam has been New Zealand’s fastest growing export market in the ASEAN region over that five year period with exports increasing by 78 percent since 2010. Two-way merchandise trade was NZ$1.07 billion in the year to July 2015, making Vietnam our 20th largest trading partner. Free Trade Agreements provide real opportunity This growth has been built on the platform provided by AANZFTA and the recent signing of the TPP Agreement – of which Vietnam and New Zealand are (along with Singapore, Brunei and Malaysia) member countries – will only add […]

China is calling – is your company China ready?

Being “China Ready” means gaining an understanding of the resources and capabilities required to develop, enter, and ultimately grow in the market. By Mike Arand – NZTE China Business Development advisor Lately the question “Are you China Ready?” seems to be heard often and many are starting to ask what does “China Ready” really mean? Without doubt there is opportunity for many NZ companies in China. The top line numbers continue to be staggering – a total population of 1.4 Billion, 446 Million households, 670 Million netizens (internet users), and an economy that is set to have 470 Million middle class households earning over US$15k by 2030 (compared to the expected 133 Million households in USA earning over US$15k at the same time). And, as the Economist recently pointed out, even at a growth rate of 6-7% which is considerably lower than the average of the last few decades, China will add another US$900B to GDP by end-2016. That’s like adding an economy the size of Indonesia or the Netherlands in less than 18 months! Even at this slower growth rate, in the so-called “new normal”, the Economist expects that China is expected to have GDP of 36 Trillion by 2030. So an economy of this size with ongoing growth, with continuing urbanisation and a growing middle class which is driving huge growth in consumer demand must offer opportunity, right? Many of these factors are behind China now competing with Australia for New Zealand’s top export destination. It must be remembered, however, that China is also the top export destination for more than 120 other countries. The trade buyers and the consumers are absolutely spoilt for choice with a myriad of options for products and services with different brands, origins, prices, and a host of other attributes from other imported […]

New export opportunities opening up

The manufacturing sector overall is looking increasingly resilient, having coped with a high NZ dollar through improved productivity. – Catherine Beard, Executive Director, MaufacturingNZ As we near the end of 2015, it’s encouraging to note that New Zealand’s manufacturing sector is continuing its expansionary path and new export opportunities are opening up. At the time of writing this, the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI) results were from October 2015, and the seasonally adjusted PMI was 53.3 (above 50.0 indicates that manufacturing is generally expanding). Although this was 1.7 points lower than September, the level of expansion was still healthy. The sector has now been in continued expansion since October 2012. While a lot of the expansion can be attributed to the Christchurch rebuild and a catch-up of building and construction investment in the Auckland region, the manufacturing sector overall is looking increasingly resilient, having coped with a high NZ dollar through improved productivity. We have also seen consistent expansion from other sectors such as food and beverage. The high New Zealand dollar has allowed many manufacturers to invest in new plant and equipment and has encouraged manufacturers to move away from competing on price and to invest in innovation and quality to stand out from the competition. The monthly PMI survey has been a great way of keeping track of the industry trend, with comment and input direct from Kiwi manufacturers themselves. We are grateful for the BNZ’s ongoing support of this important exercise and to all the manufacturers around New Zealand who fill in the 5 minute survey every month. Another survey that helps us keep a good handle on New Zealand’s manufacturing performance is the annual ExportNZ survey, in the field in August-September. The majority of respondents (49%) identified themselves as manufacturers. The main […]

Meeting the needs of manufacturers

– Dieter Adam, NZMEA We are coming towards the close of another year, and it’s time to reflect on how it has gone for our manufacturers. I will also take this opportunity to give some updates on changes at the NZMEA in the last year and things we hope to achieve into the next year. Much of 2015 can be characterised with the usual volatility, both in markets and the exchange rate, which unfortunately seems to be all too normal in the current global environment. But we have also had a lot of bright spots in comparison to some recent years, notably the shift in the exchange rate, starting its long awaited correction from very high levels. After reaching record highs in the previous year, seeing the long awaited downward trend in our currency take shape through this year came as a relief. Exporters and import-competing manufacturers have felt the pressure of an overvalued currency for a number of years, peaking against the US$ in July 2014, but our dollar has steadily dropped since then and now lies at a far more reasonable level. Similarly for our biggest trading partner, Australia, our currency reached record highs in January of 2015, but again this has fallen back. This correction was helped along by the RBNZ cutting the OCR, better aligning our interest rates with those lower rates around the world. There are also suggestions we may see more cuts in the coming year. This long-awaited downward trend of the NZ$ will help manufacturers be competitive, both in global markets and when competing with imports, as well as helping them claw back some margins – we hope this will help put manufacturers in a better position to invest in their businesses and innovation in the coming year, something that has not been […]

