August 2019
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MANUFACTURING TECHNOLOGY AI is here to stay.
11 COMPANY PROFILE Cottonsoft on a roll.
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ANALYSIS How highly productive industries can lead wellbeing change.
Professional 3D CAD New Version 2019 released New file import/Export engine New Graphics engine More producve with large assemblies More drawing image opons Powerful dynamic seconing
5G to enhance manufacturing efficiency More than one million people have subscribed to a 5G mobile contract in South Korea, meaning demand for the high-speed technology has easily outpaced the country’s adoption of 4G.
The need for speed isn’t just essential for rapid telecommunication — we’d all rather communicate using faster and more reliable methods. 5G has created quite the media buzz recently. Although uptake continues to face its challenges, with the Australian government banning Chinese telecommunication giant Huawei’s 5G rollout in the country on national security grounds, the world is racing to implement the infrastructure. Next generation 5G networks can be 100 times faster than 4G, making communication between devices and servers much faster. This opens up a wealth of possibilities for manufacturing, helping the industry to increase its competitiveness and boost efficiency.
The instant era Manufacturing runs on a tight schedule. Margins are squeezed more than ever as products are increasingly
varied, customised and complex. Factories need to receive and transmit a wealth of data to keep their equipment informed — and fast. Ultra-reliable and low-latency communication (URLLC) is a new service category that will be supported in 5G, created to meet the requirements for 5G in industrial applications. By making the most of this category, machines can
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Join industry experts from Objective3D, SolidWorks, Stratasys, Desktop Metal and Concept Laser for an opportunity to learn how leveraging 3D CAD and 3D Printing on the manufacturing floor can help you stay ahead of the competition.
WHAT YOU WILL LEARN: The Role of 3D Printing in Manufacturing SolidWorks 2019- Where Possibility Takes Form Designing for Additive Manufacturing (AM) with SolidWorks Design-to-3D Printing for Anyone, Anytime and Anywhere Updates on Desktop Metal including an Overview of FABRICATE - pre-process 3D CAD models and deliver a flawless workflow. How Metal 3D Printing is Transforming Metal Fabrication Strong as Steel – Carbon-Filled AM Technology Customer Presentation on the use of AM (Auckland) Tour of AM Facilities (Christchurch) Panel Discussion: Leveraging CAD and 3D Printing on the Manufacturing Floor
WHY ATTEND: Learn from industry leaders and get direct access to technology thought leaders and expert advice Hear first-hand what is working today and will work in the future Make new connections and build relationships with partners and peers Stay up-to-date on new techniques and future academic research Network and interact with industry leaders and manufacturing peers
Places are limited. Please book early to avoid any disappointment.
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WHEN & WHERE:
27th August: Auckland Design for Additive Manufacturing Lab Building 901 Faculty of Engineering Newmarket Campus University of Auckland 314-390 Khyber Pass Road Auckland 29th August: Christchurch Engineering Core Lecture Theatres University of Canterbury 48 Creyke Rd, Ilam Christchurch
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Business Owners Educators / Researchers Product Designers / Managers Design Engineers / Managers Engineering Managers Anyone who is interested in AM
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CONTENTS DEPARTMENTS
1
ANALYSIS
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BUSINESS NEWS
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ADVISORS
5G to enhance manufacturing efficiency.
Cabinet papers disappointing response to employers.
Kirk Hope
Is Chief Executive of BusinessNZ, New Zealand’s largest business advocacy body. He has held a range of senior positions at Westpac and is a barrister and solicitor.
MANUFACTURING TECHNOLOGY AI is here to stay. KiwiNet Awards finalists.
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COMPANY PROFILE
12
CLIMATE CHANGE
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Cottonsoft on a roll.
Taking on one of the biggest causes of climate. Leeann Watson
Tackle climate change, here and now.
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RATS! It’s the internet of things.
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SMART MANUFACTURING
ANALYSIS
8
Lewis Woodward
The digital twins are coming.
NEW PRODUCTS
11
Dr Troy Coyle
Kemppi releases MasterTig range.
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ANALYSIS Four day working week improves wellbeing, could save the planet.
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Success down under…
Craig Carlyle
DEVELOPMENTS From chicken feathers to fire retardant.
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REAR VIEW Beyond meat? The market for meat substitutes is way overdone.
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
Brett O’Riley
BUSINESS NEWS Boosting your business- Preparing to raise capital.
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Is HERA Director, she has extensive experience in innovation, research management and product development, most recently as Head of Innovation and Product Development & Pacific Islands Export Manager at New Zealand Steel..
COMPANY PROFILE
Lubricant container stewardship work forges ahead.
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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.
MAF-E 11 boring machines launched. Technology joins aluminium alloys and polycarbonate resin.
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Is the Chief Executive of the Canterbury Employers’ Chamber of Commerce (the Chamber).and is a strong voice for Canterbury business.
How highly productive traditional industries can lead the wellbeing change.
Very smart Australian manufacturing.
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Dr. Dieter Adam
Is the executive director of The Manufacturers’ Networ. He has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.
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EMA chief executive Brett O’Riley has a background in technology and economic development. Brett actually grew up with manufacturing, in the family business, Biggins & Co. He currently holds board roles with Wine Grenade and Dotterel Technologies and is also on the NZ Film Commission board.
Innovators PUBLISHER Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.
A new 3D printing technology for high
MANAGING EDITOR Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz
value miniaturisation is one of the
CONTRIBUTORS
the KiwiNet Innovation Network.
recently announced awards finalists of
Holly Green, Fiona Kingsford, Tahu Kukutai, Stuart McNaughton, Kyle Webster, Juliet A. Gerrard, Darren Patterson, Adele Rose, Dr. Troy Coyle, Ganesh Nana, Simeon Burnett, Paul Wood
ADVERTISING Doug Green T: + 64 6 870 9029 E: publisher@xtra.co.nz
Kim Alves, KA Design T: + 64 6 870 8133 E: kim.alves@xtra.co.nz
WEB MASTER Bruce Metelerkamp E: bruce@hha.co.nz
Then there is Connor Talbot, the founder of Prosthete X who are creating personalised 3Dprinted socket designs for amputees suffering from pain, discomfort and frustration caused by their current prosthetics (Page 10).
PUBLISHING SERVICES On-Line Publisher Media Hawke’s Bay Ltd
DIGITAL SUBSCRIPTIONS E: publisher@xtra.co.nz Free of Charge.
These three finalists are examples of innovation, research and development in high value adding sectors.
MEDIA HAWKES BAY LTD T: +64 6 870 4506 F: +64 6 878 8150 E: publisher@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992
They show that a lot more is going on than within primary industry and that diversity does indeed exist with New Zealand.
Vol.10 No. 7 AUGUST 2019
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.
NZ Manufacturer August 2019 /
Andrew Best and Andrea Bubendorfer are co-inventors of MicroMaker, a game changing technology with the potential to open up miniaturisation as a new high value application in additive manufacturing (Page 9). Another finalist is Professor Bruce MacDonald from University of Auckland who builds robots to help people. He has worked tirelessly and collaboratively to advance not only his world- leading research but also that of the wider New Zealand research community working on robots, sensors and automation (Page 9).
DESIGN & PRODUCTION
4
to the fore
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And, finally, what are we to make of the PMI currently sitting at 48.5%? Fluctuating fortunes, based on current world economic trends, or a need to continue (as always) to do something about productivity?
Doug Green
Success Through Innovation
EDITORIAL
BUSINESS NEWS Cabinet paper a disappointing response to employers Industry training organisation (ITO) Competenz has three years to hand over its 20,000 apprentices and trainees and the 3,500 New Zealand employers it currently works alongside to the NZ Institute of Skills and Technology (NZIST), the centralised polytechnic being formed by the Ministry of Education, according to the Government’s cabinet paper.
“But we also know that any changes and uncertainty in this sector could mean a downturn in the number of people engaged in the entire vocational education system, so we will be working hard to ensure we continue to support our employers and learners throughout this period to make sure this doesn’t happen,” she said.
Fiona Kingsford, Competenz CEO says both her organisation and its employers and industry leaders are disappointed that the industry-centric ITO sector will be phased out of workplace-based training.
Competenz has supported an increase of apprenticeships year on year, particularly in the engineering industry, which has seen 16 per cent growth in apprentices over the past few years, and a 20 per cent hike in employers engaged in training.
“We surveyed more than 1,000 of our employers this year who told us that ITOs perform a critical function and need more funding, not disestablishing.” The fundamental risk our industries face is the time involved and significant disruption of establishing a new NZIST and transitioning the workplace based training to the new system. It could mean being even less responsive to the fast-changing nature of work, which weakens the country’s ability to recruit, innovate and compete,” says Fiona.
“It is bittersweet that our success is now compromised. We cannot afford to lose this momentum at a time of critical skills shortages and industry growth,” Fiona admits there is much about the current system that needs to change to meet the needs of a rapidly changing world of work and was pleased the ITO’s recommendation is to align the new framework across six vocational pathways.
She concedes that phasing out ITOs over three years to 2022 is a positive change from the Government’s original proposal.
“We support the development of the four to seven new industry-governed Workforce Development Councils (WDCs), as it’s critical that on-the-job training meets the needs of industry and is fit for purpose.
“Extending the length of time that we can support our new and existing apprentices and trainees through the transition will ensure stability of their needs.
“Having greater opportunities on investment decisions, strengthened standard setting, skills leadership and employer brokerage is also welcomed. We are not yet clear on how this will be executed
however, we believe that the relationship with employers is a critical role of the WDCs, so this is also positive,” said Fiona. The paper confirmed a new funding model but did not give details. “A new funding model is well overdue as the existing system is broken. We look forward to being part of the design of the new model that enables innovation, agility and greater incentives for employers.” But the ITO is focusing on its people first. “Our focus is to support our staff, employers and learners through the transition to keep upskilling the New Zealand workforce. “It is more important than ever that New Zealanders can get worthwhile qualifications, learners can be recognised for their skills, and industry can be confident in the quality of the workforce.”
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3D MANUFACTURING title text
Description
Specialising in
Capabilities
Objective3D is Australia and New Zealand’s leading provider of Stratasys,
• Rapid Prototyping,
Industry Sectors Served:
Desktop Metal, Concept Laser, TPM3D and Artec 3D Printer and 3D Scanner
• Advanced Prototypes,
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• Tooling / Jigs & Fixtures
Objective3D provides both 3D Printer Solutions and 3D Printing Bureau Service
• End use parts
all through a state-of-the-art Additive Manufacturing Centre which houses the
• Low-volume Production, and
most extensive range of Fused Deposition Modelling (FDM), PolyJet, Selective
• Multi-material, multi-colour realistic models.
• Engineering Design • General Engineering • Defence and Aerospace • Arts and Entertainment • Automotive and Aftermarket Automotive • Agriculture/Agribusiness • Architecture • Consumer Goods
Laser Sintering (SLS) and Direct Metal Laser Sintering (DMLS) machines including consumables and spare parts.
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3D MANUFACTURING
• Consumer Electronics • Education – Secondary and Tertiary • Energy, Mining/Oil/Gas • Industrial Machinery • Healthcare / Medical • Packaging
• Rail Transport
• Road Transport
Additive Manufacturing Solutions (3D Printing):
Activities • Seminars • Workshops • Courses • Webinars • Tradeshows • Sponsorships
• Metal – Bound Metal Deposition, Single Pass Jetting, Direct Metal Laser Sintering Technologies • Thermoplastic – Fused Deposition Modeling, Selective Laser Sintering Technology • Photopolymer – Polyjet Technology
• Shipbuilding/Marine
For more information, visit www.objective3d.co.nz www.nzmanufacturer.co.nz
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MANUFACTURING TECHNOLOGY AI is here to stay. Now we need to ensure everyone benefits Artificial intelligence (AI) is already in use in many sectors. Its contribution is expected to rise steadily, driven by advances in data storage, computer processing power and connectivity. Following the report on AI by the Australian Council of Learned Academies (ACOLA), the Royal Society of New Zealand Te Apārangi has launches a report that focuses on the opportunities and risks the “fourth industrial revolution” might bring to Aotearoa New Zealand. AI, in all its applications, is predicted to contribute some US$15.7 trillion to the global economy by 2030. This represents roughly the combined GDP of China and India in 2018. Australia and New Zealand are yet to develop national AI strategies. The reports look 20 years ahead, which is a useful period for policy development. The explicit focus on well-being provides a helpful frame to start national conversations about how to embrace these new technologies, leading rather than passively accepting advances from offshore. AI in New Zealand New Zealand has started to adopt AI in the government sector, with most government agencies employing some form of it. There are advantages in New Zealand’s small size and strong legal frameworks to develop protocols for data ethics and security, and intellectual property, and to nurture a diverse AI-savvy workforce. Placing equity at the centre of the conversation means that we can choose to adopt AI technologies across education, government and industry in the context of public good. This would mitigate the risk of importing biases from offshore algorithms and allow us to identify areas where AI can benefit all New Zealanders, rather than a small international elite. Within the reports’ 20-year horizon, specialist machine learning and narrow AI (a specific type of AI that outperforms humans in a very narrowly defined task) will help us to start removing the “four Ds” – dirty, dull, difficult, dangerous – from our daily work. Instead, we will be able to use machines to free people up to use their originality, creativity and questioning abilities. It is unlikely that machines will challenge these skills in this time frame. Artificial general intelligence, which could compete with these more human forms of cognition, is likely many decades away. By focusing on this nearer-term future, the ACOLA report
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makes concrete recommendations on strategic investment, regulatory mechanisms, equity and respect for intrinsic human rights, while calling for a national strategy to bring these approaches together. What AI could do for New Zealand A recent New Zealand government report signalled that AI-driven automation and optimisation could result in economic gains in productivity. Think drones applying herbicides in an orchard, identifying weeds through AI-driven vision recognition systems, then feeding the data into a central system. This could mean less herbicide use, better farm productivity and environmental outcomes, and fewer people operating herbicide sprayers (at least in the way they do currently). But the predicted gains in productivity are not without risks. Estimates of the proportion of jobs likely to be automated by AI vary wildly. So do estimates of the degree to which those will be replaced by new jobs. Some of these new jobs are currently difficult to imagine. Consider someone preparing for a career as a social media manager back in 2000, four years before Facebook was founded. Foresight will be key to building a resilient and adaptable workforce. Key skills in STEM subjects (especially maths), coupled with strong foundations in the humanities, will be important. AI experts agree that, as AI technologies are implemented at scale, the key concern is the rate at which they may disrupt work and drive inequalities in income and employment opportunities. Even if the former orchard sprayer is able to find another job, they are unlikely to get a direct financial payoff in the same way that the owners of the farm will. Multiplied thousands of different ways across New Zealand’s economy, these AI-driven changes threaten to widen inequities. Research related to this issue, for example at the Centre for AI and Public Policy (CAIPP), will need to feed into policy. Other risks of AI Economic effects are just one part of the story. The reports raise several issues, including lethal autonomous weapons, threats to democratic decision making and the disturbing gender imbalance in the rapidly growing AI workforce. The discussions fit into a wider body of recent work on AI relevant to New Zealand. This includes an analysis of the government’s use of predictive systems, establishment of the OECD principles on AI and a report on the state of the industry in New Zealand. This work identifies an urgent need for clear principles for the use of AI and state regulation for socially accepted use and standards.
