November 2015 Award winning supplier of SOLIDWORKS in Australia and New Zealand
www.nzmanufacturer.co.nz
5
14 TPP What it means for
BUSINESS NEWS Offshore investment vital for manufacturing industries.
small business.
Revolutionary wheelchair will benefit millions Kevin Halsall has invented a machine that will change lives, millions of them worldwide. Kevin, an engineering pattern maker from Otaki in Horowhenua, has built a revolutionary wheelchair not just for his friend, paraplegic Marcus Thompson, but for 11,000 disabled
people in New Zealand who rely on a wheelchair for mobility. Kevin’s invention, called the Ogo, blends cutting edge electronics with innovative body driven control which frees the users’ hands to do anything they want.
continued on page 6
FUTURE OF 20 THE MANUFACTURING Why advanced manufacturing will boost productivity.
Fuller ferries to be built in Whangarei Commentary by Industry Development General Manager Nick Inskip The media has been full of the news that Fullers ferries are adding two additional 34 metre, 360-seat ferries to their fleet. More importantly, they are having the vessels built by Q-West boat builders in Whanganui. The total value of the order is $16 Million. Q-West built Fuller’s existing Te Kotuku high speed catamaran that the new ferries are modeled on. Fullers CEO Doug Hudson is quoted by NZ Marine to have said, “It is important for the company, and particularly the shareholder, that the vessels are constructed locally, thereby providing a much needed boost to the regional economy.” That means at least 20 new jobs at Q-West and the multiplier effect of $16 Million which is spent in New Zealand and not sent offshore. The comment “It is important for the company, and particularly the shareholder,” says one thing loud and clear: This company isn’t just
continued on page 6
Affordable 3D design Free upgrade to Full Version & Discounts on Annual Maintenance Renew Annual Maintenance on any version of Alibre or Geomagic Design and receive a free upgrade to the latest full version. It doesn’t maer how out-of-date your license is. Save 10% when you renew Annual Maintenance for 2 years Save 20% when you renew Annual Maintenance for 3 years There is now only 1 professional version of Geomagic Design so everyone gets to use all the features available in the latest 2015 version 17. Receive future new versions, update patches and access to support. This latest version can be installed on as many computers as you want and you can acvate/de-acvate the installaons yourself as you move between locaons.
enquiries@baycad.biz
06 8337093
www.baycad.biz
THE SAFER FARMS PROGRAMME WHY A FARM SAFETY PROGRAMME? Farming kills more people than any other sector in New Zealand – 41 people have died working on farms in the last two years. That’s four times the number of fatalities in either forestry or construction. There are also thousands of serious injuries that lead to a loss of productivity and income for farmers. Farmers, their families and farming communities are directly affected, and bear the emotional and financial cost of deaths and injuries on the farm. This is why WorkSafe New Zealand is partnering with farmers and their families, sector organisations, and the rural community as a whole on Safer Farms, a comprehensive farm safety information and education campaign. WHAT IS SAFER FARMS? Safer Farms is a new way of working. It is a multi-year programme jointly funded by ACC. It aims to increase farmer awareness and understanding of their risks, support farmers to manage their safety, and build local and sector farm safety leadership. It will achieve this by: > Providing an easy-to-use toolkit and a comprehensive online resource - www.saferfarms.org.nz – so that farmers have clear health and safety advice and information. > A widespread media campaign in newspapers, magazines, on radio and online helping farmers identify and manage risks. > A seasonal information and education campaign highlighting the risks and how to manage them when they arise through the year (e.g. calving, shearing, picking). > Working with rural retailers to help them incorporate safety messages when dealings with farmers. > Training programmes to be delivered alongside rural stakeholder groups. > Education and information for rural kids delivered through school programmes and Dairy NZ’s Rosie’s World website. Safer Farms was not developed in isolation. It was built with extensive input from farmers, their
WSNZ_00155_FEB 15
communities and the sector to ensure the focus was on helping farmers to take ownership of their health and safety. WHERE CAN I GET MORE INFORMATION? Visit www.saferfarms.org.nz or call 0800 030 040.
KEEP SAFE, KEEP FARMING
SAFERFARMS.ORG.NZ
CONTENTS 5
DEPARTMENTS
5
BUSINESS NEWS
ADVISORS
Offshore investment vital for manufacturing industries.
7 MANUFACTURING TECHNOLOGY
Craig Carlyle
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
Delcam Leaning Zone app for android devices. Evaluation services manage assets better.
9 DEVELOPMENTS
Research and Development Remedial Tax Bill a large step forward. Programme aims to curb national shortage of engineers. Mattress recycling project turns waste into resource.
Catherine Beard
Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, NewZealand’s largest business advocacy group, representing businesses of all sizes.
12-13 FOCUS
The Connected Enterprise Maturity Model.
14
10
TPP What it means for small business.
15 MARKETING 17 DEVELOPMENTS
Dieter Adam
Chief Executive, New Zealand Manufacturers and Exporters Association has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.
Find your 8 hidden marketing assets.
NZ well placed to attract overseas investment. Wellington’s thriving digital sector ‘nearly invisible’.
18 BUSINESS NEWS 19–21 THE FUTURE OF MANUFACTURING Nuance Power PDF delivers value for money.
17
Lewis Woodward
Is Managing Director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
3D printed ‘building blocks’ of life. Automatica 2016 – Breakthrough of smart robots. Why advanced manufacturing will boost productivity. Revolutionary wind energy conversion system. The breakthrough of the smart robots.
22 FOOD MANUFACTURING
NZ Gluten-free boom prompts new testing service. Reporoa feed company taking on the world.
19
Dr Wolfgang Scholz
Is HERA Director and a Fellow of the Institute of Professional Engineers NZ.
TOOLS 24-25 WORKSHOP Tube bending in chemical plant engineering. Level Lift System safe for uneven loads. Connector assortments for harsh conditions. Oil-free compressor for sensitive applications.
26
ANALYSIS How to turn around an ailing manufacturing plant and reengage workers.
Garth Wyllie
20
Is EMA’s Executive Officer, Manufacturing & Industry Groups. He is a strong advocate for the manufacturing sector. In his 20-plus years with the organisation Garth has managed a range of sector groups, with manufacturing being a key focus.
27 NEWS 28 ANALYSIS
Fielding student wins prestigious award.
Managing in-market representation for manufacturers and exporters. Low investment in R & D and technology holding us back.
31
REAR VIEW
22
Steel Industry in Crisis.
www.nzmanufacturer.co.nz
/
NZ Manufacturer October 2015
3
EDITORIAL
PUBLISHER
Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.
MANAGING EDITOR Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz
CONTRIBUTORS
Garth Wylie, John Watts, Dieter Adam, Garry Hook, Holly Green, Gilbert Peterson, Nick Inskip, David Frank, Vishnu Rayapeddi, www.mscnewswire.co.nz
ADVERTISING
Doug Green T: + 64 6 870 9029 E: publisher@xtra.co.nz
DESIGN & PRODUCTION Kim Alves, KA Design T: + 64 6 879 5815 E: kim.alves@xtra.co.nz
Julian Goodbehere E: julian@isystems.co.nz
PUBLISHING SERVICES
Kevin Halsall, an engineering pattern maker from Otaki has invented a revolutionary wheelchair with the potential to change the lives of millions of people around the world.
Segway technology allows for an active, moving seat control, operated by upper body mobility and core muscle strength. The wheelchair moves to the direction of the driver’s body so when the driver leans forward the wheel chair moves forward, when the driver leans back the wheel chair reverses.
On-Line Publisher Media Hawke’s Bay Ltd
DIGITAL SUBSCRIPTIONS E: info@nzmanufacturer.co.nz Free of Charge.
MEDIA HAWKES BAY LTD T: +64 6 870 4506 F: +64 6 878 8150 E: mediahb@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992
Vol.6 No.10 November 2015 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.
Affiliates
ASIA
MANUFACTURING NEWS
NZ Manufacturer November 2015
We lead off this issue of NZ Manufacturer with two inspiring stories. Showing what we can do right here and the expertise available.
The Ogo blends cutting edge electronics with innovative body driven control which frees the users’ hands to do anything they want.
WEB MASTER
4
Made locally we all benefit
/
www.nzmanufacturer.co.nz
By building the ferries here this is a real boost to the regional economy. 20 new jobs will be created and the money stays in New Zealand and not going offshore. This begs the question as to why Government gave a Bangladesh shipyard an order for a ferry for $8 million – part of an aid package for Tokelau – when it could have been built here? As Nick Inskip says in this article we need more real New Zealanders like Fullers who back our industry to the hilt just like Fullers and their shareholders. How many other manufacturers are out there with a ‘built locally’ story that readers need to know about?
Now it’s a case of investors coming on board as people around the world are wanting to purchase the Ogo. Think of the American military and their huge infrastructure that looks after vets returning from war zones such as Iraq and Afghanistan who require a product like Ogo. Fullers, the Auckland ferry company is having two 360 seat ferries built by Q-West boat builders in Whanganui. This order is worth $16 million.
Doug Green
BUSINESS NEWS
Discovery is seeing what everybody else has seen, and thinking what nobody else has thought.
COMPANY PROFILE Offshore investment vital for manufacturing industries -Albert Szent-Gyorgyi
“For the first time, Government is speaking openly and explicitly about the need for foreign investment. We need it to shore up diversification in the products we make, and to add value to our primary sector,” says DLA Piper New Zealand partner Martin Thomson. “Capital from the world’s developed and developing economies - including traditional trading partners like the US and Europe and newer trading partners such as China and India - is looking for a home. The only question is: will New Zealand be open, attractive, willing and competitive enough to receive it?” he says. “If the Government has its way through these reports and strategies, we will be ready.” “The Government’s Business Growth Agenda recognises that it is businesses that drive economic growth and build a more successful economy with more jobs for Kiwis” adds Ms Brown. “The new Building Investment work stream supplements earlier strategies and looks to leverage the significant steps taken to improve and strengthen our capital and financial markets. These are now supported by a world-class
Commercial & industrial growth
regulatory and legislative framework, following the recent financial markets reforms. The reforms - led out by the establishment of the Financial Markets Authority and implementation of the Financial Markets Conduct Act - have restored confidence to our markets and promoted growth through the establishment of new and innovative markets for crowd funding and stepping stone markets, such as NXT.” “These financial markets reforms provide the springboard to accelerate growth” says Ms Brown. “Now, we have to leverage this framework into the productive economy. To do this, we need to be open to direct investment from offshore. “ “The aim is to direct this capital into investment in research and development to support productive industries and reduce our reliance on primary production, expand the pool of ‘smart’ capital from migrants, and support regional and Maori investment opportunities to attract offshore investment. This is probably the first time New Zealand has seen such a determined, concerted approach from any Government, across all of its
branches.” The Government also released a separate report International Investment for Growth which shows why foreign direct investment is good for New Zealanders, and the approach to be taken to attract high value investment. The report argued that, in the absence of a large domestic market, foreign investment into New Zealand helped
Employment growth
the country connect globally with customers. It also said that foreign investment had a profound effect on New Zealand’s labour market. Foreign investment is represented in only 2% of New Zealand firms, but in 47% of firms with over 100 people. Firms with foreign investment employ 20% of people in New Zealand, and mostly they pay more than domestic
continued on page 14
Economic output
Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average.
getba
getba.org.nz
Greater East Tamaki Business Association Inc.
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
5
BUSINESS NEWS
If you don’t like something change it; if you can’t change it, change the way you think about it. - Mary Engelbreit
continued from page 1
Revolutionary wheelchair will benefit millions “It’s given another dimension of mobility to my life,” says Marcus, a secondary school teacher, who broke his back in a high speed skiing accident. The Ogo hasn’t just pleased Kevin and Marcus. It’s been endorsed by five Manawatu business leaders who awarded it the BCC Innovate 2015 grand prize award of $10,000 and this month was a finalist at the New Zealand Innovators’ Awards in Auckland. Kevin’s interest in helping Marcus began about four years ago. They’d known each other for several years and Marcus had taught Kevin’s two daughters, Erina and Della. Both Kevin and Marcus enjoyed field archery where contestants move through bush and rough terrain to shoot at 28 targets. Kevin observed Marcus struggling in his conventional wheelchair and exhausting his energy and stamina before the competition was over. Kevin’s challenge was to make it easy for Marcus. His research led him to
a Segway, a self-balancing, battery powered electric vehicle which has censors in its base. These sensors enable the driver to move forwards or backwards by shifting their weight in the direction they want to move. Kevin realised these same concepts could be applied to a wheelchair. He spent hundreds of hours over four years experimenting until he designed and manufactured a sturdy wheelchair that could be manoeuvred by the body, leaving the hands free to do whatever the driver wanted. “By utilising Segway technology I produced an active, moving seat control, operated by upper body mobility and core muscle strength,” Kevin said. “When the driver leans forward, the wheelchair moves forward, when he or she leans back the wheelchair reverses. When they lean to the side, the wheelchair swivels in the new direction.” This provides the driver with free
hand and arm movement. They can do something as functional as holding a cup of coffee in one hand, opening a door with the other and moving through to another room or outside. In Marcus’s case, he can carry and move objects, power along the undulating beach at up to 20 kph and, in particular, mow his lawns. “’I’ve been frustrated for so long but I can do things I haven’t done for years,” he says. “It’s therapeutic and healing for the soul. With my hands free, I’m able to use my whole body to carry out tasks again.” However to add extra safety and security, the Ogo comes complete with a thumb controlled joystick. By activating a switch, it locks the left and right movement of the seat and transfers the steering control to the joystick for a more conventional feel.