High value manufacturing

New Zealand is an ideal location for investors looking for a competitive, developed country in which to drive niche production and sales in the Asia Pacific region. Its manufacturing industry has earned a reputation for being flexible, resilient, adaptable and entrepreneurial. New Zealand’s global advantage is in manufacturing high-value, short-run production cycles. Key areas of strength and opportunity include the aviation, energy, healthcare, marine, security, industrial equipment, and food, beverage and bio-processing technology sectors. A skilled workforce and innovations in metal, plastics and composites creates an attractive opportunity for investors. New Zealand offers businesses a simple tax structure that supports investment in research and development. From high-tech manufacturing to healthcare, New Zealand is responsible for some of the world’s most significant breakthroughs. It was New Zealand innovation that led to the splitting of the atom, the joint discovery of the structure of DNA, the invention of the disposable syringe and modern water jet propulsion. A well-educated, skilled workforce New Zealand’s knowledge-intensive, high-value manufacturing sector uses the county’s skilled and experienced workforce to transform products and processes. This gives manufacturers a competitive edge. New Zealand has a small and well-educated population, with one of the highest tertiary qualification rates in the world. Its manufacturing operations are well staffed, and have established a solid history of high-quality production and innovation. Currently, 40 percent of the adult workforce holds tertiary qualifications, compared with the OECD average of 32 percent. Intelligent design founded on the discipline of customer focus With a culture of creative self-sufficiency and resilience, the New Zealand workforce is known for original thinking with a fresh perspective that animates research and development processes and leads to the design of clever, pragmatic innovations. Cost-competitive labour New Zealand’s skilled labour force is cost competitive by developed country standards. Engineering employee costs are also […]

Is your shop floor ready?

Shop floors are often ground zero for scepticism regarding the Internet of Things (IoT). To the employees who work on the shop floor, IoT might seem like little more than the latest technology buzzword. Yet, the network connectivity that’s at the heart of the IoT is already rippling through the manufacturing industry. Manufacturers are realising significant productivity gains as a result of IoT-related improvements in sensing, analysis, prediction and control, and higher levels of automation. How organisations obtain the all-important buy-in from shop floor stakeholders? They must pay careful attention to change management. Capitalising on IoT opportunities is as much about reshaping an organisation as it is about implementing innovative technologies. The Importance of IoT Seventy to 80 percent of manufacturing processes are already automated. So then, what’s the big deal about IoT? By coupling software applications with sensors and controls that gather real-time production data, IoT links the entire manufacturing environment, including mobile devices used by workers and supervisors. Take a look at the impressive advances IoT is notching on the shop floor. A packaging and chemicals company, for example, made considerable gains in asset management by outfitting its forklift operators with Google Glass. The operators quickly scanned batch IDs of boxes and automatically generated transfer orders that integrated with the company’s enterprise resource planning (ERP) system; this system also easily tracked packages as they checked in and out of storage bins. As a result of this connectivity, the company improved its inventory management and productivity. And by avoiding multiple touchpoints, it also reaped significant cost savings. In another success story, a logistics company implemented a GPS and telematics-based solution that alerts it to supply chain disruptions such as port strikes, traffic congestion, or weather-related problems. The real-time notifications allow the company to reroute global consignments and grant the […]

NZ LED design opens door to global opportunity

Business Lighting Solutions (BLS) is eyeing up lucrative growth opportunities, as the innovative New Zealand-based LED lighting manufacturer launches a new product line targeting the global food processing industry. BLS Commercial Director, Paul Stoddart, said the company’s new patented product Soffito was poised to revolutionise lighting in food production areas – an industry conservatively valued at over $1 trillion USD. The product has already stirred up significant interest amongst the food processing industry in New Zealand, in advance of its release later this month. Stoddart said Soffito answers a number of key issues within the industry that were identified by BLS, following ongoing discussions with leading food processors aimed at better understanding the challenges and problems they face with current lighting solutions. “We found that most customers were using highly inefficient metal halide light fixtures, basically a tin box with a prismatic lens,” Stoddart said. “This type of fitting is highly-inefficient because it relies on outdated metal halide technology and suffers further losses through poorly designed lenses.” The only option available to the industry for decades, it failed to keep pace with technology and address key issues around maintenance, performance and importantly hygiene. Using the organisation’s wealth of experience with LED lighting, BLS fast-tracked an interim retrofit solution which was well received by its food production clients. “Despite that initial success, whilst convenient, the retro-fit solution still relied on the old outdated lens and was not operating at its maximum potential efficiency. Furthermore, the ongoing problems around performance and hygiene were still present.” Regardless, the BLS design team headed by seasoned designer Chris Wheatley was confident that it could produce a world-class alternative utilizing its combined skills and expertise. “Chris is an intuitive designer whose work is firmly embedded in European-style functional aesthetics. An alumni of the RCA London which […]