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Juliet A. Gerrard Prime Minister’s Chief Science Advisor, University of Auckland
Kyle Webster Kyle Webster has just completed an internship in the Office of the Prime Minister’s Chief Science Advisor, focussing on Artificial Intelligence. , University of Auckland
Stuart McNaughton Professor of Education / Chief Education Science Advisor, University of Auckland
Tahu Kukutai Professor of Demography, University of Waikato
The ACOLA report discusses many aspects of AI relevant to our responsibilities under the Treaty of Waitangi. AI technologies need to be developed to augment critical thinking and social and emotional skills at all levels, and in a culturally inclusive context. An important implication, consistent with the government’s focus on well-being, is the need to closely monitor societal impacts. The report also identifies where New Zealand could contribute to the global conversation, including in indigenous data sovereignty. Groups such as Te Mana Raraunga and Te Hiku Media actively explore how tikanga (Māori customary system of values and practices) should be applied to these emerging technologies. As the ACOLA report notes: An AI strategy that places equity at its forefront will strengthen Aotearoa New Zealand’s international reputation in this arena and ensure that Aotearoa New Zealand is not left behind by some of the most important developments of the 21st century. Overall, we see enormous potential for transformative opportunities, from intelligent tutoring systems in education through to precision agriculture. These could improve well-being across all sectors of society, government, agriculture and industry. Realising this potential will require addressing the substantial challenges inherent in ensuring a fair and equitable transition into an AI-enabled future, making sure that benefits also reach those at risk of being excluded.
MANUFACTURING TECHNOLOGY
2019 KiwiNet Award Finalists Award Category: Breakthrough Innovator This award recognises an upcoming entrepreneurial researcher who is making outstanding contributions to business innovation or is creating innovative businesses in New Zealand through technology licencing, start-up creation or by providing expertise to support business innovation.
MicroMaker: a new 3D printing technology for high value miniaturisation Andrew Best and Andrea Bubendorfer are co-inventors of MicroMaker, a wholly new type of 3D printing for miniaturisation. This game-changing technology has the potential to open up miniaturisation as a new high value application in additive manufacturing, an industry that already exceeded 7 Billion USD in 2018.
won an exclusive launchpad at the IDTechEx show for emerging technologies (Silicon Valley, Nov 2018) and a select video interview by the chair. This was followed by a place in the RadLaunch class of 2019 with an invited Webinar, cash prize and funded travel to exhibit and present at the Big Ideas! Meeting (LA, Mar 2019).
Andrew and Andrea started by identifying microfabrication as an economically significant industry with easily exportable high value products. Recognising the high cost barriers to entry, they saw a gap in the market for an accessible approach. Using microfabrication principles and materials they created MicroMaker, enabling rapid prototyping to meet the demand for miniaturisation.
Most recently MicroMaker received both a funded invited presentation and 3D print art exposition entry to Rapid + TCT, the preeminent event in 3D printing (Detroit, May 2019). MicroMaker has been showcased in all major 3D printing news sources as “a technology to keep an eye on”.
MicroMaker has attracted multiple international awards. Since its unveiling in September 2018, it
The technology’s development and commercial potential has MicroMaker sought after by investors and end-users. It is now underway with discussions to take this globally.
Revolutionising horticulture and healthcare with cutting edge robotic technologies An early enduring fascination with science fiction as a child led Professor Bruce MacDonald to dedicate his life to building robots to help people. Professor Bruce MacDonald has worked tirelessly and collaboratively to advance not only his own world-leading research but also that of the wider
New Zealand research community working on robotics, sensors and automation. As the founder and director of the University of Auckland’s Centre for Automation and Robotic Engineering Science, Bruce has successfully led and launched substantial MBIE-funded agritech research programmes with industry partners in the Agritech sector, who are taking the new science and technology to the marketplace. The Autonomous Multipurpose Mobile Platform – a robot capable of picking and pollinating kiwifruit and flowers was developed by a multi-institutional team under Bruce’s leadership in partnership with commercial partner Robotics Plus.
robotics and eldercare has been recognised internationally, leading to major collaborations in Japan and Korea. His team is collaborating to develop assistive robotics technology in the aged-care sector with colleagues in the health sciences, and end-user partners such as Selwyn Foundation. As Deputy Director of the Science for Technological Innovation NSC Bruce has inspired and guided dozens of Spearhead and Seed projects tackling complex and difficult science questions that, if answered successfully, will lead to the development of multiple novel technologies that will underpin a step change in the New Zealand economy.
Nominated by
Bruce’s reputation for excellent, high-impact research in
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MANUFACTURING TECHNOLOGY Award Category: Momentum Student Entrepreneur ProstheteX - personalised 3D printed socket designs for amputees ProstheteX are creating personalised 3D printed socket designs for amputees who are suffering pain, discomfort, and frustration, caused by their current prosthetics.
ProstheteX flexible custom design aims to eliminate issues that approximately 75% if all amputees face in their prosthetic journey due to prosthetic sockets, including skin issues because of their socket fit, and more serious complications such as oedema. Connor Talbot, the founder of ProstheteX is a student at The University of Auckland and is in his final year of his Electrical Engineering degree. The venture was started with a co-founder, another undergraduate – Sebastian Weaver, who works as a technician for the New Zealand Artificial Limb Service (NZALS) and is majoring in Mechanical Engineering. Connor Talbot says, “Current prosthetic sockets are developed with conventional manufacturing methods that can lead to hard, relatively inflexible sockets. We’re aiming to achieve a better fit through
personalised 3D printing for the ever-changing shape and size of amputee’s residual limbs.” Since inception only four short months ago, the team has achieved wonderful traction. They have secured the world’s foremost 3D printing expert, Professor Olaf Diegel and won several awards for their vision and values. Most notably, the team has snapped up the ‘Research Prize’ by UniServices at the 2019 Velocity Innovation Challenge, and, ‘The Ultimate Start-Up’ prize at Tech-Week Auckland 2019 hosted by Niesh and ATEED. The team also walk the talk. They have connected to high profile amputees, testing their designs with NZALS, and are integrating themselves and their business heavily into the amputee community in New Zealand. With all this achieved in just four months,
Award Category: Momentum Student Entrepreneur Electroclear – removing underwater biofouling for marinas, boaties and aqua farmers University of Auckland bioengineers have developed an innovative way to get rid of the underwater biofouling that creates such a headache for marinas, boaties and aqua farmers.
Walker. Walker, and fellow doctoral student and company partner Patrin Illenberger, (both in Auckland Bioengineering Institute’s Biomimetics Laboratory) brought their bioengineering training to bear on the problem. They discovered that if they set up two separate electrodes underwater and created a fully encapsulated electric field, they could target and disrupt certain organisms. Electroclear has been experimenting with several marinas: looking at ways to create electric fields on different surfaces - boat hulls, rope and key marine infrastructure. “The panels that had an electric field had no organisms attached after 50 days,” says Illenberger, “while the others with no field had bryozoans, algae and barnacles on their surface.”
Electroclear is using electric fields to disrupt small organisms’ ability to live on selected underwater surfaces. It is a permanent, non-toxic solution that can be applied to a wide range of geometries. “We became aware that biofouling was a big problem when we heard about the invasive fanworms in the Auckland harbour,” says doctoral student Christopher
from boat hulls to drainage systems. “The way forward is to dive into applications; we want this technology being trialled in aquaculture and marine infrastructure around the country.” Electroclear recently won funding and mentor support through the University’s Entrepreneurship programme, Velocity, and is talking with research institutions and commercial partners to develop applications for both marine infrastructure and aqua farms. As well as Walker and Illenberger, the company includes Associate Professor of Engineering Science Iain Anderson, renowned for pioneering the University’s world-champion, human-powered submarine, Taniwha.
With the positive results of their marina trials, Electroclear is pushing to get this into more applications. “As an island nation with such strong ties to our ocean, we have a real chance here to lead the world in anti-fouling and biosecurity,” says Walker.
Nominated by
Applications for this technology seem wide spread,
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COMPANY PROFILE
On a roll By embracing change, New Zealand’s leading tissue products company Cottonsoft has experienced a record 65% volume growth over the last seven years, and seen topline sales revenues increase 66%. Established 31 years ago, Cottonsoft markets, manufactures and distributes a range of tissue and hygiene products throughout New Zealand, including toilet tissue, kitchen towel and facial tissue, in both brand and private label products. Cottonsoft is responsible for over 40% of toilet tissue and kitchen towel rolls sold from supermarket shelves 1 Some growth is organic and can be attributed to the rise in population which is naturally expanding the market. After all, toilet paper is a product that everyone needs, and New Zealand has seen an increase of approximately 500,000 people in five years. The market, however, is only growing at the speed of population growth, and Cottonsoft’s growth far exceeds this. Cottonsoft’s Country Manager Kim Calvert admits that while some growth is due to acquisitions, he explains the development of new products and premiumisation are major drivers of the company’s success. From a base in 2010 with three main product ranges (Kiwisoft, CottonSofts and Tuffy Towel) they have since changed substantially, adding the Paseo
Premium toilet tissue, along with several private label brands. They reached number one in 2011 and continued to grow from there. Over time they have developed and refined their range and now have an offering for all consumers.
Premiumisation “Premiumisation,” he says, “is a global trend and it’s true of toilet paper.” Their kitchen towel range has essentially stayed much the same as “people want their kitchen towel to be strong and absorbent, so don’t see a benefit in a softer kitchen towel as much as they do with toilet tissue,” says Kim. Recognising the growing demand from consumers for premium tissue products, Paseo was launched in 2011 and by 2017 had become the number one toilet tissue brand in the market2. “We developed the Paseo brand with thick, luxury three-ply tissue, sustainable sourcing, and a premium look and feel that we believe was not matched by any other product in the market,” says Kim. This has moved Cottonsoft from operating only in economy and mid-range markets into the business of premium toilet paper.
Sustainable and innovative product development “Sustainable sourcing has long been a significant part of our business,” says Kim. The company
received their PEFC3 Chain of Custody certification in 2009 and their Environmental Choice4 license in 2014. They earned the ECNZ innovator of the year for their approach to promoting the ecolabel together with their brands. Cottonsoft has also moved into other products and is no longer solely working in tissue products. Three years ago, they looked at flushable hygiene wipes, a product at the higher end of the premium market and decided they could make them better. They created a wipe that was more dispersible than what was on offer. Previously competitors were selling wipes that were flushable, but they wouldn’t break down as well afterwards. Cottonsoft developed a wipe that was more dispersible, tested in New Zealand to local conditions, ensuring they are soft on skin, but tear easily to help them break down faster in wastewater systems. Kim explains that since bringing this product to the market and competing against global brands, their competitors’ products have fundamentally changed. “Everyone was talking about a product that was flushable, but we developed a product that was dispersible. We lead the market.” It is this change in approach to product development that keeps Cottonsoft ahead. Kim remains tight-lipped about new lines in development but is excited as he explains that they like to reinvent
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CLIMATE CHANGE Taking on one of the biggest, invisible causes of climate A project has begun in New Zealand for the refrigerants industry to tackle one of the most potent, but least known causes of climate change. The gases used in refrigerants – perfluorocarbons (PFC) and hydrofluorocarbons (HFC) – are rated among the most effective at trapping heat in the earth’s atmosphere; thousands of times more potent than carbon dioxide with respect to their global warming potential, says sustainability expert Darren Patterson. This, combined with their widespread use, makes them a high priority target for tackling climate change worldwide, he says.
