March 2019
www.nzmanufacturer.co.nz
8 MANUFACTURING TECHNOLOGY Startups chosen for ecentre’s Sprint Global accelerator.
12 SOUTHMACH UPDATE Not to be missed!
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DEVELOPMENTS Predicting the future of maintenance.
We need evolution not revolution Competenz responds to proposed workplace training reforms Competenz, one of the country’s largest industry training organisations (ITOs), says the government’s proposal to reform the vocational education sector and merge ITOs and polytechnics could undermine critical workplace and apprenticeship training that is vital in addressing New Zealand’s skills shortages. “The changes the government has proposed in its Vocational Education and Training review are more complex and far-reaching than we expected. It’s unprecedented. There is no doubt the VET system needs modification and funding needs to be realigned to deliver what our industries need – but these changes are too radical,” says chief executive of Competenz, Fi Kingsford.
and employers is a key factor in the success of apprenticeship and workplace training.
“In a time of critical skills shortages, the last thing we want is a reform that risks undermining workplace training and apprenticeship programmes.”
“We need evolution not revolution,” adds Mrs Kingsford.
New Zealand’s skills shortage is acute. The engineering industry alone will need another 12,000 engineers by 2022.
“The role of ITOs is crucial and with our direct line to thousands of employers, we understand the demand for trades better than anyone else. When we surveyed employers last year, they told us that ITOs perform a critical function and need more funding. The VET goes against what industry is saying.
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“If we start this reform in 2020, there’s no way we’re going to hit that target. Yes, the system needs reform and yes we need to address the funding inequalities, but in our opinion, the VET changes are not the way to do it,” says Mrs Kingsford. Research has shown that for every $1million of government investment into tertiary education, the industry training system produces 306 qualified people – people who are able to immediately contribute to New Zealand’s economy - while polytechnics produce 50. “Taxpayers are getting a much better return on investment through industry training compared to other tertiary options and it is disappointing that the ITPs (Institutes of Technology and Polytechnics) have dominated the government’s proposed changes.” She says Competenz currently looks after 20,000 apprentices and trainees across 3,500 New Zealand businesses. The direct relationship between ITOs
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CONTENTS 1 5 6 1O 11 12 13 14 16 17
22 24
26 28 30 31
DEPARTMENTS LEAD STORY
ADVISORS
We need evolution not revolution.
BUSINESS NEWS Tether board announcements.
MANUFACTURING TECHNOLOGY Obsolescence management for manufacturing. Start-ups chosen for ecentre’s Sprint Global accelerator.
Leeann Watson
Is the Chief Executive of the Canterbury Employers’ Chamber of Commerce (the Chamber).and is a strong voice for Canterbury business.
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COMPANY PROFILE SAFE is on the move.
MANUFACTURING TECHNOLOGY
Dieter Adam
Chief Executive, New Zealand Manufacturers and Exporters Association has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.
BuildIT 2019 software platform released. 5G: The de facto connectivity choice for outdoor robots.
SOUTHMACH UPDATE DEVELOPMENTS
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Negative impacts result of ending energy permits. (More on this Page 29)
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.
THE CIRCULAR ECONOMY Leading the way to a circular economy.
THE MANUFACTURERS NETWORK Big Changes.
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SMART MANUFACTURING The eight technologies you want to deploy before the competition does…. Hypertherm consumables kit for cutting systems. Additive manufacturing leaps from prototype to production. The future of manufacturing at Hannover Messe.
NEW PRODUCTS Point Pod latest start-up success story. No cabling misconfiguration with connect chain.
FOOD MANUFACTURING
Lewis Woodward
Is Managing Director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
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Dr Troy Coyle
Is HERA Director, she has extensive experience in innovation, research management and product development, most recently as Head of Innovation and Product Development & Pacific Islands Export Manager at New Zealand Steel..
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Why the agtech boom isn’t your typical tech disruption. CRC launches new food grade bio-degreaser. Fonterra to explore opportunities in complementary nutrition.
DEVELOPMENTS Predicting the future of maintenance. Innovative Kiwi collaboration in China. Polytech reform will see more foreign labour. Hypertherm and the fake product.
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SUPPLY CHAIN How pharma supply chains can survive in the digital age.
ANALYSIS Overworked and underpaid: the revival of strikes in New Zealand.
REAR VIEW Steps towards a circular economy.
Craig Carlyle
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
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PUBLISHER Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.
MANAGING EDITOR Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz
CONTRIBUTORS Dieter Adam, Holly Green, Fi Kingsford, John Young, Dieter Adam, Helen Masters, Gernut van Laak, Rajeev Mitroo, Toby Boraman www.mscnewswire.co.nz
ADVERTISING Doug Green T: + 64 6 870 9029 E: publisher@xtra.co.nz
Workplace training reforms a step too far The proposed workplace training reforms are not going down that well amongst businesses and training organisations. Competenz, one of our leading training organisations says the government’s proposal to reform the vocational
DESIGN & PRODUCTION
education sector and merge ITOs and polytechnics could
Kim Alves, KA Design T: + 64 6 870 8133 E: kim.alves@xtra.co.nz
undermine critical workplace and apprenticeship training that is vital to addressing the country’s skills shortage.
WEB MASTER
This is our lead story this issue (Page 1) and Competenz
Bruce Metelerkamp E: bruce@hha.co.nz
chief executive, Fiona Kingsford, believes the changes are
PUBLISHING SERVICES
Elsewhere in this issue we look at productivity in
unprecedented – and too radical.
On-Line Publisher Media Hawke’s Bay Ltd
Obsolescence management for manufacturing (Page 6) which considers the amount of downtime experienced by
DIGITAL SUBSCRIPTIONS
manufacturers on an annual basis if production lines are
E: publisher@xtra.co.nz Free of Charge.
under achieving. ecentre’s start up founders have been chosen for the Sprint
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Global programme with technologies including software
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for managing seasonal staff, apps for employee well being and solutions for improving safety for lone workers (Page 8). April issue of NZ Manufacturer will include a Preview of SouthMACH
Vol.10 No. 2 MARCH 2019
2019. If you are an exhibitor and have received an email from me
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.
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with incentives for appearing in the Preview, and you haven’t contacted me, please do so to ensure you are included.