PowerMILL chosen for new additive/subtractive service from Star Prototype

Delcam’s PowerMILL CAM software has been chosen for a new service from Star Prototype that combines additive and subtractive manufacturing. The new service, which Star Prototype calls AddSub Manufacturing, combines metal 3D printing and five-axis CNC machining to deliver quickly complex, low-volume components that would previously have required the input of two separate bureaux. British-owned Star Prototype has been based in Guandong Province, China, for over ten years, where it has been breaking manufacturing ground by using a combination of new technologies, including 3D printing, alongside their traditional counterparts like CNC machining to deliver top-quality parts for a host of applications. The company developed the new service after it identified a significant demand for a one-stop-shop for such components. “Many metal 3D printed parts are no longer used as prototypes but as complex low-volume manufactured components,” explained Gordon Styles, president of Star Prototype. “As a result, many of these parts need certain high-precision features that are virtually impossible to produce with 3D printing alone. Problems arise because most 3D printing companies don’t carry out secondary machining, meaning the customer needs to take care of the finishing work themselves or farm it out to a separate specialist machining bureau.” With the AddSub process, Star Prototype first uses its Renishaw AM250 3D printer to produce extremely dense, high complexity metal parts that are often not possible to produce using traditional machining techniques. The Renishaw equipment uses direct metal laser melting to produce components in titanium, stainless steel or aluminium. The resulting parts are then finish machined on a recently acquired Haas five-axis machine programmed with PowerMILL. Star Prototype sees this combination as being ideal for the production of mating faces, precision bores, tapped holes, spigots and other very necessary high-precision features. Whenever possible, the parts are built on the AM250 in the […]

“Automotive suppliers must embrace faster innovation to adapt to new realities”

– Zhao Jizheng, Siemens PLM Software The automotive industry faces stricter fuel economy and emissions standards around the world, with varying deadlines for achievement through 2025. These fuel economy and emissions standards, along with improvements to safety, growth of intelligent mobility and customer desires for integrating their lifestyle into the vehicle, have automotive original equipment manufacturers (OEMs) relying more on electronics and embedded software to keep up with an ever growing industry. These trends are causing a fundamental change in vehicle technologies which requires more innovation from automakers and suppliers in alternative propulsion, lighter vehicles and energy optimization. A 2014 Center for Automotive Research report, entitled Advanced Information Technology Solutions: An Engine of Innovation, summarizes this sentiment by saying: “The industry is transitioning from a primarily mechanical-based industry to a software-based industry. In fact, some would argue that the industry is transitioning from a transportation focus to a technology focus.” Adopting these new technologies and product innovations drives more interaction across vehicle systems and components. As the complexity of vehicle systems increases with new types of technology, these innovations demand a fundamental increase in the sophistication of automotive systems. Suppliers must integrate mechanical, electronics and software capabilities as well as system development knowledge to deliver more complex systems. That, coupled with the global growth of the industry, increases the pressure on automotive suppliers to expand their own engineering, manufacturing and supply chain networks around the world, which adds to program and operational complexity. Staying in Front In Asia, suppliers are facing pressure on two fronts – the need to respond to their local market and OEM quickly, because Asia continues to be the growth engine for the automotive industry, and, as the part of the supply chain, they need to collaborate with global OEMs more efficiently and contribute more actively […]

Massive market available for exporters if they can perform

A Lincoln University expert says New Zealand exporters will have to be on their game to reap the benefits of a huge trade access deal which has gone under the radar. Faculty of Agribusiness and Commerce lecturer, Dr Eldrede Kahiya, says while the Trans-Pacific Partnership (TPP) has dominated media recently, an equally significant trade-related development has gone largely unnoticed. In August New Zealand became part of the Global Procurement Agreement (GPA). Situated within the framework of the World Trade Organization, the GPA is designed to make it easier to compete for foreign government contracts. He says this opens up a $2.65 trillion market for New Zealand exporters willing, and able, to exploit the opportunities it presents. However, New Zealand exporters really need to lift their game and neutralise disadvantages they face, he says, such as the sometimes difficult process involved with accessing international markets, our smaller scale and lesser market presence, higher costs, and an innate favouritism towards domestic suppliers. “Selling to an overseas government is not unlike playing on an unpredictable wicket which favours the home team,” he says. “Given that New Zealand is aiming to grow exports to 40 per cent of the GDP by 2025, the importance of the GPA to the Business Growth Agenda cannot be overemphasised.” The GPA presents opportunities in areas of public spending such as defence, health, education, customs and border control, aviation, transportation infrastructure, postal services, and information technology. Dr Kahiya says tendering and evaluation processes will be much more transparent to bidders, giving New Zealand exporters a fair chance to win foreign government business, however, success depends fundamentally on understanding and adjusting to the unique challenges of selling to foreign governments.

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