Kevin is delighted Manawatu based BCC (Building Clever Companies) has rewarded his invention and he is now talking to investors and business leaders as well as receiving calls from people around the world wanting to purchase his machine. His aim is to start production in the new year. “This is revolutionary for people with disabilities. It will change lives,” he says. BCC Marketing Manager, Dave Craig, says Kevin’s wheelchair will go from Otaki around the globe and reinforces that world class products do come out of regional New Zealand. “Innovate was created to find regional inventors like Kevin. He doesn’t need to base himself in Auckland, Wellington or the Silicone Valley. He can craft his invention in his home town and let Innovate help with scale,” he says.
The machine has been endorsed by occupational therapists who maintain that driving the Ogo with the upper body provides the exercise it needs.
Kevin Halsall is aware of 67 million people worldwide with disabilities and he knows that Ogo will benefit many of them.
Is it that the procurers didn’t perceive the same innovation, quality and delivery aspects that Fullers did? Or were they only looking at the cost? Either way, one thing is inescapable - the title ‘Good corporate citizen’ cannot be claimed by those who don’t earn it, so it’s not a title those who procured the Tokelau ferry can ever hold or those who have bridges, rail wagons or anything else built offshore that local industry can ably build here.
and to Q-West, because of them we are ALL winners.
continued from page 1
Fuller ferries to be built in Whangarei operating in New Zealand, it is an outstanding corporate citizen of New Zealand; concerned with more than just the price they pay. This is reinforced when Hudson also said, “Q-West is known for its innovative and quality builds, and with such a large contract we were determined to ensure the local market benefitted from the investment. We knew that the team at Q-West could deliver on what is a maritime milestone for us.” So it’s also about innovation, quality and delivery, which is something New Zealand industry traditionally does
well. So why is it that a corporate can back NZ and be rightly proud of doing so, but our Government gives a Bangladeshi shipyard an order for a ferry for $8 Million which is part of an aid package for Tokelau? According to Peter Busfield, executive director of NZ Marine speaking in 2014 on the issue of the awarding of the Tokelau ferry contract to Bangladesh, “We believe the Government’s procurement requirements are fundamentally flawed as the process does not factor in the economic gain to the country of buying ‘New Zealand Made’ versus importing.
We need more real New Zealanders, i.e. those who back our industry to the hilt just like Fullers and their shareholders. Congratulations to them
That means at least 20 new jobs at Q-West and the multiplier effect of $16 Million which is spent in New Zealand and not sent offshore.
MSCNewsWire the destination and distribution network for manufacturing news in New Zealand www.mscnewswire.co.nz
Businesses in the MSCNewsWire Network include:
Want to know how the MSCNewsWire Network can be of benefit to your business? Then contact Max Farndale on 06 870 4506 or by email at max@mscnewswire.co.nz.
6
NZ Manufacturer November 2015
/
Adhesives, Calibration & Instrumentation
Designers of automation equipment
www.nzmanufacturer.co.nz
Heavy engineering at its best
Design technology with AutoCAD
Excellence in Abattoir products
Vineyard equipment at its best
Your news read worldwide
Success is not final; failure is not fatal: It is the courage to continue that counts. -Winston S. Churchill
MANUFACTURING TECHNOLOGY
Delcam Learning Zone app now available for Android devices Following several thousand downloads of its free Learning Zone App for iPads, Delcam has now also made the Learning Zones for its full range of CADCAM software available as a free download for Android devices. The new App can be downloaded from Google Play at https://play.google. com/store/apps/details?id=com.rjdm. delcamlzandroid The iOS version for iPad remains available free of charge from the Apple App store at https://itunes.apple.com/ app/id988414798 The Delcam Learning Zone App comprises tutorials for the latest releases of all Delcam software, including the company’s CAM programs, PowerMILL, FeatureCAM and PartMaker; the PowerSHAPE Pro CAD and reverse engineering software; the PowerINSPECT inspection system and the ArtCAM range of artistic CADCAM programs. A selection of case study videos from the Delcam.tv website is also included, in which a number of customers talk about their relationship with Delcam and the benefits they get from using the company’s software. Users with suitable internet connections can stream the videos using the Learning Zone App. Alternatively, the videos can be downloaded and then viewed offline at any time.
Delcam’s Learning Zone App contains videos showing customers how to gain the most benefit from their software.
The videos can be filtered by product and/or by industry category to help viewers find the content that is relevant to them. In addition, any of the videos can be made a ‘favourite’ so that it is easy for users to go back to
their preferred material. While the Learning Zone App is intended mainly for existing customers, it will also help companies interested in adding Delcam software to see the latest developments in the programs.
www.nzmanufacturer.co.nz
/
New tutorials for new product releases will be added to both version of the Learning Zone App as they are developed to help users make the most of each new version of their Delcam software.
NZ Manufacturer November 2015
7
HEADING MANUFACTURING TECHNOLOGY
Slow and steady wins the race. -Aesop
Wearply offers outstanding fatigue life in machinery and plant A hugely durable reinforced plastic composite that weighs less than aluminium but has up to 10 times the specific strength of 1020 steel is being offered by Cut to Size Plastics for demanding mining and energy, materials handling, electrical and rail applications. Wearply reinforced plastic composite – which can withstand millions of stress cycles at 1400 bar (20,000 psi) without fatigue failure – is used to optimise design and performance of machinery and plant components in which performance and reliability is vital including. • Vibratory conveyor, feeder, screening and materials handling technology • Insulated rail jointing – food and primary product processing • Automotive and vehicle suspension components • Flexible couplings that can transmit torque even when shafts are misaligned • Electrical motor, generating and transformer products Wearply derives its enormous strength, performance and durability from epoxy resins reinforced with continuously aligned, non-woven filaments. This
allows plies to be laid so reinforcement is oriented to give greater strength and stiffness in the direction, or directions, in which it is most needed. Parallel filaments resist the stress abrasion that can shorten the fatigue life in conventional reinforced plastics, says Cut To Size Plastics Managing Director Mr Laurie Green. “This advanced engineering material is winning the attention of machinery designers globally for its superior performance in a huge range of applications, from vibratory machinery in minerals and primary production processing to its hygienic, highly resilient high insulation properties in food and beverage plant and electrical applications. The same qualities that make it suitable for advanced aerospace and medical applications – such as helicopter blades and MRI equipment – mean it can be employed with confidence in automotive, rail, marine and high-precision tasks where reliability is vital.”
Material advantages include: • High strength-to-weight performance, including 50 per cent greater compression strength than 1020 steel and a strength-to-weigh
ratio up to 75x 106 mm. Aluminium is 45 per cent heavier • High impact strength and low notch sensitivity • High resistance to fatigue, which, combined with other properties such as high dynamic strength, makes the material very suitable for helper, guide and drive springs in swing and screen technology • Longer service life, which, in the case of linear and circular conveyors with magnetic drive, provides longer service life that results in higher outputs for food production, for example • High temperature stability – dry service temperature up to 177oC (350oF) • Chemical and corrosion resistance – demonstrated in a wide range of vibratory conveyors, feeders and screening equipment working in aggressive environments. Resistant to cleaning fluids and solvents • Improved electrical resistance – for performance as an electrical insulator in areas such as rail jointing, where it is used in standard, heavy duty and adhesive types, and as a structural high temperature composite in
Wearply is used for applications ranging from vibratory conveyor leaf springs through to electrical motor, generator and transformer components; insulated rail joints, and minerals processing components.
generators and transformers • Damped vibration, noise and shock, qualities which, combined with other material properties, contribute to automotive leaf springs that offer ride smoothness, handling performance, longer life (and freedom from rust). • High elastic storing capacity combined with high mechanical strength, to provide higher resiliency as compared with normal steel leaf springs, higher internal damping, well balanced resilience behaviours and six-fold storage capacity as to elastic energy compared with steel springs. Also used in shock and strut structures.
Rockwell Automation evaluation services manage assets better The majority of production facilities operating today are a mix of incredibly modern technologies and equipment operating well past its expected life cycle. Many companies are not entirely sure what equipment they have, or the specific risks that are associated with aging equipment. Rockwell Automation has released new software and enterprise evaluation services designed to help manufacturers and industrial operators better manage their assets and reduce risk. This is particularly important as manufacturers converge information technology (IT) and operations technology (OT) systems, and migrate to a unified Connected Enterprise. New services include the Software Inventory Evaluation and Enterprise Installed Base Evaluation services from Rockwell Automation.
the various software installed on those assets. This can help identify potential compatibility risks between specific firmware and software versions as more systems are connected and devices are updated. It can also help close knowledge gaps among support staff regarding which software versions are used across a myriad of equipment, how many licenses are used or unused, and whether software is being properly supported. “More than a software audit, the Software Inventory Evaluation service includes valuable analytics-based reporting that details areas of risk and provides insights for taking action,” said Andrew Wilber, Installed Base Evaluation service manager, Rockwell Automation.
The Software Inventory Evaluation service provides organisations a thorough analysis of their plant-floor IT assets – including servers, PCs, laptops and mobile devices – and of
“It can also deliver significant cost savings. For example, it might identify opportunities to eliminate unused software and to migrate to concurrent licenses.”
8
/
NZ Manufacturer November 2015
www.nzmanufacturer.co.nz
The Enterprise Installed Base Evaluation service can include a multisite Software Inventory Evaluation service or Installed Base Evaluation service, which is used to analyse critical plant assets to provide a full accounting and analysis of an organization’s IT and OT assets across the enterprise. Organisations can use the Enterprise Installed Base Evaluation service to support specific corporate wide initiatives, such as identifying their most critical assets, reducing obsolescence risks, managing corporate storeroom and spare parts initiatives, and ensuring all assets have up-to-date bills of material. For example, an organisation can use the service to review its facilities for parts that are running business-critical activities, have no spare parts in inventory, and are also discontinued. This can help create a corporate risk
profile that highlights the highest risk for downtime at each site. “Organisations attempting to do comprehensive evaluations in-house often spend a year or longer just to collect hardware data from a single facility,” Wilber said. “That can be a significant strain on high-value resources, especially when expanded across multiple facilities. It also presents challenges in ensuring a standard methodology is used for collection. “With the Enterprise Installed Base Evaluation service, we can collect this data and begin delivering actionable, insights-based reports in mere weeks.” Enterprise Installed Base Evaluation reports can provide insights across all of an organisation’s facilities. They also can be customised, based on top at-risk locations and top at-risk machines, or focus on specific business units across multiple facilities.
The road to success and the road to failure are almost exactly the same. -- Colin R. Davis
DEVELOPMENTS
Research and Development Remedial Tax Bill – a large step forward! Garth Wyllie, Executive Officer, Manufacturing & Industry Groups, EMA (Northern) It looks likely the Research and Development Remedial Tax Bill should pass into law by the end of the year so why is this important? The answer is simple. We under invest in Research and Development (R & D) and when we do much of that expenditure is not recorded as being R & D. This bill gives significant incentives to firstly record that expenditure separately and secondly for new and innovative companies to undertake R & D. It addresses the so called “black hole” of expenditure, by cashing out the tax loss from the R & D and carrying that loss forward as a tax credit for businesses. For many, this sounds like a lot of accountant speak. However, what it means in practice is that if you want to create a new innovative product and need to spend a large amount on the R & D you can now get that tax loss in the form of a tax credit. The net effect
is your tax outgoing will drop and that means you will have a better cash flow while bringing that product to market. The EMA has long supported using our tax system to address R & D and other key drivers of business growth. It is fair to say that many of our bigger and more successful companies were able to tap into previous tax incentives that drove growth in their companies in their early years. That is what this type of change is about. It we put the right levers in place to incentivise business to grow, particularly those in the manufacturing and exporting sectors, we also drive job creation, exchange earnings and capital expenditure within the country. We give our innovative new businesses the chance to invest in their future through developing new ways to make products or deliver services. While the obvious beneficiaries will be companies focused on high tech and highly innovative solutions, there is no reason why more traditional
manufacturing companies cannot also take full advantage of tax incentives on R & D. For many, this would mean changes in processes and increases in productivity along with a change in the type of products they produce and the likely market for their products going forward. Would that thinking or change happen without such incentives? The answer is maybe but more likely at a very much slower pace for most and just too difficult for some. Does this Bill go far enough? The EMA believes it is a positive move. One of the major challenges is how to fund the R & D initially. The traditional sources of funding are cautious about lending on newer start-ups or businesses that are unable to give a high assurance that the expenditure will turn into sales and ultimately profits. This Bill gives banks a far higher level of surety that some return will arise and that the business will not die from a lack of cash flow in the early years.
Programme aims to curb national shortage of engineers Waikato Institute of Technology (Wintec) has teamed up with Waikato secondary schools to address the national shortage of engineers by moving more young people towards a career in the industry. Together, they’ve developed a programme – the first of its kind in New Zealand – which aims to provide secondary school students with a pathway into engineering. From February 2016, around 30 year 12 and 13 students from Hamilton’s Fairfield College and Fraser High School will spend two days per week of the school year taking part in engineering courses with learnings that will apply to mechanical and civil engineering pathways at Wintec.
During the other three days, their maths and physics school subjects will be specifically contextualised toward engineering. A Wintec engineering tutor will work with the schools to incorporate projects into their curriculum which teaches the theory through hands-on application. “At the end of the year, the students will have the necessary criteria to enter into and succeed in Wintec’s New Zealand Diploma in Engineering,” says Wintec chief executive, Mark Flowers.
maths and physics in order to be able to move into an engineering diploma or degree and it’s much better if they can understand the relevance of these subjects to jobs like engineering. This programme aims to address this.” Fraser High School principal, Virginia Crawford says: “Creating purpose and context in learning with a clearer line of sight between what a student learns at school and how it is connected to the engineering vocation is a game changer.”
“New Zealand needs more engineering graduates and primarily at the level of engineering technologist and technician, but there’s a public misunderstanding about the breadth and depth of the industry.