As part of the project a Working Group has been established to represent the interests of the key industries affected by a priority product declaration, including refrigeration and air conditioning, motor vehicle industry (automotive air conditioning), refrigerant wholesalers, manufacturers and distributors and other significant industry stakeholders.
tyres and e-waste,” Darren says.
This project is being managed by Hastings-based product stewardship specialists 3R Group.
Consultation is a vital part of the process and now is your chance to have your say. You can view the first report at the www.refrigerantstewardship.co.nz site and take part in the consultation questionnaire, also on the site. The consultation questionnaire will close Monday, 5 August 2019.
Darren, who is project managing the work, says product stewardship sees producers, importers and retailers take responsibility for their products and ensure they are re-used, recycled or properly disposed of at end life. New Zealand is also bound by international agreement to phase down HFCs, Darren says. In 2016 the Government adopted the Kigali Amendment to the Montreal Protocol, which requires the phasing down of HFCs worldwide from the beginning of 2020 and will cease importing HFCs in 2036.
3R Group Business Development Director Darren Patterson is leading the work on a mandatory product stewardship for refrigerant gases in New Zealand.
The project has the support of RECOVERY as well as the Motor Trade Association (MTA), Heat Pump Suppliers Association (HPSA), the Institute of Refrigeration, Heating and Air Conditioning Engineers (IRHACE), the Climate Control Companies Association of NZ (CCCANZ) and Refrigerant License New Zealand (RLNZ).
3R Group Business Development Director Darren Patterson is leading the work on a mandatory product stewardship for refrigerant gases in New Zealand. For further information please contact: Toni Bye
RECOVERY, a voluntary product stewardship scheme for refrigerants has been operating in New Zealand since 1993. However, the whole industry isn’t involved.
Marketing & Communications Manager
“It’s vital we have all the players involved to make the scheme as effective as possible. A co-regulatory scheme ‘levels the playing field’ as all companies would be required to participate,” Darren says.
About:
Under the current Waste Minimisation Act 2008, if the Minister for the Environment declares refrigerants a priority product, those products must be part of a co-regulated stewardship scheme. “The Ministry has already signalled its intentions to act on high priority waste streams, such as refrigerants,
3R Group Ltd 021 022 14586
A working group has been established to represent the interests of the following industries: refrigeration and air conditioning, motor vehicle industry (automotive air conditioning), refrigerant wholesalers, manufacturers and distributors and significant industry stakeholders. The group is outcome focused and is actively involved in the project to ensure the effectiveness of the product stewardship of synthetic refrigerants is maximised.
Climate explained: why we need to cut emissions as well as prepare for impacts change Ralph Brougham Chapman Associate Professor , Director Environmental Studies, Victoria University of Wellington First, let’s accept climate change is happening and will have major negative impacts on New Zealand. Second, let’s also accept that even if New Zealand did absolutely everything possible to reduce emissions to zero, it would still happen, i.e. our impact on climate change is negligible. Third, reducing our emissions will come with a high financial cost. Fourth, the cost of dealing with the negative impacts of climate change (rising seas etc), will also come at a high financial cost.
It would be to put short-term self-interest first, rather than considering both our long-term interests and those of the wider global community. Our options on climate are looking increasingly dire, since we as a global community have postponed combating climate change so long. But in New Zealand – and indeed in any country – we should still do as much as we can to reduce the extent of climate change, and not, at this stage, divert significant resources away from mitigation into “preparing for” it.
Based on the above, would it not be smarter to focus our money and energy on preparing New Zealand for a world where climate change is a reality, rather than quixotically trying to avert the unavoidable? – a question from Milton
Starting with the physics, it is clear that climate change is not a given and fixed phenomenon. It is unhelpful to say simply that “it is happening”. How much heating will occur will be determined by human actions: it is within humanity’s grasp to limit it.
To argue that we should not act to reduce emissions because it is not in our interests to make a contribution to global mitigation is ultimately self-defeating.
Any significant action taken over the next decade in particular will have high payoffs in terms of reducing future warming. The Intergovernmental Panel on Climate Change (IPCC) in effect says emission cuts
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of 45% or more over the next decade might just avert catastrophic change. Inaction, on the other hand, could condemn humankind to experiencing perhaps 3℃ or more of heating. Each further degree represents a huge increase in human misery – death, suffering and associated conflict – and increases the threat of passing dangerous tipping points. Climate outcomes are so sensitive to what we do over the next decade because eventual heating depends on the accumulated stock of greenhouse gases in the atmosphere. We are still adding to that stock every year, and we are still raising the costs of cutting emissions to an “acceptable” level (such as that consistent with 1.5℃ or 2℃ of heating).
CLIMATE CHANGE Tackle climate change, here and now -Adele Rose, 3R Group Chief Executive
In the year 2019 being 50 years-old is the new 30, right? If we believe this, those of us who are now in our 50’s will enjoy, at a minimum, another 30 years of active life. In New Zealand there are over 1.5 million of us in the 50 – 64-year age group living it up like we did when we were in our 30’s and 40’s. That means by 2049 we will experience the impacts of the decisions we make right now. Our children will too, and our current and future grandchildren absolutely will. In 2049 my own children will range in age from 44 through 52 and my only grandchild, so far, will be 32. What will you be saying to your children and grandchildren when you’re in your 80’s and looking back on the world they are inheriting? How will they be adjusting the way they live, work, procure food and explore the planet when they are our age? What we know is they will be doing all of this in temperatures that are in the range of 1 – 3C warmer than right now. We know that they will be living with increased extreme weather events and weather bombs like we are only just starting to experience in 2019. We know that if they inherit land along our coast or in lower lying areas chances are they will have to relocate, or be relocated, as they experience the increase in sea levels and impact of coastal erosion through accelerated climate change. We know they will be able to grow different food here in Hawke’s Bay in 2049, but they also won’t be able to grow food we currently enjoy as our temperature profiles change. Temperature changes between 1 – 3C also means we’ll have pests and diseases we don’t have now. It is also said that one of our greatest risks to those of us in Pacific nations is the loss felt by first nations people as the very land that is of such ancestral significance is lost to coastal erosion. This will affect our economy, our environment and our way of life. It already is. It’s a wellbeing and food security issue. One of my first homes in Hawke’s Bay was in Haumoana, a coastal village on the East Coast which merges into Te Awanga and Clifton Beach. In early 2000 I saw the first effects of rising sea levels and coastal erosion which eventually decimated some homes along that coast. This year we have seen the voluntary relocation of homes in the Hohepa Village in Clive, another small settlement on the East Coast along the Clive River, which runs down through the Heretaunga Plains and merges at the coast with the Ngaruroro and Tutaekurī rivers. Now prone to floods and rising sea level impacts, Hohepa Hawke’s Bay, a home for people with intellectual disabilities, which was built 60 years ago, is having to leave its site between the mouths of the Ngaruroro and Clive rivers – impacting 60 residents and 30 carer staff. Hohepa Business Manager, Neil Kirton was quoted as saying, “We are faced with a real conundrum… we are now coming to the conclusion that we can’t stay here anymore.” Our Hawke’s Bay Regional Council is one of the first in New Zealand to plan for the impact of accelerated climate change, including protection and potential relocation of coastal communities.
can deny he’s a passionate orator and a polarising political figure from the Obama Government era. Possibly less well known is the work he has dedicated himself to – raise awareness about the impact of accelerated climate change. Love him or loathe him, he has created a movement and enabled over 19,000 people in 152 countries between the ages of 12 to 87 to gain the skills, knowledge, and network to shape public opinion, influence policy, and inspire their community to act on human-led climate impact. So, when the opportunity came up for me to attend the Climate Reality Leadership Corps Training in Brisbane in June this year, I was humbled to be asked. Could I actually tell my own story and ultimately work with others to leave “my backyard” in a better place for my children and grandchildren? Did I have a responsibility as a business leader who works in the sustainability space to bring focus to impacts of our carbon footprint? How could I not? When I’m 80, what was I going to say… I had an opportunity, but… Arriving on the first day of the training the first thing you notice is the age range of the mentors and leaders from all walks of life, across all cultures. These were the people who attended the training in previous years and gave up their time to help the 2019 group, of around 800 people, find their way around and make sense of the huge range of resources available to us over the three days. The next thing you notice is the wide range of backgrounds of the attendees who travelled from around the world. From business owners working in industries which have a negative carbon impact through to those working in the green economy, and from council staff and politicians to community groups and parents who were giving their children the gift of participation. The result was diversity of thought and debate in action. What will stay with me are personal and moving stories. The stories told by those that live with the
impact of accelerated climate change on their islands and homes, right now. Our neighbours the Torres Strait Islanders, the people of Papua New Guinea, the people of Tonga who got up and shared their, at times highly emotional stories, about loss of place and connection, loss of land, loss of ability to harvest food from the sea, loss of built infrastructure for power, transport, hospitals and homes – all of which were no match to the frequent and inconsistent weather “bombs”. This is happening right now, not far from us in New Zealand. However, coupled with these stories was a huge sense of hope. Hope that those of us who were listening to their stories and who can make change now, would use our skills, knowledge, and network to shape public opinion, influence policy, and inspire our community to act – at a local and global level. One of the attendees used an expression I believe works well for us: We can chew gum and talk at the same time (just make sure you put that gum in the bin when you’ve finished chewing)! Research, science and indigenous wisdom is no secret. We know what we need to do on a personal and local level. We can plan as well as take action to reduce our carbon footprint at the same time. We can use the economic advantage that has come from the use of fossil fuels to build-in resiliency and support a fair and just transition to a low-carbon economy for our people, community and our Pacific neighbours. All of this can be done as we are faced with the inevitable changes to our climate that our previous generations set in play for us, and we can change the narrative our children and their children will hear. I’m proud of my green Climate Reality Corps badge presented at the end of the training. For me it means when I am 80 (or hopefully older) and face my children and their children when they ask me what I did to help reverse human impacts of climate change, I can say I learnt how to tell my story, our story, starting with our own backyard.
Did I have a responsibility as a business leader who works in the sustainability space to bring focus to impacts of our carbon footprint?
I think we are all familiar with who Al Gore is, no one
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CLIMATE CHANGE New Zealand poised to introduce clean car standards and incentives to cut emissions The New Zealand government has proposed new fuel standards to cut greenhouse emissions, along with consumer rebates for cleaner cars – paid for by fees on high-polluting cars. The long-awaited proposed changes would bring New Zealand in line with most other developed countries; apart from New Zealand, Russia and Australia are the last remaining OECD nations without fuel efficiency standards. New Zealand’s long tradition of not regulating its car market, combined with substantial indirect subsidies for private cars, makes addressing emissions from the transport sector both challenging and highly significant.
New Zealand’s second-rate car fleet Land transport emissions – the single largest source of fossil carbon dioxide in New Zealand – grew 93% between 1990 and 2017. There are multiple causes. The population grew 44% during this period, mostly through immigration. The car ownership rate also grew rapidly, partly due to economic growth and deficiencies in public transport in the main cities. Car ownership in New Zealand is now the highest in the OECD and there are more motor vehicles than adults. Fuel efficiency improved only slowly over this period, before stalling in recent years: at 180g CO₂/km, the emissions of newly imported vehicles in New Zealand are 50% higher than in Europe. Because of the lack of a fuel efficiency standard, importers provide less efficient versions of their
bestsellers to the New Zealand market. Of the ten bestselling new vehicles, five are utes (which also benefit from a fringe benefit tax exemption, four are SUVs and one is a regular car. In addition, half of all vehicles are imported second-hand, mostly from Japan. They are cheap, but less efficient than newer models. Emissions, and congestion, are likely to continue rising as the national vehicle fleet is increasing by 110,000 vehicles a year. One bright spot in the present situation is the emergence of an electric vehicle segment, mostly driven by the availability of cheap second-hand Nissan Leafs from Japan and the construction of a fast-charging network by a private company. Although sales have stalled in the past year at a market share of 2%, there are now 15,000 electric vehicles in New Zealand. (Australia has around 10,000 electric vehicles.)
New Zealand’s history of fuel taxes New Zealand does not have a strong record of taxing “bads”. The only goods subject to excise taxes are tobacco, alcohol and fuel. The fuel tax is moderate by international standards. Over the past decade, the fuel tax has been fully allocated to road construction and maintenance. New Zealand has an emissions trading scheme. The current carbon price of NZ$25/tonne of carbon dioxide adds five cents per litre to the price of fuel. Clearly, any likely increases in the
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Robert McLachlan Professor in Applied Mathematics, Massey University
carbon price are not going to be enough to change car buying decisions. Research shows that consumers tend to focus on upfront costs, while underestimating future fuel and maintenance costs. Despite that, a special Auckland fuel tax of 10 cents per litre that co-funds public transport investment provoked a brief but intense backlash from the public. Plans to extend the scheme to other centres were canned.
