NZ Manufacturer December 2023

December 2023

Listen to uniquely Kiwi stories contributing to New Zealand’s future

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The Year in Review

Zenno’s superconducting technology opens up possibilities in space

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New Zealand headquartered space-flight systems company Zenno Astronautics (Zenno) has celebrated the first space launch of Z01, its world-first superconducting magnetic torquer for fuel-free spacecraft attitude control.

Zenno’s in-orbit validation of Z01 is the first-ever demonstration of high-temperature superconducting electromagnets in space, unlocking new possibilities for space operations in close proximity and beyond.

Zenno’s Z01 SuperTorquer lifted off into space on December 1, 2023, at 10:19 a.m. (PT) on a SpaceX Falcon 9 rocket, “Korea 425” mission, from Space Launch Complex 4 East (SLC-4E) at Vandenberg Space Force Base in California, hosted on an orbital transfer vehicle from D-Orbit, a company leader in the space logistics industry. D-Orbit’s ION Satellite Carrier will deploy after lift-off into a 560km Sun Synchronous Orbit on its “Beyond” mission.

D-Orbit will perform orbital demonstrations of Z01, integrated into its satellite carrier, during the mission.

Zenno co-founder and CEO Max Arshavsky says, “The future has arrived as superconducting technology opens up a universe of new possibilities and accelerates the shift towards more dynamic operations.

“Z01 is a compelling innovation for satellite manufacturers and operators who want to deliver new capability and drive greater productivity from missions, now; it’s a powerful fuel-free source of force in space that is sustainable, safe, scalable, fully electric and superior to existing technology options.

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Media Kit 2024

For a copy of the NZ Manufacturer Media Kit 2024 email publisher@xtra.co.nz

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C0NTENTS

ADVISORS

DEPARTMENTS 1 LEAD

Zenno’s superconducting technology opens up possibilities in space.

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5 EDITORIAL

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.

Keep doing what you do well.

6 BUSINESS NEWS

Ian Walsh

Green building designed for extreme climate change.

The four operating states of SMEs.

8 THE YEAR IN REVIEW

9

Ian is a Partner, Argon & Co. NZ, a master black belt improvement specialist and global lean practitioner. He is passionate about improving productivity and helping to create world class New Zealand businesses.

Is 2024 ‘the’ year? – Ian Walsh, Argon & Co Dr Barbara Nebel CEO thinkstep-anz Barbara’s passion is to enable organisations to succeed sustainably.

She describes her job as a ‘translator’ – translating sustainability into language that businesses can act on.

MANUFACTURING 9 SMART 3D printed Ti6ALL4V hardware for NASA Psyche Mission.

Developing the manufacturing sector.

Kiwi aeronautical engineers develop aircraft to fight climate.

Advanced Manufacturing for SMB.

11 Lewis Woodward

16 THE YEAR IN REVIEW

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.

State of manufacturing in New Zealand – Sean Doherty, Callaghan Innovation.

HERA’s Year in Review – Holger Heinzel.

Navigating headwinds -Adan Sharman, Dsifer.

14 Brett O’Riley

Embracing Industry 4.0: A roadmap for NZ’s manufacturers – Andrew Bayly.

20 PROFILES 2023 23 THE INTERVIEW

Heidi Hannonen, vice president markets, Kemppi Oy.

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24 WORKSHOP TOOLS

Insa Errey

New SO-3 compressor from BOGE. Mahine learning techniques improve x-ray materials analysis.

ITSS and Hydraulink deliver SMART-DIG hydro excavator.

26 SUSTAINABILITY

Systems thinking and sustainable manufacturing.

27 ENERGY Navigating energy intensity and efficiency in manufacturing.

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28 DEVELOPMENTS

A promising future for scientific endeavours.

Remediation plan needed to address Tiwai contamination.

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NZ Manufacturer December 2023 /

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.

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Insa’s career has been in the public and private sectors, leading change management within the energy, decarbonisation, and sustainability space. Insa holds a Chemical and Biomolecular BE (Hons) from Sydney University. She is a member of the Bioenergy Association of NZ and has a strong passion for humanitarian engineering, working with the likes of Engineers Without Boarders Australia.

Insa is a member of Carbon and Energy Professionals NZ, been an ambassador for Engineering NZ's Wonder Project igniting STEM in Kiwi kids and Engineers Australia Women in Engineering, increasing female participation in engineering.

PUBLISHER Media Hawke’s Bay Ltd, 121 Russell Street North, Hastings, New Zealand 4122.

MANAGING EDITOR Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz

CONTRIBUTORS Holly Green, EMA, Business East Tamaki, Ian Walsh, Dr. Barbara Nebel, Adam Sharman, Sean Doherty, Holger Heinzel, Catherine Lye Insa Errey, Jane Finlayson Brett Allan

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Vol.14 No.11 December 2023

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.

Keep doing what you do well It has been quite the year in business.

We have innovators creating great products, using the tools of the day to bring about success.

What we do in this small country is, at times. world-leading. Our abilities can be constrained by the ‘tyranny of distance’; however, we continue to punch above our weight.

We do best by focussing on what we do well and forging our own direction.

In 2024 NZ Manufacturer views Industry 4.0, Renewable Energy, Climate Change, Decarbonisation, Productivity, Sustainability as needing special attention. And a whole lot more including Data, EMEX 2024, Robotics and Automation.

In this issue, ‘The Year in Review’, we look at what can assist the manufacturing sector. Our advisors and guest authors share their unique insights, and we highlight business developments in some of our companies.

The choice of companies to include in this special issue was not easy…so many missed out who warrant being included.

Whatever the journey you are on in 2024, we want to be with you. NZ Manufacturer can assist your company in its quest for new markets. All you need to do is get in touch and we will do the rest.

Success Through Innovation

EDITORIAL

Take a break, enjoy the holiday period with family and friends, treasure the moments.

Regards, D J Green, Publisher

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BUSINESS NEWS

Green building designed for extreme climate change A low-carbon building designed to withstand extreme climate change with over 300 tonnes of waste diverted from landfill during its construction, is set to be one of the largest retrofit office projects to achieve a world-leading sustainability standard.

with that of their other global offices.

The $54 million five-storey building at 105 Carlton Gore Road, in Auckland’s Newmarket is one of the first developed for the post-pandemic working environment to open.

“In this latest project around 92% (307 tonnes) of construction waste was either recycled or repurposed - including over 5,000m2 of carpet tiles which were donated to the local community.

Experts say a global trend towards greener buildings is driving interest from multinational corporations and environmentally conscious millennial workers in moving into this segment of New Zealand’s commercial real estate sector.

“Life cycle assessment (LCA) modelling shows the building has a carbon footprint which is 31% lower and an operating carbon reduction of approximately 30% less than a reference building.

Saatyesh Bhana, Argosy Property’s sustainability, says the development has diverted more than 300 tonnes of construction waste from landfill, the equivalent volume of waste generated from 60 new house builds.[1]

head

of

“To accommodate this demand, we are looking to expand our stock of properties that are both sustainably constructed and energy efficient throughout their lifetime.

“By reusing the existing building structure, we have saved over 4,500,000kg of CO2e - roughly

the equivalent of 15,500 flights from Auckland to Wellington or taking 3,000 cars off the road,” he says.

[2][3][4] Bhana says the building has been designed to withstand an extreme climate change scenario where New Zealand’s average annual temperatures rise by up to 3ºC over the next six decades.

He says under this scenario, elevated risks of intense summertime heating and flood risk from deluge have been mitigated.

“Local sourcing of the double-glazed extrusion system has resulted in a carbon footprint of the building’s facade that is 93% lower than a standard imported extrusion system and, a reduction in the greenhouse emissions of 560 tonnes of CO2e.

He says the property sector is a significant contributor to greenhouse gases with buildings and their construction accounting for as much as 20% of New Zealand’s emissions.

“Internationally, businesses are motivated to lease buildings with a low carbon footprint, and which are designed to incorporate climate resilience. When they enter the New Zealand market there is an expectation that their local presence here will align

“Other features include a biophilic living wall made from organically grown Scandinavian moss that doesn’t require watering but can filter airborne toxins and dust out of the air, solar power generation, a building management system that responds dynamically to the presence of people at the time of day and the prevailing climatic conditions and, new hot water heating technology that uses CO2 and eliminates the need for traditional gas boilers.

Marilyn Storey, Argosy Property’s head of development, says the market has softened in recent months however enquiry for sustainable buildings is steady, particularly in the city fringe.

Creating opportunities for networking, learning, and engaging.

Business East Tāmaki (formerly the Greater East Tāmaki Business Association) is here to make it easier to do business; working alongside business leaders and property owners in the region on security, advocacy, development and growth.

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businessET.org.nz

BUSINESS NEWS

The four operating states of SMEs

By John Luxton, MBA PGDipBus MInstD, RegenerationHQ

Part One. Part Two of this article will appear in February issue of NZ Manufacturer.

Everyone belongs somewhere

Expansion – getting bigger

Consolidation – finding efficiency

It’s a fact that no business (and certainly no business owner) can stand still for long. Life doesn’t work that way, so I’d like to propose that there are four basic operating states for your business –

If you’re sure you’ve got your existing business in a good place and by that, I mean that your sales are reasonably predictable, your team are working well and your expenses are under control, it might be time to look at growth.

There’s a neat trick to making more money without making a single additional sale or going to the expense of buying another business. In fact, we strongly recommend this as your first action, before embarking on any of the other strategies.

Obviously, the quickest way to get growth is by acquisition. Buying a competitor or a business in a complementary field would be the safest bet, but you need to be cashed up or have access to reliable and affordable finance to do that.

It’s called operational efficiency and it looks at three different aspects of how money flows out of your pocket and straight down the drain.

1. Expansion – your focus is on growth. It could be through expanding sales of existing products and/or services to new customers, developing new products and services for existing and new customers, or by acquisition.

2. Consolidation – your focus isn’t on revenue growth but on increasing profitability by controlling costs or by finding operational efficiencies.

3. Survival – your focus isn’t currently on either growth or consolidation, rather it is on digging out of a hole that you’ve fallen into through lack of attention on the things that matter, unexpected changes in the market or aggressive competitor activity.

4. Exit – your focus is on getting out, either with some immediacy, a longer-term plan or as a succession goal.

All four of these operating states require a very different strategic approach. It doesn’t have to be complicated, but it does need to be well considered, because adopting the wrong approach won’t deliver the results you’re looking for.

The next quickest route to growth is by expanding your customer base for the products and services you already have. Don’t assume that the market for them is tapped out. Sometimes you just need to ask someone to get them on-board as a customer.

If you really have tapped out the market opportunity for what you do now, think about what else you could offer your existing customer base that would make sense. That means finding things that if you were a customer, you’d say “yes, I like doing business with you, so I’d be happy to buy this from you too”.

While you’re growing what is sometimes called “share of wallet” with your existing customers, have a look at who else might become a target for your expanded range.

1. COGS (Cost of Goods Sold) – a couple of questions here. Are you buying the right things from the right people at the right price to make what you make?

Are you making what you make as efficiently as you can, so your input costs are optimised?

2. OPEX (Operational Expenditure) – if you went through your P&L line by line, is there anything that you could do with less of? Over time, it is almost inevitable that you’ll take on costs that may not be mission critical. That includes people. Are you getting the best out of your team and do you have team the that you need to succeed?