Fairfield College principal, Richard Crawford says the programme will connect his students to an engineering pathway that offers significant career opportunities.
“There are a range of credible engineering roles that don’t require a four year university degree, but that open up great career options for some pretty decent pay.
“Next year will not be the final year of secondary school for these students, but the first year of a three year programme that places them in the strongest possible position to achieve the New Zealand Diploma in Engineering in 2018.”
“The fact we’re not training enough people in this area goes right back to secondary Left to right, Richard Crawford, Fairfield College principal and Mark Flowers, Wintec chief executive signing a school. Students need to Memorandum of Understanding for the new programme. take the right subjects like
The results of the pilot programme will be evaluated at the end of 2017, with the aim of increasing the number of participating schools and students in 2018.
www.nzmanufacturer.co.nz
/
Is this the silver bullet? No, but it may have enough silver coating on to it to say that this is a step in the right direction. It is likely to create new businesses, by providing cash flow sustainability for those difficult first years and assist the new generation of businesses that will drive the economy forward. In short a large step forward!
SUBSCRIBE TO
NZ Manufacturer and be in the draw to win Nuance Power PDF software. Power PDF delivers high performance Frees users from the compromises of traditional PDF applications Provides all the tools you need
To subscribe please email: publisher@xtra.co.nz
NZ Manufacturer November 2015
9
DEVELOPMENTS
There are two types of people who will tell you that you cannot make a difference in this world: those who are afraid to try and those who are afraid you will succeed. - Ray Goforth
Mattress recycling project turns waste into resource Manufacturers have teamed up to help develop New Zealand’s first mattress recycling scheme, amid concerns over the growing ‘mattress mountain’ in landfills. Product stewardship specialists 3R are leading the project, working with mattress manufacturers, retailers and other stakeholders to divert old mattresses away from landfill and into recycling pathways. 3R has already developed voluntary product stewardship programmes for paint, agrichemicals, packaging and child car seats. 3R Chief Executive Adele Rose says mattresses may not seem like obvious candidates for recycling, but there are several reasons why recycling is a better option than simply sending them to landfill. “There are a number of problems with landfill disposal of mattresses. For instance, the spring units cause problems for compacting machinery,” she says. “They also take up valuable space in landfill and it is a waste of resource that can be extracted and reused.” Each year New Zealanders dispose of about 300,000 mattresses. If stacked on top of each other, these discarded mattresses would be about 300 times the height of the Sky Tower and reach the edge of space. Discarded mattresses represent 8,100 tonnes of waste or 120,000 cubic metres of landfill space, with estimated landfill airspace costs of $14.4 million per year.
“Until now there has been no option but to send discarded mattresses to landfill,” Rose says. That’s where 3R comes in with its expertise in product stewardship programmes. It’s about designing solutions to deliver real economic and environmental benefits, which turns waste into a resource. “We believe helping clients take responsibility for their products at the end of their life can mitigate environmental harm and provide improved resource efficiency through the recycling or reuse of materials,” says Rose. With 100,000 mattresses going to landfill in the Auckland region each year, the Auckland Council has also given the project its support. Early dismantling trials show the mattresses contain materials as diverse as steel, foam, coir fibre, plastic net, cotton fill, timber and many fabric types, with 90 per cent of these recyclable. “During the trial, foam was sent to a New Zealand manufacturer to be used in carpet underlay, a process that uses steam as a steriliser, while steel and plastics were sent to traditional recycling outlets,” Rose says. “There is also a high percentage of coconut coir fibre in the beds which is a full compostable organic material suitable for use as weed matting on
motorway developments and planter liners.” According to Rose, the timber components are largely New Zealand grown untreated pine which is suitable for upcycling and reuse. “This means over 7,000 tonnes of materials per year could be recycled or repurposed rather than dumped, saving nearly 50 Olympic swimming pools worth of space.”
3R Chief Executive Adele Rose
One of the companies participating in the pilot programme is The Comfort Group, Australasia’s largest mattress and foam manufacturer which has well-known brands such as SleepMaker and Sleepyhead.
That’s because the support from the springs and foam inevitably deteriorates, and unhealthy allergens like dust mites and mildew build up over time, especially in New Zealand’s climate.
“We’re really passionate about recycling and waste minimisation, and we were looking at doing our own product stewardship programme, but it made sense to band together when this initiative came along,” The Comfort Group Marketing Manager Felicity Turner says.
Adele Rose says The Comfort Group’s experience highlights the value of an independent product stewardship company like 3R. It’s a neutral party so can work with organisations in the same marketplace to achieve a better outcome for all. It also has the experience in working collaboratively and jointly with private organisations, associations and local government.
“You need everyone on board to make a success of it, and you need the buy in of retailers and competitors to get the benefit of the economies of scale.” Turner says old mattresses do need to be taken out of circulation because they have a finite lifespan. The industry standard is to recommend people replace their mattress every eight to ten years.
“Bit by bit 3R is helping to change the way waste is managed and thought about in New Zealand across a range of products. With our experience in product stewardship, we are the go-to experts for any industry or business looking to improve their performance in this area.” While there is still work to be done in subsequent stages of the trial, Rose is confident 3R’s latest product stewardship programme will be another success.
Project participants: • 3R Group • AH Beard • Auckland Council • Bedpost • BedsRUs • Big Save • The Comfort Group • Community Recycling Network • Envision NZ • Harvey Norman • McLaren Park and Henderson South Community Trust • Sealy Beds • Tempurpedic MPHS Community Trust workers Mark Alderson (left) and Jon Morgan dismantle a mattress during the trial.
10
NZ Manufacturer November 2015
/
www.nzmanufacturer.co.nz
• The Red Cross
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
11
FOCUS
I owe my success to having listened respectfully to the very best advice, and then going away and doing the exact opposite. - G. K. Chesterton
The Connected Enterprise Maturity Model John Watts, Regional Marketing Director – Asia Pacific, Rockwell Automation SEA Pte Ltd
How ready is your company to connect people, processes and technologies for bigger profits? John Watts, Regional Marketing Director, Asia Pacific is responsible for all regional marketing functions including commercial marketing, commercial engineering and product business management. John also has responsibility for sales operations and sales competency. John has 18 years of experience in automation and process control sales and marketing. Apart from his time at Rockwell Automation, John has held sales and sales management positions with Yokogawa. He joined Rockwell Automation in 2006 as Manager, Process Solutions, Asia Pacific. From 2010 he held the position of Director, Integrated Architecture for Asia Pacific. In this role he had responsibility for business management and marketing of Integrated Architecture products including PLC / PAC controllers, motion control, software, operator interface and condition monitoring. He holds a Masters in Business Administration from Melbourne Business School and a degree in Electrical and Electronic Engineering from the University of Melbourne. John is based in Singapore. Savvy manufacturers are leading the charge in managing how information is shared seamlessly and securely across their enterprises. In quest of better decisions, increased collaboration, faster time to market, lower total cost of ownership, maximised asset utilisation and minimised enterprise-risk management, industrial
12
NZ Manufacturer November 2015
operators are progressively connecting their manufacturing operations with the entire value chain – uncovering the benefits of the Connected Enterprise.
A New Path to Enhanced Productivity The rapid convergence of plant-floor operations technology (OT) and business-level information technology (IT) is delivering insight. The Internet of Things (IoT) is enabling data from production-line and remote-device sensors, actuators, controllers and switches to be distributed real time to enterprise teams and supply-chain partners. By connecting people and processes via technology, executives and their continuous-improvement teams acquire new visibility into the various practices for quicker response to internal measures, external business activities, and market changes – for boosted productivity and global competitiveness. A secure, standards-based Industrial EtherNet/IP network, serving as a common unifying intelligent infrastructure that supports electronic data exchange, empowers manufacturers to become Connected Enterprises, where contextualised data can be shared where and when it is needed. Unfortunately, in a study of plant operators conducted by IndustryWeek magazine, the top publication read by U.S. manufacturers, found surprisingly low levels of integration, both on the plant floor and throughout the
/
www.nzmanufacturer.co.nz
enterprise. With only 14 per cent of executives stating that 100 per cent of their plant-floor data is completely interwoven with enterprise systems, there is a major opportunity for industrial operators to ramp their commitment towards smart manufacturing. A future-ready network that consolidates information for immediate enterprise-wide understanding, planning, decision making, and management can increase output and sustainability, whilst reducing risk.
Making Sure that Information and Profits are Secure Attacks on enterprise networks can come from anywhere, anything, and anyone, including legacy OT devices or systems that may pose unexpected risks. As these ageing systems become increasingly less efficient, state-of-the-art OT and IT implementations result in fewer product defects, raised profitability and heightened customer satisfaction.
Introducing a Five-stage Connected Enterprise Maturity Model To help manufacturers comprehend how to start their journey towards becoming a Connected Enterprise, Rockwell Automation pioneered a five-stage Connected Enterprise Maturity Model, detailing how to implement a more intelligent OT/
IT network. Any company can join at any stage, at any time, depending on the phase of development most appropriate for its needs. The model incorporates measures and best practices necessary to ensure change in both technologies and organisational behaviour to pave the way toward harnessing the company’s most valued asset, its data. Thereafter, the spotlight is on securely integrating the technologies, processes and people for maximum operational performance.
Stage 1: Assessment The Assessment Stage evaluates all facets of an organisation’s existing OT/ IT network, including infrastructure, controls and devices, networks, security policies, as well as the people and practices that manage this framework. A thorough assessment identifies and records inefficiencies with the existing OT/IT network: creating a “wish list” for designing the new network; laying the foundation for more advanced technologies; and addressing network-security issues.
Stage 2: Secure and Upgraded Network and Controls After inefficiencies in the current
FOCUS
The ones who are crazy enough to think they can change the world, are the ones that do. - Anonymous
title At the same time, the company develops responsiveness to external events – customer and supplier activities, economic and market trends, socio-political events, etc. – to reduce losses and leverage new-found opportunities. Being able to respond promptly and accurately to emerging supply-chain and market conditions drives operational excellence and noticeable cost savings. Rockwell Automation has fully progressed through the Maturity Model, with measured growth and innovation breakthroughs. It has encouraged its suppliers, downstream OEMs and customers to collaborate as partners for mutual asset utilisation and optimised effectiveness. OT/IT network and operations are identified, upgrades can be launched with a long-term view that anticipates infrastructure expansion, as well as new hardware, devices, and software installations. At the same time that a robust network backbone is developed to deliver secure and versatile connectivity from plant-floor operations to enterprise-business systems, a comprehensive security policy must also be formulated. During this stage, a plan is confirmed for how OT and IT engineers will collaborate. Cross-functional teams often assess new technology alternatives, establish vendor options and roadmaps, and conceive the design of a scalable, integrated and secure OT/IT network. Beginning in a controlled, virtual environment, companies can outline business processes and workflows to manage the future intelligent system that is suitable for those in the plant, as well as enterprise management.
Stage 3: Defined and
Organised Working Data Capital (WDC) In Stage 3, the OT/IT upgrade teams define and organise the unlimited information at hand related to machine output, energy consumption and materials usage for improving business procedures. Ultimately, this WDC must be contextualised, so it can be harnessed and leveraged for tangible gains. With an effective OT/IT network in place, smart data from OT devices can be viewed across the enterprise to allow performance-critical decision making. At the same time, documentation can be compiled and disseminated to customers, certification teams and regulatory-compliance officers.
who can use the information, and protocols that need to be in place to empower collaboration, agility and consistency. Analytics also assist executives to optimise their global plant operations and achieve significant long-term savings via universal capital avoidance. With prioritised and persistent efforts, executives can monitor, measure, advance and reward cultural change at the plant, supply-chain lead times, customer service, productivity, efficiency and quality.
Stage 5: Collaboration
Stage 4: Analytics
Stage 5 of the Maturity Model creates an environment that proactively anticipates activities throughout the enterprise and the entire supply-and-demand chain.
At this point, the attention shifts from the IT/OT backbone to continuous improvement. At an operations level, WDC analytics can identify audiences with the greatest needs for real-time actionable data, authorised parties
Internally, emerging predictive capabilities facilitate more efficient production planning and management, organised order execution, enhanced quality, and streamlined plant-to-plant performance.
www.nzmanufacturer.co.nz
/
Conclusion Every manufacturer will enter and progress through the varying stages of the Connected Enterprise Maturity Model at a pace determined by its own needs, infrastructure, readiness, and resources. With unprecedented collaboration across the entire business and supply chain, the Connected Enterprise can transform an idea to a competitive advantage, with continuous improvements and efficiencies across design, production, network security, asset management and logistics. Rockwell Automation is rigorously connecting the assets it creates, thereby gaining powerful insights into its supply-and-demand chain, business processes, operations, maintenance and much more. The company is leveraging the proliferation of smarter field devices, big data and analytics, virtualisation and mobility so that its customers are more productive and the world is more sustainable.
NZ Manufacturer November 2015
13
TPP
Successful people do what unsuccessful people are not willing to do. Don’t wish it were easier; wish you were better. -Jim Rohn
TPP: What it means for small business Negotiations for the Trans-Pacific Partnership free trade agreement have concluded. The 12 Asia-Pacific countries involved account for 36 per cent of the global economy – but what does it mean for your business? If you export goods or services to Asia-Pacific countries, then you’re not alone. In 2014, TPP countries were the destination for 40 per cent of New Zealand’s goods exports ($28 billion) and 47% of New Zealand’s services exports ($8 billion). The Government says the TPP offers much better access to large and important markets for New Zealand’s goods and services. It will create new trade and investment opportunities, diversify New Zealand’s export destinations and help firms do business overseas. The TPP is expected to come into force within two years. In preparation for that, here are some areas where it could benefit small businesses. For more information on the TPP, see MFAT’s TPP website.