A two-pronged plan The proposed fuel efficiency standard would require car importers to either meet it or pay a fine. The suggested standard is 150gCO₂/km in 2021, falling to 105gCO₂/km in 2025, with further falls thereafter. There are more than 3000 car importers in New Zealand, so this could prompt a major shakeup, including possible price adjustments. The standards are similar to those proposed by the Australian Coalition government in 2016, which have not yet been taken any further. Internationally, fuel efficiency standards cover 80% of the light vehicle market.
25-26 SEPTEMBER AUCKLAND ASB SHOWGROUNDS facilitiesintegrate.nz
EVENTS But the second component of the proposal, the clean car discount, has attracted more attention. Cars emitting less than the current threshold would received a discount, initially up to NZ$1800 for an efficient petrol car, up to NZ$4800 for a hybrid and up to NZ$8000 for a battery electric car. Cars costing more than NZ$80,000 would not receive a discount. Known as a “feebate scheme”, those rebates would be paid for by increased fees for high-polluting cars, of up to NZ$3000. The amounts are designed so that the entire scheme would be revenue neutral to the government. Modelling suggests that the proposed standard and discount combined would save motorists NZ$12,000 over the life of a vehicle. International clean car schemes and testing There is international experience with similar schemes, and they have been broadly effective. France has been operating a “feebate” scheme since 2008 with periodic adjustments. New Zealand’s proposed scheme is similar to the French and Swedish schemes. But there is also room to get it wrong. Tinkering with electric vehicle incentives has led to wild sales fluctuations in the Netherlands and Denmark. The spread between tested and real-world fuel use has widened, up from 9% in 2001 to 42%. The new Worldwide Harmonised Light Vehicle Test Procedure testing cycle, currently being adopted by Japanese and European manufacturers, is believed to be more representative of real-world fuel use, as is the test already in use in the United States.
But overall, the New Zealand proposal has been received positively by car makers and across political parties. One possible weakness is that it is entirely based on carbon dioxide. Other pollutants, including nitrous and sulphur oxides and particulate matter (soot), that are responsible for most of the immediate health impacts of vehicle pollution and are worse in diesel than in petrol vehicles, are not targeted. Nor are the underlying subsidies to the car-based transport system, which make a transition to active and public transport more difficult. Any decisions made now will have impacts for decades to come. Switching the fleet to electric is different from just switching to more fuel-efficient cars. It involves new charging infrastructure and some behavioural changes from the public, and these challenges (rather than simply cost) are stumbling blocks worldwide to more rapid adoption. These arguments have persuaded many countries to bring in electric vehicle incentives beyond simply targeting carbon dioxide. Norway is a famous example, where electric vehicles avoid purchase taxes and market share is already 60%. The UK has recently exempted electric company cars from fringe benefit tax. As the global market share of electric vehicles still stands at only 2%, eight years after they became widely available, and the number of fossil-fuelled vehicles is increasing by 48 million a year, stronger action on vehicle emissions is clearly needed worldwide.
NZ MANUFACTURER
FEATURES September 2019 Issue REGIONAL DEVELOPMENT COMPANY PROFILE ADVANCED MANUFACTURING PRODUCTIVITY SMART MANUFACTURING
Rats! It’s the Internet of Things
Advertising Booking Deadline – 12 September 2019
By now, the notion of the Internet of Things is quite familiar. More and more devices are being connected to the network, providing a range of automated data generation and sharing points which allows improved management of everything from traffic on our roads, to stock on our farms. Oh, and better control of rats. That’s right, the Internet of Things (IoT) now enables pest control like the world has never seen. “You can imagine a factory or any other large facility which has perhaps 500 traps located throughout. Who has the time to check on those traps?” asks Heiko Kaiser, managing director of Alpeco. The solution to that challenge is a connected trap which can automatically share its status. If there’s nothing in it, no need for anyone to check. Alpeco is demonstrating a range of internet-connected technologies for space-age pest control at the Facilities Integrate expo, taking place in Auckland this September. Kaiser is also presenting a seminar where he will discuss how modern pest control doesn’t require chemicals, the latest solutions and how these support HACCP (hazard analysis and critical control points) compliance. Kaiser says connected traps – called MinkPolice have been in use in Europe for some time. More recently, along with the launch of Vodafone’s ‘Narrowband IoT’ network, they have been introduced in the Punakaiki Sanctuary on New Zealand’s rugged West Coast. “Each trap connects to Vodafone’s IoT network and links to a smartphone application. Volunteers receive a notification whenever a trap is activated which sends them to the exact location of that trap, to clear it, reset it, and trap more pests more often,” Kaiser explains. Grant Parrett, of volunteer group Predator Free Punakaiki, is thrilled with the introduction of the
Editorial Copy Deadline – 12 September 2019
Advertising Copy Deadline – 12 September 2019
MinkPolice traps: “A huge number of traps can be checked by a very small number of volunteers,” he says. The IoT traps, which link to a smartphone app, have a further unexpected benefit. “The technology is actually quite fun for the people. We’re getting better engagement from the volunteers through it,” Parrent explains. It’s a bit like feeling a bite on a fishing line; when a trap catches a rat, stoat or other mammalian predator, the volunteer’s mobile lights up and they can go straight to the affected trap and prepare for the next catch. Parrett adds that he believes the only way for New Zealand to achieve its ‘Predator Free 2050’ goal is through the adoption of technology like IoT traps. In larger organisations, such as supermarkets or food processing facilities where compliance with regulations including HACCP is a prerequisite, Kaiser says connected solutions for pest control take any guesswork out of the equation. “Now you can monitor your entire facility from a single interface, without leaving the office unless necessary. The traps tell you what they have caught. They tell you if they are offline. They tell you if their batteries are low.” Facilities managers and all those interested in learning more about internet-powered pest control methods are invited to attend Facilities Integrate 2019. The trade-only event takes place 25 - 26 September 2019 at the ASB Showgrounds in Auckland. Attendance is free for all registrations prior to midnight 23 September. Attendance for those registering after this date are priced at $25. For more information or to register your interest, visit https://www.facilitiesintegrate. nz/.
Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz Editorial material to be sent to : Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz Tel: 06 870 9029
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ANALYSIS How highly productive traditional industries can lead the -Dr Troy Coyle, CEO, HERA wellbeing charge -Dr Ganesh Nana, chief economist, BERL New Zealand is currently under the leadership of a coalition Government with a staunch focus on wellbeing, and business and industry need to understand how this focus changes the way they should assess their bottom line and their general contribution to the domestic economy. Treasury’s Living Standards Framework (LSF) encompasses the ‘four capitals’ – natural, human, social, and financial/physical – which affect our wellbeing as a nation and as a citizenry. All four capitals are meaningful for companies as financial entities, users of resources and employers of people – so how should we understand the vanguard role New Zealand’s traditional industries, such as the metals sector, can play in driving up the diverse indicators of wellbeing?
Get measuring The New Zealand metals industry was the first sector to measure itself against the LSF, and the very act of self-examination is beneficial to an industry and its member companies, because of how it forces operators to analyse how they work in a larger economic, social and environmental framework. In particular, if you are working or hoping to work with the public sector, it is critical to acknowledge the different measures of success that are now being applied. Treasury’s approach is not a simple one, and
Commercial & industrial growth
we found we couldn’t measure everything – but we don’t ignore what we can’t measure, and we now look at how our sector can make things better for people, the environment and the economy.
We are in a position to ask consumers to challenge us on moving the value chain towards the four capitals, and we should take advantage of that.
Make your own definitions Our view is that the LSF does not have to be taken as rote – areas such as social capital are not yet sharply defined for a New Zealand context, and companies and sectors need to define the terms of wellbeing for themselves. The key is to talk about the language of wellbeing when examining your own model and function. How does it relate to income and employment, the environment (from resource depletion to waste and climate change), and social inclusion (diversity in a given sector, unconscious bias, and invisible barriers to entry)? Meaningful change is not likely to come from start-ups but from transformation of traditional industries such as manufacturing, dairy and construction.
Employment growth
continued on Page 25
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.org.nz
getba Greater East Tamaki Business Association Inc.
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ADVISORS Mike Shatford
is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.
Matt Minio
Managing Director, Objective3D Matt has extensive hands on experience as a user and supplier of 3D Printing technology. He comes from a mechanical design and engineering background with 25 years’ experience in multiple high end 3D cad applications across a range of industries, including aerospace and automotive. He has been heavily involved in the 3D printing evolution - from initial early prototyping to todays advanced 3d printing technologies producing production parts straight off the printer. As Managing Director of Objective 3D, he provides Stratasys, Desktop Metal and Concept Laser 3D printing solutions to a host of industries across Australia and New Zealand.
Sandra Lukey
Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business. She has over 20 years’ experience working with companies to boost profile and build influential connections.
Greg Morehouse
Greg founded Motovated Design & Analysis in 1999 with a vision to “cost effectively engineer our client’s vision”; through the use of advanced techniques, superior tools, and boundless enthusiasm. Working for VW & Audi as a mechanic, and then with Boeing & Hercules Aerospace as an Engineering Analyst, provided Greg with 40+ years of real world design and analysis experience. Greg is a world-class analyst and provides training and advanced technical support to manufacturers and some of the FEA resellers throughout New Zealand.
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Ideagen launches new version of Q-Pulse Q-Pulse is used across the manufacturing and services industry to maintain operational integrity in line with standards such as ISO 9001:2015 among others. The software helps remove labour and bureaucracy from quality and compliance management, providing control, efficiency and transparency. As well as maintaining the software’s existing functionality, the browser-based Q-Pulse 7 comes
with powerful dashboards for increased business intelligence and an intuitive user experience.
The system can be accessed anytime, anywhere – significantly extending its overall reach.
Q-Pulse 7 is a modern, slick and visually rich software product that has taken the application to the next level, focussing on bringing data from all across the business to life through visually appealing and quickly consumable dashboards to ensure that users can access information that is important to them quickly and easily.
Launched originally in 1994, Q-Pulse first came into prominence as a quality management solution, helping organisations make the first moves to paper-free control of processes related to document, audit and corrective action management. Since then, each version has expanded its capability to help Q-Pulse become a trusted solution across the global manufacturing industry. Q-Pulse helps organisations build a repository of business-critical information that they can use to improve other processes. With Q-Pulse 7, all of this information can be surfaced immediately to improve the understanding of business performance like never before. It goes beyond simple analysis and opens up the entire database for scrutiny.
Q-Pulse helps organisations build a repository of business-critical information.
Think big
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Red zoned: How a remote monitoring solution constantly analyses building safety
In the wake of the Christchurch and Kaikoura earthquakes, the only sensible action was evacuation of every building within defined danger zones. This means we’re able to track all relevant metrics in real time,” Mclauchlan explains.
after an earthquake. Engineers can use the data to rapidly assess building safety.
It’s a situation Global Seismic Data wants to turn around, combing the power of the Internet of Things and cloud software-as-a-service for instant insights into the structural integrity of any building, at any time.
The sensors connect to the cloud-based system via 4G connection or can be ethernet based network, securely uploading data to the GDS cloud platform. Customers are equipped with their own portal, where they can access information on a single building, or a portfolio of buildings, through a browser or mobile app.
Data gathered over time can guide design structural remedies for ground movement. Insurers can better align premiums to building seismic performance. Building owners and occupants can gain an empirical data on the actual performance of their structures before and after seismic activity.
That’s according to Steven Mclauchlan, the company’s Global Operations & Supply Chain Director. “Earthquakes are a fact of life in New Zealand and the challenge has always been minimising their impact and managing the risk they pose,” he says.
While an earthquake is a major event likely to focus the senses, there’s more to the SHMS system, as Mclauchlan makes clear. “Even small seismic events can have an effect over time, along with the usual wear and tear over time.
“However, when it comes to the structural integrity of buildings in an area which has experienced a shake, we’ve had little choice but to evacuate, then wait for the engineers to provide a report.”
“Continuous monitoring of your building puts you in a position to accurately pinpoint issues as they arise, allowing a move from reactive to proactive maintenance. And with buildings, as with anything else, prevention of a major incident is always better than remediation after the fact.”
Why? Because there was no data available which could show which buildings were unsafe for occupation, and which had survived the shake unscathed.
This takes time. When there are hundreds, or even thousands of affected buildings, it could be weeks, months or even years before an assessment is carried out. Only then can repairs be commissioned and carried out if necessary. If remediation isn’t necessary, then the occupants have been locked out anyway, unable to conduct business as usual.
He says an SHMS-equipped building has many potential benefits, all linked to the power of accurate information. It can allow more targeted deployment of Emergency Management Services
And councils can improve their regulations around structural standards. “This system exposes the kind of information and insight which is necessary to shift the focus from managing disaster to managing risk,” says Mclauchlan. “It has the potential to fundamentally change how we deal with the inevitable in New Zealand - and part of that could very well mean saving lives and reducing impact on the economies.” Facilities managers and all those interested in learning more about GSD and its solutions for tracking building health are invited to attend Facilities Integrate 2019. The trade-only event takes place 25 - 26 September 2019 at the ASB Showgrounds in Auckland.