3. Balance Sheet – this one is simple. Have a good hard look at your asset register and ask yourself this – if this asset isn’t paying its way, why hang onto it? Sell what you don’t need, and you’ll ease your cash position and/or free up cash to invest in things that will make a difference.

Providing support, advice and hands-on expertise in all aspects of improving the performance of SME businesses, particularly in Engineering and Manufacturing.

• People • Productivity • Sales & Marketing • Product Development • Systems • Supplier Relationships • Debtor Management • Profitability • Preparation for business sale

For a free, no obligation conversation about how RegenerationHQ might help you contact: E john.luxton@regenerationhq.co.nz T +64 275 665 682 www.regenerationhq.co.nz

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THE YEAR IN REVIEW

Is 2024 “the” year?

-Ian Walsh, Partner, Argon & Co

I was reflecting, as you do at this time of year, on what were the highlights and key achievements of 2023.

The key highlight is primarily that supply chains are starting to settle down, business is starting to return to normal, and we are starting to see some positivity. This has been a slow hard grind, and the job is not done.

The recovery has been slower than expected, exacerbated by extreme weather events, a cost-of-living crisis, a labour shortfall as we ramped up and the gates were not open, and Kiwis leaving on their OE. Net a myriad of never-ending obstacles to overcome.

In addition, many businesses learned in 2022 and 2023 just how fragile their supply chains were and how dependent NZ is on shipping lines. Many have and are investing in additional warehousing to buffer their supply chains and many products that have been offshored are suddenly viable, in this new light, to be manufactured locally.

The research continues to reflect our slide down the OECD with the grim reality that we are 30-40% less productive than our nearest neighbours and key trading partners and significantly worse versus the Irish and Scandinavian countries.

While this may seem remote, it is a key indicator of our future economic prosperity and ability to keep pace, retain talent, and provide the lifestyles and outcomes we desire for our children and future generations.

So, given all this, here are my top 5 drivers for 2024: 1. The labour crunch will continue, and many businesses are leveraged so capital options may not be as attractive or possible. This will drive a few key initiatives.

2. Supply chain fragility will continue to drive boards to look at business continuity planning and risk mitigation strategies.

3. Procurement and strategic sourcing will be a key focus to reduce cost and risk.

4. Talent retention/acquisition will become a key focus. The war for talent will ramp up.

5. The rise of technology, with renewed interest in the applications for AI/RPA and industry 4.0 again to drive productivity and reduce cost.

2024 is the year of productivity and supply chain resilience.

Given the labour market, historic approaches, the overwhelming evidence of better practices adopted by our trading partners, and the significant benefits without capital spending, 2024 could well be the year that NZ goes over the tipping point in terms of adopting best practices.

Many organisations now have some awareness and real live examples in NZ and the considerable success these businesses have enjoyed. This is no longer a “nice to have” but rapidly becoming the requirement to survive and compete.

Operating in a traditional inefficient manner in 2024 against more productive trading partners will ultimately lead to business failure or acquisition.

To protect business from the vagaries of the supply chain, the need to buffer stock (RM and FG) to ensure continuity of supply or service and retention of business has come under a new spotlight.

Those who managed this through COVID performed better, retained customers, and grew their share. All businesses need to understand their supply chain, their key risk, and the required contingency to maintain continuity. This may mean a supplier review and strategic sourcing, collaboration, or buffering of the supply chain to name a few.

Many businesses were not ready and this work to shore up the supply chains will continue.

Lastly, the role of technology in providing better, faster information and data to make better decisions in real-time is accelerating and many businesses will want to know what their opportunities are and how to leverage these technologies.

We are starting to see many reach out for help and support to better understand this arena, and this need will only accelerate as the world becomes more interconnected and complex to navigate, whilst offering significant benefits to those who can steer this course.

If you need help with any of the above, connect on LinkedIn. I wish you all a happy and safe festive season.

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NZ Manufacturer December 2023 /

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S M A RT M A N U FA C T U R I N G

3D printed Ti6Al4V hardware for NASA Psyche Mission Zenith Tecnica, a world leader in titanium Electron Beam Melting (EBM) AKA Electron Powder-Bed Fusion (E-PBF) additive manufacturing (AM), is proud to announce the successful manufacture and delivery of critical titanium node components for the chassis of the Psyche Spacecraft launched on the 13th of October 2023.

The structure of Psyche SEP Chassis, including 3D printed titanium nodes interfacing between carbon composite tubes. Photo Courtesy NASA/JPL-Caltech.

After the successful launch, the spacecraft is now travelling to its namesake, the asteroid Psyche, a more than 2-billion-mile journey. The spacecraft will arrive in approximately 2029 and spend 26 months orbiting, mapping, and studying the asteroid.

Chosen by satellite manufacturer Maxar Space

Systems, Zenith Tecnica manufactured and delivered node components that are vital in the structure of the Solar Electric Propulsion (SEP) Chassis [pictured above].

information, visit zenithtecnica.com.

Maxar Space Systems is a leading provider of comprehensive space technologies.

The node components, designed by Maxar, were well suited to the advantages of EBM additive manufacturing (due to their complex geometries) and qualified with Maxar’s proven track record of utilising truss-strut structures.

Zenith Tecnica is an AS9100-certified contract manufacturer specialising in titanium 3D printing.

Unlocking Electron Beam Melting for industries around the world, Zenith Tecnica offers customers a wealth of experience in additive manufacturing of titanium components with a supply chain ready to deliver high quality parts for assembly. For more

Autodesk Workshop XR delivers immersive design review Autodesk Workshop XR, is an immersive design review workspace connected to Autodesk Construction Cloud (ACC). Workshop XR provides more effective and efficient design reviews for the architecture, engineering, and construction (AEC) industry.

This real-time, shared experience empowers teams to review 3D models and their data from anywhere, resulting in better decision making and more profitable and sustainable projects.

Workshop XR and ACC are part of Autodesk’s Design and Make Platform which includes cloud-connected software solutions that unite teams, data and

workflows across entire project lifecycles to deliver better, faster outcomes.

decisions, reducing waste and rework costs, and cutting down on team travel.

With Workshop XR, AEC teams can review and collaborate on projects to track issues, catch errors, and enable better spatial understanding. With automatically connected data from ACC, no-prep model loading, and synced issue tracking, Workshop XR makes design reviews frictionless and efficient.

Autodesk Workshop XR will be available on Meta Quest 2, Meta Quest Pro, and Meta Quest 3 headsets.

With Workshop XR, AEC teams can walk through models at a one-to-one scale to gain a shared understanding of how project data will translate to the real world. This will benefit customers’ bottom line—and the planet—by driving better design

“Meta’s collaboration with Autodesk brings the collective vision for the future of work to life,” said Jamie Keane, director of product at Meta.

“Meta Quest headsets and Meta Avatars offer a secure connection to Workshop XR that takes on a new dimension of collaboration and presence. This immersive experience transforms the way teams work by boosting creativity and expanding the possibilities of what can be achieved.”

Stantec, a global leader in sustainable design and engineering, has been using an early access version of Workshop XR to facilitate and improve their design reviews.

“Autodesk Workshop XR has added incredible value to how we collaborate,” said Jon Matalucci, BIM/ VDC manager at Stantec. “Our employees are based in over 400 locations and Workshop XR has brought teams together in a workspace that is realistic and approachable.

Autodesk Workshop XR empowers teams to review their 3D models and data from Autodesk Construction Cloud to detect and adjust project issues early on, preventing costly rework or delays.

“We can work in parallel with each other, share the same information in a common data environment and, as a result, we are more efficient at problem-solving. Workshop XR allows our team to work smarter and focus on delivering the best projects to our clients.”

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What is Industry 4.0?

Industry 4.0 refers to the fourth industrial revolution taking place right now. This revolution is driven by the convergence of digital technologies such as the Internet of Things (IoT), robotics, artificial intelligence (AI), augmented and virtual reality, 3D printing and more. Adopting these technologies is enabling manufacturers to enhance their performance, output, monitoring, quality and control on a global scale.

The Industry 4.0 Demonstration Network The challenge for New Zealand businesses starting out on their Industry 4.0 journey is knowing when, how and what technologies to adopt to improve efficiency, quality, documentation, business intelligence and sustainability.

Where do I start?

This Government initiative enables Kiwi manufacturers to experience Industry 4.0 technologies first-hand via nationwide showcase events, manufacturing site visits, interacting with and learning from industry leaders.

IS HERE

10 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

THE SMART FACTORY SHOWCASE The Smart Factory Showcase is a free, interactive session designed to demystify and break down Industry 4.0 with a world leading NZ example.

The session will highlight how incorporating smart technologies improves efficiencies, productivity, connectivity, solves common manufacturing issues and streamlines systems and processes. The Showcase provides an ideal introduction to kick-start or progress your own Industry 4.0 journey.

Who should attend This event is designed for CEO’s, Digital Technology Managers, Operations Managers, Design Engineers and Managers seeking an in-depth understanding of the latest available technologies for businesses. It is a valuable forum to get buy-in from stakeholders and the events are relevant across all sectors. Teams are encouraged to attend together.

What to expect The Smart Factory Showcase highlights Nautech Electronics’ Auckland facility and what the future of advanced manufacturing looks like – You will be inspired, gain powerful insights to enhance your manufacturing agility and be armed with the knowledge to join the Industry 4.0 revolution.

View all Showcases

“

It can really help by providing concrete examples of how you can actually apply this stuff and get value from it, and network with others to find out what they’re doing to implement Industry 4.0

Mitchell Sanson, Engineering Manager, Hansa Products

Featuring

“

MANUFACTURING

THE FUTURE OF

EMA

Developing the manufacturing sector

By Jane Finlayson; Head of Advanced Manufacturing; EMA

A lot has changed in recent months. Not only have we had a change of government, and with it a change in policy direction, but we have also seen the establishment of Advanced Manufacturing Aotearoa (AMA).

Led by Catherine Lye, AMA is tasked with working with key sector partners ¬- including unions, researchers, educational institutions, industry organisations, and Māori and Pacific manufacturers - to gather information and supply feedback on the practical steps that can be taken to further develop the manufacturing sector.

The AMA is an important initiative that we hope will be supported by the new government. It is industry-driven and independent, representing manufacturers across Aotearoa New Zealand.

This positions it to deliver enormous benefit to the manufacturing sector at a scale not realised previously.

The EMA is proud to support the AMA, alongside our other partners across the country. As the newly appointed Head of Advanced Manufacturing at the EMA I am looking forward to working closely with Catherine and the AMA to advance the interests of the manufacturing sector.

Since taking up my new role, I have enjoyed the opportunity to attend regional manufacturing action group meetings, in Waikato, Northland, Bay of Plenty and Auckland and I’ve met with a wide range of innovative manufacturers who have adopted technology to enhance their businesses and improve productivity.

Clearly the past year has been challenging for many manufacturers. The global economic slowdown, rising costs, supply chain constraints and critical skills shortages have all combined to create a difficult environment for the sector.

This has been reflected in the steady decline of the BNZ – BusinessNZ Performance of Manufacturing

Index (PMI), which has sat below 50 since March. This indicates manufacturing activity in New Zealand has been contracting throughout much of the year.