Doug Green
Success Through Innovation
EDITORIAL
Direction is more important than speed. We are so busy looking at our speedometers that we forget the milestone.
BUSINESS NEWS
- Unknown
Tether board announcements Fast growing Kiwi tech start-up Tether – which designs and manufacturers monitoring systems that enable safe, healthy and comfortable living, learning and work environments – has appointed Bevan Adin and Stephen Reid to the board of the company. Tether CEO Brandon Van Blerk said the appointments of Adin and Reid will boost the tech start-up’s ‘big business’ experience and commercial capability at a board level. “The board appointments come at a time when the New Zealand Government is on the verge of rolling out healthy home regulation, and when schools are also starting to focus on quality learning environments. “Tether, with its EnviroQ range of large-scale monitoring systems, is perfectly positioned to offer the market a science based, accurate and continuous measurement suite which will enable those responsible for healthy indoor environments in homes, workplaces and schools, meet their compliance obligations with data they can trust.” Van Blerk said the technology – already in use by Housing New Zealand and Tamaki Regeneration – does away with the need for inspectors and manual based assessments, which ultimately leads to conflict and higher costs.
Commercial & industrial growth
Bevan Adin, former Managing Director for Beam Suntory NZ, General Manager Licensed for Coca-Cola Amatil NZ and current Head of Sales for Goodman Fielder, brings to the board of Tether the experience and expertise gleaned from a long career in leadership, sales, and commercial partnering in the FMCG sector.
of New Zealand, Reid is a chartered accountant with considerable experience in governance, finance, accounting and tax. His past experience includes Chief Financial at Officer Esrkine + Owen and NPT Limited.
Stephen Reid, having worked for the last 15 years in large commercial property ownership, management and development businesses, Reid brings an understanding of the financial and health benefits to be gained from healthy home and work environments. “To be involved in a business producing a revolutionary solution, at an affordable price, in the residential and commercial space is exciting and overdue given the high level of poor living and working environments across New Zealand,” Reid said. The current Chief Financial Officer at Development Advisory Services and a member of the Finance, Audit and Risk Committee at the Property Institute
Bevan Adin
Employment growth
Stephen Reid
Economic output
Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average.
getba
getba.org.nz
Greater East Tamaki Business Association Inc.
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MANUFACTURING TECHNOLOGY
Success usually comes to those who are too busy to be looking for it. - Henry David Thoreau
Obsolescence management for manufacturing Research from US behavioral AI specialist Arimo, states that manufacturers suffer, on average, 800 hours of downtime a year. If your production line produces twelve units an hour, with an average profit of $30 NZD per unit, 800 hours would cost $288,000. Here John Young, sales director at the APAC division of industrial parts supplier EU Automation, explains how a proactive approach to obsolescence management can help manufacturers reduce the risk of unplanned downtime. Manufacturers understand that the cost of downtime isn’t just measured with numbers. Lost production and idle workers are just a small part of the price when reputation and customer relationships are also on the line. With the current state of the global market upsets in production can lead to lost contracts because purchasing teams can easily find an alternative source for nearly anything. Breakdowns can also cause collateral damage that can take down an entire production line. For example, if a furnace control mechanism breaks, not only would product be wasted, but heat exchangers could break, releasing toxic material. Furnaces also take a long time to cool, further delaying maintenance efforts and creating additional cost when compared with predictive maintenance coupled with an effective obsolescence management plan. This perfectly illustrates just how fast things can go wrong in manufacturing.
What to do when you get knocked down Manufacturers need to be able to quickly bounce back from unplanned downtime if they hope to avoid spiraling costs. The simplest way of doing this is using a like-for-like replacement part, ideally an exact replacement from the same OEM. However, if the broken component is obsolete and no longer in production, it can be difficult to source. This may lead to further delays or require a production line redesign. Not only are redesigns costly but undertaking one as a kneejerk reaction to a breakdown could alter the quality of the end product. Manufacturers must, therefore, choose between risking a redesign to remove the faulty component or finding a way to source the obsolete part. Replacing
a part is faster and more cost-effective than a redesign, but if there isn’t an effective obsolescence management policy in place, the plant manager could be forced to choose the more expensive option. Stockpiling large amounts of replacements is also not a feasible solution. The cost of buying, storing and transporting the parts, and the depreciation in their value, will negatively affect profit – even if only on paper in the case of depreciation. Furthermore, the parts will take up valuable space that could be reserved for finished product. A lean framework to help identify and plan for obsolescence is the answer. Obsolescence management strategies help manufacturers reduce costs by creating an organized maintenance platform. That, once in place, makes sure that the business can advantage of last-time-buy opportunities, while avoiding the need for expensive redesigns and helping to reduce costs.
Getting back up again
Making sure you are prepared for downtime is key to having a strong operation, but it can only do so much. Installing smart sensors and condition monitoring software can help predict when systems are likely to fail. By studying the collected data manufacturers can react, plan maintenance and order replacement parts in advance.
Information in hand, a structure can be created. Consolidating the data from the audit will allow for resource planning, which can include deciding on whether to employ a dedicated automation part supplier or manage the process inhouse.
Predictive maintenance, when combined with preventative maintenance and obsolescence management, can deliver impressive results and has a low barrier to entry, a situation that should be used to good advantage.
“One of the most common technical faults is the overheating of particular parts, especially where there is metal on metal, as these can short electrical circuits and cause the machines to stop running,” explains Chris Proctor, the CEO of field service software company Oneserve.
Let’s return to our original calculation, that on a production line manufacturing twelve units an hour, with an average profit of $30 NZD per unit, 800 hours of annual unplanned downtime would cost $288,000.
“Vibrations, usually the first sign a machine is breaking, are another major cause of internal technical fault – they cause a cascading effect which can have a devastating impact on the machine.” Once the framework is in place, it can be fleshed out
and much more
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Now let’s imagine that, instead of our original mom and pop manufacturer, you are the Colonial Motor Company, the Hawke Coach Network or Nissan, Toyota or Ford New Zealand. Instead of losing a few hundred thousand dollars a year, downtime is now costing millions. Investing in obsolescence management now seems essential.
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Preventing the next fall
Most manufacturing and engineering directors understand that prevention is always better than cure, and that predictive maintenance can, over time, almost eradicate unplanned downtime. The technology needed to implement it is now widely available and can be used on both new and old machines.