Exporting Export tariffs will be eliminated on 93 per cent of New Zealand’s trade with its new partners. The TPP will also reduce non-tariff barriers to trade that hold up or prevent export shipments. “Wine, honey, meat, forestry, all of those have had reasonably good reductions of tariffs into the countries we export into,” says Rick Shera, a partner at Lowndes Jordan, on the Idealog website.
The TPP will reduce barriers to trade in services. Access to TPP markets has been locked in for New Zealand service providers across a range of sectors, including providers of professional, business, education, environmental, transportation and distribution services.
countries in 2014. The TPP Temporary Entry chapter will enhance access for New Zealand business people in the TPP region.
In addition, New Zealand businesses will be able to compete for government procurement contracts in TPP countries on an equal footing with domestic suppliers.
Pramuk Perera, doctoral researcher on international business at University of Otago, told Idealog that: “It’s still not too late for SMEs to explore partner markets, identify business partners, and identify business models in order to make a timely entry into these new markets and demand a better price for their products and services.”
Exporting can be a great option for tapping into bigger markets, but make sure you do your research first.
BusinessNZ says the deal is great for opening up markets for a small country like New Zealand.
To find out more about exporting, including whether you’re ready to expand, check out Exporting section on Business.govt.nz website. For export requirements for different products, use our online tool Compliance Mattersand search the topic Exporting.
Intellectual property The TPP aims to harmonise IP standards across the region and introduce consistent enforcement standards. This will help New Zealand businesses protect their IP in TPP markets.
Many small businesses mistakenly think registering intellectual property (IP) in New Zealand automatically protects them overseas.
New markets
The TPP is New Zealand’s first free trade agreement with the US, Japan, Canada, Mexico and Peru. Over $12 billion of New Zealand goods and services were exported to these five
To view more information on the TPP region, see the key facts on the MFAT website.
If you’re thinking of expanding offshore, or dealing with overseas manufacturers or suppliers, it’s important to find out more about how to protect your IP.
And there are a range of TPP factsheets available too, including information on government procurement, market access for services, and investment.
There are 12 countries in the TPP: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Economic Research describes the TTP as an impressive achievement, even though it’s not perfect. Deputy chief executive John Ballingall says it’s not just about tariffs – it’s also about competitiveness. “TPP will remove some of the grit in the wheels of Asia-Pacific supply chains. This will lower transaction costs for Kiwi firms, again boosting competitiveness and opening new avenues.”
Chief executive Phil O’Reilly says: “If New Zealand wants to broaden its economic base and move away from an over-reliance on selling commodity products to the world, we needed to secure a high quality deal that gives greater market access to both goods and services exports and one that encourages investment.” The
New Zealand Institute of
This is incorrect – lots of Kiwi businesses have lost opportunities because they failed to realise the implications of their IP actions (or inactions). The IP section on Business.govt.nz can guide you through the processes, including protecting IP overseas. The TPP IP factsheet outlines the impact on IP.
continued from page 5
Offshore investment vital for manufacturing industries – which are often passed onto New Zealanders.
firms. “There are major benefits to New Zealand in foreign direct investment. It’s just that these benefits are poorly understood,” says Mr Thomson. “Foreign investment comes with a longer term commitment than simply lending. As the report says it supplements domestic saving, allowing the economy to grow faster. In the long run too, it can help us reduce our dependency on borrowing, and in itself bring down interest we pay because of that dependency.”
• helps New Zealand connect with destination markets. • helps New Zealand add value to its raw products because it provided financial and knowledge resources to support manufacturing and processing that otherwise would not be available within the country.
Other benefits included that foreign direct investment:
• increases New Zealand’s productivity (which lags behind other OECD countries). It provides access to networks, research and development, economies of scale and supply chains.
• comes linked with the skills, know how, and productivity of the investor
However, despite the useful analyses contained in the investment chapter
14
/
NZ Manufacturer November 2015
www.nzmanufacturer.co.nz
of the Business Growth Agenda, Mr Thomson said it had missed an opportunity to analyse whether the current policy regime including the Overseas Investment Act supported the Agenda. Mr Thomson, who is an expert in the legal requirements for investment by offshore parties into New Zealand (under the Overseas Investment Act) said the report pointed out that New Zealand is restrictive in its investment regime. New Zealand is now ranked by the OECD’s foreign direct investment restrictiveness index as the seventh most restrictive of the 56 economies in the index. “Although the reports acknowledge
that more resourcing is needed in the Overseas Investment Office in order to ensure improved applications and faster turnaround, will this be enough to support more foreign direct investment into New Zealand? I doubt it,” says Mr Thomson. “The Government has missed an opportunity to encourage foreign investment by reviewing some elements of the Act and its framework in relation to the Business Growth Agenda’s goals, particularly in comparison to the equivalent regimes of other countries, who are also out there attracting capital. As acknowledged in the separate report, many other countries have moved away from screening investors at all.”
MARKETING
The real test is not whether you avoid this failure, because you won’t. It’s whether you let it harden or shame you into inaction, or whether you learn from it; whether you choose to persevere. - Barack Obama
Find your 8 hidden marketing assets to attract your ideal target audience By digging for the gold right under your nose, you can tap into your full business potential. As I was saying in my previous article Bridging the communication gap that limits engineering & technology firms, most websites and brochures tend to be ‘self-focused’ and not very customer-friendly or appealing. Your clients are in a different world, albeit linked to yours, with motivations and interests beyond the technical issues. Who are they? Your ideal clients may be the ones who appreciate your value and tell others, are willing to pay for it, take up minimal time, or give ongoing business… profitable clients… your real target market. Let’s focus on them and screen out the ‘tyre-kickers’, unreasonable complainers, time-consumers, or people that would be better served elsewhere. What are they really looking for? The key to your success Let’s tap into their heartbeat and find out their real ‘hot buttons’ – needs, fears, problems, pain points, questions, interests, and hidden emotional reasons to buy. We can find a certain amount in discussion forums or social media, but ultimately by going to the ‘horse’s mouth’ by interviewing. This can be easiest done by an objective outsider where the client can speak freely rather than saying what the business owner wants to hear. Mining the raw gold for your marketing message Now let’s see what assets you have to satisfy those ideal client hot buttons... 1. Identify the key benefits you offer,
with ‘credentials’ – a quantifiable or specific performance record, awards, reputable business partners or clients, qualifications, experience, industry association memberships, and guarantees.
your most valuable selling points, and unique points of difference. Can you put your finger on that real forte that sets you apart? It can be a challenge to find your USP (unique selling proposition), let alone express it concisely, but outside help can distil it. Taglines like PlaceMaker’s “Know how Can do” are short, punchy, and effective.
7. Any sponsorship or support for the community or charities also helps build clients’ trust in your business ethos.
2. Is there anything outside the square that you know or do – ‘provocative’, bold, stands out, or goes against the grain of the industry? That will catch attention – as long as it’s relevant and beneficial to your target market.
8. Find any other connecting points with your target audience outside business, such as common personal interests. If a good portion of your clients are into fishing or golf and you are too, then weave it into your ‘about us’ story.
3. Consider areas of your expertise and knowledge that could be presented to ‘pre-sell’ your business, like Spark’s “techinasec” technology tips. If your expertise is deep enough, there may be opportunities for selling it or even coaching/ consultancy. This “content marketing” is a growing trend.
The next step – capitalising on it We now have the ‘gold’ as a foundation for all your marketing endeavours. It’s just a matter of how to leverage your 8 hidden assets in your marketing channels – ads, brochures, white papers, proposals, website, blog, videos, and social media.
David Frank specialises in communications for engineering, technology, and manufacturing firms – both external (marketing) and internal (technical documentation). He uses interviewing to tap into the ‘heartbeat’ of his client’s target audience, using counselling experience and training by an ex-TV talk show host. His career has spanned engineering & technology design, project management, and sales & marketing. 0800 385 1800 | david@spectra-media. net.nz | spectra-technical-media.co.nz
4. If you can, create a free introductory offer such as a product trial, consultation, or valuable ‘how to’ resource to entice your target audience to make that critical first contact with you. 5. Case studies and testimonials, showing tangible results and highlighting your selling points, are always powerful trust-builders. An interview is usually required for this – easiest done by a third party. 6. Anyone can say they are “reliable”, “superior”, “leading”, “professional”, “high quality”, or “second to none”, but this doesn’t cut the ice unless it can be proven
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
15
Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don’t quit. - Conrad Hilton
MAGAZINE FEATURES 2016 FEBRUARY
JULY
Manufacturing Technology 3D and 4D Developments
Supply Chain Manufacturing Technology Food Manufacturing FoodTech PackTech 2016 Preview
(additive manufacturing)
New products for Manufacturers Environmental Technology Workshop Tools (including injection moulding and CNC machines)
MARCH Manufacturing Technology
AUGUST
EACH ISSUE INCLUDES NZ Manufacturer is rich with the latest news and developments from New Zealand manufacturers which can be read about in the following Departments:
Disruptive Technologies Manufacturing Technology
Business News
(Including robotics)
Analysis
Developments
(including robotics)
3D and 4D Developments
Production and Distribution Disruptive and Future Technologies Export Success EMEX 2016 Preview
(additive manufacturing)
Rear View
Project Management Food Manufacturing FoodTech PackTech 2016 Preview
The Interview
SEPTEMBER
APRIL
Manufacturing Technology Food Manufacturing Disruptive Technologies FoodTech PackTeck 2016 Preview
Manufacturing Technology Industry 4.0 The Future of Manufacturing (including converging technologies)
Disruptive and Future Technologies EMEX 2016 Preview Iot and Manufacturing
OCTOBER Preventative Maintenance Manufacturing Technology
MAY 3D and 4D Developments (additive manufacturing)
Manufacturing Technology New Products for Manufacturers Environmental Technology EMEX 2016 Preview
Opinion Health and Safety New products for manufacturers Regular sections provide assistance for: The Future of Manufacturing Manufacturing Technology Industry 4.0
(including converging technologies)
Automation
Workshop Tools
Robotics
(Including injection moulding and CNC machines)
Supply Chain
NOVEMBER Manufacturing Technology Production and Distribution
JUNE
Export Success
Food Manufacturing TPP Update Manufacturing Technology Automation Production and Distribution
DECEMBER
For further information contact Doug Green
E publisher@xtra.co.nz T 06 870 9029 M O21 625 6166 W www.nzmanufacturer.co.nz
The Year in Review Manufacturing Technology NZM Manufacturers Directory Automation
Additive Manufacturing Composites Nanomaterials Food Manufacturing Environmental Technology The Aviation Industry The Marine Industry NZ Infrastructure Plastics Developments Outsourcing Energy Food Manufacturing The Construction Industry Business Services Industry Training Production Management Preventative Maintenance Forestry Trade Shows and Exhibitions
16
NZ Manufacturer November 2015
/
www.nzmanufacturer.co.nz
DEVELOPMENTS
The way to get started is to quit talking and begin doing. - Walt Disney
NZ well placed to attract overseas investment Our strong and transparent financial system makes New Zealand one of the most attractive countries in the world in which to invest. According to the latest Grant Thornton Global Dynamism Index (GDI), New Zealand is ranked eighth out of 60 countries in the world for the overall quality of its financing market and first equal with Singapore for the quality of its overall financial regulatory system. The country is also ranked first equal with Australia, Ireland, Singapore, Sweden and Switzerland for our low legal and regulatory risk. Russell Moore, Partner at Grant Thornton New Zealand, said that if New Zealand is to grow its economy, it needs foreign capital and benchmark data like the GDI to send a powerful message to the world that we are a safe place in which to invest. “We are competing against the rest of the world, so we must ensure that our financial and regulatory environment gives investors and export countries confidence in the security of their investment,” he said.
business rankings, New Zealand was second. We also have an extremely stable political environment; Grant Thornton’s GDI ranks New Zealand 10th out of 60 countries “While these factors are important to those investing directly into New Zealand, they are just as important to our trading partners. We not only need to invest more money into our infrastructural development, businesses and systems, we also need to trade with new companies and countries. “They, too, need to be confident in our financial environment, our political system and our transparency. Back in 1960 Great Britain was our dominant trading partner and well over 80% of our exports were sheep, beef and dairy.
A critical goal in the Government’s Business Growth Agenda is the continued development of primary industries which will see the Ministry for Primary Industries focusing its resources on doubling the value of exports by 2025.
“Today that figure is down to 46% (with dairy at 30%) and other sectors such as tourism, horticulture, forestry, education are large contributors to the export market. Australia and China are now our two biggest trading partners and we are already looking to India and Indonesia as offering huge potential.
index is just one indicator that New Zealand is on the right path. In the 2014 Corruption Perceptions Index, New Zealand was ranked the second least corrupt out of 174 countries and in the World Bank’s ease of doing
“Export success is enhanced by the integrity of our primary sector products, however the easier and more secure they feel in trading with New Zealand, the better for our economy,” he said.