Global Seismic Data is presenting its technology-driven solution to this problem at the Facilities Integrate conference taking place in Auckland this September. The company is demonstrating how, with the deployment of carefully calibrated low-cost sensors, coupled with cloud-access analytics software, building managers can take the pulse of all their assets from a single dashboard. The information could mean knowing within minutes if a building is - or isn’t - safe for occupation. “Our Structural Health Monitoring System – SHMS - provides continuous monitoring of a building or infrastructure frequency, ambient noise, movement and other behaviour. This is a continuous health check, with the Seismic Data Sensors tuned and located in specific positions by trained engineers.
Installed sensor.
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The digital twins are coming of age Digital twinning technology, long used to aid space missions, is entering the mainstream where it is predicting future situations, the state of physical things and even the world around us. “Houston, we’ve had a problem,” astronaut Jack Swigert said to Mission Control, 200,000 miles away from earth. The date was April 13, 1970. Swigert and two other astronauts, Jim Lovell, and Fred Haise, were piloting the ill-fated Apollo 13 spacecraft bound for the moon. Slightly over two days into the mission, an oxygen tank on board exploded, cutting off electricity, heating and water supply, while carbon dioxide, poisonous in high concentrations, began to build up in the cabin. Fortunately, for the crew, National Aeronautics and Space Administration (NASA) engineers on the ground were able to test various possible recovery scenarios in a paired module on earth. All three were able to hole up in the craft’s lunar module which landed safely in the Pacific Ocean nearly four days later. Today, NASA continues to use the same concept of pairing — now with digital models, or digital twins — in managing space missions.
UNDERSTANDING DIGITAL TWINNING A digital twin is a unique, virtual model of a physical thing. It is typically connected to the thing, updating itself in response to known changes to the thing’s state, condition or context. The benefits of this technology, fuelled by progress in the Internet of Things (IoT), big data, cloud computing, artificial intelligence, and virtual reality, among others, are clear. As digital twinning provides greater insight into and visibility of the current and future states of a thing, more proactive decisions can be made in managing it, according to DHL’s Digital Twins in Logistics report.
Digital Twins in Logistics Digital twinning can help companies design, visualise, monitor, manage, and maintain their assets more effectively. It can also unlock new business opportunities, such as providing advanced services or generating valuable insights from operational data.
technology in its Ivar Aasen project off the Norwegian coast. Based on results off its “intelligent digital twin”, the company managed to reduce manpower and optimise maintenance schedules for its equipment successfully. Digital twins that incorporate simulation technologies also offer access to data that is impossible to measure directly on the physical object.
NEW SKILLS MORE CRUCIAL THAN EVER
This is particularly useful for manufacturing, which is already on the cusp of Industry 4.0.
But as with all new technologies, there are challenges in implementation.
CNH Industrial, a global producer of agricultural, industrial and commercial vehicles, has used digital twins to analyse and compare scenarios, which helped to optimise maintenance at its production plant.
For businesses, cost is a major concern. Digital twins require considerable investment in technology platforms, model development, and high-touch maintenance.
Another feature of digital twins that is quickly revolutionising industries like healthcare is the diagnostic systems that use measured or derived data to suggest root causes of specific states or behaviours.
Matching the physical, chemical, electrical, and thermal state of a complex asset is an extremely challenging endeavour, which also adds to costs. Other issues range from data quality (good data is necessary to build a digital twin) to interoperability, intellectual property protection, and cyber security.
Siemens Healthineers has developed digital twin models of the human heart for 100 patients undergoing treatment for heart failure. The system simulates the mechanical and electrical behaviour of the heart and uses machine-learning techniques to create patient-specific models based on medical imaging and electrocardiogram data.
And as digital twinning technology continues to develop and power ahead, Janina Kugel, Board Member and Chief HR Officer of Siemens, believes that the role of managers is changing and that acquiring new skills is critical.
the
“They may be colleagues, mentors or coaches – or mentees who learn from others. They may have to switch back and forth between these roles several times a day depending on the situation and on the specific colleagues they’re dealing with,” she said.
In other industries, the predictive capability of
“In the digital age, soft skills are becoming more important than ever.”
Future trials could see digital twins take on a more significant role in diagnosis and treatment planning. Digital twin technology can simulate physiological processes of a patient’s heart.
This can improve reliability and safety while keeping operating costs under control. In the offshore energy sector, for instance, oil company Aker BP used Siemens’ analytics
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At the same time, a digital twin is not the real thing, which means it remains an imperfect representation of its physical counterpart, at least for now.
Such digital twins can allow complex operations to be rehearsed safely or speed up drug development by allowing new therapies to be evaluated in silico.
For sectors involving assets that are remote or dangerous, such as the energy production industry, digital twins can allow the owner to visualise the status of that asset immediately.
NZ Manufacturer August 2019
Warehouse simulation using digital twins can enable facility managers to test and evaluate the potential impact of layout changes or the introduction of new equipment and new processes before making changes on the ground.
Digital twinning can help companies to design, visualise, monitor, and manage their assets more effectively.
Industry researchers expect the digital twins’ market to grow at an annual rate of over 38 percent in the next few years, surpassing US$26 billion (€$22.9 billion) by 2025.
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digital twinning is also highly sought-after. The ability to determine the future state of a physical model with accuracy can have a significant impact on infrastructure of a single logistics warehouse, or even of an entire city.
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5G to enhance manufacturing efficiency
receive greater roaming power. In fact, 5G has very low latency, around 10 milliseconds in comparison to the 20-30 milliseconds with 4G, so equipment can be monitored in real time by human workers. With plans to reduce this latency to as little as one millisecond, the factory floor will receive updates on machinery almost instantaneously.
Cutting the cord According to Ericsson’s report on 5G’s potential, enhanced communication will also mean greater flexibility for manufacturing robots. 5G will handle more complex data transmissions, such as cloud robotics where the cloud’s processing is relevant for the immediate action of the robot. In combination with the cloud’s almost limitless processing and data storage, 5G communications will allow manufacturing robots to do far more than they can today. Robots will be able to exchange large amounts of information between themselves and the factory workforce, revolutionizing the shop
floor along with other 5G enabled devices, such as wearables and technologies like augmented reality. Most robots we’ve seen so far have been tethered to a wired system. This is because the wireless connectivity required for cloud computing just hasn’t been available — until now. As robots work in greater collaboration with human workers, 5G will allow them to roam free, untethered and totally wireless. Better still, instant wireless communication will speed up robot reaction times, reducing the risk of worker injury or collision with other equipment.
Real time maintenance
alarming rate. Mere seconds later, the equipment overheats and causes hundreds of thousands of dollars worth of damage. By the time a replacement has been ordered, delivered and installed, production is massively behind and profitability has taken a huge hit. Now, imagine the outcome if sensors were added onto equipment for machine health monitoring. With ultra-low latency 5G, potential threats can be identified and fixed before they turn into production-stopping problems. If a piece of equipment is continuously showing signs of wear, a replacement can be ordered from a reliable equipment supplier ahead of time and without any last-minute panic.
Maintenance is a major cost for manufacturers. Broken machines can bring production to a grinding halt, costing anything from thousands to millions of dollars in downtime. 5G-powered predictive maintenance could prevent failures before they happen.
As the Asia Pacific region, and indeed the rest of the world, gears up for the 5G era, its benefits will not be restricted to just telecommunications.
Imagine a machine’s temperature is rising at an
5G will bring production to a whole new level
As robots shed their wires, data is transmitted faster than ever and downtime is reduced with enhanced maintenance schedules,
Very smart Australian manufacturing Solar-powered a offers off-grid connection South Australian outdoor furniture brand Sedi has developed bespoke benches and shelter options for smart cities and regional areas. Bronte Modra, the director of Adelaide-based modular engineering company Specialised Solutions, created the Sedi range of park benches, parklets and bus stops in February this year. The smart shelters are built from sustainable timber and steel and have solar-powered lighting, integrated charging ports, WIFI and informational screens that all run off a battery. Modra said he created Sedi to fill a large hole in the Australian manufacturing market created by the burgeoning smart city movement.
with the furniture’s individual technological features, however these add-ons were compounded to develop a new brand of smart furniture fit for a multitude of environments. “We would like to see them absolutely everywhere: the typical bus stops on your streets, your typical parks, council parks and reserves,” he said. “But we’re really trying to tap into is regional Australia. “So, opening up tourism locations to maybe national parks, maybe more locations where by putting in a WIFI system gives tourists access. “We would be looking to connect directly with councils for this.”
The Sedi shelters will sell for around $10,000 each, depending on the specific configuration ordered by the client. The company also plans on exporting internationally to European and is in the process of developing more furniture. “We’re also getting into off-grid accommodation huts and units, which follows your glamping tiny-house type theme, smaller accommodation pods,” Modra said. “We really just want to keep developing the smart features and what we can add onto the structures and see how we can improve the interaction between users and what smart cities are all about.”
“People want to be connected to the furniture and to the web, and the greater society,” said Modra. “Everyone talks about smart cities but no one is really delivering a piece of smart furniture here. “We just saw a real need and something that we could make out of our existing facility.” The Sedi office is located at the Tonsley innovation district alongside technology companies such as SAGE Automation, which, together with JPE Design Studio, helped develop the furniture. Modra decided to make the units “off-grid” to attract buyers who couldn’t connect to a power source. “It being solar-powered gives us a lot more flexibility to where the Sedi is placed,” he said. “With Sedi we can go to regional, remote locations and open up connectivity there. “It’s also cost-saving measure for councils to install in the park [as] service connections are fairly expensive.” Modra said they weren’t “reinventing the wheel”
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NEW PRODUCTS Vertiv appoints Cuthbert Stewart Vertiv has appointed Cuthbert Stewart Limited (CSL) as a distributor of Vertiv Liebert Uninterruptible Power Supplies (UPS) for the New Zealand wholesale electrical, industrial and utilities sectors, where a reliable power supply is critical. Vertiv UPS products are available now through CSL distribution channels.
“While we have a strong presence in the information and communications technology (ICT) market in New Zealand, our partnership with CSL will drive expansion into the industrial and utilities markets,” said Robert Linsdell, managing director Australia and New Zealand, Vertiv.
Based in Auckland, CSL acquired Energy Solution Providers earlier this year and together the companies now offer energy audits as well as technical electrical product solutions to help industrial companies and facilities minimise and protect their energy usage.
“We have already seen the value of energy audits in the corporate space and CSL’s ability to now offer that type of service to industrial customers, backed up by the solutions to deliver efficient, reliable power, is significant from both an environmental impact and a business continuity standpoint.”
CSL will distribute Vertiv’s full range of single-phase UPS products including Liebert PSA5, an economical, environmentally-friendly line-interactive UPS that offers full-featured power protection for small office computers and electronic equipment, and the Liebert ITA2 rugged UPS which is moisture and dust resistant – features which Philip Elliott, chief executive officer, CSL said suit the weather conditions in New Zealand.
“We have already been working closely with CSL to align our teams, products and services,” said Chris Westall, business development manager, Australia and New Zealand, Vertiv. “Our offerings and expertise are complementary and bring each of us into a new important market.”
MAF-E II table-type horizontal boring mills launched Mitsubishi Heavy Industries Machine Tool Co. Ltd. has developed the new MAF-E II series of table-type horizontal boring mills (HBM) offering stability in high processing accuracy and productivity. The first in the series is the MAF130E II model with a 130mm boring spindle. To minimise any decline in processing accuracy from thermal displacement during continuous operation over long hours, the series utilises thermostabilised columns to prevent deformation due to variations in temperature, and a boring spindle unit with an enhanced spindle cooling mechanism. In addition, the high-power, high-torque boring spindle provides improved productivity. The MAF-E II series, while following the strengths of the MAF-E table-type HBM models launched in 2012, was developed to meet needs for more high-precision and high-efficiency processing of large components. In particular, considering the anticipated demand going forward for greater precision in core parts for industrial machinery and energy-related components, the capability of the MAF-E II series to suppress thermal deformation will provide an advantage.
Thermostabilised columns are columns into which a temperature control medium with a high specific heat capacity has been inserted, suppressing column deformation caused by fluctuations in the ambient temperature. The boring spindle cooling mechanism, by cooling the bearing housing and gear box, minimizes thermal displacement during spindle rotation. In addition, the spindle motor output 37kW and torque(cont./30min.) 2,953/3,643N.m (newton meters) is the highest in class, allowing for high cutting performance under a broad range of conditions. Further, the sliding surface utilises a wide box guideway, providing greater rigidity, stable precision, and high productivity. The MAF-E II series also feature a wide variety of the products offered by MHI Machine Tool, including large machining tools and precision processing machines, as well as the powder Directed Energy Deposition (DED)-type metal 3D additive
manufacturing machine (metal 3D printer) and monitoring system. These machines offer optimal solutions to meet all types of processing needs. MHI Machine Tool, building on the momentum from the market launch of the MAF130E II series, will propose a machining process in combination with the MVR series of double-column 5-face milling machines, aiming for manufacturing that contributes to the productivity of its clients.