TechRentals® is an IANZ endorsed Calibration Laboratory. We offer both IANZ Endorsed and Traceable Calibrations of test and measurement equipment, including:
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Following these steps will make sure that you get the most out of your production equipment, minimizing unplanned downtime, and allow you create a well-rounded strategy. It is advisable to also keep an obsolescence log book, which will help keep the strategy up to date and allow the whole team to understand company policy on obsolescence management.
Obsolescence management strategies begin when the plant manager audits their systems, to establish how close each element is to becoming obsolete. This step is central to the strategy because, without it, it is impossible to gain a comprehensive picture of what must be done to protect the systems.
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by performing a risk analysis of the parts. The analysis will take into consideration rarity of the part, risk of failure and the impact that failure will have on the entire system. Regularly contacting an automation parts supplier to keep track of availability will help keep the risk analysis up to date. When a part is high risk in all three areas, it would be best practice to stock it ahead of time.
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Contact Kim on M 027542 7111 E kim.alves@xtra.co.nz
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Bringing Characters to Life with the Stratasys J750 “Being able to have a 3D printer like the J750 that’s repeatable and accurate with this full range of color and materials has afforded us the idea of being able to achieve this shot-by-shot customized animation.” Brian McLean, LAIKA
Learn more >> http://3dprintingsolutions.blogspot. com/2019/03/bringing-characters-to-life-with.html
Join industry experts from Objective3D, SolidWorks, Stratasys, Desktop Metal and Concept Laser for an opportunity to learn how leveraging 3D CAD and 3D Printing on the manufacturing floor can help you stay ahead of the competition. The Wellington event will include the launch of New Zealand’s first and only Stratasys J750, recently delivered to the Victoria University of Wellington. The Stratasys J750 is the world’s most advanced full-colour, multi-material 3D printer with 500,000+ colour combinations, highly accurate color-matching, transparent to opaque color gradients, and advanced clear material with texture bringing to life even the finest, most delicate details.
WHAT YOU WILL LEARN:
WHEN & WHERE: 16th April: Wellington 27th August: Auckland 29th August: Christchurch
• The Role of 3D Printing in Manufacturing • SolidWorks 2019- Where Possibility Takes Form • Designing for Additive Manufacturing (AM) with SolidWorks • Design-to-3D Printing for Anyone, Anytime and Anywhere • Updates on Desktop Metal including an Overview of FABRICATE - pre-process 3D CAD models and deliver a flawless workflow. • How Metal 3D Printing is Transforming Metal Fabrication • Strong as Steel – Carbon-Filled AM Technology • Stratasys reinvents 3D printing. Again. Launch of the Stratasys J750 (Wellington event) • Customer Presentation on use of AM (Auckland & Christchurch events) • Panel Discussion: Leveraging CAD and 3D Printing on the Manufacturing Floor
Places are limited. Please book early to avoid any disappointment.
REGISTER NOW >> https://www.objective3d.com.au/amdays-2019-new-zealand/
TIME:
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COST: FREE WHO SHOULD ATTEND: Business Owners Corporate Executives Educators, R&D Professionals Product Designers / Managers Design Engineers / Managers Engineering Managers Anyone who is interested in AM
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MANUFACTURING TECHNOLOGY
Laugh at yourself, but don’t ever aim your doubt at yourself. - Alan Alda
Startups chosen for ecentre’s Sprint Global accelerator Innovation and Massey University, who are both heavily invested in agriculture.” Griffin-George started developing Picmi seven months ago after experiencing the pain of hiring and managing seasonal staff first hand, after unexpectedly taking over management of her family orchard. “I could see how a software solution could simplify the employment process, seamlessly connecting growers to the right workers, at the right time – so it’s a win for both growers and seasonal workers.” Abbie O’Rourke, the founder of app-based wellbeing solution Chippur is also trialling her software with potential customers. “Chippur is at a stage where being included in the Global Sprint programme is incredibly valuable due to the quality network and mentor programme.”
Startup founders for Sprint Global 2019 round one
Startup founders from North to South have been chosen for ecentre’s Sprint Global programme to accelerate their garage-to-global journey, with technologies including software for managing seasonal staff, apps for employee wellbeing and coaching, and solutions for minimising beer wastage and improving safety for lone workers. “We’re excited to welcome nine founders/ co-founders into our new look Sprint Global programme, who have a working prototype and are ready to engage with the market in New Zealand or overseas. We received dozens of high quality applications which shows how vibrant Jackie Young, CEO, ecentre the startup community is,” says Jackie Young, CEO of ecentre, the business incubator hosted at Massey University. “Ultimately, we selected a group of companies that were complementary, with the aim of creating a dynamic peer group.” Sprint Global is a collaborative effort to help shape new startups in the ecosystem, says Young. “Over 20 top entrepreneurs and experts have generously signed on to share their experiences with founders. The programme is also fully-funded thanks to the support of foundation partners Massey University and Callaghan Innovation, along with a long list of other partners and supporters including, Auckland Tourism Events and Economic Development (ATEED), EY and Hudson Gavin Martin.” Sprint Global 2019 round one participants from Auckland, Northland, Taranaki and Tasman include: • Chippur - app-based programme (Auckland)
employee
wellbeing
• Guardian Angel - health and safety hardware/ software solutions for lone workers (Auckland)
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NZ Manufacturer March 2019 /
• iLose - weight loss app for coaches and clients (Northland) • Investify - investment research tools for retail investors (Auckland) • PICMI - cloud-based software for simplifying the employment process for agricultural seasonal staff (Tasman) • Trickle - beer tracking hardware/ software solution to minimise keg wastage in hospitality (Auckland) • Yonder - SAAS solution to help tourism businesses convert website traffic (Taranaki) Sprint Global’s programme helps startup founders accelerate customer acquisition and global expansion and build their startup networks by giving them access to mentors, sector experts, investors and other resources. Tasman-based G e n e v i e v e Griffin-George, the Genevieve Griffin-George, founder of Picmi, says Founder, Picmi her next challenge is securing her first paid customers after successfully trialling the software with local growers. “I was looking to get connected into the startup ecosystem and for mentors to help me secure my first sales and grow. I’m thrilled to have secured a spot on Sprint Global as it’s a perfect fit for me, particularly with the links to Callaghan
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“There are some fantastic tech-enabled products here with global potential. Now the work begins to turn these products into revenue, and there will be lots of iterations. Sprint Global will help them systematically work toward their product-market fit which will be key,” says Max Thompson who oversees Callaghan Innovation’s startup programmes. As New Zealand’s innovation agency, Callaghan Innovation provides funding for Sprint Global through its Founder Incubation Programme. Pam Ford, ATEED General Manager Economic Development, says Auckland’s economic growth agency is delighted to support Sprint Global, as startups are integral to the economy. “Young, innovative, fast-growing startups make a significant contribution to economic growth, including creating new jobs. With accelerator programmes recognised internationally as positively impacting the survival and growth of startups, ATEED is thrilled to see entrepreneurs it has worked with, including Chippur, Guardian Angel and Investify, chosen for the Sprint Global programme.” Northland-based “accidental entrepreneurs” Trevor and Danielle Beatson also plan to make an impact with iLose, a weight loss app for coaches and their clients that they built from their kitchen table in Ahipara. The idea for the app was kick-started by Trevor’s own weight loss journey, with wife Danielle as his coach. Hundreds of coaches are already using the app to improve the lives of thousands of people. Trevor Beatson says, “We identified a market gap for smart coaching tools and were able to quickly build a following. To take our business to the next level we want to accelerate our growth and learn from those who have been there before. We’re excited to have made the cut for ecentre’s accelerator programme.” Startup founders accepted into the first intake of Sprint Global 2019 also have the option to complete a follow on eight-week programme on global customer acquisition, 13 May to 5 July 2019. Other founders from around New Zealand can also apply to join the second round. Sprint Global participants are also given the opportunity to take part in an in-market immersion week in Silicon Valley during October 2019, including attending the TechCrunch Disrupt conference and exhibiting in the New Zealand pavilion at Startup Alley hosted by ecentre.