Wellington’s thriving digital sector ‘nearly invisible’ Wellington’s burgeoning digital sector is a major contributor to the region’s economy, and yet it flies under the radar compared to other key sectors such as film and tourism, a Victoria University of Wellington report has found. Students from Victoria’s School of Management interviewed 140 business owners, managers and employees from 50 Wellington digital companies late last year. The results are detailed in the report ‘Wellington’s digital sector – growing under the radar’, released to 150 industry professionals at the University recently. Project leader Dr Richard Norman, from Victoria’s School of Management, says Wellington’s digital sector is a major
success story of the last decade and the report explores challenges faced by companies in the sector in attracting, retaining and developing staff. “The pioneers of Wellington’s digital sector, Trade Me, Xero and Datacom, have been joined by 400 to 500 smaller companies during the last 10 years. More than 20,000 people, or 10 percent of the region’s work force, are in digital sector roles in these companies and within larger public and private organisations. It’s a sizeable part of the workforce, but the public has barely heard of them,” he says. Work classified as Information, Media and Telecommunications contributes 6 percent to the region’s GDP, and Professional Scientific and Technical Services 10.7 percent. By contrast, tourism, which has been a highly
visible growth area of the past decade, contributes just 2.9 percent to Wellington’s GDP. Dr Norman says the digital sector’s low profile is largely because it operates on a business-to-business model, focuses on niche markets and has a predominantly international client base. “For some in the industry, it’s a cause of frustration. They feel Wellington as a digitally creative centre is too much of a secret. The report identifies some of the challenges of being nearly invisible to the public, one of which is recruitment. Companies are increasingly recruiting internationally,” he says. The report interviewees
showed that overall felt positive about
www.nzmanufacturer.co.nz
/
further growing Wellington’s digital sector and the potential to develop an international reputation as a leading creative city. Many interviewees commented on characteristics unique to Wellington that have helped cultivate the sector. For example, many praised the city’s compact size and its strong emphasis on networking and collaboration, which put professional relationships at the forefront of business. One interviewee commented on Wellington’s size where it’s “much easier to maintain networks … So I think encouraging our staff to get out and walk around is important. How we do social events and catch ups down here is completely different to Auckland.”
NZ Manufacturer November 2015
17
BUSINESS NEWS
The successful warrior is the average man, with laser-like focus. - Bruce Lee
Nuance Power PDF delivers value for money at Dimension Data Global ICT solutions and services provider, Dimension Data, is passionate about delivering real business value to its clients through enabling, operating and transforming their businesses.
unattractive. If we could identify a more economical option the savings could be quite significant,’ explained Mr Richard Banfield, IT Manager, Dimension Data.
At the same time, the company also seeks to implement IT solutions within its own offices that offer a tangible value. With this in mind, Dimension Data (Australia) embarked on a process of identifying and implementing a PDF solution that would allow it to reduce its current PDF costs without foregoing capability.
As well as realising cost savings, Dimension Data also had a shopping list of required capability. The ideal PDF solution needed to offer quick conversion of scanned and regular PDF files into fully formatted Microsoft Office, WordPerfect, and XPS documents, easy editing, the ability to combine documents, extraction of content from a range of files, and side-by-side document comparison.
‘One of the main goals of going down this path was to see if we could identify a PDF solution that would deliver cost savings while still offering the functionality we required. The motivation for this was simply growth. “We already had a reasonably large install base, which we knew was increasing, but the cost of additional licenses made our existing PDF solution
All of these functions were required to support the administrative and purchasing components of the business. Dimension Data was also keen to identify a PDF solution that was user-friendly, and would therefore reduce the need for extensive training. According to Richard, minimising risk
was also an important criterion for the company. ‘We wanted to choose a PDF solution that we were comfortable with, one that we felt we could move to at low risk. If the implementation process did not occur smoothly, the financial impact on our daily business could be significant.
Dimension Data. Nuance provided initial training for those staff who felt they would benefit from it, and follow-up training to capture new staff and those requiring greater knowledge of certain capabilities such as document extraction and insertion, and splitting PDF files.
After scanning the market, Dimension Data assessed three possible PDF solutions, one of which was Nuance Power PDF. Designed specifically for business use, Nuance Power PDF provides all the capabilities business users need at a competitive price point.
Dimension Data has also experienced extensive costs savings since implementing Power PDF. With Power PDF, whether you are purchasing a few licenses or a large number, the differential is significant when you compare it to the cost of other PDF solutions.
The software lets users create, assemble, convert, edit, search, secure, print and validate PDF documents and forms easily and quickly. It provides a choice of professional and functional features aimed at improving workflow and productivity. Nuance Power PDF was successfully implemented across 300 seats at
“In our case, the savings have been in the tens of thousands, and this has made the entire exercise really worthwhile. Better still, we’ve not only been able to maintain the functionality we needed, staff are also discovering new features such as converting files into fillable forms,’ said Richard.
Are you a Kiwi manufacturer who is NOT appearing in NZ Manufacturer? Why Not? We offer: •Case Studies•Analysis•Interviews•Opinion Articles•New Products to the Market from our Innovators and Developers FOR New Zealand and overseas readers.
Is your company busy making fantastic products and we haven’t heard about you? Why Not? Contact us now to enhance your market share.
P 0064 6 870 9029 18
NZ Manufacturer November 2015
publisher@xtra.co.nz /
www.nzmanufacturer.co.nz
Doug Green Publisher
www.nzmanufacturer.co.nz
Don’t let the fear of losing be greater than the excitement of winning. - Robert Kiyosaki
THE FUTURE OF MANUFACTURING
3D printed ‘building blocks’ of life Scientists have developed a 3-D printing method capable of producing highly uniform ‘blocks’ of embryonic stem cells. These cells - capable of generating all cell types in the body - could be used as the ‘Lego bricks’ to build tissue constructs, larger structures of tissues, and potentially even micro-organs. “It was really exciting to see that we could grow embryoid body in such a controlled manner”, explains Wei Sun, a lead author on the paper. “The grown embryoid body is uniform and homogenous, and serves as much better starting point for further tissue growth.” The researchers, based at Tsinghua University, Beijing, China, and Drexel University, Philadelphia, USA, used extrusion-based 3-D printing to produce a grid-like 3-D structure to grow embryoid body that demonstrated cell viability and rapid self-renewal for 7 days while maintaining high pluripotency. “Two other common methods of printing these cells are either two-dimensional (in a petri dish) or via the ‘suspension’ method (where a ‘stalagmite’ of cells is built up by material being dropped via gravity.)” continues Wei Sun. “However, these
3D printer producing a figure.
don’t show the same cell uniformity and homogenous proliferation.” “I think that we’ve produced a 3-D microenvironment which much more like that found in vivo for growing embryoid body, which explains the higher levels of cell proliferation.” The researchers hope that this technique can be developed to produce embryoid body at a high-throughput,
providing the basic building blocks for other researchers to perform experiments on tissue regeneration and/or for drug screening studies. “Our next step is to find out more about how we can vary the size of the embryoid body by changing the printing and structural parameters, and how the varying the embryoid body size leads to “manufacture”
of different cell types” adds Rui Yao, another author on the paper. “In the longer term, we’d like to produce controlled heterogeneous embryonic bodies” concludes Rui Yao. “This would promote different cell types developing next to each other which would lead the way for growing micro-organs from scratch within the lab.”
AUTOMATICA 2016 – Breakthrough of smart robots Robots have left their protective cage. They now work closely with people. AUTOMATICA (Munich 21-24 June, 2016) will highlight how the automation industry is facing the challenge of this new technology. Clever, lightweight robot arms are faithful helpers in production, especially where the high productivity of a robot can be combined with the sensory and cognitive capabilities of people. They relieve people of monotonous or heavy work and consequently ensure better health and quality of life Smart robots belong to the factory of the future in this context. “A technology transfer is taking place, which opens up new application possibilities,” he continues. Regardless of whether the LBR iiwa from KUKA, YuMi from ABB robotics or the service robots from PAL Robotics and Rethink Robotics, conventional
industrial robots manufacturers as well as service robotics companies and new players in the market provide marketable solutions for the interaction between humans and robots.
Service robotics in the core of Industry 4.0 The fourth industrial revolution has begun with a networked production world that can react flexibly and fully automated to changing needs. Robots, which are mobile and collaborate with people, are indispensable in this. Industry 4.0 and the resulting applications are a chance to establish Europe as a technology leader and pioneer. An important milestone here is human-robot collaboration that ensures workplace ergonomics and better working conditions. Service robotics applications can help to master the challenges of an aging society. Intelligent service robots have become part of everyday life. They assume
complex tasks, which could not be automated previously, with high precision and high quality. They can be programmed and are capable of learning. As a result, they are used in very different projects, which increases productivity. Thanks to stereo vision and 3D sensors, robots can scan their environment and consequently make elaborate security barriers superfluous.
Connected to the environment via sensors and actuators, robots become cyber-physical systems (CPS), which are being networked increasingly with each other and with the Internet. The Internet of Things (IoT) will network all devices and robots of an automated production chain regardless of location in the future.
3D Tool & Product Design Services for the Plastic and Metal Forming Industries. CAE Plastic Flow Analysis
• •
Product Design - From concept to production Tool Design -
• •
Plastic Injection Moulds Pressed Metal
• CAE Plastic Flow Analysis with VISI Flow - a unique prediction tool • Mould troubleshooting “Virtual Injection Moulding” E-mail: acsdesign@maxnet.co.nz Ph/fax: +64 +7 377 0675
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
19
THE FUTURE OF MANUFACTURING
All progress takes place outside the comfort zone. - Michael John Bobak
Why advanced manufacturing will boost productivity For the past few decades, the scramble for competitive advantage in manufacturing has largely revolved around finding new and abundant sources of low-cost labour. But with wages rising rapidly in China and other emerging markets, manufacturers worldwide are under intensifying pressure to gain advantage the old-fashioned way—by improving their productivity. Technological development is likely to be the catalyst for the next wave of manufacturing productivity gains. This development, which some refer to as Industry 4.0, is characterised by cyber-physical systems (CPS) and dynamic data processes that use massive amounts of data to drive smart machines. A confluence of forces—falling prices and rising performance of enabling hardware and software, the digitization of industry, increasing connectivity, and mounting pressure on manufacturers to be more flexible and eco-friendly—is likely to accelerate adoption of the next generation of advanced manufacturing technologies. In the near future, they may transform the economics of global production in many industries.
tools have the greatest potential to influence the manufacturing landscape and improve productivity in the years ahead. • Autonomous Robots. A new generation of automation systems links industrial robots with control systems through information technology. New robotic and automation systems equipped with sensors and standardized interfaces are beginning to complement—and, in some cases, eliminate—human labour in many processes. This could enable manufacturers to cost-effectively produce items at smaller scale and to improve their ability to enhance quality. • Integrated Computational Materials
The term “advanced manufacturing” has been around for decades and means many things to many people. Advanced-manufacturing technologies is a set of highly flexible, data-enabled, and cost-efficient manufacturing processes. These tools offer a range of benefits that, taken together, could redefine the economics of global-manufacturing competitiveness in a number of industries. In fact, leading-edge manufacturers, such as Ford and General Electric, are already using some of the most advanced tools to make high-precision components. Advanced-manufacturing technologies can boost productivity in a number of ways. They dramatically increase flexibility by making it feasible for manufacturers in some industries to offer customers the option to “have it your way.” Manufacturers can also make products in small batches for specific customers, adjust production lines in response to design changes, and even speed time to market by generating prototypes very quickly. Advanced-manufacturing technologies can boost innovation, too, by allowing manufacturers to create new kinds of products that can’t be made cost effectively with conventional processes. They also permit manufacturers to produce high-quality goods made to buyers’ exact specifications. What’s more, these processes are good for the environment because they often consume fewer raw materials and generate less scrap. They improve safety as well, by exposing workers to fewer hazardous materials. The
following
five
technological
20
NZ Manufacturer November 2015
Engineering (ICME). By creating computer models of products and simulating their properties before they are fabricated—rather than building and testing multiple physical prototypes—engineers and designers can develop products better, faster, and cheaper. • Digital Manufacturing. Virtualisation technology can be used to generate complete digital factories that simulate the entire production process. Among other things, digital simulation can help engineers save time and money by optimizing the layout of a factory, identifying and automatically correcting flaws in each step of the production process, and modelling product quality and output. Entire assembly lines can be replicated in different locations at relatively low cost. • The Industrial Internet and Flexible Automation. Manufacturing hardware can be linked together so that machines are able to communicate with one another and automatically adjust production based on data generated by sensors. They can “see” into the supply chain.
/
www.nzmanufacturer.co.nz
• Additive Manufacturing. Commonly known as 3-D printing, additive-manufacturing processes create three-dimensional objects based on digital models by successively depositing thin layers of materials. Such processes are already starting to be used for making prototypes in some industries, including aerospace, automotive parts, and basic consumer items. In the future, these processes are expected to be used to build small batches of new kinds of products made out of one solid piece of material, such as hollow spheres that have no seams. • These technologies are not widely deployed today and won’t have a significant impact in the very short term. They are also unlikely to replace labour as the most important cost factor in many industries over the next five to ten years. The material science of 3-D printing is still evolving, for example, with significant a d v a n c e s r e q u i r e d to make it viable and cost effective for many substrates and particularly for end-use parts. But, to varying degrees, each of these advanced-manufacturing tools is already being used by leading-edge manufacturers with impressive results. And they are expected to eventually become important factors in industry. While predictions of a new technological leap in manufacturing have been circulating for quite some time, the move is now getting closer to reality for several reasons. One is the shifting economics of global manufacturing. For example, when Chinese labour costs were around one-twentieth of those in the U.S. a little more than a decade ago, it was a no-brainer to locate production in China rather than invest in expensive state-of-the-art capacity in the U.S. Today—after accounting for productivity, logistics, and other costs— the cost gap between China and the U.S. has nearly disappeared for many products. Similarly, several Eastern European economies have lost much of their cost competitiveness compared
with the UK, and Brazil is now estimated to be more expensive than much of Western Europe. Germany’s strategy to improve its competitiveness through Industry 4.0 will be explored in an upcoming BCG publication. A number of other trends are also having an impact. Rapid advances in information technology, sensors, and nanomaterials are dramatically lowering the costs of leading-edge manufacturing processes and improving their performance. Slowly but surely, digitisation has begun to permeate every aspect of the production process, from engineering to management of the supply chain to the factory floor—making production systems more intelligent and highly networked. At the same time, companies are under mounting pressure to improve their productivity and become more responsive to shifting customer needs. Advanced-manufacturing technologies could potentially help address a number of these needs. New processes boost productivity and responsiveness to the market by making it possible for manufacturers to quickly and easily modify designs and reconfigure production lines according to customer demands. As a result, manufacturers can generate a greater diversity of products using a similar set of processes. Factories of the future will combine the efficiency of mass production with custom manufacturing: each machine will be capable of producing a variety of bespoke goods that are made specifically for the needs of customers—something that is difficult, and often prohibitively expensive, to do using conventional manufacturing processes. They could even make one-off objects without additional capital expenditures. Because information technology can enable networks of robots to communicate with one another, entire production systems and supply chains can also become more efficient. Robots can relay data on a problem in one part of a production line to robots in other parts of the line, so they can adjust. Furthermore, by accessing supplier networks through the Industrial Internet, robots can automatically adjust production flows in line with updated delivery schedules for parts and materials, thereby reducing waste and inventory costs.