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NEW PRODUCTS Technology directly joins aluminium alloys and polycarbonate resin Showa Denko has developed an innovative technology to directly join/bond aluminium alloys and polycarbonate resin - a non-crystalline commodity engineering plastic - without using an adhesive. It is common to join/bond aluminium alloys and polycarbonate resin through mechanical joining (using bolts, and the like) or adhesive bonding (using an adhesive). In recent years, much attention is focused on new technologies that directly join/bond resin materials - at the time of injection moulding to metallic materials. These new technologies are expected to simplify process, increase productivity, and enable processing into complicated shapes. In many cases, however, they depend on mechanical bonding power, such as an anchor effect resulting from injection of resin into roughened metal surface.
Thus, it was believed that polycarbonate resin (and other non-crystalline engineering plastics) would not be suitable for joining/bonding metallic materials by conventional methods.
of commodity polycarbonate resin and light-weight aluminium, it is applicable to the housing of smartphones.
SDK has enabled such direct joining/bonding based on its expertise in aluminium alloys and polymer chemistry gained over many years.
In its medium-term business plan “The TOP 2021,” SDK is promoting cooperation among various business segments and strengthening marketing functions.
Specifically, SDK has developed an innovative joining/bonding technology based on special surface treatment and primer treatment for aluminium alloys, realising chemical bonding power [1] in addition to the anchor effect.
The automobile and electronic device industries have an increasing need for diversified and sophisticated materials that are light in weight and with improved characteristics regarding heat dissipation, heat accumulation, and insulation.
The new technology can be used under ordinary polycarbonate moulding conditions, providing sufficient bond strength of more than 25MPa (mega pascal). There is no need for special conditions or equipment in securing sufficient bond strength.
In view of such market needs, SDK is working to develop compound materials by combining its own diversified technologies. The development of the metal/resin direct joining/bonding technology is one of the examples of such efforts.
As this technology enables direct joining/bonding
Schaeffler a finalist in national bulk handling awards Schaeffler’s split technologies – including bearings, housings and seals – have been recognised for their downtime saving and safety benefits by being selected as a finalist in the safety category of the national 2019 Bulk Handling Awards. A major benefit of new families of split bearing, labyrinth seal and plummer block technologies being introduced to Australia and New Zealand is curtailing of downtime during maintenance and ease and simplicity of installation, minimising hazards. These outstanding features are particularly critical to machinery ROI in high-volume, heavy duty and automation applications, because when a company’s major machines aren’t running, it is not getting any return from its expensive plant.
The split really is the difference The expanding family of split technologies – which can be used individually or in combination with each other – is typically easier, faster and less hazardous to install than solid one-piece components when the time comes to repair or overhaul these ubiquitous components integral to all rotating machinery. Plummer blocks, for example, are vital to support the rotating shafts used in materials handling and process technology, providing a stable precision housing for the equally important bearings and seals that underpin reliability and speed for processing applications. Maintenance of these essential technologies can often result in costly production downtime when equipment is offline. The cost of such downtime is increasing further as machinery automation and speeds increase. Delays can be magnified by the complexity of replacing standard spherical roller bearings in such applications, which is a complicated procedure that involves removing gears or couplings, taking off drives and gearboxes, cutting off the old bearing and, frequently, stripping the line shafting. Converting to split spherical roller bearings provides an alternative that can significantly reduce maintenance downtime.
Split spherical roller bearings include inner ring, outer ring and cage assemblies that are split into halves and held together by bolts. These bearings typically offer high load-carrying capability and compensate for any dynamic misalignment. Split vs traditional spherical roller bearings The internal designs of the split bearings meet the same stringent requirements as traditional solid bearings, ensuring the same ruggedness and reliability. As a result, users of split bearings get all the operational benefits of standard spherical roller bearings – without the maintenance drawbacks – when it’s time to remove and replace them. Split spherical roller bearings are particularly useful when several bearings are used to support a complex driveshaft, or when the bearing is hard to access. Furthermore, no longer having to disassemble and remove heavy components may eliminate the need for cranes and other expensive lifting equipment. Similar benefits accrue with the use of split seals – and with split plummer blocks as an alternative to solid one-piece plummer blocks, which are typically heavy items of machinery that not only cost time, effort and expensive lifting technologies to remove and reposition, but also expose the maintenance operation to greater hazard.
load on the bearings more effectively (uniformly) than previous and alternative housings. Using its in-house bearing design, calculation and simulation software, Bearinx, Schaeffler can analyse different housing designs with various combinations of bearings, enabling the optimisation of the complete system (housing and bearings). Their advances – including increased strength and shock resistance due to the use of spheroidal graphite cast iron as standard – make the SNS ideal for the broad diversity of applications where spherical roller bearings are widely used, including machinery operating in aggressive environments ranging from food, beverage and primary product processing, through to mining, mineral processing, crushers, conveyors, loaders, winches, sheaves, elevators, ventilators and dust extractor. Advanced split plummer bock designs – like the split bearings and seals they complement – are engineered for industries that can’t afford breakdowns or production stoppages.
SNS Split Plummer Block Housing Schaeffler’s latest SNS housing design is a split plummer block, which allows maintenance to be carried out more efficiently and quickly by providing easier access to the bearing, which saves time and money. This new generation of Schaeffler SNS Split Plummer Block Housings are large size bearing housing, for shafts from 115mm to 530mm and from 4 7/16 inch to 19 1/2-inch diameter. They are engineered to increase the service life of fitted spherical roller bearings by up to 50 percent compared to conventional plummer block housings. The patented design of the plummer block housing enhances reliability and uptime by distributing the
Schaeffler’s new generation SNS Plummer Block Housing radically increases bearing life while making lubrication, mounting, and condition monitoring much easier than conventional types
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NEW PRODUCTS Kemppi releases MasterTig range Kemppi, has launched the new Kemppi MasterTig family which is designed to withstand demanding welding environments and high temperatures; the next generation of MasterTig welding machines is impressive. It sets new standards in usability, welding quality capability and power efficiency. The MasterTig range has been redesigned with the professional welder very much in mind. The machine’s Weld Assist feature lets welders setup 60% faster to help increase productivity. Welders simply select the material, thickness, joint type and welding position. Weld Assist then determines the best parameters for the welding task. It also provides recommendations for the electrode size, filler wire, gas flow, groove type, pass profile and travel speed. Welders can also weld up to 30% faster, thanks to the MasterTig’s Double Pulse function. Double pulse accelerates the travel speed in DC hand welding and mechanised applications. This not only allows welders to power through work, it reduces distortion levels and delivers excellent weld appearance. Double Pulse also reduces heat input by 20%, helping to minimise welding costs. The range is also packed with high-technology features that enhance TIG welding. The MicroTack function lets you complete multiple, repetitive tacking on thin sheet applications quickly and without forgoing quality or the visual appearance of the weld. iTEC is engineered ignition technology.
It ensures a reliable arc start every time and is particularly useful with long torch extensions for site welding or precise thin materials and low current applications. The Optima AC feature is a customised waveform that combines the best of the traditional sine and square forms. It improves welding quality while reducing the noise level in AC TIG welding by 20%. Other advanced features of the range include 99 memory channels, a weld time clock that lets you measure and record job data, and Auto Pulse. The MasterTig range is also highly energy efficient. Dynamic gas and water cooling ensure optimal temperature control and power efficiency. Depending on the welding power level and duration, the power source cooling fans moderate air flow and cooler motor run time between 15 seconds and 4 minutes to reduce electrical power consumption and localised noise levels. The range also offers considerable choice. Welders can select models with power variants in 230A and 300A. What’s more, the modular design of the machines lets you tailor the MasterTig to your needs. You can choose from various control panels, wireless remote controls and transport cart options as well as personalise the screen saver by uploading your company logo or favourite image. Designed for AC and DC TIG welding as well as MMA welding, the MasterTig range is also light and compact. Maneuvering the machines is easy. The transport units feature floor level cylinder loading,
removing the need for heavy lifting. And the P45MT transport unit integrates an innovative pivoting cylinder plate for safe cylinder loading. The range is built from strong, energy absorbing, recyclable plastics. The machine’s structure also incorporates impact bridges that protect the power source from everyday knocks.
New Flexlite TX Welding Torches Compatible with Kemppi’s latest MasterTig welding machines is the new Flexlite TX torch range. The Flexlite TX torches features high-strength, flexible molded handles for increased comfort and reduced welder fatigue. Silicone rubber material in the handle makes a firm grip possible, and the innovative design reduces wrist loading, allowing the welder to concentrate on creating the perfect weld. The Flexlite TX torches are available in alternative power classes and lengths.
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ANALYSIS continued from page 16
Consider international indicators
prosperity
On the first podcast in HERA’s Stirring the Pot podcast series, the globally renowned industrial transformationalist Goran Roos noted that the countries which are doing well in prosperity normally correlate with a high share of relative performance in manufacturing. This means we know, at least in general comparative terms, how the New Zealand metals industry should be performing against the same industry in other developed nations. Roos also pointed out that in developed, more sophisticated economies, manufacturing includes complementary services. In less sophisticated, low-developed countries, tourism and raw material expost was more characteristic. This is a signal to manufacturing in New Zealand that the way forward is with a more integrated, complex approach to manufacturing which can contribute substantially to wellbeing and long-term prosperity.
Procurement is a contest The time will come, and soon, when companies participating in a Government procurement process will be judged in part on their ability to meet the four capitals measure. Will they be able
to demonstrate their strength in each metric, and show how that strength will translate to return on taxpayer investment and contribute to wellbeing in New Zealand? If not, they risk being passed over for a provider who can.
Look at where growth is generated The metals industry currently contributes around 1% of New Zealand GDP. While timber contributes more to GDP, metals manufacturing employs 30% more people than wood and paper manufacturing combined. Though start-ups get a lot of attention and the bulk of venture capital and R&D funding, it remains the low-tech and medium-tech industries which are contributing the most economic growth. This means these industries have the capacity and opportunity to lead from the front on wellbeing. We can show that business does have a part to play in the LSF targets, and we can measure success by much more than the dollar. We must start talking about the bottom line as a broader concept, because business as usual is no longer going to see us through. The days of patch protection are over If the manufacturing sector as a whole will thrive
We must start talking about the bottom line as a broader concept, because business as usual is no longer going to see us through.
by being more integrated with services, so too do companies and industries have to collaborate on the wellbeing mission. We are all in this together, and the example of the metals industry not being stuck in its existing practice but willing to challenge practices along the lines of the forward-thinking LSF should be instructive to others. We want to raise our own social capital and continue to invest in the areas where we know we add value – for instance, our industry is important in enabling new technologies for growth.
Champion the positive examples Every industry has its stand-out players, and these can serve as a benchmark and roadmaps for the up-and-comers. NZ Steel is a strong case study in the local metals sector; based in the rural southern part of the Auckland region, it is a major employer in the area – it directly employs 1,200 FTEs and supports many more jobs indirectly – and a significant contributor to higher living standards for New Zealanders because of its broad contributions through manufacturing and employment. It currently trains 40+ young Kiwis in its apprentice and graduate programmes to develop skills for heavy and light industry. NZ Steel is also a responsible user of resources, recycling 98% of the water it uses daily. With the trend in all branches of business moving towards verifiably responsible stewardship in the management of people and the environment, only companies like NZ Steel will be able to rise to the top and stay there.
A four-day working week will not only improve wellbeing – it could save the planet A shorter working week has re-emerged as a prominent subject of political and economic discussion. in recent years, with the TUC, the Green Party and Labour taking a reduction of working hours seriously as a policy that could increase workers’ well-being, boost productivity and face the challenges of automation. In Germany, the IG Metall, Europe’s largest industrial union, led a strike last year that mobilized 1.5 million workers and won the option to individually reduce working time from 35-hours per week to 28-hours per week, while securing the option to return to full-time employment afterwards. While a shorter working week is often framed as a tool to fix a broken economic model that is working for the few, rather than for the many, the increased interest in working time reductions coincides with the emergence of powerful global movements that highlight another crisis that is facing humanity today: the depletion of resources, the degradation of our natural environments and above all the rapid heating-up of our planet. Here, too, pressing issues of intra- and intergenerational justice emerge, with people in the global south and the poor more likely to suffer the fall-out of an economic system that largely favours the capital-owning class in the global north. For decades now, the sustainability debate has largely been dominated by calls for ethical consumption, rather than facing the systemic root of the problem: an economic system that prioritises profit-making over workers’ well-being and even the preservation
of the very natural basis of our collective life. To develop a sustainable economic model, it is becoming clear that we need to break with the imperatives imposed by the necessities of capital accumulation (endless “growth”) and find a way to provide a decent standard of living while honouring planetary boundaries. At the same time, our current working time and lifestyle models are deeply intertwined with a fundamentally unsustainable economy, which demands us to endure long commutes due to overpriced housing and eat carbon-intensive, frozen foods since we lack the time to prepare decent quality meals ourselves. The Intergovernmental Panel on Climate Change has made it clear that limiting global warming to 1.5°c above pre-industrial levels will require rapid, far-reaching and unprecedented changes in all aspects of society; even a quick glimpse into the statistics illustrates just how far-reaching and drastic these changes might need to be. Staying within a sustainable carbon budget would require us to cut working times by almost 80 percent, making the new full-time working week a mere nine hours long. The sheer magnitude of this reduction illustrates that the transformation towards a more sustainable economy needs to go beyond merely cutting back the worst fossil fuel based industries a little: instead, we need to revaluate our economic model and work regime more fundamentally, combining a move towards sustainable energy with a transformation of
our transportation systems and a radical reduction in working hours. Rather than discussing how to maximise profit, the climate crisis forces us to change the conversation and raise the question: provided current levels of carbon intensity of our economies and current levels of productivity, how much work can we actually afford? With even the most carbon efficient economies reaching peak sustainable working hours at around a 12 hour working week (given carbon budgets) – a figure close to the 15-hour work week heralded by John Maynard Keynes – we are reminded that a vast expansion of non-work time should be considered less of a luxury and more of an existential urgency. In this spirit, one concrete and wide-ranging step following the declaration of a climate emergency could be the immediate introduction of a Four-Day Week as a transitional step: not just to improve the wellbeing and jobs of workers, but also to curb resource usage and greenhouse gas emissions to ensure a decent future for future generations.