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2019
Media Kit with Editorial Calendar INCLUDES: Manufacturing Technology / New Products for Manufacturers / Disruptive and Future Technologies / Export Success / Trade Show Previews and Reports - SouthMACH 2019 / AusTech 2019 / BuildNZ 2019 Company Profiles / Analysis / Interviews / Food Manufacturing / Infrastructure / Smart Manufacturing / Industry 4.0 / Robotics & Automation / Productivity / 3D / Supply Chain / Women in Manufacturing / Additive Manufacturing /
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COMPANY PROFILE
Magic is believing in yourself, if you can do that, you can make anything happen. -Johann Wolfgang von Goethe
SAFE is on the move, down scaling operations Are you in New Zealand and interested in increasing your workshop capabilities with additional equipment offerings? Then this is an opportunity for you! As rural farmland in South Auckland is developed to make way for Auckland’s growth, the long-established heavy engineering company South Auckland Forgings Engineering (SAFE) must uproot and move. A task not easily done with presses weighing 100 tonnes! That’s why after 46 years, one of New Zealand’s largest forging and heat-treatment plant, is downsizing their operations as they move to new premises. SAFE has been operating in Drury since 1973, where the last seven years have been almost entirely solar powered - something that not many heavy industrial plants in the world can claim! But with a new town centre and thousands of homes to be built next door,
their very comprehensive plant is being ring-fenced into smaller, simpler business units. These business units are comprised of different types of forging, heat-treatment, metallurgy & failure-prevention training - and are being developed so they are more easily transferred to other organisations. The work isn’t disappearing, so who will deliver it? General Manager Barry Robinson says “The work SAFE does can’t be done anywhere else in NZ.” “That’s why I’m convinced the machinery simply must be relocated and skills grown to look after NZ’s needs going forward - we just can’t afford to lose this key infrastructure.” Their furnaces process many large fabrications for post-weld stress relief and a great many other types of heat-treatment such as solution-annealing large stainless work, hardening & tempering, normalising, and more. In the next few months their biggest presses will be forging many tonnes of special large seismic bolts unable to be sourced elsewhere and one rudder for a very special yacht. They’ll also be extruding several 5kg billets of titanium alloy powder into solid high-strength titanium alloy bar - something not done anywhere else in the world. The titanium powder project is interesting and a little unknown. You see, not many people realise that NZ is leading the world in some key areas of additive manufacturing using powder metallurgy. RAM3D in Tauranga also grew out of the titanium powder project and is now making full-strength 3D-printed metal parts in Ti64, 15-5-PH high-strength stainless, 316L stainless, and Inconel 718. And it all started because of a project to convert NZ’s titanium reserves into valuable products for NZinc! After these current jobs are complete, the big presses, forging hammers and heat-treatment furnaces will be looking for a new home. But the work for them isn’t going anywhere.
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
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NZ Manufacturer March 2019 /
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No Kiwi engineer would want to see them go offshore, so SAFE is encouraging interested parties to contact them without delay. - HERA.
In the next few months their biggest presses will be forging many tonnes of special large seismic bolts unable to be sourced elsewhere and one rudder for a very special yacht.