This situation isn’t unique to New Zealand.

Manufacturing has been struggling globally as demand for consumer goods has fallen in response to central banks tightening monetary policy around the world.

But there is also plenty to be enthusiastic about.

With the right support and policies, manufacturing can be the driver of our economic recovery. That is why the EMA welcomed the appointment of Andrew Bayly as the inaugural Minister of Small Business and Manufacturing. We are hopeful that appointing a Minister of Manufacturing signals the incoming government’s intent to support New Zealand’s manufacturing base.

Practical steps the new government could take include looking at the R&D Tax Credit system so that it better recognises incremental improvements to existing technologies, and allowing for more rapid rates of accelerated depreciation for technology, hardware and software so that manufacturers are incentivised to invest in the newest technology.

This is important because robotics, digitisation, A.I., and augmented reality and other Industry 4.0 technology, are all having a profound impact on manufacturing processes. We need to support and encourage New Zealand manufacturers to embrace this technology so that we not only remain competitive, but also reap benefits around reduced emissions and waste, better health safety and wellbeing outcomes, and more quality jobs for kiwis.

Jane Finlayson.

to use of more advanced manufacturing practices with our partnering with Callaghan Innovation, BECA and LMAC to deliver the Industry 4.0 Demonstration Network, which is a series of events that highlights how manufacturers can enhance their productivity and improve their manufacturing processes.

If you haven’t had the opportunity to attend a demonstration network event, be sure to visit www. industry4.govt.nz to find an upcoming event suited to your needs in the new year.

One thing that will be important as we look to the future is how do we support manufacturers to have access to the skilled staff they will need to take advantage of the latest technology. While the critical skill shortage that many manufacturers were experiencing earlier in the year is beginning to wane as the economy slow, this is likely to be only temporary.

EMA is already involved in supporting the transition

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Smart Factory Showcase

Experience the future of advanced manufacturing

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S M A RT M A N U FA C T U R I N G

Changing demographics and a global shortage of skilled workers means that it is more important than ever for manufacturers to hold onto and develop their skilled workers. That means providing a positive workplace culture.

To help employers do this, the EMA is excited be partnering with Best Places to Work, an innovative new programme that aims to support New Zealand to be the best place to work in the world.

Through our partnership, we want to recognise and celebrate those Kiwi businesses that are delivering extraordinary employee experiences. This is important because we know an engaged workforce is a productive workforce.

Best Places to Work is built on three streams. The first is an employee-led survey that will provide employers with an in-depth analysis of their organisation’s employee experience. This will be followed by the Best Places to Work Awards, which will celebrate the best in New Zealand across a range of categories.

Finally, there will be a series of masterclasses and workshops, bringing together industry experts, leaders and award winners to share their knowledge and experience.

We would encourage all manufacturers to get involved in Best Places to Work so they can showcase some of the incredible work that is happening in the sector. It would be fabulous to have a high proportion of manufacturers on the podium when final judging is complete!

ADVISORS 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.

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.

To learn more, simply visit www.bestplacestowork.nz.

Sean O’Sullivan

With the right support and policies, manufacturing can be the driver of our economic recovery.

12 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

Has a B Com (Hons) Otago University. In 2000 - 2001 introduced PCs on the workshop floor and job and staff tracking and a productivity software App to Fletcher Aluminium Group and 100 manufacturers NZ nationwide.

In 2001 – 2022 Founding Director Empower Workshop Productivity & Scheduling Software App. 236 manufacturing and engineering clients mainly throughout NZ and Australia, also UK and US.

Iain Hosie Iain Hosie is a respected figure in the NZ Advanced Manufacturing and Materials sectors, with extensive experience in product development, research projects and commercializing tech products. Iain is a Director and Founder of Nanolayr Ltd, Director for the NZ Institute for Minerals and Materials Research, Commercial Director for Fabribotics Ltd, and Executive Council of BiotechNZ.

Catherine Lye Is the first Chief Executive Officer of the newly formed cross-sector incorporated society, Advanced Manufacturing Aotearoa (AMA).

Catherine has been Head of Manufacturing and Export Communities at the 7,100-member Employers and Manufacturers Association for the past two years. As part of that she has guided the Advanced Manufacturing and Industry 4.0 initiatives.

Adam Sharman Is a Senior Partner at Dsifer. With a background in technology implementation, manufacturing and strategy, Adam and the team at Dsifer are on a mission to support New Zealand’s manufacturing sector transform using technology, data and analytics to outcompete on the world stage. Combining expertise in data engineering, data science & analytics and visualisation.

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info@treotham.co.nz NZ Manufacturer December 2023

13

S M A RT M A N U FA C T U R I N G

Kiwi aeronautical engineers develop aircraft to fight climate A new multi-million dollar aircraft designed by Kiwi aeronautical engineers is set to help governments and humanitarian organisations save lives during natural disasters and fight the impact of climate change in some of the world’s most inaccessible regions.

The SuperPac XSTOL (Extremely Short Take-Off and Landing) aircraft, does not require a sealed runway and is capable of taking off in as little as 200m and landing on a wide variety of rugged terrains, including hillsides.

refuel and take on more retardant. It can also climb to altitude significantly faster and requires a landing strip which is a fraction of the length of larger planes - but is still capable of dispersing a 2,500-litre payload across 12,330m2 of forest in 10 seconds.

lifeline.”

The new aircraft, which cost over $10m and took seven years to develop, is a next-generation, more powerful and fuel-efficient version of the global best-seller 750XL, the world’s first commercial XSTOL aircraft.

“Under this model, wildfires can be brought under control while they are still relatively small,” he says.

He says the aircraft are manufactured at the 5ha Waikato site which was first used by the RNZAF in 1942.

The ability of the aircraft to land in remote locations on only semi-prepared airstrips and rapidly take off with up to nine passengers or 2,000kg cargo has seen it sold into 28 countries, including Africa with the United Nations World Food Programme.

Closer to home, the aircraft also plays a vital role in the Pacific Islands where it is used in lifesaving medivac transports, humanitarian aid, disaster relief, border patrol and maritime surveillance.

Stephen Burrows, CEO of NZAero, the country’s only commercial aircraft maker, says the design adaption of the aircraft to New Zealand’s variable terrain and weather conditions has made it suitable for a wide range of applications to help mitigate the impact of climate change.

He says their engineers have developed a series of modular accessories for the utility aircraft that allows it to be rapidly converted within minutes to disperse fire retardant during wildfires or release rainmaking silver iodide particles above drought-stricken areas.

According to latest climate change data, wildfires are growing in intensity and spreading in range across Earth’s ecosystems, and changing weather patterns are also making droughts more frequent, severe, and pervasive. [1][2] Researchers also say that wildfires contribute 20% of carbon emissions and burn twice as much tree cover each year as they did two decades ago.[3]

Burrows says the aircraft is also designed to be used for other environmental applications including reducing the size of locust populations, and pollution control.

He says the aircraft can also be used to transport passengers and freight into otherwise inaccessible locations, as well as for geophysical surveying allowing it to be used to detect minute variations in the earth’s magnetic field or measure concentrations of greenhouse gases in the troposphere.

“The predecessors to the SuperPac have formed a critical part of New Zealand’s agricultural sector for the past five decades, spreading fertiliser and pesticides and also playing a role in protecting crops in other nations around the world.

“The planes can now be equipped with Lidar, which scientists are using to map New Zealand in 3D to help with flood modelling, measuring post-climatic event land movements, as well as identifying the optimal location for forestry tracks, rail and our power industry. This equipment is also used by researchers in other nations to detect the remains of ancient civilisations.

“For countries which are heavily impacted by drought, natural disaster or are geographically isolated such as Papua New Guinea or Indonesia, this utility aircraft can lift more than its own weight - bringing hundreds of kilograms of supplies to remote villages and leave with a cargo hold full of perishable produce - providing a critical economic

“We know that the effect of climate change is accelerating across the world and it is now more devastating to human health, economies and the environment than ever before.

“Increasingly the fight against its impact is being fought by nations around the world from the skies. In the case of wildfires, historically the focus has been on using larger aircraft to deliver payloads of fire retardant across a wider area.

“The difficulty has been that by the time a forest fire is identified and an aircraft outfitted and relocated, the fire is already well established.

“The smaller aircraft requires less training to fly and less time to

14 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

Burrows says the local production of the SuperPac is also set to be a multi-million dollar boost for New Zealand’s aviation sector exports - with each aircraft valued at over $5m plus parts and accessories.

“New Zealand’s commercial aircraft manufacturing industry is relatively small by world standards but to date over 700 aircraft have been produced at our facility and the new model can trace its lineage back 70 years.

“There is significant global potential for versatile utility aircraft like the SuperPac 750XL-II and we expect to manufacture five of this model for our international customer base in 2024.

“This equates to $25m in aircraft sales for the first year, however, this could increase to $60m by 2026 if full capacity was realised. We have enquiries for firefighting for the purchase of up to 30 aircraft which suggests there is significant interest from this market segment alone,” he says.

Burrows says the business has the potential to grow this number to 12 aircraft per year - along with the ongoing aftermarket support of spares and training.

He says to support this growth NZAero plans to increase their current staff numbers by 30% to 80 full-time employees by mid next year.

[1] Nasa: Global Climate Change. Accessible here.

[2] United Nations Accessible here.

Enviromental

Programme.

[3] Dryad Networks: The Hidden Truth About Wildfires. Accessible here.

S M A RT M A N U FA C T U R I N G

Advanced Manufacturing for SMB: The path to smarter, modern and better operations Catherine Lye – CEO, Advanced Manufacturing Aotearoa

If you hate the phrase ‘we’ve always done it this way’ and lead your business/ team with ‘we’re going to try different, we’re going to try this, we think this will be a better way to improve quality & efficiency’ then you may identify more readily with advanced manufacturing.

After all, manufacturers are all about advancing their business every day and trying to find the next thing that will make them better, faster, more competitive.

have become accessible and affordable, offering new opportunities for SMBs to modernize their operations.

It is, however, important to recognise that not all small medium sized businesses (“SMB”) in New Zealand’s manufacturing sector may readily identify with the term “Advanced Manufacturing”.

3D printing, for instance, enables rapid prototyping and customisation, allowing SMBs to respond quickly to changing customer demands. This not only saves time but also reduces waste, making the manufacturing process more environmentally friendly.

The majority of New Zealand’s SMB’s may be operating with traditional methods and technologies that have been effective for their specific needs.

Factors such as limited budgets, resistance to change, distractions with a global pandemic or not knowing where to start with integrating Advanced Manufacturing tools and techniques can contribute to this reluctance to adopt – after all there is a lot that you could do but what should you do?

In the context of a small to medium sized business (SMB), advanced manufacturing embodies a transformative approach that simply translates to “Smarter, Modern, Better” operations.

“Smarter Manufacturing” entails harnessing data analytics and automation to make informed decisions in real-time, optimising resource allocation, and reducing waste.

The higher value of thinking is around the integration of tools, knowledge, and data. The challenge is finding easier ways to manage and extract data in an easy-to-understand report for everyone. It can make your eyes bleed figuring out what’s going on with 10,000 rows of daily data – you can chart it one way and it is meaningless, chart it another way that is meaningful and it starts to make some sense driving decisions around quality management and machine optimization.