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COMPANY PROFILE continued from page 11 products with higher quality and a kinder impact on the environment as seen with the dispersible wipes. He says these other products in the works are challenging traditional designs in a similar way. This approach also reflects the changing needs and values of the market and consumers today. There has been a change in the way people view plastics, and biodegradability is important to consumers today, which gives Cottonsoft inspiration for other products as well. While being a foundation sponsor of the Soft Plastic Recycling Scheme, they are also focusing on reduce & re-use initiatives, plus local development of alternatives to plastic so have consumer ideals in mind while developing new products.
Emerging technologies Helping Cottonsoft meet consumer demand is a recent investment in new machinery which allows for greater efficiency. As the product range developed, one of their older machines was unable to make the higher quality products, ran slower and used a bespoke sized raw material. Their faster machine made 55 of 60 products, meaning that they could only make them once every four to five weeks, not ideal in a fast-moving consumer product. Now with the two faster machines, Cottonsoft can manufacture new pack sizes, product formats, and produce different brands simultaneously at a much faster rate. Increasing automation has made changeovers between brands much faster and eliminating unnecessary tasks have made the workplace much safer too. Furthermore, several products needed to be hand
packed such as large packs of toilet tissue or single rolls of kitchen towel as they could not be packed on the old machines. This meant using up to six employees, depending on the product, and hand stacking onto pallets. Eliminating this manual work improves both efficiency and safety as team members are no longer bending and lifting product regularly.
Upgrading premises Cottonsoft’s growth as a company is further evident as they have moved and expanded premises numerous times. In 2007, Cottonsoft moved much of their production from Dunedin to Auckland, leading the first step of their expansion. The business quickly outgrew that new Auckland space and had to expand it in 2009. By 2011, when Kim joined the small support team – then about 12 people – they started using external storage space and by mid-2017 they were using up to seven off-site storage locations. The team now comprises around 30 people, so after converting all meeting rooms into offices and still needing more, it was definitely time to move. The transition into their current site on Business Parade North started in June 2018 by moving their warehousing operation first, followed by the office in August, recently completing the factory move in May 2019. The transition was slowed due to the late arrival of their newest machine. “We didn’t want to move the existing plant until the new plant was here, it was Italian and arrived on Italian time, five months late,” laughs Kim, “so we extended our stay at Kerwyn Ave by four months.” This meant they had both sites for six months, one of the challenges of a transition.
Having learned from such challenges, and as both moves were due to running out of converting capacity, Cottonsoft has moved to a site that can accommodate growth for the future. There are not many sites big enough for Cottonsoft who deal in a large, bulky material that becomes even bulkier once converted into the final product, requiring a lot of storage space. Kim was relieved to find premises within Highbrook Business Park in East Tamaki explaining that if they couldn’t find an adequate space for them, leaving the area would have proved extremely challenging for a multitude of reasons. East Tamaki is a transport hub which is crucial for product distribution. Furthermore, having arrived in East Tamaki in 2007, the majority of the team live in the area. Kim explains, “Moving a long way from here could have resulted in a change of personnel and it’s taken a long time to get the right team together. The capability of our people, getting to know the machines, and understanding how paper works is quite important.” After three decades in the business, Cottonsoft has navigated challenges and changes in both consumer attitudes and production methods. By embracing change, investing in emerging technologies and driving innovative product development, Cottonsoft is a leader in its field and continues to grow. 1. Data Source – IRI roll/pack volume data, MAT to 2/6/19 2. Data Source 0 IRI Toilet Tissue Category Value, MAT 19/11/17 3. PEFC – www.pefc.org 4. Environmental Choice NZ – https://environmentalchoice. org.nz/
Refinery explores Solar Farm in Northland Refining NZ, the owner and operator of the Marsden Point refinery is exploring the viability of a 26 MW solar farm to be potentially developed adjacent to the refinery to supply it with renewable electricity. The 31 hectare solar farm – New Zealand’s largest – would be situated on land belonging to the Company and is estimated to cost around $36-$39 million. The farm would be funded via a combination of non-recourse project debt funding and equity of around $12-15 million from the Company. Refining NZ Chairman, Simon Allen, said that
progressing the solar farm is contingent on the Refining NZ Board being satisfied the project is economically viable. Early work shows that the solar farm would reduce the cost of the refinery’s electricity consumption and have a positive impact on shareholder value. Chief Executive Mike Fuge said that the potential to develop renewable electricity from solar would be a further step by the Company in the transition towards a lower carbon future. “This solar facility is one of a number of options
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being considered as part of the Company’s long-term business strategy, the potential benefits of which are exciting.” Said Fuge: “That transition to a greener future will be especially critical to the region and to the 600 Northlanders who come through the refinery gate every day.” As part of the Company’s exploration into solar, Refining NZ will be engaging with local stakeholders before lodging a resource consent application for the solar farm.
COMPANY PROFILE How success down under helped achieve global recognition When founder and CEO Steven Pither established HRS Heat Exchangers in the UK back in 1981, little did he know how significant Australia and New Zealand would be to his company’s success. Then called Heat Recovery Systems, the thermal technology specialist was a sole enterprise, acting as the UK agent for a Swedish manufacturer. Despite the long hours, single-handedly taking care of imports, sales, quotes and deliveries paid off for Steven, as the company made a healthy profit in its first 12 months. Fast forward 38 years and HRS has received the impressive accolade of being named one of the UK’s top 200 fastest-growing firms for international sales in the Sunday Times HSBC International Track 200 league table. Specialising in the design and manufacture of its own, patented heat exchangers to the food, environmental, pharmaceutical and wastewater sectors, the company has changed immeasurably since its early days. It now boasts over 200 direct employees and has a network of offices and agents throughout the world – including Australia. HRS’ success has been helped in no small part by a highly successful export strategy, underpinned by its dedicated office for Australia and New Zealand, which it opened in Melbourne in 2011. With this arm of the business expected to bring in sales of over €1.2m this year, Steven reveals the five cornerstones that have helped him take the company from a domestic start-up to a global corporation.
Invest in people Look closely at any successful business and you’ll find a team of talented and committed individuals; HRS Heat Exchangers is no exception. “Our staff turnover rate is less than five per cent,” Steven proudly reveals. “One employee has been with the firm since year three, and there are many more with over 20 years’ service. To build a successful business, you need core competency everywhere – engineering, sales, finance, etc – and not just in one department. Experience, reliability and knowledge are crucial to building a reputation, so we’ve worked hard to develop strong teams across the board that can deliver this.”
customers; it builds confidence and trust. However, I decided early on that if HRS was to become globally successful, it was essential to find local talent in each territory who could communicate in the same language, and with the same cultural references, as our customers.” The international gamble certainly paid off, as a combination of strong local teams and proven products is helping HRS to enjoy an impressive 41 per cent international sales growth (annual average based over two years).
Focus on innovation Although heat exchangers remained a focus, as the business began to grow, Steven realised that his customers were looking for more than just pieces of kit; they were seeking integrated systems, which could provide entire solutions. To fulfil this growing demand, HRS acquired its own manufacturing site, and soon expanded with a bigger facility in India. These are supported by two workshops in Spain, where the company also houses its R&D and design departments. HRS’ range now includes entire wraparound solutions such as evaporators and concentrators, as well as an ever-expanding portfolio of heat exchangers. “Thanks to our increased manufacturing capabilities, we now offer a wide range of patented and innovative designs, such as our R Series of scraped surface heat exchangers, specifically designed for viscous and challenging products with extremely high fouling properties,” Steven explains. “Our product development is customer-led, so our range comprises everything from heat exchangers with gentle handling capabilities for shear-sensitive liquids or soft fruits, to those with hygienic handling capabilities for the most stringent food or pharmaceutical demands.”
Keep the cash flowing While a focus on people and products is essential to
success, according to Steven the biggest restriction to the growth is access to finance. Developing good credit terms with your supplier is therefore crucial. “Particularly in the early days, late payments and cash flow were a challenge,” reveals Steven. “We were importing equipment and had short credit terms from our suppliers, yet our customers were requesting long payment terms. This was a problem for us, so we worked hard on building a good relationship with our suppliers, proving ourselves as reliable and trustworthy. Over time, they extended our credit terms from 30 to 60 days, eventually increasing it to 90 days. The importance of this cannot be underestimated; you can have great products and a great team, but if you haven’t got cash, you’re in a dangerous position.”
Plan for the future Finally, no business ever became successful by standing still. Despite HRS’ significant recent growth, Steven is still driving the company forward with plans for a testing facility in Spain, new process solutions, innovative prototypes, and an expanded core range of heat exchanger products. HRS is also planning to offer a subscription to its software system, which will enable engineers to model different applications. The company hopes it will generate increased sales, as well as allowing them to spot trends by tracking what people are modelling. And HRS’ international plans aren’t finished yet, either; Steven is focusing on developing business further in Australia and New Zealand, as well as in Russia and Latin America. But as the company has a five-year plan to increase sales to £60m, could he be tempted to branch out even further? “We’ve got no immediate plans to open any more international offices,” he admits. “However, there are still some territories which appeal to me, such as China, Africa, and the Middle East. So, never say never!
Like many engineering firms, HRS is at the sharp end of the skills crisis and Steven understands the importance of investing in people. “With the industry-wide skills shortage, it can be a challenge to recruit good staff, which is why we strive to hold onto the ones we have,” he explains. “To encourage staff retention, we offer competitive salaries, profit shares and bonuses; provide career development opportunities; and try to be as flexible as possible. We also offer apprenticeships, to keep the next generation of talent coming through.”
Think global The importance of good people extends to HRS’ international operations. Although it relies on agents in some territories, the company has its own offices in Australia, as well as Spain, Malaysia, New Zealand, the US, Mexico, Russia and India. “The vision was always to build an international heat exchanger brand,” reveals Steven. “An international presence helps you to be taken seriously by big Steven Pither (R) with company secretary Robert Twydle, receiving HRS’ International Track 200 League Table award
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DEVELOPMENTS From chicken feathers to fire retardant Researchers at the University of Auckland have developed a way to turn chicken feathers into a high-performing fire retardant. Chicken is a popular source of protein in most parts of the world and millions of chickens are produced each year for us to eat – in New Zealand it’s estimated we each eat, on average, about 40 chickens a year.
dust to breast milk, causing hormone-disrupting effects,” says Dr Bhattacharyya.
Billions of chicken feathers are produced by the poultry industry, most of which end up in the incinerator or landfill. Chicken feathers are, in short, an international waste problem.
As a result there has been a global shift away from halogenic retardants and toward other types of retardants among which ammonium polyphosphate (APP) is the most prominent. However, as they are expensive to produce there is an increasing demand for alternatives.
However, Distinguished Professor Debes Bhattacharyya of the Faculty of Engineering has found a way to use chicken feathers as a base for a fire retardant, one that is safer than many fire retardants, cheaper to produce, and solves an international waste problem at the same time.
Dr Bhattacharyya and his team have previously shown that chemically modified wool fibres also made of keratin can also be used as an effective retardant. This could potentially provide a revenue stream for low-grade wool in an era when the price of and demand for wool have declined.
“People pay to get rid of chicken feathers,” he says.
They more recently turned to chicken feathers as an alternative source of keratinous fibres, which are even cheaper and in many countries, more of a waste problem.
Chicken feathers are made of a keratinous material that is found in the hair, wool, horns and hooves of mammals. They are also naturally occurring flame inhibitors. Fire retardants are added to industrial and consumer products such as furniture, textiles, electronics, even Christmas trees, as well as building products such as insulation. Traditionally halogen compounds were added to create flame retardant material, but while they were effective they were highly toxic. “They might have saved you from death by burning, but have exposed people to many more effects that are detrimental to health. “Furthermore, as a result of the environmental long life and bioaccumulation, traces of the compounds have been detected in everything from household
performance compared to current fire retardants,” says Dr Bhattacharyya. “We also assessed this from a commercial perspective and have been able to show that the cost around this compound is up to a third lower than the existing standard compounds used as a fire retardant. “So it’s a perfect fire retardant material, passes most of the fire retardant standards, and can be used with polymeric materials.”
The team has developed a rapid and simple way to chemically modify the keratinous fibres of both wool and chicken feathers, and convert them into a flame retardant powder that can be added to polymeric materials.
He acknowledges that while the method has so far been proven in the lab, producing the keratinous fibre-based product at a large scale and ensuring it is compatible with existing manufacturing processes, will need private or public investment.