The only way out is through. -Robert Frost
MANUFACTURING TECHNOLOGY
BuildIT 2019 software platform released BuildIT 2019 represents the logical evolution of the industry-proven BuildIT platform, which has provided exceptional value across a variety of industries. It offers three individual products, each specifically designed for the most challenging quality inspection, manufacturing and assembly or construction applications. Each product includes the most flexible and intuitive user interface in the industry. While the BuildIT 2019 solution suite is tightly integrated with Faro hardware products to enable a best-in-class solution experience, it also enables consistent, high-quality outcomes for non-Faro hardware products. BuildIT Metrology 2019 elevates the standard for workflow optimization and productivity for alignment, inspection, and build applications by incorporating key customer learnings from the previous generation that include: • Point cloud alignment and registration up to 10 times faster and file size reduction for analyses by up to 70% • Improved robustness of GD&T evaluation using feature-specific extraction settings for analysis • Dynamic reporting that automatically pre-populates analysis reports and reduces report preparation time
• Advanced automation capabilities for creating repeatable, guided, automated workflows
BuildIT Projector 2019 allows manufacturers to plan and operate imaging laser projection and verification workflows to improve the quality and speed of assembly processes. Together with the Faro Tracer Imaging Laser Projector, it is a core component of the first and only all-in-one solution for laser-assisted templating and verification. Included standard in the first generation were groundbreaking features as In-Process Verification, Feature-Based Alignment, and Foreign Object & Debris Detection. BuildIT Projector 2019 enhances these features to create a completely new, operator-friendly paradigm that includes: • Report generation that clearly identifies completed tasks and the results of In-Process Verification • Automatic re-alignment of the laser projector where BuildIT Projector detects that the base part has moved • A more intuitive user experience through a variety
of enhancements, including setup and operation through a joystick controller
The previous generation version of BuildIT was the first consolidated software and hardware solution designed from the ground up as an end-to-end, fully integrated Building Lifecycle Quality Assurance (QA) and Quality Control (QC) management tool. BuildIT 2019 offers a unique set of value-added enhancements that include: • A comprehensive Tank Analysis Package to determine and identify critical issues in the plant facility that support faster modification and renovation • Significant reduction in on-site cycle time from laser scan projection data preparation to 3D visualization • Streamlined raw scan import process with the Scan Import feature that automatically detects targets and facilitates faster alignment with the software • Numerous other workflow efficiency improvements that include file size reduction, faster rendering and clipping box functionality
5G: The de facto connectivity choice for outdoor robots Low latency and cloud intelligence are the two main features of 5G that will significantly change the deployment of mission critical and business critical robots, particularly those deployed outdoors. According to ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, the commercialisation of a 5G network is expected to usher in the significant growth of commercial robotics. Shipments of 5G robots are expected to reach 570,000 by 2027, largely deployed in mission critical and business critical settings. Outdoor applications that will be enabled by 5G connectivity include public safety and first responders, critical asset inspection, last mile delivery and transportation, precision agriculture, field extraction, and haulage. Traditionally, high-speed broadband connectivity is only available to robotics systems in indoor environments via Wi-Fi and broadband fibre. Therefore, existing outdoor commercial and industrial robots are often fully autonomous devices with onboard intelligence. With 5G, robots’ capabilities will be upgraded. “Existing onboard capabilities, such as object and people detection, path planning, and optimisation can be shifted to the cloud to benefit from a larger
set of data lake,” said Lian Jye Su, Principal Analyst at ABI Research. “At the same time, robotics systems will have access to capabilities that could not be previously hosted on existing systems. At present, remote control appears to be the focus, with Toyota’s T-HR3 and Naver’s AMBITEX, but the real game-changers will be conversational Artificial Intelligence (AI) and swarm intelligence. 5G’s low latency will enable robotics vendors to augment the onboard intelligence or even move parts of it to the cloud to introduce new capabilities to existing robotics hardware. Enterprise users will be able to connect their fleet of outdoor robots to the cloud and enjoy the performance, scalability, and flexibility of the cloud-based intelligence.” In order to enable 5G capabilities, robotics vendors must work closely with connectivity and chipset vendors in their design and prototyping phase to maximise the benefits of ubiquitous connectivity.
XR-1 Cloud Robot. By integrating Long-Term Evolution (LTE) and 5G connectivity from the onset, robotics vendors can provide a clear roadmap in terms of future upgrades. The clear connectivity roadmap will provide the industry guidance on the future capabilities that cellular connectivity can enable. This includes multi-access edge computing that provides computing, networking, and caching at the network edge and wide area machine-to-machine communication that facilitates situational awareness and information exchange between mobile robots, cloud platforms and surrounding infrastructure. “In the long run, 5G will become the de facto connectivity method for outdoor robots. As a global standard, 5G enjoys economies of scale. This brings down the total cost of ownership of 5G networks and the price of 5G modem chipsets, allowing robotics developers to integrate 5G connectivity with ease,” Su concluded.
Qualcomm recently launched the Robotics RB3 Platform, powered by its Snapdragon 845 SoC with future 5G upgradability and Inseego has partnered with CloudMinds to provide 5G connectivity to the
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SOUTHMACH UPDATE
The world is full of magic things, patiently waiting for our senses to grow sharper.
SOUTHMACH 2019 Not To Be Missed! The biennial industry trade show is gearing up as the featured event in Christchurch during Techweek 2019 with a number of new visitor experiences not to be missed! Organisers XPO Exhibitions are truly delivering with a great number of exhibitors showcasing ground breaking products, professional development through renowned international presenters in the seminar program and creating a market place for manufacturers and engineering companies to conduct business. So what’s new?
DESIGN FOR ADDITIVE MANUFACTURING COURSE
NZ TECH START-UP / THE LAB
If you’re a Design Engineer with an interest in learning how to design for AM the right way and get some hands-on learning, this is your chance to learn from the best! Olaf Diegel, Professor of Additive Manufacturing and Head of the Creative Design and Additive Manufacturing Lab at the University of Auckland is exclusively presenting this 2-day Workshop at SouthMACH 2019! THis is a unique opportunity to learn from one of the best in his field. Olaf has Limited Spaces available! Find out more: www.southmach.co.nz
ENTREPRENEUR’S DEVELOPMENT HUB Local Canterbury businesses and organisations have created the ‘go to’ destination at this year’s SouthMACH. Motovated Design & Analysis, Brush Technology, Ara Mechanical Engineering, The Ministry of Awesome and Fab Lab have joined forces and created a unique environment for creativity and information sharing, building new knowledge, creating alignment and developing comprehensive solutions. Forward-looking firms, incubators, entrepreneurs, and agencies that collaborate with each other to develop cutting-edge products for the marketplace. The Entrepreneur’s Development Hub foster’s the growth of our future manufacturing technology business’, introduce them to the marketplace and facilitate networks for commercial success.
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SouthMACH is the place to discover new gems at The Lab – an incubator for all the up and coming Kiwi tech start-ups to showcase their innovative ideas to a wide professional audience of Engineers, Manufacturers, Designers, Consultants and Investors, and be in the draw to win sponsored prizes to a value of over $10,000. 12 start-ups will be given the opportunity to display their innovative product designs during SouthMACH 2019 and access advise from product development consultants as well as other participants in the Entrepreneur’s Development Hub on all aspects of project design and market entry. Entrants will be able to connect with investors and gain understanding of what is required to attract potential investment.