The push for industry4 by manufacturing leaders is to provide the team with insights. Most of manufacturing is still human powered. It’s about giving the team the tools they need to make their days easier or giving them better information to drive efficiencies in the plant.

Smarter Manufacturing puts you in control, automates all the boring stuff and helps you exceed your customers’ expectations every day. It allows you to do more and better at the same time.

“Modern manufacturing” leverages state of the art tools like 3D printing, IOT, and AI to adapt to rapidly changing market demands and deliver flexible, customised solutions. To stay competitive, SMBs need to embrace modern manufacturing methods that keep them aligned with the latest industry trends and innovations.

Advanced manufacturing technologies such as 3D printing, robotics, and artificial intelligence

Artificial intelligence (AI) is another modern manufacturing tool that can transform SMBs. Machine learning algorithms can analyse large datasets to identify patterns, predict future trends, and even assist in quality control. By integrating AI into their operations, SMBs can not only reduce production errors but also make proactive decisions to optimize their processes and meet customer expectations.

Advanced manufacturing ultimately leads to better operations for SMBs - “better” competitiveness, sustainability, and growth, ensuring that the business remains agile and capable of meeting the evolving needs of the market.

In today’s rapidly evolving business landscape, staying competitive is paramount for SMBs. Advanced manufacturing with its promise of smarter, modern and better operations, has become a crucial strategy for SMBs to thrive in an increasingly complex and tech-driven world.

If you haven’t understood and started incorporating Advanced Manufacturing into your business, it’s important to understand the impact. It’s important that small business learn, embrace, incorporate it otherwise you will become dinosaurs.

Some of our business owners are at an age where they are looking at succession plans and wanting to sell - if you haven’t understood and incorporated advanced manufacturing into your business model – it won’t be attractive for someone to buy into.

Get curious – there are so many resources and genuinely helpful people out there – AMA (Advanced Manufacturing Aotearoa) has spearheaded a collaboration structure through the development of its own regional manufacturing hubs across New Zealand.

Given the high percentage of SMBs in manufacturing, these regional hubs are critical for connecting local manufacturers with experts as well as other manufacturers who can share experiences. All of this aims to help these communities build their advanced manufacturing capabilities and ensures we remain globally competitive. Join amanz.nz for free!

www.nzmanufacturer.co.nz

Smarter Manufacturing puts you in control, automates all the boring stuff and helps you exceed your customers’ expectations every day.

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NZ Manufacturer December 2023

15

THE YEAR IN REVIEW

State of manufacturing in New Zealand –2023 in review

By Sean Doherty - Industry 4.0 Product Owner for Callaghan Innovation.

Although I would have loved to report that we’ve seen the best year on record, blind optimism will get us nowhere so instead, here’s an honest review on the New Zealand manufacturing industry over the past 12 months.

As we’re still recovering from Covid-19, we haven’t experienced the huge growth one would hope. The data looks pretty poor with exports and productivity at an all time low, plus the struggles of staff shortages, and the resulting cost of high wages to retain skilled staff, squeezing margins even tighter.

But there are pockets of good news and plenty we can do to improve our situation.

Pockets of goodness New Zealand continues to punch above its weight and some businesses are doing really well. Fonterra has had a stellar year increasing their annual revenue to over $2.5 billion, MHM Automation’s revenue grew by 43 percent (the company now acquired

by Bettcher Industries), and Livestock Improvement Corporation’s revenue is up five percent despite a really tough market.

I would also like to acknowledge the digital trailblazers who have shared their journeys so others can follow by their example. These include Fabrum for their integration of Cryocoolers to the cloud, Gyro Plastics for their use of a manufacturing execution system, and Douglas Pharmaceuticals for bringing the management of their lab into a centralised software system. Only 30 percent of digital transformation projects scale past a pilot phase. So, it’s evident we need a leadership team of digital trailblazers to truly implement a roadmap of change.

Some other personal highlights would be the great conversations that we’ve had with manufacturers across the country. This year, the Industry 4.0 Demonstration Network has seen thousands of people attend our 100+ events across New Zealand, including our Aronui Industry 4.0 navigator workshops for our more advanced stakeholders.

Once manufacturers see firsthand that these machines are producing real-world facts, the data becomes more trusted. I heard a saying that machines talk all the time but are we listening? Well, New Zealand manufacturers are getting better at listening which is encouraging.

Learning to walk before we can run - Are New Zealand manufacturers intimidated by new technology?

There is still some hesitancy to adopt Industry 4.0 initiatives by New Zealand manufacturers. This may be due to cost, a lack of education around what this looks like in practice, or fear of job losses.

According to the productivity commission 50 percent

of New Zealanders feel that robots and AI will replace jobs. While we will see jobs displaced as we have seen in other industrial revolutions, it does not mean mass unemployment.

I think Elon Musk said it well (after trying to fully automate Tesla’s car manufacturing operations) when he said “Humans are underrated“.

In fact, implementing Industry 4.0 initiatives helps create more high value, higher paying jobs.

For example, App Developer, Data scientist, and Information Security Analyst roles didn’t exist ten years ago. Here’s an article that looks at high paying jobs that have been created by new technologies.

In the current market, it is understandable why there’s some hesitation around implementing change, but the survival of the New Zealand manufacturing industry is reliant on us making adjustments.

We can’t direct the wind, but we can adjust our sails While we can’t change the economic environment, we can implement new strategies to increase profitability and productivity.

SME’s in particular need to prioritise looking at the opportunities that technology can bring to not only boost productivity and lower costs, but to future proof operations.

I would encourage manufacturers to step outside of their day to day work and think, “Are we an attractive place to work? Are these tasks repetitive and boring?” If you ask your staff what tasks they thought could be automated, the response might surprise you and in a market where we’re struggling to hire skilled staff, if there’s an opportunity to redeploy your staff into more interesting, value-add work, we’d be crazy not to prioritise that.

From there, the hard work begins by starting the conversation with their teams, agreeing on objectives and finding where it makes sense to automate first.

Another area of great opportunity to adopt lean processes beyond the factory floor is looking at your full supply chain. When was the last time you looked at all the tasks and processes that occur from receiving an order through to the customer receiving goods? My observation is there is just as much work that can be automated in the back office as the plant floor.

Plus, we encourage manufacturing of all sizes to utilise the Industry 4.0 programme experts from Callaghan Innovation and our partners EMA, Beca and LMAC to help kick start their journey.

Think the solutions are too expensive or not bespoke enough for your smaller SME? These are not unique to your business, we can help find advanced solutions that work for you.

16 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

Looking ahead - Opportunities in the subsectors Looking to 2024, supply chain disruptions and labour shortages will still be an issue so manufacturers will have to make moves to become more productive in order to survive.

Although it’s not independent to New Zealand, the economic outlook isn’t expected to look rosy any time soon, so now is the time to prepare yourself for the future.

Cloud adoption is something we expect to see more of next year with Microsoft opening a cloud datacentre in New Zealand that’s set to launch before Christmas, and there’s particular opportunities for OEM and equipment manufacturers.

Covid-19 has shown us the importance of remote connectivity and the use of machines to help with troubleshooting. I’d be interested to know if there are manufacturers looking to move their business model to product as a service (PaaS).

There are some great global case studies of this, and we’re supportive of seeing more of this locally.

Clever First Aid for example supplies first aid boxes as a service and constantly monitors supplies for automatic replenishment.

In the food and beverage industry, provenance and protecting against food fraud will become an essential instead of a nice to have. Similarly, consumers are becoming more aware of carbon footprint and ESG in their shopping preferences, so it will be important to explore how digital tools will support your brand story in that area.

Finally, an engaged network of manufacturers collaboratively addressing industry woes and opportunities will be imperative to the growth of the industry. New Zealand has established an impressive software as a service (SaaS) community in recent years with over 500 businesses and 5000 members helping the sector achieve a 16 percent growth rate year on year.

It’d be great to see manufacturers follow suit and work together to grow our capability across the country rather than just getting bogged down by day to day operations. Interested in joining a manufacturing network? Follow our Ignite 4.0 LinkedIn to connect with other Kiwi manufacturers, stay up to date with Industry 4.0 events, and gain helpful insights.

THE YEAR IN REVIEW

HERA’s Year in Review

By Holger Heinzel, Senior Engineer – Advanced Manufacturing, HERA How has the year been for innovation and development?

The year 2023 has been a time of great progress in innovation and development. The availability of AI technologies has captured everyone’s attention and has the potential to revolutionise industry.

Automation is also gathering momentum, both in office processes and in the workshop. However, it also has been a challenging year for fabricators, who have had to deal with a market slowdown and a shortage of qualified labour.

Where do you see areas of growth in 2024?

The field of AI is constantly evolving and advancing, becoming more deeply integrated into our everyday software systems, such as search engines and office suites, and in software that is specific to industries, including construction, fabrication, and manufacturing.

Automation is also expanding due to labour shortages and technological advancements, with programmable logic controllers (PLCs) adopting practices commonly used in software development.

Collaborative robots (cobots) and vision systems are becoming more advanced and are supported by AI to aid human programmers, operators, and inspectors.

Sustainability is an overarching theme that will continue to drive new developments and products that consider the impact of manufacturing and end use, with a focus on minimising the use of new resources.

AI will help manufacturers minimise their footprint and create a circular economy.

Which technologies are making the contributions that matter for manufacturers going forward?

In addition to the aforementioned areas of growth in 2024, the digital linking of internal systems, including machines and humans, is still a major challenge.

The size and extreme flexibility of New Zealand’s manufacturers and fabricators are creating additional challenges.

Integrated product lifecycles is another area. In steel construction, the products we make require the input of many companies and professions and take a considerable amount of time and investment.

investment in times of rapid change.

Furthermore, capital investment is often just the beginning, as the new equipment must be seamlessly integrated into existing workflows, or new workflows must be created.

Existing personnel need to be trained, and with the strong digital component in industry 4.0, capabilities that may not be present in staff yet are demanded in times of rapid change.

There is a lot going on at HERA. What stands out for you as highlights of this year?

HERA is currently involved in more projects than ever before. These include the Construction 4.0 project, which is supported by a $10.3 million MBIE Endeavour-funded grant, and the Australian Composites Manufacturing CRC (ACM CRC) project.

Our Industry 4.0 cluster has grown and is supporting HERA’s mission of building a passionate tribe of metalminds who innovate successfully.

The Construction 4.0 project has completed its first year, and one of the key deliverables is to improve the resilience and sustainability of new infrastructure.

The use of integrated digital systems from the start is a key consideration. The ACM CRC project is focused on exploring the interface of steel and other materials, such as composite materials, concrete, and timber, to create products that can take advantage of each material’s strength.

Both projects also incorporate automation and artificial intelligence, ensuring that they are at the forefront of cutting-edge technology.

Our Industry 4.0 cluster has held a record number of meetings this year, and its aim is to promote the adoption of Industry 4.0 technologies by providing a platform for members to share and discuss ideas and by connecting technology providers and suppliers.

We are also supporting individual members on their Industry 4.0 journey via our various engagement programmes.

Can a new government help business move forward?

