March 2016 Award winning supplier of SOLIDWORKS in Australia and New Zealand
www.nzmanufacturer.co.nz
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2016 Preview
Diversification of our economy and the China FTA.
By James Valentine
Manufacturing in the regions is something we need to promote and facilitate, by supporting manufacturers who want to expand and invest and by raising its profile, helping the general public understand more about the realities of manufacturing and showing Government and decision makers the opportunities it holds, and what it can achieve with the right support and focus. One of the factors that can threaten the existence of manufacturing in a region – or allow it to grow and prosper – is the size of the sector locally. Manufacturing in a region, with its many local connections and complex supply chains, is a bit like an ecosystem.
Source – Statistics New Zealand – Regional GDP 2013.
By way of comparison, manufacturing contributed just over 10% to national GDP in 2015. Manufacturing provides much needed skilled and well-paid work in the regions, helping to support demand and keeping activity going locally, not only for other manufacturers in supply chains, but for the services they demand.
Rethinking robots in the workplace.
Finding the competitive edge
Regional Manufacturing – Let’s support it! Manufacturing plays a much more significant role in the regions than it might seem. As you can see in the table below – manufacturing contributes much, much more to our regional economies than many believe.
15 SMART MANUFACTURING
ANALYSIS
And like biological ecosystems, the smaller they get, the more fragile they will become. Local or regional eco-systems of manufacturers make up local supply chains and create demand, as well as providing and building local talent and skills. We need to make sure they don’t shrink to a size where they can no longer survive and provide those benefits to the community.
While the manufacturing industry remains relatively robust in New Zealand, organisations face continued pressure from overseas competitors, increasingly complex supply chains, and evolving consumer demands that drive shortened manufacturing cycles. Cheaper overseas manufacturers make it difficult for NZ companies to compete on price, so it becomes essential to innovate and differentiate to find a competitive advantage. This can include providing products made from locally-sourced materials, or being able to claim strong environmental sustainability credentials, for example. Local organisations can also look to trim costs by optimising logistics and supply routes, managing suppliers carefully to secure best prices, and adopting lean manufacturing practices. To do any of this successfully organisations need a comprehensive, overarching, and accurate view of their operations. Decision-makers must have visibility into everything from where raw materials are sourced and how they get to the factory, to which products are likely to be in demand at certain times and how they are distributed to retailers.
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NZ Manufacturer’s plan to highlight some of the great manufacturing work being done in the regions is something the NZMEA supports and believe is invaluable.
Envision in association with Zero Waste South Australia, invites you to join us on a tour of leading resource recovery operations in Adelaide, South Australia
RESOURCE RECOVERY STUDY TOUR | 18–20 MAY 2016 Come to Adelaide to see for yourself how South Australia is achieving 79.7% diversion of waste to landfill through a range of innovative Zero Waste policies and strategies in action.
Local transport, accommodation, refreshments and all meals included.
For more details please visit www.envision-nz.com/news/adelaide-study-tour-2016
We hope you can join us!
09 303 4746 | www.envision-nz.com