THE INNOVATION QUARTER Companies from all around the country will be joining SouthMACH in the Innovation Quarter, showcasing the latest technology for manufacturers and engineering companies to take their business to the next level! There are limited exhibiting spaces available to be part of SouthMACH 2019! Go to www.southmach. co.nz or email the Event Manager: Aad van der Poel on aad@xpo.co.nz Attending SouthMACH is FREE for industry professionals by registering on www.southmach. co.nz
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- W.B. Yeats
We are all in the gutter, but some of us are looking at the stars.
DEVELOPMENTS
-Oscar Wilde
MainMan service enhances uptime, safety and maintenance efficiency Without Konecranes’ efficient cranes and time-saving maintenance programmes, ARC’s business wouldn’t be able to function. Steel reinforcing specialist, Australian Reinforcing Company (ARC), is benefitting from comprehensive, time-saving maintenance programmes and enhanced safety provided by Konecranes’ MainMan Planned Maintenance technology. ARC uses three cranes in its Launceston facility, with lifting capacities from 3t to 6.3t, to move heavy steel products of varying shapes and sizes, including reinforcing bars, reinforcing mesh, pipe cages and a huge range of customised fabrications. ARC’s products are used in industries as diverse as building and construction, infrastructure, civil engineering, energy and water and waste. “Our cranes are essential to our business. Without Konecranes’ efficient and outstanding service, we wouldn’t be able to function,” says ARC Launceston Branch Manager, Ms Wendy Emanuel. “We’ve used Konecranes right from the beginning and it’s not just the maintenance they perform that sets them apart – it’s their staff. The technicians are well-equipped, knowledgeable and polite. Their managers and support staff are easy to talk to and provide valuable feedback after a project has been completed,” she said. With more than 600,000 pieces of lifting equipment under service contract worldwide, Konecranes is the world’s leading crane service organisation. It is constantly introducing new technologies and innovations to improve maintenance efficiency, enhance safety and minimise downtime.
MainMan Planned Maintenance Konecranes’ MainMan Planned Maintenance service is designed to provide an in-depth picture of the condition of all cranes and related equipment, as well as routine maintenance work, such as adjusting and lubricating, with the intent of satisfying the manufacturer’s maintenance recommendations. This service includes a preventive maintenance inspection, visual checks, routine maintenance, and operational and functional testing of your lifting equipment. Konecranes’ MainMan Planned Maintenance technology is part of its Lifecycle Care Preventative Maintenance Program, which looks at the whole life of the crane. “MainMan saves me a lot of time. I have easy to read reports that tell me everything about our cranes and I can pass these on directly to my manager. It also gives me peace of mind that we’re totally Standards and safety compliant. The Konecranes technology will identify the early warning signs before they become a safety risk,” says Ms Emanuel.
Konecranes says that to make the best use of this innovative technology, insights can be drawn by observing anomalies, patterns and trends, helping users make fact-based decisions. Konecranes experts can assist in analysing reports and providing recommendations that help to avoid downtime. “Using real-time data and the latest technology to automatically determine the best time to schedule maintenance is a real time-saver for busy companies who can’t afford any additional downtime,” says Konecranes.
Features of Konecranes MainMan service include: • Paperless service and inspection reports • Integrated business reviews and safety reviews • YourKonecranes.com: a web portal that provides real-time browser-based access to equipment data and maintenance history • Improved safety reporting that highlights safety related issues and risks
Negative impacts result of ending energy permits According to NZIER, the economic impact of the government ending new oil and gas exploration permits outside onshore Taranaki will see a series of strongly negative impacts ripple through the economy.
• Investment will reduce by between $4 billion (5.4%) and $7 billion (8.4%).
The decision prevents the granting of new exploration permits outside of onshore Taranaki and was given effect through the Crown Minerals (Petroleum) Amendment Act 2018. This report refers to this policy in shorthand as “the ban”.
• In Taranaki the ban will reduce real GDP by between 35% and 53%, or $16 billion and $40 billion, with a medium scenario of 46% ($30 billion ). The impacts on regional consumption, investment and export revenue are also strongly negative.
NZIER has calculated the macroeconomic impacts of this ban at both the national and regional levels • The ban will be felt most keenly in the Taranaki region, but even at the national level the ban will reduce real gross domestic product (GDP) by between $15 billion (3%) and $38 billion (7.4%).
• Households in Taranaki will see a substantial reduction in their standard of living. From 2020 to 2050, real GDP per household in Taranaki will fall by $623,000, in the medium scenario. This is equivalent to a $20,774 fall in household incomes each year for the next 30 years.
The medium scenario is a reduction of $28 billion (5.4%).1 • Household consumption (the best measure of economic wellbeing and discretionary income) will reduce by between $7 billion (2.4%) and $20 billion (7%).
• The ban is unlikely to cause any appreciable reduction in employment at the national level, but job losses within the sector (between 33% and 40%) and within Taranaki (between 3.2% and 6.6%) will be severe.
• Per household, this represents a $4,800 to $14,200 fall in consumption spending on average for each year between 2020 and 2050, with a $9,400 drop in the medium scenario.
Estimates of the number of jobs provided by the sector vary, but the 37% reduction estimated for the medium scenario applied to the job number figures presented in the Regulatory Impact Statement3 gives
• Export revenue will reduce by between $3 billion (1.6%) and $10 billion (5.2%). Taranaki will bear the brunt of these impacts
job losses of 3,107 for New Zealand. Annualised over 25 years, the GDP reduction of $28 billion is roughly equivalent to the Government’s annual capital expenditure on schools, or its annual expenditure on disability services. The drop in Taranaki’s real GDP is larger than the national total. Other regions will benefit from capital and labour shifting away from the oil and gas industry. These shifts will push up investment, government spending, and exports revenues in regions outside Taranaki, offsetting a small part of the decline in overall real GDP. • The impact of the ban is not limited to the oil and gas sector, the overall spill over effects on other sectors are also negative. The nominal gross value added by the oil and gas industry to other sectors will decline by between $13 billion and $30 billion, with a medium scenario of $23 billion ($757 million per year over 30 years). • The reduction in the nominal gross value added by the oil and gas industry to other sectors in Taranaki will be between $12 billion and $29 billion, with a medium scenario of $22 billion ($736 million per year over 30 years).