It’s good to see the new government appoint Andrew Bayly as Minister of Manufacturing. We congratulate him on this role and look forward to working with him.

While it’s important for the government to provide support for businesses, however, we can’t solely depend on this support to drive economic growth.

It’s up to us as business owners and entrepreneurs to pave the way for success. By taking initiative and being proactive, we can create an environment that fosters innovation, collaboration, and growth, with or without public-sector assistance.

Let’s not wait for the government to lead the way; let’s take charge and make things happen ourselves.

What part is AI playing in your workplace?

To name a few examples, our research projects involve AI to optimise welds, improve building design and sustainability, extend structures’ fatigue life, and enhance steel fabricators’ productivity.

In the inaugural project with the University of Sydney (SYDU) and the Australian Nuclear Science and Technology Organisation (ANSTO), for example, HERA aims to establish an AI-based monitoring system for assessing the quality of manufactured composite products, including steelwork.

This system will optimise inspection requirements and manage compliance risks through extensive big data analysis. The project also encompasses the collection and analysis of productivity data, in-service health monitoring, and the development of novel 3D printing techniques capable of reusing or recycling materials based on their remaining properties, all aligned with Circular Design 4.0 principles.

Creating the systems that allow a much closer tying together of all these aspects is in full swing now but still requires significant effort to implement.

Manufacturers are increasingly adopting technologies that minimise their environmental footprint by optimising energy usage, implementing closed-loop material recycling systems, and using renewable energy sources.

Is there hesitancy from companies to invest in advanced technologies, Industry 4.0 as an example?

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NZ Manufacturer December 2023

17

THE YEAR IN REVIEW

A standout year -Adam Sharman, Senior Partner, Dsifer

For many New Zealand organisations, 2023 has been a year of navigating multiple headwinds, including increased cost of materials driven by exchange rate pressure and high levels of inflation, weakening demand from China as their domestic economy slows, and weakening consumer demand in some sectors.

All of which has seen the NZ manufacturing sector contract across 2023. These challenges appear to have been particularly acute across the food processing sectors.

Staffing continues to be a challenge for New Zealand manufacturers, particularly in the operational workforce. However, we are starting to see an easing in the market and, as the number of jobs being advertised drops and the number of applicants per job advert increase organisations are finding it easier to attract talent.

There is a paradox to this however, as our clients frequently report that staff absenteeism is one of their biggest challenges and has a major impact on their ability to achieve potential performance.

It is not all doom and gloom, however, and 2023 has been another standout year for New Zealand organisations in terms of innovation, creativity, and growth. In particular, developments in aerospace, agritech and health tech have seen Kiwi companies make significant impacts on the world stage as New Zealand continues to be recognised for its innovation in these areas.

Increasingly, we are working with organisations who have recognised that security is a strategic asset for New Zealand and our organisation, and we have seen multiple examples of New Zealand based organisations winning work away from Asia, due to their ability to provide products that are trusted as secure.

This is particularly true in the electrical component manufacturing sector, as for example, European car producers are willing to pay a premium for data security in the manufacture of their components.

New Zealand manufacturers are well placed to capitalise on this reputation as a strategic point of difference that is less reliant on competitive pricing.

2023 marked an inflection point in the focus on sustainability and mitigation of environmental impact, driven largely through customer and

consumer purchasing power.

For example, Nestle’s demands of their suppliers lead to Fonterra announcing its biggest carbon reduction initiative to date. Whilst this inflection may be focused on the big carbon emitters now, it is inevitable that customers will require all businesses to be able to demonstrate their environment impact in the future and New Zealand business should focus on these efforts as a priority.

With New Zealand’s reputation as a clean, green, environmentally friendly country being challenged on the world stage, individual organisations and industries will have to double-down on the demonstration of their sustainability credentials if this is to remain a competitive advantage.

Environmental sustainability is not the only area in which New Zealand risks falling behind. Investment in manufacturing, particularly advanced/digital manufacturing and R&D is lagging behind the rest of the world.

For example, the UK recently announced a £4.5bn investment in its manufacturing industry, including initiatives to support investment in technology that allows organisations to write off investment in tech against profits in the first year.

By comparison (and even adjusting for scale), New Zealand is lagging behind. Many organisations we work with struggle to make investment in technology that could accelerate their businesses as the initial investment is seen as too high for the associated pay-pack period.

With a pause notice on the Industry Transformation Plan in place, the manufacturing industry is waiting to see what support it will receive from the new administration before committing to further investment.

Whilst this uncertainty is causing a degree of hesitation in the industry, we have seen a significant shift in the approach and attitudes of New Zealand’s manufacturers when it comes to understanding and

articulating how technology and data fit in to their strategy.

Whilst AI has been the hot topic for 2023, manufacturers are increasingly approaching digital transformation as a holistic strategy including, technology, automation, data analytics, machine learning and AI. It is by bringing these elements together and thinking about them in an ecosystem that will accelerate true transformation.

This is an encouraging shift, and we look forward to continuing to see the industry capitalise on these advances as the economic pressures appear to be easing in to 2024.

In the meantime, we encourage everyone to take some well-earned downtime of the Christmas/New Year period if you can after what has been a busy year and come back refreshed and ready to go in 2024.

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18 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

THE YEAR IN REVIEW

Embracing Industry 4.0: A roadmap for New Zealand’s manufacturers

NZ MANUFACTURER

FEATURES FEBRUARY 2024 Issue

-Andrew Bayly

As I step into the role of New Zealand’s first-ever Minister for Manufacturing, I am acutely aware of the challenges that define our manufacturing sector’s current landscape. Our manufacturers have experienced patchy demand and labour shortages.

The manufacturing sector is at a pivotal juncture, and the move towards Industry 4.0 emerges as not just a choice but a necessity. Industry 4.0 is about the convergence of information technology (IT) and operational technology (OT) systems, creating interconnectivity between autonomous manufacturing equipment and broader computer systems through systems such as AI, the Internet of Things (machines and equipment talking to each other without human input), and data clouds.

In this era of change and transformation, where international competitors embrace cutting-edge technologies, we must not only keep pace but lead the charge toward smarter manufacturing.

The move to Industry 4.0 is something that all manufacturers can do, big or small. Changes even for small business can be done incrementally and affordably.

The trends in artificial intelligence (AI) and machine learning are captivating, and there is a compelling connection between Industry 4.0 and the principles of a circular economy.

Within AI and digitalisation in government, the intersection of these domains becomes apparent, especially in utilizing data to drive economic growth. While New Zealand may be on the trailing edge of this journey, the goal is clear – to improve productivity through the adept use of data and digital technologies.

Furthermore, I would like to see collaboration not only within our borders but also internationally, drawing on the expertise of countries like Australia and Singapore who already have advanced AI capabilities in their manufacturing sector, to fast-track our progression towards Industry 4.0.

Ideally, our pursuit would be not only to establish the infrastructure for a digital outcome but also to explore global partnerships that propel us toward best practices at an accelerated pace, sharing expertise and resources in a collective push to a digital manufacturing future.

The landscape of demand is an uncertain one for manufacturers. For exporters, the ride is tumultuous, with demand becoming increasingly erratic. While many boast healthy order books, a significant cohort faces a plunge in demand, attributed partly to customers depleting inventories amassed during the throes of COVID-19.

The changing nature of demand is a puzzle that manufacturers must solve, as they navigate through the post-pandemic recovery.

However, there is stability in the building industry.

Demand for construction-related products stands resilient, providing a pillar of support for manufacturers in this sector.

INDUSTRY 4.0

In contrast, those entwined with fast-moving consumer goods (FMCG) find themselves in a pinch.

Outside the realm of food and beverage, few Kiwi manufacturers directly supply the FMCG market.

WORKSHOP TOOLS

This insulation offers a shield against precipitous demand fluctuations, but the pinch is still felt, emphasising the variety of dependencies in the sector.

GREEN STEEL

The issue of labour and skills shortages, while on the mend, persists in specialized domains. A global scarcity of certain skills, particularly in fields like welding, poses challenges that immigration alone cannot resolve.

AI

The sector requires strategic interventions to bridge the gap between demand and the availability of specialised skills.

PRODUCTIVITY

Moreover, many manufacturers are walking a financial tightrope as they grapple with strong margin pressure. The inability to fully pass on rising input costs constricts profitability, prompting a search for innovative solutions to balance the books. Amid these challenges, a solution lies in the push for automation, albeit still residing within the confines of Industry 3.0.

Advertising Booking Deadline – 5 February 2024 Advertising Copy Deadline – 5 February 2024 Editorial Copy Deadline – 5 February 2024 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz

Industry 4.0 marks an industrial revolution of sorts, promising smarter manufacturing through the integration of artificial intelligence and machine learning technologies.

Editorial material to be sent to : Doug Green,

The international arena is already abuzz with competitors embracing this revolution, and New Zealand must not lag behind. The convergence of Industry 4.0, digitalization, and AI presents a strong combination for enhancing productivity.

Minister Judith Collins’ oversight of AI and digitalisation within the government further emphasises the interconnectedness of these realms, and during our time in Opposition we worked together on many portfolio areas, which I hope to continue into this government.

The data-driven approach to growing the economy aligns with the ethos of Industry 4.0, creating a symbiotic relationship that holds encouraging possibilities. However, we are still trailing behind some nations on this journey.

In conclusion, New Zealand’s manufacturing sector stands at crossroads, facing challenges that demand innovative solutions.

The transition to Industry 4.0 will become a necessity. The fusion of AI, digitalisation, and international collaboration forms the foundation of a resilient and progressive manufacturing sector that can navigate the complexities of the present, and lead New Zealand to a prosperous future.

P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz Tel: 06 870 9029

At NZ MANUFACTURER our aim is to keep our readers up to date with the latest industry news and manufacturing advances in a tasty morsel, ensuring they do not get left behind in the highly competitive and rapidly evolving manufacturing world.

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NZ Manufacturer December 2023

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THE YEAR IN REVIEW

Prospr: multi-use autonomous vehicle for orchard and vineyard production New Zealand-based agritech company Robotics Plus launched Prospr, an autonomous, multi-use, hybrid vehicle designed to carry out a variety of orchard and vineyard crop tasks more efficiently and sustainably while reducing reliance on labor.

Prospr accommodates multiple swappable tools being developed, including newly released tower sprayers for grapes, apples, or tree crops. The right tool for the job is attached to the vehicle depending on the day’s work, and multiple Prosprs can collaborate in a fleet to get the job done.

The autonomous vehicle uses a combination of perception systems to sense the environment, enabling data-driven insights.

Robotics Plus showcased Prospr for the first time at FIRA 2023, a California-based event dedicated to autonomous agriculture and agricultural robotics solutions.

Southland Engineering and Manufacturing Cluster on a mission The Southland Engineering Cluster, a newly established group, is on a mission to turn Southland into a collaborative industrial powerhouse for the engineering and manufacturing sector.

The initiative is driven by the knowledge that the South is rich in talent, with engineers and manufacturers capable of excelling in diverse projects across a multitude of industries and fields.

The primary objective is to ensure the sustainability of manufacturing in the Southland region by fostering a thriving environment for industry players to work together.

The Southland Engineering Cluster is committed to facilitating growth and the equitable sharing of opportunities.