Do one thing every day that scares you. - Anonymous
THE FUTURE OF MANUFACTURING
Revolutionary wind energy conversion system The novel cross-axis-wind-turbine (CAWT) is a new type of wind turbine that has the capability to extract energy from multi-directional wind that is commonly found in urban areas due to the interaction of airflows between high-rise buildings. Its ability to operate in areas with complex wind pattern and low wind speed overcomes the weaknesses of the vertical and horizontal axis wind turbines (VAWT and HAWT). The novel wind turbine consists of vertical and horizontal blades arranged in a cross axis orientation, therefore enabling it to function with airflows coming from horizontal and vertical directions. The horizontal blades serve as the radial arms that link and support the vertical blades and the hubs through specially designed connectors to form the CAWT. Any airflow streams channeled to the bottom of the turbine interact with the lower and upper radial supporting-arms, therefore maximising the wind energy potential
that can be extracted. Viewed from the top, the upper and lower radial arms can be considered as a double-layered HAWT that extracts energy from the vertical wind. Moreover, the lift created by the interaction between the vertical airflow and the horizontal blades creates aero-levitation forces which reduce bearing friction in the generator, hence extending the lifespan of the wind turbine. Initial studies have shown that the CAWT can overcome the problem of self-starting ability of a conventional VAWT, and produce better performance output by up to 2.5 times. In conclusion, the CAWT presents an innovative outlook on the future of wind turbines, creating significant opportunities for the use of wind energy devices and therefore alleviating dependencies on fossil fuel power plants. chong_wentong@um.edu.my
The breakthrough of the smart robots Robots have left their protective cage. They now work closely with the people. Regardless of whether mining or agriculture, construction, forestry or cargo handling, whether in soil or underwater, in the air or in space: service robots relieve people not only of dangerous work, but they also provide better quality of life. A boy rushes through the corridors, open cabinets, pulls out clothes, rips open the fridge and gets a drink: an unusual sight for paraplegics. However, JACO makes it possible: The six-axis robot arm with his nifty three-finger hand takes over everyday tasks and gives back a bit of independence. Clever, lightweight robot arms are also faithful helpers in production, especially where the high productivity of a robot can be combined with the sensory and cognitive capabilities of people. They relieve people of monotonous or heavy work and consequently ensure better health and quality of life. This concerns a technological evolution. The borders between industrial and service robotics are merging. Smart robots belong to the factory of the future in this context. A technology transfer is taking place, which opens up new application possibilities. Regardless of whether the LBR iiwa from KUKA, YuMi from ABB robotics
or the service robots from PAL Robotics and Rethink Robotics, conventional industrial robots manufacturers as well as service robotics companies and new players in the market provide marketable solutions for the interaction between humans and robots. Service Robotics in the Core of Industry 4.0 The fourth industrial revolution has begun with a networked production world that can react flexibly and fully automated to changing needs. Robots, which are mobile and collaborate with people, are indispensable in this. Industry 4.0 and the resulting applications are a chance to establish Europe as a technology leader and pioneer.
robots work together directly Intelligent service robots have become part of everyday life. They assume complex tasks, which could not be automated previously, with high precision and high quality. They can be programmed and are capable of learning. As a result, they are used in very different projects, which increases productivity. Thanks to stereo vision and 3D sensors, robots can scan their environment and consequently make elaborate security barriers superfluous. Connected to the environment via sensors and actuators,
robots become cyber-physical systems (CPS), which are being networked increasingly with each other and with the Internet. The Internet of Things (IoT) will network all devices and robots of an automated production chain regardless of location in the future. According to the International Federation of Robotics (IFR), the market for professional service robotics will continue to grow tremendously. About 150,000 units are expected to be sold by 2018, thereby providing sales of approx. 20 billion US dollars.
An important milestone here is human-robot collaboration that ensures workplace ergonomics and better working conditions. Service robotics applications can help to master the challenges of an aging society. When humans and
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
21
FOOD MANUFACTURING
Success is walking from failure to failure with no loss of enthusiasm. - Winston Churchill
NZ gluten-free boom prompts new testing service New Zealand’s largest privately owned testing laboratory, Hill Laboratories, is offering a gluten testing service with the fastest turnaround-time in the Country. The company has introduced the service in response to the rapid increase in consumer demand for gluten free products, which according to Coeliac New Zealand Incorporated, is increasing in NZ by an estimated 26% annually-1. Technologist, Sam Marengo, said Hill Laboratories developed the test to ensure those purchasing gluten-free products can correctly label their gluten free foods for the benefit of consumers. “More and more Kiwi consumers are avoiding the ingredient due to gluten intolerance or simply dietary preference,” Marengo said.
accurately label their products and check for cross-contamination. “By utilising our gluten testing service, manufacturers, retailers, local cafés and restaurants across New Zealand can label their products appropriately, for this important gluten free audience.” Marengo said According to the Australia New Zealand Food Standards Code, manufacturers who label foods “gluten free” must not contain detectable gluten (no more than three parts per million)2.
Marengo says the turnaround time for Hill Laboratories’ gluten testing service is 5 days, which is between 2 and 5 days faster than its competitors.
“When a manufacturer tests with us, they can find out Hill Laboratories technologist, Sam Marengo, was appointed to develop the ELISA gluten testing methodology at Hill Laboratories. whether their food adheres to the Code, and therefore ensure laboratories and developing tests for of clients in order to ensure accurate they have the correct labelling,” the Food and Water Industries across results. Marengo said. Brazil, Australia, England and New “We are thrilled with the results “In turn, consumers can be sure that Zealand. and look forward to enabling more what they are purchasing is indeed “At Hill Labs, we have used what’s manufacturers and retailers across the gluten free and safe for them to eat.” called the ‘ELISA’ testing methodology. country, to utilise this service.” Marengo was appointed to Hill The method is used in the food industry Hill Laboratories is offering its Laboratories in March this year worldwide to test for allergens such as new gluten testing service across specifically to develop the gluten gluten, nuts and egg.” the country now. Following Hill testing methodology. Hill Laboratories has spent the last Laboratories’ launch of gluten free
“This service will enable manufacturers, retailers, local cafés and restaurants to
She has spent the last five years working as a molecular biologist in
“As a result of more Kiwi’s going gluten free, manufacturers and retailers across the country are feeling the pressure to respond with gluten free products. “Supermarkets now dedicate whole aisles to gluten free products and more cafes and restaurants offer gluten free food.
five months testing and validating the methodology with a small handful
testing, the company plans to roll out more allergen testing.
Reporoa feed company taking on the world After exporting its equine feed products into Asia for many years, Reporoa-based company Fiber Fresh has also now launched its calf feed products into the international marketplace.
Fiber Fresh is New Zealand’s largest animal nutrition export company, specialising in high nutritional equine and calf feed products. It celebrated 30 years in business earlier this year.
multiple trials in order to support its claims that its fermentation processes, by which the forage feed’s nutrition is enhanced, produces the best possible feed for both horses and calves.
The company’s launch into the calf feed market in Japan also includes a research partnership with the school of veterinary medicine at Rakuno Gakuen University in Hokkaido.
“The partnership with Rakuno University is our first international research partnership, and involves trials on the health benefits of rearing calves on Fiber Fresh for their first 100 days. The results have the potential to be revolutionary for Japanese farmers and production,” Mr Bell says.
Fiber Fresh founding director Michael Bell says launching into the Japanese calf market is a milestone for the company. “We have been exporting to international equine markets for nearly 30 years, with many of the world’s top thoroughbred horses fed our products. It’s extremely exciting to now see developments in the international calf market, particularly in Japan, where we see many synergies with our fibre feeds.” Since the early days, Fiber Fresh has worked alongside scientific institutes in New Zealand and conducted
22
NZ Manufacturer November 2015
/
www.nzmanufacturer.co.nz
growth, and less fat deposits. Amongst the research team at the university is renowned Japanese expert, Dr Masateru Koiwa, Doctor of Veterinary Medicine at Rakuno University. “The 100-day programme is totally different to the way Japanese farmers rear animals and I think this new way of feeding will be very good for the Japanese ruminant industry,” says Dr Koiwa.
Initial research involved rearing a trial group of dairy calves on FiberStart and milk alone for 100 days, as well as a control group fed the traditional grain-based diet.
The trial will be published in the Rakuno University Journal next year and further research is currently underway with Wagyu and Holstein animals for the beef market.
Results of the 100-day trial astounded researchers, with the Fiber Fresh-reared calves showing fully-developed and more robust rumens and papillae, larger lymphatic systems, no weaning checks once milk was stopped after 45 days, as well as more natural growth patterns, better muscle and bone
Fiber Fresh is supported by the New Zealand government through the Ministry of Business, Innovation and Employment’s Callaghan Innovation Fund, and New Zealand Trade and Enterprise. It also works in partnership with the likes of Massey University and crown research institutes.
Introducing
A point of difference in today’s busy FMCG market.
Developed by AsureQuality, inSight™ provides shoppers with independently verified information about the products they are about to buy. After a successful application process, producers can place the inSight™ logo and a QR code on their product packaging. When shoppers scan the QR code at the point of sale they can access information about the product, including: • • • • •
Environmental sustainability Social and ethical concerns Nutritional information Safety and quality Origin
Call us now on 0508 00 11 22 to find out how inSight™ can add value to your business. www.aqinsight.com
A new innovation taking product assurances into the 21st Century www.nzmanufacturer.co.nz / NZ Manufacturer November 2015 23
WORKSHOP TOOLS
There are no secrets to success. It is the result of preparation, hard work, and learning from failure. - Colin Powell
Tube bending in chemical plant engineering Within the next 8 years, investments in chemical plants will double worldwide.
procedure requires very time- and labour-consuming work steps.
produce three-dimensional systems rapidly and exactly.
The reasons for this are the global mega trends such as population growth, emerging markets, and the appetite for raw materials. This increases the necessity for plant designers to demand more machines that allow the time-efficient manufacture of enormous quantities of tubes.
First, the individual tube components must be welded. Subsequently, each individual weld joint is subject to a costly inspection method that must guarantee the air tightness of the line. Considering the multitude of connecting points, this is a very labour-intensive procedure that may still contain the potential of making errors.
The tube is clamped into the index head and positioned in the space by means of the transport unit and index head. After the first bend, it is directly pushed on and rotated, if required. Thus, three-dimensional tube systems with minimum ovality are produced that fit precisely.
It goes without saying that this cannot happen at the expense of quality. This is not an easy task because the high-strength special materials – which are often flanged, beaded or double-walled tubes – require a demanding process. Two production methods have been established and being used for chemical plants in order to manufacture tube systems: Welding of bent tube components or the production of complex tube systems by using bending technology. In order to fabricate tubing systems, many manufacturing plants commonly use welding procedures in order to connect straight tube sections with weld-in elbows. However, this
The cold bending procedure reduces the required work steps to a minimum. Bending machines can form complex tubing systems from a single piece of blank. However, not every bending machine can guarantee compliance with the high demands the chemical industry places on the forming process. When selecting the right machine, one must verify that the machine is designed for bending stainless steel tubes and ensures the absolute minimum ovality when forming the tube. The latter is an important requirement for all tubes carrying chemical substances. Eventually, the tubes are cleaned using a spherical object that is slightly narrower in the centre; it is referred to as a “PIGs” (Pipeline Inspection Gauges). Excessive ovality in these so-called PIG tubes can lead to chemical residues that become mixed in the next production loop. Automatic CNC machines are optimised precisely to meet the requirements of the chemical industry. They
tube
Focusing on increased production rate When the speedy manufacture of different types of tubes is important, CNC tube bending machines with multi-stack bending tools is a wise choice. The multi-stack bending tools allow you to process tubes with different nominal diameters on a single system without retrofitting efforts. One of these systems, the CNC 220 HD MW of the HD series from Schwarze-Robitec, bends tubes with a maximum diameter of 219.1 x 12.7 mm and a tube length of up to five meters. With the help of the multi-stack bending tool, up to 70 percent of the setup time of market-based systems can be saved. It is possible to process tubes of different materials, such as steel, nickel alloys, iron and stainless steel on one tool. Time-saving technologies are also available for the forming of double-walled tubes and flanged tubes. For example flanged tube equipment takes the flange and sleeve positions into consideration before the bending process starts.
The time-consuming adding of flanges in order to finished tube bends is omitted, and the tubes can be implemented into existing systems after the bending process is completed. Another “time saver” is marking devices which indicate the positions on the tubes where welds or bypasses are to be implemented after bending. Smart ways to curb the cost Long pipelines made of high-quality materials create considerable costs and quite often must be integrated in a space-saving manner. One option are small bending radii. They optimise tube runs enormously if space is limited and reduce the usage of material. For example, the CNC 320 HD produces extremely small bending radii of 1.5 x tube diameter. This applies also to large, very thin-walled tubes with a diameter of up to 323.9 mm and a length of 6 m. Similarly tight radii with such large tubes are usually achieved only with warm bending processes or welding elbows – a process that is much slower and more expensive. In addition machines such as the SR 320 are perfectly suited for the production of individual bends and small production runs. However, all models of the HD series have one thing in common: A very rugged standard machine with extremely high structural rigidity. It withstands the enormous bending forces. Based on the tremendous power reserves of its clamping forces, the machine produces optimum bending results.