The powder enhances the fire-retardancy of the polymer by accelerating char formation, the solid material produced in the initial stages of combustion, and which inhibits combustion.
“However, initial results are very promising and have attracted the interests of several multi-national companies.
Moreover, standard fire retardants need to be added in high concentrations which can reduce strength as a result, “but what we’re showing is that we can optimise the process so that this fire retardant removes this disadvantage of inferior mechanical
“Our invention, whose intellectual property rights are protected, has been tested to show that it could be a direct replacement for APP, the predominant existing product.”
Lubricant container stewardship work forges ahead A project to end the landfilling of waste lubricant packaging in New Zealand has reached a significant milestone with the release of its first summary report. The Waste Lubricant Container Working Group was formed in February 2018, with the project kicking off in June that year. It aims to tackle the end of life issue of around 4.5 million lubricant containers being discarded in New Zealand each year through a voluntary product stewardship programme approach, says project manager Adele Rose.
While a small number of the containers, mostly drums, are currently recycled, the majority go to landfill, she says. Product stewardship sees a producer, brand owner, importer, retailer and consumer accept responsibility for reducing a product’s environmental impact. “The aim of the working group is to develop a product stewardship programme for lubricant packaging. Containers, particularly 60L and under, which lubricants are packaged in are made of highly recyclable plastic (HDPE – plastic resin code 2). The problem is the level of contamination from the residue left inside those, and grease cartridges, when they are empty,” Adele says. The funders of the programme design represent over 60% of lubricant supplied to the New Zealand market by packaging volume, she says. “It’s important to the Working Group that this work is industry-led in order to create a circular economy for lubricant packaging and they encourage non-participating brands to join them.”
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The recently released summary report, prepared by project managers 3R Group, identifies and explores product stewardship options for the packaging. It has also looked at existing international stewardship programmes for lubricant containers, the legislation governing them and their effectiveness. “The aims of this stewardship programme are to provide an industry-led solution, minimize environmental harm, maximise recovery, recycling and where appropriate reuse lubricant containers and transition the industry to a circular economy model through provision of grants investing in infrastructure where it might be required,” Adele says. The final steps for the Working Group include working out the “nuts and bolts” of a stewardship programme, such as operational interactions, impacts on participants, steps for implementation and establishments of the necessary governance structures, she says. The final stage is due to be delivered by the end of the year.
DEVELOPMENTS Aurecon recognised on Most Innovative Companies list Global engineering, advisory and design firm Aurecon has been named one of Australia and New Zealand’s most innovative companies, ranking number four in the professional services category of the prestigious AFR BOSS Most Innovative Companies list. The esteemed annual list, published by The Australian Financial Review and Boss magazine, is based on a rigorous assessment process managed by leading innovation consultancy Inventium in conjunction with a panel of industry expert judges. For the first time in 2019, organisations were ranked directly against their peers across ten industry lists that assessed entries from 800 nominated organisations throughout Australia and New Zealand.
Aurecon Managing Director – Design, Innovation & Eminence, Dr Kourosh Kayvani explained that Aurecon identified there was a significant area to improve around digitising drawing and documentation in an innovative way that would benefit mega projects such as the four billion-dollar West Gate Tunnel project.
Cox said. “Our ranking on the AFR BOSS Most Innovative Companies list is a great tribute to the culture we have at Aurecon where we constantly strive to see the opportunities, possibilities and potential that others don’t, enabling us to create clever solutions to some of the world’s most wicked problems,” Mr Cox said.
Aurecon was recognised for its OpenGATE AutoDraw project that used computational design and machine learning to create automated digital drawings, driving greater accuracy, speed and enabling higher quality responses to design challenges. Aurecon Chief Executive Officer William Cox commended the honour that recognises Aurecon’s position as a leading innovator in the professional services industry. “This award is a great testament to Aurecon’s continued efforts in redefining what’s possible as we push to digitise infrastructure. The infrastructure project design and delivery paradigm is ripe for change and at Aurecon we are constantly advancing our digital capabilities to provide state-of-the-art technical and digital expertise to our clients,” Mr
Helping to make your business stand out – so YOU can be outstanding in the busy, complex and interactive world of advertising. Operating from my home office in Hastings, networked with other professionals as required, my overheads are sensible, and my hours are flexible. I offer a competitively priced service, backed up by over 15 years in the advertising agency environment. My career has its roots in signwriting, I then moved to England and undertook study and worked for a company specialising in graphics aimed at promoting conferences and exhibitions. This enabled me to think BIG. Twelve years later I returned to New Zealand and joined a very successful advertising agency which encouraged me to engage my skill set within this wonderfully expressive, yet versatile and highly disciplined arena. Here I gained the confidence needed to strike out on my own account. My design abilities, creativity and attention to detail all combine to deliver a great service to YOU and YOUR BUSINESS.
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BUSINESS NEWS Boosting your business – Preparing to raise capital - Simeon Burnett, Co-founder and CEO, Snowball Effect Manufacturing is an integral part of the New Zealand economy making up over half of New Zealand’s exports, employing over 241,100 people and contributing more than $23bil to the nation’s GDP. Historically, the cost of growth in the sector has been high, and commercial return on investment from innovation and R&D has been hard to come by. In order to compete globally, local companies increasingly need to innovate and scale into sophisticated, sizeable businesses to reach global markets. New technologies, automation and lower transport costs are making this easier, however scaling is usually a step-change where substantial investment is required. While government grants, subsidies and agencies like New Zealand Trade and Enterprise (NZTE) provide valuable support to local manufacturers, the number of companies seeking an injection of external capital to grow to the next level has steadily increased. Like all competitive industries, capital is required for everything - from growing sales teams and increasing production capacity, through to new product development and expansion into new markets. Although raising capital is time consuming and often distracts from core business operations, there are various options available to fund growth activities. Understanding how to raise the right capital through the right channels is therefore critical.
Develop a strategic plan The key to successfully raising capital from any source is preparation. It’s important to have a clear strategic plan as it informs what resources are required to achieve growth targets, and therefore the amount of capital needed.
It’s crucial to identify and engage early on with partners and professional service providers that can help guide you to reach the right investors. Taking the necessary time to develop strategic plans and a strong information pack is paramount. The information preparation phase helps companies solidify their plans and make decisions on how fresh capital can best be deployed to help them grow. A good information pack should include details on a company’s product, operations, market, growth strategy and customers as well as others. Well prepared businesses are more attractive investment propositions as they exhibit an element of confidence. Beyond mere monetary terms, companies can also explore partnerships with strategic investors that provide capability in key areas like supply, manufacturing, product development, distribution or advisory expertise. Strategic investors, as opposed to financial investors, are usually companies from within the same industry and for the most part, these investment vehicles will look to fund companies that will drive value for their organisation. Strategic investors are usually well positioned to help grow a company and provide ongoing support. For example, Z Energy invested in electric car sharing company Mevo in 2018. Whilst providing valuable resources for Mevo to scale, the investment enables Z to explore the future of sustainable transport and electric vehicles. While often delivering value, in some cases it can be
hard to gauge a strategic investor’s true motive, and conflicts can arise, especially when nearing an exit. It’s vital to know what type of investor best meets your companies short and long-term needs.
What are investors looking for? For manufacturers producing consumer products, investors are looking for brands with an in-depth understanding of their consumers, and who can differentiate themselves from the rest of the market. This makes it vital for companies to convey a clear understanding of their growth strategy, key partners, and value proposition. Naturally, investors want solid evidence of the company’s ability to achieve those growth plans – they’ll assess sales track records, execution of marketing strategies, and of course (most importantly) financial results. They’ll also seek to gain an understanding of key markets, current penetration and future growth potential. A good rule of thumb is to prepare three years of actual and three years of forecasted financial statements. Ultimately, the majority of investors are looking for interesting, innovative companies that will eventually deliver a return when it executes its exit strategy. It’s crucial for companies to articulate how the capital will help it get to where it needs to be so it’s positioned as an attractive acquisition target, as well as identify likely acquirers and why they would buy this particular business.
Third party resources and advice For further support, companies can utilise resources from NZTE and other government agencies for hard-to-find information on markets and competitors. Reaching out to similar businesses and growth companies that have successfully (or unsuccessfully) raised capital for their first-hand learnings is also invaluable. Karma Cola, Ethique and UBCO are some examples of manufacturing companies with ongoing success since raising capital. Market insight is a great way to inform a company’s ongoing strategy. In order to get the ideal outcome, it’s best practice for businesses seeking to grow through a capital injection to set aside sufficient time to engage experienced, reputable consultants to assist with strategic positioning, information preparation and investor outreach. Preparing to raise capital is time-consuming and requires substantial work. Engaging with the right partners early on to consolidate your strategic plan and to reach the right investors is essential for the successful growth for your company.
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REAR VIEW Beyond meat? The market for meat substitutes is way overdone Meatless burger maker Beyond Meat has just reported quarterly earnings of US$67.3 million – much better than market expectations of US$52.7 million. It is now forecasting sales of US$240 million for the 2019 year, nearly three times that of 2018. But the company is yet to make a profit, let alone one big enough to justify its current market valuation of about US$13 billion. Since it listed on NASDAQ in May, its shares have surged more 700%. Investors’ enthusiasm reflects high hopes in the future fortunes of a company promising to put the sizzle into a meat substitute. Interest is booming in plant-based meat substitutes and lab-grown meat alternatives. The appeal is summed up by Beyond Meat’s mission statement: “By shifting from animal to plant-based meat, we are creating one savoury solution that solves four growing issues attributed to livestock production: human health, climate change, constraints on natural resources and animal welfare.”
and dollars of carnivores worried about the ethics and environmental sustainability of killing animals.
Feeding the world The rationale for the importance of meat substitutes and alternatives often starts with feeding a global population projected to grow from 7.7 billion now to 9.8 billion in 2050 and 11.2 billion in 2100. Most of this growth will occur in Africa, followed by Asia. Populations elsewhere are expected to increase marginally. Europe’s will decline. How this population growth affects meat consumption depends largely on income levels. Historical data show diets tend to become more meat rich as wealth increases. Thus, the chart below shows dramatic increases in meat consumption in China, and throughout Asia and Latin America, reflecting economic development.
Let’s say Barclays’ projections are accurate and meat substitutes take 10% of the meat market in the next 10 years. Or even double that.
Paul Wood AO Adjunct Professor in Biotechnology,
It still means there Monash University are going to be more cattle, sheep, pigs and chickens on the planet than there are now. Animals will still be crucial sources of calories and protein (currently 18% and 34% globally), and their farming will continue to be a livelihood for hundreds of millions of smallholder farmers in Africa and Asia.
How realistic is this? The data suggests not very – that meat alternatives might play a positive role but in no way are going to save the planet.
Investment appetite Predictions about the market potential for plant-based or lab-made meat vary. A lot of it appears to be only slightly better than sheer guesswork. One prediction, by the well-known Barclays, is that the market could be worth US$140 billion, or 10% of the US$1.4 trillion meat market, in the next 10 years. It’s such projections that have fuelled investors’ appetite for companies working on ways to make plant-based protein look and taste like meat. There’s Impossible Foods, for example, whose burger “bleeds” beetroot juice and is the meat (substitute) in Burger King’s Impossible Whopper. The privately held company has reportedly raised more than US$500 million, and is valued at US$2 billion.
Total consumption of meat (in million metric tons) in different regions and globally (inset). FAO
Only countries with cultural reasons to not eat meat, such as Hindu-majority India, are likely to buck this trend. The fact of increasing populations in the areas most likely to also see per capita meat consumption rise is why the OECD and Food and Agriculture Organisation of the United Nations predict meat demand in developing regions will grow at four times the rate of developed nations over the next decade.
An Impossible Burger from an Umami Burger franchise in San Francisco, California.
Other players in the market include Nestlé, the world’s largest food company, and Tyson Foods, the world’s second-largest processor and marketer of chicken, beef and pork. Investors are also betting on the longer-term prospect that lab-grown meat can capture the hearts
By 2030, according to projections published by the Food and Agriculture Organisation in 2018, meat will increase by 80% in low and middle incomes, under a business-as-usual scenario. By 2050, it will increase more than 200%. Can meat substitutes change the scenario? Price will make a difference. Right now, consumers pay a significant premium for a plant product to taste like meat. An Impossible Whopper, for example, costs a dollar more than a standard Whopper. But let’s say the meat substitutes can make themselves indistinshuable from meat, both in taste and cost.
Overheated claims Considering this, we need to have a sensible discussion about how to drive sustainability across all agriculture. This should include asking if the marketing spin of some of these companies is helping that conversation. Impossible Foods’ founder, Pat Brown has declared: “Our mission is to completely replace animals in the food system by 2035. You laugh but we are absolutely serious about it and it’s doable.” Really? The trends suggest it isn’t. There’s also science to suggest it isn’t even necessary – at least from the point of view of tackling climate change. The CSIRO, for example, says Australia’s cattle and sheep industries, which produce almost 70% of the nation’s agriculture’s greenhouse gas emissions, could be carbon-neutral by 2030. Great marketing it might be but making livestock production the great ethical and environmental bogeyman, and talking about its elimination, seems a tad overdone.
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