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THE CIRCULAR ECONOMY
I have the choice of being constantly active and happy or introspectively passive and sad. Or I can go mad by ricocheting in between. -Sylvia Plath
Leading the way to a circular economy The circular economy is more than just a buzz phrase. With the global population predicted to approach 9 billion people by 2030, we are using more resources than the planet can provide. Our future depends on reusing what we have in a sustainable way. Fortunately, one resource that is unlimited is innovation, and many companies are developing ingenious ways to reduce, reuse and recycle.
Here are some of the best:
DyeCoo
Winnow
The textiles industry uses vast quantities of water and chemicals and produces huge amounts of toxic waste, which is a major problem in countries like China, India, Bangladesh, Vietnam and Thailand. But Dutch company DyeCoo has developed a process of dyeing cloth that uses no water at all, and no chemicals other than the dyes themselves.
We’re used to smart meters measuring electricity and water. But now British start-up Winnow has developed smart meters that analyse our trash. They are used in commercial kitchens to measure what food gets thrown away, and then identify ways to reduce waste. Up to a fifth of food purchased can be wasted in some kitchens, and Winnow has managed to cut that in half in hundreds of kitchens across 40 countries, saving its customers over $25 million each year in the process. That is the equivalent of preventing one meal from going to waste every seven seconds. This innovation earned Winnow the Circular Economy Tech Disruptor Award.
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It uses highly pressurised “supercritical” carbon dioxide, halfway between a liquid and a gas, that dissolves the dye and carries it deep into the fabric. The carbon dioxide then evaporates and is in turn recycled and used again. 98% of the dye is absorbed by the cloth, giving vibrant colours.
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And because the cloth doesn’t need to dry, the process takes half the time, uses less energy, and even costs less. The company already has partnerships with major brands like Nike and IKEA.
The scariest moment is always just before you start.
THE CIRCULAR ECONOMY
-Stephen King Close the Loop This Australian company has spent more than a decade recovering value from old printer cartridges and soft plastics. Their innovation turns these materials into roads. The products are mixed in with asphalt and recycled glass to produce a higher-quality road surface that lasts up to 65% longer than traditional asphalt. In every kilometre of road laid, the equivalent of 530,000 plastic bags, 168,000 glass bottles and the waste toner from 12,500 printer cartridges is used in the mix. So instead of ending up in landfill, all that waste is given a new life, getting us where we need to go. Enerkem Using trash to run your car may sound like something from Back to the Future, but Canadian firm Enerkem has turned it into reality. Their technology extracts the carbon from trash that can’t be recycled. It then takes five minutes to turn the carbon into a gas that can be used to make biofuels like methanol and ethanol, as well as chemicals which can be used in thousands of everyday products. The city of Edmonton, for example, now reuses 90% of its waste, saving more than 100,000 metric tons of landfill every year.
the norm. But he is taking this principle to new levels, with the scientists and engineers in his Miniwiz Trash Lab inventing over 1,000 new sustainable materials and applications. The Trashpresso machine is the ultimate expression of sustainable upcycling. It is a mobile upcycling plant that can be transported in two shipping containers to its customers. Once there, it turns 50kg of plastic bottles an hour into a low-cost building material, using no water, and only solar power.
Schneider Electric French-based Schneider Electric, which specialises in energy management and automation, won the Award for the Circular Economy Multinational. Employing 142,000 people in more than 100 countries, it uses recycled content and recyclable materials in its products, prolongs product lifespan through leasing and pay-per-use, and has introduced take-back schemes into its supply chain.
HYLA Mobile Smartphones and tablets have changed the way many of us live and work, but our appetite for the latest must-have gadget has created a mountain of discarded devices. HYLA Mobile works with many of the world’s leading manufacturers and service providers to repurpose and reuse either the devices themselves, or their components.
Circular activities now account for 12% of its revenues and will save 100,000 metric tons of primary resources from 2018-2020.
It’s estimated that more than 50 million devices have been reused, making $4 billion for their owners and stopping 6,500 tons of e-waste ending up in landfill.
Cambrian Innovation
TriCiclos
This US firm’s EcoVolt technology treats wastewater contaminated by industrial processes, not just turning it into clean water, but even producing biogas that can be used to generate clean energy. Cambrian Innovation has nine plants across the US, which have treated an estimated 300 million litres of wastewater.
People’s Choice Award winner TriCiclos began in Chile in 2009 with the stated aim of working towards a “world without waste”. Since then it has built and operated the largest network of recycling stations in South America, diverting 33,000 metric tons of recyclable material from landfill and saving over 140,000 metric tons of carbon emissions.
Lehigh Technologies This Atlanta firm turns old tyres and other rubber waste into something called micronised rubber powder, which can then be used in a wide variety of applications from tyres to plastics, asphalt and construction material. Five hundred million new tyres have been made using its products, earning it the Award for Circular Economy SME.
AB InBev
Miniwiz For the founder of Miniwiz, Arthur Huang, there is no such thing as trash. He is an evangelist for upcycling - turning old materials into something new. As he admits, this isn’t a new idea - until the 20th century reusing whatever was lying around was
Proving that innovation in the circular economy isn’t confined to small tech start-ups, the world’s largest brewer wants 100% of its product to be in packaging that’s returnable or made from majority-recycled content by 2025. Already nearly half of its drinks are sold in returnable glass bottles, and AB InBev is working with suppliers and customers to increase that. It has also drink made from spent grains from the brewing process (which previously were only resold as animal feed).