Brendon Gray, Cluster Manager

Dean Addie, Chair of the Engineering Cluster, underscores the importance of building a collaborative industry, to showcase the incredible capabilities of the region. He explains, “This will effectively demonstrate to potential clients what we can achieve and the vast breadth of knowledge and skill we bring to the table. By working collaboratively, we will empower our regions to bid for large engineering contracts with confidence.”

The vision is to enable international and national contracts to be fulfilled in the South, leading to the growth of industries, more job opportunities, robust regional economies, and the creation of additional skilled positions.

Using machine learning to find the true value of companies University of Auckland researchers are harnessing artificial intelligence to evaluate the actual value of companies based on profitability, efficiency, growth, risk and more.

Not only that, but Lu and Geertsema also developed machine learning algorithms to help professionals identify peer firms when traditional methods fall short.

In a paper published in the Journal of Accounting Research, Business School academics Helen Lu and Paul Geertsema show that machine learning algorithms can provide more accurate valuations of stocks than traditional methods.

This is especially useful in countries like New Zealand, where finding obvious peers can be a struggle, says Lu, who has spent many years specialising in research that applies artificial intelligence to solve finance problems.

Their machine learning method outperforms traditional models in valuation accuracy and the stocks it identifies as undervalued tend to rise in price, giving investors the opportunity to profit without taking on additional risks.

Determining the value of a company involves many subjective choices and, therefore, its stock prices can be influenced by human bias, says Lu, which is why this kind of machine learning methodology is game-changing.

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THE YEAR IN REVIEW

World first responsible AI Network to uplift industry The Responsible Artificial Intelligence (AI) Network, is a world-first, cross-ecosystem program to support companies using and creating AI ethically and safely.

AI is expected to be worth $22.17 trillion to the global economy by 2030, but poorly developed AI solutions can have serious consequences, from data and privacy breaches to ethical issues.

The network will be the gateway for Australia’s industries to uplift its practice of responsible AI. Bringing together a national community of practice, guided by world leading expert partners, and enabling Australian businesses with best practice guidance, tools and learning modules, the network is centred

around six core pillars: Law, Standards, Principles, Governance, Leadership and Technology.

Established by the National AI Centre, initial Knowledge Partners of the Responsible AI Network include the Australian Industry Group, Australian Information Industry Association (AIIA), CEDA, CSIRO’s Data61, Standards Australia, The Ethics Centre, The Gradient Institute, The Human Technology Institute, and the Tech Council of Australia.

The announcement comes at a time when the world is racing to build guardrails for AI development and deployment to ensure responsible AI practices are developed in parallel with a rapidly accelerating AI landscape.

AMA gets business-led ITP actions underway Advanced Manufacturing Aotearoa (AMA)* is a new cross-sector incorporated society representing manufacturing businesses across the country. It will be industry-driven and work alongside all stakeholders to coordinate business-led initiatives that help deliver Advanced Manufacturing Industry Transformation Plan (ITP) outcomes.

Business-led ITP initiatives • Initiative 15: Strengthening Advanced Manufacturing networks • Initiative 6: Individual development plans • Initiative 8: Attraction strategy to increase workers and diversity • Initiative 13: Improving understanding and perceptions of manufacturing.

Exovantage Exxovantage deploys integrated and wearable robotic solutions and technology that could save businesses from losing money to workplace injuries, while simultaneously future-proofing workforces worldwide.

Exxovantage combines exoskeletons and exosuits, workplace wearables, AI, data analytics and cutting-edge risk management tools to increase operational efficiencies for the logistics, manufacturing, retail, aviation, defence, construction, dairy farming, horticulture, mining and healthcare sectors.

In the current climate of stark skill shortages, lost time to injuries, and a focus on the mental health of the nation’s workforce, supporting manual labour tasks with robotics and data analytics may reduce the cost of staff turnover and close the skills gap — while boosting staff engagement and productivity.

Fabrum raised $23M Series A to decarbonise the economy New Zealand company Fabrum, a world leader in zero-emission transition technologies to enable a lower-carbon economy, announced $23M Series A financing led by London-headquartered AP Ventures with participation from Australia-based Fortescue Future Industries, Japan-based Obayashi Corporation and New Zealand-based K1W1.

With the new funding, Fabrum is to expand its global presence and scale up its manufacturing capacity with a new purpose-built manufacturing facility at its Christchurch headquarters - to meet the growing demand for its end-to-end hydrogen systems and other technologies for aerospace, heavy transport and heavy industries.

Fabrum, founded in 2004, leads the world in industrialised small to medium-scale liquefaction systems and composite cryogenic vessels. Fabrum has earned a global reputation as an innovator for its core competencies in green hydrogen production, storage, dispensing, and system integration.

The company actively deploys end-to-end liquid hydrogen solutions globally across heavy transport, mining and aviation markets.

Fabrum also has a strong presence in the traditional cryogenic markets of liquid nitrogen (LIN), liquid oxygen (LOX), liquid natural gas (LNG) and liquid air (LAIR), with a global customer base spanning animal husbandry, hi-tech research institutions and manufacturing.

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THE YEAR IN REVIEW

Kayasand receives backing from NZGIF to reduce carbon emissions from concrete Kayasand opened its first V7 high-technology manufacturing demonstration plant in New Zealand, which uses waste products such as recycled glass, concrete and slag, and turns them into premium sand for concrete.

Kayasand received the backing of New Zealand Green Investment Finance (NZGIF) via a $3.5 million equity investment. The green investment bank was established to accelerate investment that helps reduce greenhouse gas emissions.

A further $1.8 million of private investment has been secured alongside the NZGIF investment bringing the total raise to $5.3 million.

Natural sand supplies are becoming harder to access and traditional concrete manufacturing processes, including the impacts of sand dredging on coastlines such as Pakiri, 100km north of Auckland, are not sustainable over the longer-term.

Start-Up helping businesses tackle carbon emissions Data-led sustainability company, Generate Zero, helps empower businesses on their journey towards a more sustainable future.

Carmen Vicelich, Generate Zero Founder and award-winning data and tech entrepreneur, says this occasion marks an important step forward for sustainability in Aotearoa.

The platform founded by the team at Data Insight, will leverage the power of data, analytics, and AI to help businesses reduce their carbon footprint.

“Our mission is to use emerging technology to empower businesses to reduce their carbon footprint. Generate Zero is our answer to the increasing demand for accurate ESG reporting and solutions through leveraging data,” says Vicelich.

New Zealand research to fly on International Space Station A research facility prototype developed in Christchurch will soon orbit Earth aboard the International Space Station (ISS) under a partnership between the Ministry of Business, Innovation and Employment (MBIE) and US space company Axiom Space.

The facility for studying protein crystal growth in space, developed by Senior Lecturer at the University of Canterbury’s School of Product Design Dr Sarah Kessans, in collaboration with teams from Arizona State University and Christchurch companies Asteria Engineering Consultancy and Intranel, was one of two projects selected for initial feasibility studies in 2022.

Dr Sarah Kessans.

Only 14% of all our engineers are women.

We want to change that.

Join us and scores of other Kiwi organisations that have galvanised around one common goal: 20% more women engineers by 2021. www.diversityagenda.org

22 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

THE INTERVIEW

Heidi Hannonen, Vice President, Markets, Kemppi Oy How do you define success?

I define success as being able to offer a solution to a customer need or problem that exceeds their expectations.

Tell readers about your role at Kemppi?

As the Vice President of Markets, I am responsible for global sales here at Kemppi.

How is everything at Kemppi, what does tomorrow hold?

Kemppi is doing well and we are quite happy about how far we have come.

Next year marks our 75th birthday and it has been a journey filled with both challenges and rewards. We are now at the start of a new strategic period where we can take stock of our core competencies and build on these. We are also fortunate to be able to partner with world-class dealers and distributors to sell our innovative, top quality welding equipment and safety gear, so the future looks very positive in our eyes.

How is Kemppi finding the present environment for doing business?

As with any other company at the moment, Kemppi also recognises the volatility within today’s markets. Europe is struggling to produce growth and the slowdown of the Chinese economy is also of concern. However, Kemppi is still recording healthy growth figures and these remain sound for 2024.

Technology – how does it assist with better products?

Technology assists with the development of better products in so many ways. It propels the continuous development of better hardware which is more precise, reliable and efficient. It has also given rise to welding software which can be combined with hardware to ensure quality welding processes and helped facilitate industry 4.0 management of total production systems. The arrival of AI will no doubt further drive the development of better products.

Staff – How is staff retention and how do you find the right people?

This is an excellent question. Commercially driven welding solutions sales people belong to quite a niche in the job market. I’d say it helps to be considered one of the top brands in manual welding.

Nevertheless, we also want to make sure that the people we hire attain the same high quality and knowledge level that our customers have gotten used to when dealing with Kemppi. So, we spend quite a lot of time in the selection process, and use our vast partner network to help find the right kind of people.

Favourite book?

I don’t know if it is my favourite book, but the latest one I read was Michael McIntyre’s, A Funny Life, and it made me laugh.

Where are growth regions for Kemppi?

Greatest inspiration?

Well, we have had very strong growth figures in Australia and New Zealand in recent years. The United Kingdom, Norway and Poland have also been doing really well thanks to active investment schemes in these markets.

Watching my 10-year-old daughter learn new things at school, off the Internet or wherever she gets her material from. If I can learn 10 per cent of the amount of new things her brain digests every day, I’m good.

Looking for a marketing edge?

70% of licence holders say signing on has positively affected sales.

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WORKSHOP TOOLS

New SO-3 screw compressor from BOGE With a focus on energy efficiency, BOGE has expanded its portfolio with the new SO-3 oil-free screw compressor that achieves peak delivery rate values at a lower specific power consumption.

In the Total-Cost-of-Ownership evaluation, the compressor stood out for its low total costs over its entire life cycle. Further advantages include the large control range, quiet and maintenance-free operation and the option to recover heat from hot water temperatures

Even though the screw compressor is very compact, the components are still easily accessible for maintenance purposes. Specific sound insulation measures have been implemented to effectively reduce noise levels. The compressor is available with frequency control and heat recovery, as required. BOGE thus offers maximum flexibility and additional options to increase efficiency.

The heat recovery enables up to 94 percent of the applied energy to be used to heat the service water and for the heating system. The screw compressor heats the service water up to 90°C.

Optimum adjustment to existing requirements

of up to 90°C.

The SO-3 is also equipped with the optional service tool BOGE connect.

The compressed air expert is thus offering a comprehensive compressed air management system. “All of the operating parameters are continuously recorded, visualised and analysed in our portal,” explains Lutz Knoke, a Product Manager at BOGE.

With the introduction of the SO-3 oil-free screw compressor, BOGE has considerably improved the energy efficiency of its SO series and is now deemed to be the best in class. The specific power consumption has been increased by 8%.

This increase is based on an intelligent concept.

“Potential optimisations can thus be identified and maintenance measures can be implemented proactively.” With options to connect adsorptions dryers and other accessories, the new SO-3 screw compressor from BOGE is a customised solution for a variety of applications.

The newly developed airend of the compressor convinces with its very low speeds and subsequently low compressor temperatures, as well as its extremely wear-resistant design. The integrated IE4 drive motor also contributes to its efficient and cost-effective operation. The efficiency is further increased by the cooling system that has low compression and output temperatures.