Level Lift System safe for uneven loads The Level Lift System is designed for safe, fast, even and controlled lifting and lowering of uneven loads, typically up to 800 tonnes. The system can control up to four lift points at once without complicated electronics or sensors at each lift point, making it easy to use and improving operator efficiency. The new system provides modularity that lends itself to many applications in the mining, construction, power generation and oil and gas markets. These include equipment maintenance on excavators, material handlers, ‘dozers, trucks, bridge construction and maintenance, slab lifts and turbine installation and maintenance. Level Lift extends Enerpac’s global expertise in lifting, shifting and positioning heavy objects, which ranges from split-flow pumps for lifting-only
24
NZ Manufacturer November 2015
projects through to sophisticated Integrated Solutions (IS) Division technologies such as Strand Jacks, Hydraulic Gantries, Skidding Systems and EVO Synchronous Lifting Systems, which provide precise positioning and features such as weighing, centre of gravity measurement and data recording. One of the major applications the Level Lift will be used for is off-highway vehicles, says Enerpac Mining & Integrated Solutions Manager – Australia & New Zealand, Warren Baltineshter. The system can be used for gear drives and slew ring bearings maintenance on excavators and materials handlers; undercarriage maintenance on off-highway trucks and ‘dozers, or rebuilds on wheel loaders, dozers, trucks and trash compactors.
/
www.nzmanufacturer.co.nz
The Level Lift System is a fully configured and assembled system, which includes a ZE4 pump, hoses, gauges and cart. During operation, uneven loads are moved evenly as Enerpac’s patented Level Lift valve sends a fixed volume of oil to each cylinder while lifting or lowering. Regardless of the distribution of weight in the application, or the resulting pressure at each lift point, the Level Lift System strokes each cylinder by the same amount. Each cylinder must have the same effective area.
Safety Configured with a simple, 3-button pendant, the Level Lift System allows for a single point of control away from the application to reduce the risk of operator miscommunication. The Lift / Lower valve enables easy switching between lift and lower modes,
with gauges located on the cart for convenient pressure monitoring. For applications with multiple lift points, the Level Lift System provides a safe, fast lifting solution. With the ability to control up to four lift points simultaneously, and an intuitive, user-friendly design, the Level Lift System is a safe, easy solution for demanding lifts.
Success usually comes to those who are too busy to be looking for it. - Henry David Thoreau
WORKSHOP TOOLS
Connector assortments for harsh conditions A new range of electrical connector assortments cover Deutsch, AMP and Waterproof (Delphi-type) connector variants, providing the most widely used connectors in each category, all housed in quality ‘fisher’ cases. All the common connectors are in one trade quality case which keeps everything neat and tidy and is ideal for anyone that travels to jobs or breakdowns. Drivers and operators want peace of mind, so the new range of NARVA connectors has been designed to include the best connections possible and cover all eventualities. The Deutsch DT series high-end connectors are designed for harsh environmental conditions, where even the slightest degradation in connection is critical. They include popular 2, 3, 4, 6, 8 and 12-way male and female connectors, all featuring solid copper terminals for easy crimping. The connectors also make use of tough thermoplastic housings (rated at temperatures
ranging from -55∞C to 125∞C) and feature silicone seals designed to withstand extreme temperatures and excessive moisture.
Along with offering sturdy and reliable contacts, these connectors, which are rated at 14A, feature pre-assembles secondary locks to ensure correct
Combined with their watertight connection properties (IP67) and amperage rating of 13A, the connectors are ideally suited to demanding mining, forestry, agricultural, transport and marine applications, and offer unparalleled performance and reliability.
and complete insertion of the contact in the housing. For automotive, transport and marine applications, where regular and ongoing exposure to water is expected, the NARVA Waterproof connector assortments have been designed to
withstand these extreme conditions. Included in the assortment are 1, 2, 3 and 4-way male and female connectors, which are rated at 20A and feature robust polyamide plastic housings and silicon seals designed to repel moisture while still withstanding high temperatures. The Waterproof assortment meets IP67 and also offers secure and reliable contacts.
The AMP Super Seal connector assortments offer a high quality range of connectors designed to meet the performance requirements of automotive, transport, contracting and mining applications. Included in the assortments are the most regularly used components such as 1, 2, 3, 4, 5, and 6-way male and female variants. The AMP Super Seal connectors feature polyamide glass-filled housings rated from -40∞C to 125∞C and silicone rubber seals, which help the products achieve a watertight connection (IP67).
Oil-free compressor for sensitive applications The whisper-quiet and ultra-low vibration compressors of the BOGE EO series feature integrated compressed air treatment and supply Class 0 oil-free compressed air.
Use of a two-stage aftercooler additionally boosts efficiency. Up to four compressors can be accommodated in a housing if particularly high quantities are needed.
Being completely oil-free is a must, especially in sensitive work environments. For users that require a compressor which is quiet and compact enough to install near to their work station, these are ideal.
Class 0 oil-free compressed air Scroll compressors work without the use of oil lubrication, because the aluminium spirals in the compression chamber do not rub against each other. The advantage of this design is that it guarantees 100 percent high-quality, oil-free compressed air. A condensate cleaner is not required.
The scroll compressors operate extremely quietly with ultra-low vibration. A modular concept with one to four air ends systematically matches compressor use to demand and also offers maximum versatility - no matter whether it is used on receivers, with refrigeration dryers, as a duplex unit or with a cyclone separator. The compressors have a drive power of 16.5 kW and 22 kW and free air delivery from 1.5 m³/min (15 l/min) to 2.5 m³/min (2.0 l/ min). The core component of BOGE EO-compressors (Eccentric Oil-free) consists of one or more scroll compressors. Each of these operates with two spirals, one of which is fixed, while the other rotates eccentrically. The two spirals intertwine without touching. The intake air is continuously compressed into the increasingly narrower interior space, thereby producing pulsation-free compressed air which is absolutely oil-free.
Quiet and ultra-low vibration for use in the workplace The closer a compressor is moved to a work station, the more the question of the sound pressure level comes into focus. Here, the scroll compressor scores highly, with its whisper-quiet, ultra-low vibration operation – ideal for example for laboratories or hospitals.
which in the age of Industry 4.0 is ideal and can be integrated in modern, networked production.
BOGE and Industry 4.0 – compressed air systems of the future
Modern machine control allows the connection of up to four compressors. Via the high resolution colour display, information can be easily read and the capacitive touch screen-style buttons make operation easy. An RFID interface provides a contactless notification of authorised operating staff on the unit.
BOGE has been a forerunner in the development of intelligent compressed air solutions for years in terms of Industry 4.0. The latest generation of BOGE control and monitoring systems make sure that the complete compressed air system can be integrated into an intelligent, adaptive overall system (”smart factory”).
Whether to view the status display, status of each unit, fast network printing or monitoring the air intake and air outlet temperature, users can quickly and with little effort switch between the displays using the capacitive buttons, thanks to clear symbols on the machine.
The situationally required compressed air performance and quality is automatically generated from an efficiency point of view. Since the maintenance of this system is also mapped taking into account condition monitoring, this results in the lowest possible life-cycle costs.
The intelligent arrangement of the components of a BOGE EO compressor results in a very small footprint, which once again benefits direct installation at the work station – even the system solution with integrated dryer is so compact that it fits through a standard door. Intelligent compressor control The control and operation of scroll compressors is carried out as standard by the intelligent focus control 2.0,
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
25
ANALYSIS
If you are not willing to risk the usual, you will have to settle for the ordinary. -Jim Rohn
How to turn around an ailing manufacturing plant and reengage workers One of the largest financial burdens to manufacturing facilities is employee disengagement. Here are five tips for better engaging workers to turn around an ailing manufacturing plant:
while times are tough right now, their contributions haven’t gone unnoticed. This will also set a benchmark for other workers to aim for.
1. Undertake a companywide audit
It’s important to create a culture of recognition and reward. There is no point in starting a scheme only to let it fall at the first hurdle. Develop a program, which recognizes great application and performance and measure management on how well they engage with line workers and maintain these companywide goals. Recognition should be part of quarterly and annual reviews, not a sideline consideration.
Before you embark on a journey of improvement it’s important to understand what is working and what isn’t. Commission a comprehensive audit of operations and analyse the results. Be specific, rank problems in order of severity and critically, take note of successes and seek ways to leverage that work in other areas. 2. Recognise the positives from day one You may have a lot of improvements to make; however praising the areas that are working well is critical to employee engagement. Call out the workers making a difference via email, social media, and with a personal visit. Let these employees know that,
26
NZ Manufacturer November 2015
3. Promote a culture of recognition
4. Set goals and manage expectations Once you know the problems you are facing as a business, set companywide initiatives to overcome them. The challenge of righting wrongs should be seen as a positive experience, not a
/
www.nzmanufacturer.co.nz
negative one. Get the whole company on board, share ideas for improvement, and if necessary request additional budget for overtime or incentive pay. Share your plan with the whole factory and get every member of the team on board.
Then, formalise the process by making employee recognition a cultural imperative. Finally, set measurable goals and allow everyone to enjoy the spoils of success. Over time, your troubled factory may emerge as a template for others to adopt.
5. Share the success with your team One sure-fire way to encourage your employees to offer incentives - be explicit with your targets and then update workers on progress. In fact, make it a public contest. Give daily updates and dangle the idea of a reward for hitting goals ahead of schedule. A well-aligned team will always accomplish more. Production is a cyclical business, yet some factories suffer from systemic issues. Don’t give up if you find yourself in that situation. Instead, audit your operations to find the bright spots and take steps to publicly recognize the great work being done now.
It’s important to create a culture of recognition and reward.
NEWS
“It is better to fail in originality than to succeed in imitation. - Herman Melville
Fielding student awarded prestigious national engineering scholarship A passion for building and racing motor bikes and problem solving has landed Fielding High School student Ryan Stewart the Maintenance Engineering Society of New Zealand (MESNZ) Bill Buckley Scholarship Award. The presentation was announced at the Society’s annual conference in Hamilton. Stewart was the outstanding candidate from over 30 finalists submitted by high schools from throughout the country. “His presentation stood out from the rest” said Bill Sole, Industry Engagement Manager of Competenz and one of MESNZ panel members making the selection. “Ryan has both the academic results plus the hands on skills and ambition to become an engineering leader of the future. He clearly has a good mechanical aptitude and we are sure this scholarship will set him up for his future studies”. On hand to make the presentation, was the award namesake, Bill Buckley. Bill Buckley is the patron of MESNZ and founder of Auckland based Buckley Systems Limited (BSL), the world’s leading supplier of
precision electromagnets used in the manufacture of silicon chips, flat-panel screens, high-end medical machinery and particle accelerators used in medical proton and photon therapy – systems that will revolutionise cancer treatments of the future. Buckley spoke of his time as an engineering apprentice and his desire “to go after the stuff that is too complicated for the average engineer”. Stewart was rapt with the award and confirmed the $5000 would be of tremendous value for his engineering studies at the University of Canterbury next year. In his application, Stewart said his “dream was to become an engineer” and “I have always had a talent for problem solving and applying it to real situations”. One of Stewart’s achievements was winning the water cooled class in the Mini Moto GP motorcycle he designed and built. The Stuart Tolhurst Award for the engineering apprentice of the year was presented to Ravensdown Fertiliser’s Marlane Harmer, from Rotorua.
The National Maintenance Engineering Conference (NMEC) is the annual conference of the Maintenance Engineering Society of New Zealand, a technical interest group of IPENZ (Institute of professional Engineers). Over 150 delegates are attending the conference along with 50 exhibitors in Bill Buckley presents Bill Buckley Scholarship the adjacent trade show. Award to Ryan Stewart, Fielding High School.