The screw compressor is designed for applications that require large quantities of high-quality, oil-free compressed air. This ensures the compressor can be used in a variety of applications in different sectors, including the pharmaceutical, food and drinks industry right through to the textile industry, mechanical engineering applications and by industrial coating companies.

Machine learning techniques improve X-ray materials analysis Researchers of RIKEN at Japan’s state-of-the-art synchrotron radiation facility, SPring-8, and their collaborators, have developed a faster and simpler way to carry out segmentation analysis, a vital process in materials science.

The new method was published in the journal Science and Technology of Advanced Materials: Methods.

Segmentation analysis is used to understand the fine-scale composition of a material. It identifies distinct regions (or ‘segments’) with specific compositions, structural characteristics, or properties. This helps evaluate the suitability of a material for specific functions, as well as its possible limitations.

It can also be used for quality control in material fabrication and for identifying points of weakness when analysing materials that have failed.

Segmentation analysis is very important for synchrotron radiation X-ray computed tomography (SR-CT), which is similar to conventional medical CT scanning but uses intense focused X-rays produced by electrons circulating in a storage ring at nearly the speed of light.

28-30 May 2024, Auckland Showgrounds

The team have demonstrated that machine learning is capable in conducting the segmentation analysis for the refraction contrast CT, which is especially useful for visualising the three-dimensional structure in samples with small density differences between regions of interest, such as epoxy resins.

New Zealand's Premier Manufacturing & Engineering Solutions Event

The team’s solution was to use machine learning methods established in biomedical fields in combination with a transfer learning technique to finely adjust to the segmentation analysis of SR-CTs. Building on the existing machine learning model greatly reduced the amount of training data needed to get results.

Looking to exhibit? Get in contact: Aad van der Poel aad@xpo.co.nz | 021 314 199 EMEX.CO.NZ

24 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

The researchers carried out a proof-of-concept analysis in which they successfully detected regions created by water within an epoxy resin. Their success suggests that the technique will be useful for analyzing a wide range of materials.

To make this analysis method available as widely and quickly as possible, the team plans to establish segmentation analysis as a service offered to external researchers by the SPring-8 data center, which has recently started its operation.

WORKSHOP TOOLS

ITSS Engineering and Hydraulink deliver SMART-DIG hydro excavator A partnership between experts in complementary fields of engineering and services has helped produce a Kiwi-made hydro excavator designed to be among the most advanced, reliable, and operator-friendly of its type in the world.

ITSS Engineering in Warkworth has worked with the national Hydraulink hydraulic hose and fittings group to produce essential hydraulic kits for the compact and ultra-reliable SMART-DIG hydro excavator models, initially for NZ, but with variants earmarked for export.

SMART-DIG is a partnership between Southey’s Group and ITSS Engineering, with which Hydraulink has worked with for over 10 years in the development and proving of hydraulic hoses and fitting kits for the broader SMART-DIG ranges, including HX-2000, HX-4000, and HX-6000 variants sold in NZ, Australia, and North America.

The SMART-DIG family of hydro-excavators combine high pressure water to cut through soil with an air vacuum for debris extraction, to provide a safe, swift, cost-effective, and non-invasive alternative to conventional digging and trenching without damaging already existing services or tree roots.

SMART-DIG excavators are widely used on building and construction, landscaping, municipal, and transport projects as well as public, private, commercial, and industrial development, and infrastructure worksites involving plumbing, trenching, landscaping and civil contractors.

Mark Harris, Workshop and Smart-Dig Manager, ITSS Engineering Ltd worked with Hydraulink Area Sales Manager Doug Stewart to evolve the hydraulic hose fittings kits involved in the wide variety of control and

actuation required in the user-friendly and versatile SMART-DIG range.

Mark Harris says one of the many advances of the SMART-DIG range is found in its Drop Box filtration system. Conventional hydro-excavators use cyclone filtration systems, which can be erratic – they only work properly at a constant airflow. “We engineer the SMART-DIG Drop Box to be a filtration system that works efficiently regardless of variable airflow.

“This means better suction, better excavation, and less downtime. Another strong feature of the HX-6000 is its dual water blasters, which facilitate two technicians digging in unison to complete jobs quicker than others with single water blasters”.

Doug Stewart says Hydraulink and ITSS Engineering worked closely together to develop hose kits that achieved the standards of constant evolution, reliability, and user-friendliness essential to optimising productivity and safety.

“Hydraulink makes hose kits for SMART-DIG as an OEM and has done so since we progressed from the prototyping stage nearly ten years ago. This engineering partnership has saved on costs and assembly times, helping Smart Dig keep manufacturing costs lower.

“Plus, all hoses specs are on record, meaning a hose can be made up rapidly if a replacement is needed anywhere in the country,” he says.

“The components, including the hydraulic kits used in the SMART-DIG range, have been specifically chosen to maximise performance and operational life. This gives operators significantly improved productivity,

HX6000 ready for work. and reduced operating costs. We put our energy into building finely balanced machines that are more efficient, reliable, economical, and safer, so contractors can work with fewer disruptions,” he said.

“Our Hydro-excavators are designed by operators for operators – our machines benefit from constant upgrades based on broad experience gained on hydro-excavation contracts to meet the specific and unique demands facing operators.

“They are easy to operate – units utilise a wireless remote control that allows simple operation from a distance. The boom rotates a full 270 degrees and is power extendable.”

“They are built to last – Southey’s Group, New Zealand’s leading hydro-excavation company, tested these machines in the field for more than two years before releasing them to the market. SMART-DIG’s partnership between Southey’s Group and ITSS Engineering brings more than 50 years of combined experience of mechanical engineering and operating hydro-excavation.

Power and pulse, ready to go

High performance, low weight

For more information call Matt on 0220 200 626

www.kemppi.com

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S U S TA I N A B I L I T Y

Systems thinking and sustainable manufacturing Remember the moment your flatpack furniture finally took shape (with no pieces missing and your relationships intact)? The last piece slotted in because you got the ‘system’ right. Assorted pieces came together, in the right way, to make a useful item of furniture that was ‘more than the sum of its parts’.

Sustainability is about systems too. Understanding the relationships between a strong bottom line, a flourishing environment and thriving people and communities will help you make your manufacturing business more sustainable.

In fact, you can’t have a healthy business if you don’t attend to all parts of the system.

In this article, we look at systems in your manufacturing business. Drawing on examples from our 2023 articles, we show the opportunities these systems offer to become more sustainable. But first, some background.

Systems in sustainability The United Nations’ 17 Sustainable Development Goals are a good place to start. They highlight the social, economic and environmental systems that make up our world, plus the links between them.

In our March issue we covered circular economy. This economic system keeps products (e.g. a glass bottle) and the materials that make them up (e.g. sand and energy) in use at their highest value for as long as possible.

A circular system benefits manufacturers. For example, it helps Blunt™ Umbrellas build a premium product and brand and engage with customers long after their original purchase.

Blunt has created a strong product system by designing brollies that withstand extreme weather and offering replacement parts and repair Photo credit: Laura Ockel on unsplash from. You can reduce your footprint by tackling the sources of emissions that contribute to it.

For example, invest in a fleet of EVs and you’ll reduce your scope 1 emissions. Reduce refrigeration and you’ll cut your scope 2. Send less waste to landfill and you’ll reduce your scope 3.

The climate system Your business contributes to climate change. In our May article we showed you why you need to help mitigate (reduce) climate change by reducing your carbon footprint.

These systems reinforce one another. Some systems are virtuous. Get one thing right and we fix others too. For example, if we consume and produce responsibly (SDG12), we reduce carbon emissions (SDG 13) and modern slavery (positive impacts on social SDGs 1, 5 and 8).

centres.

Vicious cycles are possible too. If we plant soybeans to create renewable bio-diesel (SDG 7), we risk crowding out native plants (SDG15).

Wider economic, social and environmental systems

Systems in manufacturing As a manufacturer you’re familiar with ‘systems thinking’, even if you don’t call it this. That’s because your business is a system. For example, when raw materials are unavailable, your production line slows down. You have to re-plan your team’s rosters, your production run, marketing schedule, deliveries and cashflow. Everything’s linked.

Here are some other examples of systems in your business and what they mean for becoming more sustainable.

Your product system Your product is a system. Raw materials in, product out, the magic of energy, your team’s skills and your plant and equipment in between.

Thinking circular also helps Blunt manage risk.

As countries legislate for manufacturers to play a greater role in product stewardship and support the ‘right to repair’, Blunt is well placed to comply.

Your business belongs to local and global economic, social and environmental systems. In August, manufacturer Laminex shared how it uses ‘materiality assessment’ to understand these systems and identify and prioritise its ‘material topics’.

These are the economic, social and environmental areas it needs to focus on to make sustainability central to its business.

They’re related. For example, when Laminex reduces carbon emissions, it reduces economic risk. When the manufacturer makes its team’s health, safety and wellbeing a priority, sick days fall and the team is available to support customers.

Your carbon system Your carbon footprint is a system. In our September and October articles we looked at the three ‘scopes’ (buckets) of carbon emissions (greenhouse gases) that make up your footprint and where they come

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In this climate system, the impacts go the other way too. Climate change affects your business in physical ways, such as extreme weather (Cyclone Gabrielle).

It has transitional impacts too: relationships and technology change as we move to a lower carbon economy. Identify the climate risks and opportunities your business faces and act on them.

The geo-political system Your business is part of a trading system. In November’s article, we looked at New Zealand’s new Free Trade Agreement with the European Union (EU). The agreement rewards sustainable business practices.

If you trade with the EU, make the most of this system by promoting your sustainability credentials. And get ready to compete with EU manufacturers who have been making their products more sustainable for years.

Once you see the systems explained in this article, you can’t unsee them. Act on them and you’ll build a more sustainable business. www.thinkstep-anz.com

ENERGY

Navigating energy intensity and efficiency in manufacturing -By Insa Errey

In advanced manufacturing, the concepts of energy intensity and energy efficiency play crucial roles in influencing both operational costs and emissions profile.

While both terms are interconnected, they represent distinct parts of energy management. Understanding these dynamics is crucial as businesses seek to balance production demands with the imperative of sustainable energy use.

Energy Intensity in Manufacturing: A Measure of Production Impact Energy intensity is a measure of the energy consumed per unit of output, such as the energy required to produce a certain quantity of goods.

Typically expressed in terms of energy units per unit of physical output. Energy intensity provides insight into the overall energy consumption patterns within a manufacturing facility.

High energy intensity in manufacturing suggests that significant energy resources are being used to manufacture a product. High energy intensive processes may use a disproportionate amount of energy to achieve their production goals, signalling inefficiencies that can impact both costs and emissions.

On the other hand, low energy intensity indicates a more efficient use of energy resources. Trending this even monthly will enable visibility of process operations, signalling if processes are running differently and have shifted.

maximise output. It is the ratio of useful energy out to the total energy in. In manufacturing, energy efficiency measures the effectiveness of processes in converting energy resources into final products, emphasizing the opportunities to reduce loss and waste.

Energy efficiency in manufacturing involves optimising processes and technologies to minimise energy consumption while maintaining or enhancing productivity. Improving energy efficiency in this context includes adopting advanced machinery, implementing effective energy management systems, and embracing best practices.

Often invest is required such as conducting energy audits, energy transition plans and implement energy management systems to streamline their operations, in addition to reviewing and purchasing energy-efficient equipment where feasible.

The Interplay in Manufacturing: Striking a Balance Energy intensity and efficiency are intertwined concepts that influence each other within the manufacturing landscape. A reduction in energy intensity is often a direct result of improved energy efficiency.

Energy Efficiency: Improving Manufacturing Practices

As more efficient technologies and practices are adopted, this can lead to producing the same or even higher output with lower energy inputs, leading to decreased energy intensity.

Energy efficiency, on the other hand, focuses on optimising the utilisation of energy inputs to

Conversely, a decrease in energy intensity may not always indicate improved efficiency if it results from

a decline in production rather than improved process optimisation.

Therefore, it is crucial to simultaneously address both energy intensity and efficiency to achieve sustainable and cost-effective operations.

Striking this balance requires strategic planning, investment in innovation, and a commitment to continuous improvement.

In the dynamic landscape of manufacturing, the synergy between energy intensity and efficiency is paramount. Manufacturers must navigate the intricate relationship between these two concepts to achieve sustainable and economically viable operations.

By embracing energy-efficient technologies and practices, the manufacturing sector can contribute significantly to reducing operational costs whilst the IEA Energy efficiency movement suggests it may also save up to 11% of global energy related carbon emissions by 2030.

Just what did COP28 achieve?

As negotiators stagger towards their beds in Dubai and another year’s climate talks come to a close, it’s time to take stock. Did COP28 achieve the big breakthrough the world needs on climate change?

Probably not. But the final agreement – met with an ovation – includes a first call for nations to transition away from fossil fuels.

It’s a step short of a commitment to phasing the fuels out, as some delegates had pushed for. But the development suggests the days of fossil fuels are numbered.

The overriding question the world now faces is whether the broad commitments nations agreed to are enough as climate change gathers pace. The answer, alarmingly, is no.

UAE: controversial hosts This year’s talks were controversial from the start.

The role of oil man Sultan Al Jaber as COP28 president fuelled concerns about the hosting role of the United Arab Emirates – a country with significant

interests in sustaining a fossil fuel economy. Then came reports Al Jaber had questioned the scientific rationale for phasing out fossil fuels to tackle climate change, amid reports of fossil fuel trade negotiations on the sidelines of negotiations).

On top of this, unprecedented numbers of fossil fuel lobbyists and geoengineering advocates attended the talks. This did not create the ideal conditions for action on climate change.

‘Loss and damage’ breakthrough To their credit, the organisers had an early win with an agreement to establish a “loss and damage” fund whereby richer nations compensate poorer nations for the effects of climate change. The creation of this fund is one of the big outcomes of the talks. It’s taken a long time to get here, after initially being

suggested by Vanuatu in 1991 and supported in principle in last year’s talks in Egypt.

Why is it needed? Because developing states are particularly vulnerable to the damage done by climate change, and have limited ability to meet the cost of repair and rebuilding. The fund also points to the particular obligations of developed states and significant emitters who have largely caused the problem.

But there are still big questions about the measure – most importantly, how well it will be funded. Despite the fanfare, just US$700 million has been committed so far to the fund aimed at compensating states for damage that, according to recent estimates, already runs into the hundreds of billions per year.

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DEVELOPMENTS

Toitu- Envirocare to transition away from NZ carbon credits to align with global standards Aotearoa New Zealand’s leading carbon certification and advisory services provider Toitū Envirocare, has announced it will transition out of accepting New Zealand carbon credits in its carbon certification programmes.

Carbon credits that have been issued under the PFSI (Permanent Forest Sinks Initiative) and PP89 (Permanent Post 1989 Forest category of the Emissions Trading Scheme) will no longer be accepted for offsetting in the Toitū carbon certification programmes.

This strategic shift aligns with the evolving standards in the global Voluntary Carbon Market (VCM), as they no longer meet the latest international best practice, especially amid heightened demand for integrity and transparency in carbon credit projects.

The transition will commence in early 2024, once the new best practice becomes operational.

Toitū Envirocare Chief Science and Advisory Officer Dr Belinda Mathers said, “We appreciate the importance of supporting New Zealand based projects, and historically these projects have been accepted as suitable quality, but market expectations for carbon credits have changed.

“While there are excellent indigenous forestry projects in Aotearoa, the NZ schemes that issue

carbon credits are not being assessed by the Integrity Council for the Voluntary Carbon Market (IC-VCM), against the quality requirements, so cannot show that they meet expectations.

“We conducted a thorough review of options for continuing to use the New Zealand credits, but none are yet suitable for meeting best practice”.

Toitū Envirocare follows international best practice as set by the ICVCM, the independent global governance body for the VCM. It is their latest guidance established as a global standard for carbon credit quality that defines New Zealand carbon credits as no longer meet the quality requirements.

The New Zealand carbon credit programmes (PFSI and PP89) are government owned and were primarily developed for selling into the compliance-based NZ Emissions Trading Scheme (ETS).

At this stage there is no intention for the PFSI and PP89 to get assessed. As a result, projects under these schemes cannot be approved as

ICVCM compliant, even if they individually meet the criteria.

Toitū members will still have options to support New Zealand sites: “For example, members can opt for the Toitū Climate Positive certification option and purchase New Zealand carbon credits as part of the ‘impact contribution’ component of the certification requirements,” says Dr Mathers.

Carbon credits used for offsetting in the Toitū programme will be from international projects issued by standards that have been assessed as meeting the best practice set out by ICVCM.

A promising future for scientific endeavours A total of 68 projects have been selected for funding through the Ministry of Business, Innovation and Employment’s (MBIE) Endeavour Fund for their potential to transform Aotearoa New Zealand’s economy, environment and society.

The Endeavour fund is split into two categories: Smart Ideas and Research Programmes.

Smart Ideas funding catalyses and rapidly tests promising, innovative research ideas with high potential for benefit to New Zealand. Research Programmes funding supports ambitious, excellent, and well-defined research ideas which, collectively, have credible and high potential to positively transform New Zealand’s future in areas of future value, growth or critical need.

A total of $246 million has been allocated across the 68 projects selected through the 2023 funding round. Some of these successful projects include: • Cawthron Institute project Our lakes, Our future: holistic approaches to transform lake management and restoration in a changing world.

Professor John Reynolds

This programme has been co-developed with Māori, primary industry, and freshwater management agencies to enable rapid deployment of tools and policy uptake of new approaches. It follows an earlier project known as Lakes 380 - the biggest scientific study of New Zealand’s lakes in our history.

28 NZ Manufacturer December 2023 / www.nzmanufacturer.co.nz

• A window into the brain: smart wearable technologies to target neurological disorders from the University of Otago.

An international team of world-class scientists will develop new wearable technology to change the way neurological disorders such as Parkinson’s and brain cancers are treated.

• Kai anamata mō Aotearoa – exploring future food system scenarios and impacts. This Massey University and Wakatū Incorporation led project involves development of a computational model of our food system to help transition our food sector to a carbon-neutral economy, underpinned by field trials and data collection in Te Tauihu.

Endeavour funding decisions are made by the Science Board – a statutory body whose members are appointed by the Minister of Research, Science and Innovation.

View a full list of Endeavour recipients for the 2023 investment round on the MBIE website: https://www. mbie.govt.nz/endeavour-fund/success-stories/

DEVELOPMENTS

Remediation plan needed to address Tiwai contamination The independent monitoring undertaken earlier this year to fill gaps identified in New Zealand Aluminium Smelters’ data confirms the initial understanding of numerous legacy and ongoing sources of contamination to the environment.

Environment Southland’s position is that the site needs to be managed as a whole to meet contemporary expectations of industrial environmental performance.

Currently, NZAS operates under eight consents, most of which are coming up to 20 years old.

Environment Southland chief executive Wilma Falconer said a comprehensive regulatory approach would give certainty to both NZAS and Southlanders.

“A whole-of-site regulatory approach would give NZAS and the community certainty for the future operation of the smelter.

It would require appropriate environmental standards to be met, the remediation of current contamination and ensure the site is cleaned up when NZAS eventually closes.

“We want to work with NZAS to speed up this process to provide certainty for its operation and to ensure the smelter is managed in a way that doesn’t leave Southland with a contaminated site and the costs to remediate it.”

The independent monitoring was undertaken by EHS Support (EHS), experts with international experience in decommissioning smelters. The monitoring focused on the coastal marine area around the smelter, landfill and wider site.

The EHS report confirms two years of studies that show manufacturing processes on the site produce waste with contaminants that escape into the

surrounding environment via stormwater drainage and groundwater.

A number of contaminants were found at levels above the Ecological Screening Values deemed relevant and applicable to the Tiwai Point aluminium smelter site. These include fluoride, aluminium, zinc, nickel, and PAHs (polycyclic aromatic hydrocarbons).

NZAS conducted similar monitoring, and the data and expert conclusions are broadly similar.

However, EHS captured additional samples during a large ‘first flush’ event on 2 February 2023 when, after a dry period, heavy rain washed contaminants into site drainage and then into the sea.

This led to the formation of a fluoride and aluminium plume extending well beyond the consented drain water mixing zone. Fluoride and aluminium contamination has the potential to impact marine life.

Fluoride in drain water discharging to the sea during this event was approximately 15 times higher than the Ecological Screening Values, and aluminium in the water was 440 times higher than Ecological Screening Values at a point 50 metres beyond the consented drain water mixing zone.

The EHS report also found contamination along foreshore areas at concentrations that could pose a potential terrestrial (land-based) ecological risk.

This included Department of Conservation land.

and sediment, given the contamination volumes leaving the site, likely due to the swift currents of Foveaux Strait dispersing and diluting contaminants.

This means there is unlikely to be human health risks via contaminant bioaccumulation through the food chain, however EHS recommends consistent monitoring over time to confirm this.

Environment Southland chief executive Wilma Falconer said a comprehensive regulatory approach would give certainty to both NZAS and Southlanders.

The monitoring of Bluff harbour and Foveaux Strait showed lower-than-expected residue in seawater

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Zenno’s superconducting technology opens up possibilities in space “Our first Z01 product is designed to control the attitude of a spacecraft in orbit - enabling fuel-free manoeuvring, a world-first. The Z01 single and Z01 3-axis dipole systems offer significantly lower size, weight and power cost benefits compared with the traditional magnetorquers they replace.

“Z01’s capability is fully scalable and unlocks yet-tobe-explored advancements for satellite mission length, productivity gains and expansion into space.

Fully magnetic satellite agility is just the start.”

Zenno recently formed a special commercial partnership with D-Orbit to collaborate on the development of new space products and services using superconducting electromagnets – including practical solutions for the first fuel-free desaturation of reaction wheels in high-altitude orbits and radiation shielding of hardware using superconducting electromagnets.

technology as it embarks on its in-orbit validation on board our ION Satellite Carrier on our 13th commercial mission.

“This day is a step forward in our collaboration with Zenno, as together, we are committed to developing innovation to help the space industry accelerate the development of more affordable, sustainable and high-performance spacecraft.”

D-Orbit founder and CEO Luca Rossettini says, “We congratulate Zenno on a milestone day for their Z01

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