Olympus i-speed 3 High Speed Camera for rent • 2000 fps at max. resolution • Fully portable solution incl. lights, tripod & 4 lenses • Available NZ wide via overnight courier • Rent from 1 day onwards For further details call TechRentals® on 0800 832473
New Zealand distributor for Harting GmbH Han F & B connector for Food and Beverage Industries Compliant with food standards
• Easy to clean • Has large number of connection configurations • 25 different contact inserts for data and power • Inserts enable transmission of Data, Signals or Power • Offers greater flexibility than hardwired systems
Connection Technologies Ltd, P O Box 39340, Wellington Mail Centre, Lower Hutt T: 04 566 5345 Lewis@connectors.co.nz www.connectors.co.nz www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
27
ANALYSIS
I find that the harder I work, the more luck I seem to have. - Thomas Jefferson
Managing in-market representation for manufacturers and exporters - Dieter Adam, Chief Executive, New Zealand Manufacturers and Exporters Association The New Zealand Manufacturers and Exporters Association (NZMEA) we recently started a new series of unique workshops for manufacturers and exporters, aimed primarily at facilitating peer to peer learning and providing a safe environment to discuss topics and share knowledge and experience. We call these From the Factory Floor – and that’s more than just a label. The topic for each workshop is suggested by one of our manufacturers, and usually the proposing company will host the event, too, including a tour of their factory floor. The first workshop was held at MASTIP Technologies in Auckland, and focused on how to manage in-market representation for exporters. A good or bad distributor can have huge ramifications for the success of any exporting business. New Zealand manufacturing exporters compete in their own unique niches, and are rarely in direct competition with each other in overseas markets. This helps with sharing freely both positive experiences and hard lessons learned without fear of giving potential competitors a leg-up. I want to discuss a few of the important takeaways from this workshop that may be useful for any manufacturer dealing with distributors or looking to expand or introduce new distribution. First and foremost, when looking at options for distribution it is vital you
do not go in blind – putting in the work to understand the market you want to enter can make the difference in finding the right distributor, and being able to negotiate successfully with them. This includes questions like: what is the size of the market for my product? What is your competitive position in the market? How does business culture differ from New Zealand and how might this change how we should operate? Finding talented staff may be key to this; however you can get external help. Looking at how to set pricing and margin-sharing deals with distributors, the key idea is that it needs to be win-win for both parties – there has to be money on the table for both to ensure a lasting and fruitful relationship. However reaching an agreement is not without challenges – you both may have very different ideas on what a ‘fair share’ looks like. There can also be mixed incentives, for example, a distributor may believe a high end price allows them to make money with the need to sell high volumes, but this ends up being worse for your profits. They could take on your product and use a high price to price it out of the market for their own competitive reasons. Understanding your own value chain as well as comparable margin sharing agreements for distributors in the market can be key. Keeping in mind
that the right pricing can differ across markets, and ‘pinging’ the market to see what price it can bear can be a useful tool. Knowing how important your business is to any potential distributor can also help inform negotiations. Fruitful partnerships with distributors are formed on the basic fundamentals of common sense, honesty, and mutual benefits; however it is important that you always have an agreement in place. Negotiating that agreement under New Zealand law appears to be of little advantage, if it’s accepted at all, because in the end disputes will have to be settled under the markets local law. You have to write a ‘get-out-clause’ into the agreement, to give you the flexibility to change if problems occur, you need to change your approach, or leave the market. Some companies tie that to a performance clause, others prefer termination without a reason. In some jurisdictions the former may be easier to enforce when it comes to a breakdown in the distributor relationship. An alternative to all of this is having your own representative in the market – this can almost always be the best form of market presence, giving you more direct control and ability to leverage product knowledge and service, and branding. Depending on the technical complexity and service/support requirements of your
product, you may have to invest in this earlier, rather than later. Conversely you could add your own service technicians alongside a distributor presence. Sometimes it makes sense to buy a successful distributor with whom you’ve had a mutually exclusive relationship. If a strong brand presence is vital for your success in a market, achieving that through a distributor is always more difficult. Your distributor will re-tell your brand through his/her own interpretation - your product and brand story can end up quite different because of this. More importantly, vital customer feedback will only reach you through the filter of your distributor’s interpretation (Chinese whispers) – if at all. The NZMEA will be running more of these workshops on a range of topics proposed by manufacturers, where shared knowledge and experience can make a real difference to business operation. If you would like more information on future From the Factory Floor workshops or the NZMEA, please contact us on 0800 353 2540.
Low investment in R&D and technology holding us back Low investment in R&D and technology as a percentage of GDP is holding back New Zealand’s potential for dynamic business growth, according to the latest Grant Thornton Global Dynamism Index (GDI) 2015. The GDI, developed in conjunction with the Economist Intelligence Unit, ranks 60 of the world’s largest economies on
dynamism, which indicates changes in an economy that are likely to lead to a faster future rate of growth. Grant Thornton New Zealand partner, Michael Worth says our lack of investment in R&D, coupled with the poor way we make use of advancements in science and technology, shows there is still a lot of room for improvement. “The index shows that New Zealand has a great platform from which businesses can grow, but we must stop thinking short-term and look to invest in the future,” he said. New Zealand is ranked 28th in the world for its R&D spend as a percentage of GDP, well behind sector leaders South Korea, Israel, Finland, Sweden and Japan. “We also continue to underinvest in science and technology. The index shows we only rank 30th in growth
28
NZ Manufacturer November 2015
/
www.nzmanufacturer.co.nz
in broadband subscriber lines which means we’ve dropped 10 places since 2013; and we’re 54th in total IT spending growth – this means we’ve dropped 37 places in two years which is just staggering.
• Foreign trade and exchange regimes and controls
“That two year gap is a lifetime in the IT world; there is a clear and present danger that New Zealand will get so far behind, we may never catch up.
• Legal and regulatory risk
“Rather than investing in technology to make the ship go faster, historically many New Zealand businesses preferred to throw people at the problem. While current business confidence is OK, there’s not large growth in employment indicating firms have stopped doing even that. As a result, we are rapidly going backwards in world rankings”.
• Quality of overall regulatory system
The areas noted in the index where New Zealand is strong include:
• Policy towards private enterprise and competition • Political stability
• Unemployment • School life expectancy financial
• Access of firms to medium-term capital • Corporate tax burden “The question our latest Global Dynamism Index forces us to ask is: have we created a dynamic economic platform in this country that other nations are benefitting from rather than us?” says Worth.
title text
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
29
DEVELOPMENTS
Don’t be afraid to give up the good to go for the great. -John D. Rockefeller
World first for Revolution Fibres West Auckland business Revolution Fibres is the first nanofibre producer in the world to meet aerospace industry standards. The AS9100c certification, a quality assurance requirement for all aerospace manufacturers and suppliers, will allow Revolution Fibres to further develop nanofibre products for its aerospace clients overseas. Managing Director Iain Hosie says the certification is a significant step in the transition of Revolution Fibres from a world class research and development entity to offering large-scale manufacturing services in a diverse range of industries. He says being AS9100c certified also enhances Revolution Fibres’ Xantulayr™ product, which is the
world’s only commercially available nanofibre composite reinforcement veil. “The world is constantly searching for textiles that are better and stronger, but also lighter and more functional, and that’s what makes nanofibre so remarkable. And now with this certification, it allows us take nanofibre technology and the products we produce to the next level.” Revolution Fibres ground breaking electro-spinning technology creates nanofibre out of a range of materials including polymers and natural sources such as collagen from hoki fish skins. It is used to do everything from strengthen fishing rods through to enhancing satellite components, and existing nanofibre product lines that Revolution Fibres helped develop include filters for HRV Next Generation ventilation systems
and anti-allergy Nanodream.
pillow
liner
Hosie says the AS9100c certification shows the growing level of interest and confidence the company’s products are receiving from global industries. “Revolution Fibres started the nanofibre revolution in New Zealand five years ago with a goal to grow the New Zealand-based nanofibre export industry and now that is becoming a reality.” The company’s product development arm, Nanofibre Customisation Services, is also subject to the certification meaning there is quality assurance across all parts of the business. A crucial step towards achieving AS9100c certification was to utilise SimpleTrak, a low-cost business process monitoring system. The cloud-based solution, supplied locally by Mike Jacobs and Associates, allowed Revolution Fibres to “institutionalise” its core processes and track both the company’s performance and efficiency, to ensure they conformed with AS9100 standards.
Brent Tucker, Revolution Fibres Operations Manager, says having this information at hand was essential to achieving the new certification. “Usually, especially for a small business like us, quality assurance protocols such as AS9100 are incredibly time consuming and require a lot of complex paperwork. But with SimpleTrak everything was in one place.” Mike Cranna of MJ&A says it is key for companies to monitor the quality of their inputs, the condition of their assets to ensure optimum production quality, and customer satisfaction. “SimpleTrak helps companies like Revolution Fibres to achieve this effectively and efficiently. It allows start-ups and smaller companies to establish systems to monitor, analyse and improve their business processes. “Ultimately that means reducing risk, improving efficiency, and, when it comes to achieving a complex certification like Revolution just has, all the information they needed was right at their fingertips.”
Glass printer spurs growth for innovative Kiwi business A $750,000 glass printing machine commissioned in Warkworth is the prime catalyst for some spectacular predicted growth for an innovative New Zealand business. Glasshape Limited’s new Israeli-made machine represents the very latest in glass printing technology providing the foundation on which the company expects to greatly build revenues. Glasshape has been significantly upgrading its manufacturing capabilities in the town, its latest investments of some $3 million in Warkworth which has a population of less than 5,000. On the back of the investment the company secured an additional grant from New Zealand Trade and Enterprise’s International Growth Fund to establish a North American base to service its rapidly expanding export market. Managing director Rick Forrest says he expects Glasshape global sales in 2016 to be up some 40 per cent on this year. “That figure represents growth of more than 200 per cent over three years ago and thoroughly supports our
30
NZ Manufacturer November 2015
development strategy in partnership with NZTE,” Forrest says. The new printing technology – marketed by Glasshape as VisionInk – provides for “unprecedented” graphics impact and durability according to Forrest. “Our success has been forged by focusing on complex jobs that just can’t be delivered by most other industry players, curving being the main driver,” he says. “With the addition of the VisionInk printing technology and enhanced glass processing facilities, Glasshape can now provide clients with a full end to end service - toughening, laminating, printing and curving, or any combination of those processes.” The VisionInk technology has applications over and above simply the aesthetic. Through manipulation of the laydown of the ink, specific thermal and solar controls can be delivered making it ideal for facades, partitioning and windows. With up to 720 dpi ultra fine detail photorealistic printing in full colour on any glass substrate, the opportunities
/
www.nzmanufacturer.co.nz
for more temporary applications are an area the company is looking to spearhead.
of delivering innovative solutions to unique problems through glass” combining art with functionality.
“The secret is in VisionInk’s ceramic inks that fuse in to the glass in the furnace,” Forrest says. “It resists practically anything you can subject it to and is fully recyclable. This significantly extends the possibilities for what is already a remarkable substrate.
“Our business philosophy has always been to focus on niche opportunities that others find too challenging,” he says. “Kiwi ingenuity and a commitment to delivering excellence has been pivotal in our international success.
“With or without our signature glass-curving, VisionInk can turn plain balustrading, partitioning, facades and windows in to stunning works of art. It’s a genuine alternative to building envelope applications.”
Speaking of global reach, now with sales offices in Seattle, Melbourne, Brisbane and Perth, Glasshape has achieved export levels of more than 75 per cent of turnover in recent years. November 2015 sees the culmination of 24 months’ expansion coinciding with the company’s 30th year in operation.
Forrest says the new technology builds on Glasshape’s “proven track record
REAR VIEW
Try not to become a man of success. Rather become a man of value. - Albert Einstein
Steel Industry in Crisis by Gary Hook, CEO Metals New Zealand
China steel chief says demand ‘evaporating at unprecedented speed’. If anyone were in any doubt about the magnitude of the crisis facing the world’s largest steel industry, listening to Zhu Jimin would put them right. Demand is collapsing along with prices, banks are tightening lending and losses are stacking up, the deputy head of the main steel mills’ group said in China on Wednesday. “Production cuts are slower than the contraction in demand, therefore oversupply is worsening,” said Zhu at a briefing by the China Iron and Steel Association (CISA). “Although China has cut interest rates many times recently, steel mills said their funding costs have actually gone up.” China’s mills - which produce half of the world’s steel - are battling against oversupply and sinking prices as local consumption shrinks for the first time in a generation. The fallout from the industry’s struggles is boosting trade tensions as China’s mills seek to sell their surplus overseas. “China’s steel demand evaporated at unprecedented speed as the nation’s economic growth slowed,” Zhu said. “As demand quickly contracted, steel mills are lowering prices in competition to get contracts.”
Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Machine Tools Business Opportunities Commentary As I See It Business News Appointments Around New Zealand Australian Report New to the Market Lean Manufacturing Equipment for Sale Recruitment Environmental Technology Manufacturing Processes
Medium and large-sized mills incurred losses of 28.1 billion yuan (A$6.2 billion) in the first nine months of this year, according to a statement from CISA. Steel demand in China shrank 8.7 percent in September on-year, it said. Crude steel output in the country fell 2.1 percent to 608.9 million tonnes in the first nine months of this year, while outbound shipments jumped 27 percent to 83.1 million tonnes, according to official figures. Chinese steel mills face some of their worst conditions ever and the vast majority are losing money, Citigroup Inc. said in September.
price offers right now need to be aware of the desperate efforts by international suppliers to offload inventory in the search for cash, and respond accordingly. Globalisation of the steel industry is accelerating rapidly right now and here in NZ as the Government’s free trade agenda rolls on.
The outlook for mills in the country is the worst ever amid unprecedented losses, Macquarie Group Ltd. said in an Oct. 19 report, citing a survey by the bank. Our Industry Response
Responding to a lower priced environment in the medium term will call for more productivity; more capable processes with less complexity & waste and a more flexible working culture by employees.
Those competing with international
- metalsnz@gmail.com
NZ MANUFACTURER
We must also be on the lookout for products that might not meet our Product Standards and therefore potentially our building codes. There is a clear obligation on the channel/ reseller to assist in quality assuring product being offered to the market.
•
China’s mills which produce half of the world’s steel - are battling against oversupply and sinking prices.
DECEMBER/JANUARY 2015 Issue
•
Features
www.nzmanufacturer.co.nz
The Year That Was – 2015 Manufacturing Technology Disruptive Technologies Tools for Manufacturers Advertising Booking Deadline – 11 December 2015
Editorial material to be sent to :
Advertising Copy Deadline – 11 December 2015
Doug Green,
Editorial Copy Deadline – 11 December 2015 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz
P O Box 1109, Hastings 4156, Hawke’s Bay
At NZ MANUFACTURER our aim is to keep our readers up to date with the latest industry news and manufacturing advances in a tasty paper morsel, ensuring they do not get left behind in the highly competitive and rapidly evolving manufacturing world.
Email: publisher@xtra.co.nz Tel: 06 870 9029 Fax: 06 878 8150
www.nzmanufacturer.co.nz
/
NZ Manufacturer November 2015
31
HEADING
The shortest way to do many things is to do only one thing at once. -Samuel Smiles
title text
Manufacturers focused on
SUCCESS Join with...
32tell NZ Manufacturer November 2015 / www.nzmanufacturer.co.nz www.nzmanufacturer.co.nz us your story publisher@xtra.co.nz