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THE MANUFACTURERS NETWORK
Difficult roads often lead to beautiful destinations. -anon
Big Changes - Dieter Adam, CE The Manufacturers’ Network the past. Gains from productive activities are taxed, but gains from speculative activities currently aren’t, or only poorly
These are times of big change for us at The Manufacturers’ Network, and for our relationship with our members. We are in the process of transferring all of our activities to the EMA, and further to the Canterbury Employers’ Chamber of Commerce and the other regional business organisations, Business Central and OSEA. This will significantly enhance our ability to reach out to and represent the community of New Zealand manufacturers across the country. It will also challenge our ability to deliver our current services – and new ones we are developing, like our new Productivity Benchmarking service, which we are about to launch – to a much wider membership. These are exciting times for us! These are also challenging times for New Zealand manufacturers. Take, for example, the rapidly escalating ‘battle of the systems’ between the USA and China, which really is a battle for primacy in the world’s economy. It leaves countries like New Zealand ‘stuck in the middle’, feeling that whatever choice they make may be the wrong one, and preferring not to have to choose, of course. It’s Huawei today, which may not have much impact on our members, but what comes next in terms of companies on either side, which some of our manufacturers may be suppliers to, being hit by punitive measures? Barriers to free trade come in many guises and compared to other sectors of our economy manufacturers may have had a relatively easy ride until now. Is that about to change? At home, we see the ‘new’ government bringing in changes in many areas, or at least trying to do so. Three are of particular importance to manufacturers – the reform of our vocational education system, changes to temporary work visa, and changes to our tax system. Not to mention a slew of proposed changes to employment law we’ve already commented on in the past. We’ve acknowledged the need to address the fundamentally skewed nature of our tax system in
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if so. What the Tax Working Group has come back with, however, is unacceptable in its current form. The issue that needs to be addressed is that far too much capital in this country is tied up in land, be that (dairy) farm land, residential property, or other. Add to that rapid population growth through immigration, and you’ve created an environment where it is fairly safe to bet on the rising value of a scarce resource, land, even if no improvements are made to the asset. And the gains on selling the asset are not taxed. Compare that to manufacturers who, through continuous improvement of processes, smart product innovation and successful marketing and sales activities, has grown turn-over and profits, and hence the value of their business. Operational profits are taxed as they arise, as are the wages of workers. And then the owner is taxed again when selling the business?! That is certainly not a tax regime that will encourage investment in a sector of our economy that needs to grow further if we want to grow our collective wealth. We are currently going out to our members to gather feedback on the proposed changes to the way work visa are granted. Fundamentally, these changes do transfer responsibility and cost from the individual applicant to the prospective employer, pretty much making it mandatory for manufacturers who regularly employ migrant workers to become registered with Immigration New Zealand. As INZ admits, it’s a burden up-front, with the promise of “longer-term ease and certainty” – yeah, right?! The proposed changes will also give government more say in the geographic distribution of visa allocations, which could be a good thing – or a bad one. On top of that there are comprehensive changes to the ‘job tests’ which manufacturers need to study carefully before responding to the government’s call for feedback. Last, but not least, the government is reacting to the current deep financial crises in the polytech sector with proposed reforms that would fundamentally shake up vocational education in New Zealand. Essentially, there are three functional areas in vocational education – providing the training & education (courses) itself, determining the content of what should be taught, and to what standards, and the management of and care for apprentices. Currently these functions are partially shared among employers, group training scheme providers, ITOs and polytechs, with the majority of the delivery of training and education happening through workplace-based learning (apprentices
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and trainees). The proposed reforms will cut the ITOs from the management and care of apprentices and reduce their role to working with industry to set content and standards through so called Industry Skills Bodies. The role of the management of and care for apprentices would be transferred to ‘vocational education providers’ (largely polytechs), which are currently not equipped to take on that role and cannot even under the best of circumstances be expected to become equipped to do so in less than a year as proposed, meaning it would almost certainly leave a large cohort of current apprentices completely marooned. Let’s also keep in mind that the current appallingly low completion rates in many types of apprenticeships may be partly due to a strong pull from the labour market, but are also evidence of the poor job we are doing to guide and look after the apprentices in our collective care. Moreover, without also fixing the fundamentally flawed ‘bums-on seats’ funding scheme, leaving the government totally bereft of any ability to adjust supply to demand when it comes to what is taught, and where, these reforms will do little to improve the supply of suitably trained and educated apprentices to industry, and have the potential to do a lot of damage.
What the Tax Working Group has come back with, however, is unacceptable in its current form.
ADVISORS Mike Shatford
is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.
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.
Matt Minio
Managing Director, Objective3D Matt has extensive hands on experience as a user and supplier of 3D Printing technology. He comes from a mechanical design and engineering background with 25 years’ experience in multiple high end 3D cad applications across a range of industries, including aerospace and automotive. He has been heavily involved in the 3D printing evolution - from initial early prototyping to todays advanced 3d printing technologies producing production parts straight off the printer. As Managing Director of Objective 3D, he provides Stratasys, Desktop Metal and Concept Laser 3D printing solutions to a host of industries across Australia and New Zealand.
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Learn to say ‘no’ to the good so you can say ‘yes’ to the best. -John C. Maxwell
title The eight technologies you want to deploy before the text
competition does
-Helen Masters, Senior Vice President and General Manager, Asia Pacific at Infor
Business competition has never been stiffer. In many vertical industries and regions, old barriers to entry simply no longer exist. Thanks to crowd funding, angel investors, local farm-to-fork emphasis, connected networks and global logistics, it is now easier than ever for a start-up to become a major market contender seemingly overnight. With established businesses now facing an onslaught of new competitors, upping the stakes, flooding the market with knock-offs, targeting customer base and threatening your brand value. Below are a list of the top eight technologies that are essential to deploy before the competition does: Modern ERP Solution Built for the Food & Beverage Industry Most mature businesses likely have an enterprise resource planning solution already. However, larger businesses often inherit outdated software overloaded with patches and inefficient applications. Start-ups will most likely be trying to make do with a generic accounting solution that focuses on AR/AP and inventory. ERP solutions have made major advances in the past few years as transformative technologies have broadened to include planning, forecasting, and analysis tools. There are also industry-specific solutions on the market, providing features and benefits already built-in. No more cumbersome modifications to the code-set which can complicate and delay further upgrades. Providing unprecedented agility and added insights from built-in analytics.
The combination of a solution to manage the lifecycle of plant machinery and IoT sensor technology will give a company a major competitive edge. These are powerful applications that will help keep plants running without unexpected downtime. The embedded sensors monitor for early warns signs that indicate needed maintenance or service. The system then triggers an automated response which, in the long-term, will extend the lifecycle of machinery. This game-changing technology will drastically benefit your competition — if they deploy it first.
Product Lifecycle Management Consumers today expect frequent introductions of new products; they want more offerings, new product choices, innovative taste combinations, and new packaging and preparation methods. This mean you need to continually be researching and developing new products. A modern PLM solution will help streamline the process and bring products to market faster. If you start to see your competition accelerate their New Product Introductions, this type of solution may be how they are achieving it.
Warehouse Management Solution
Customer Relationship Management Everyone knows how critical the relationship with the customer is to the overall success of the company. The modern customer — whether in B2C or B2B — has very high expectations. Both you and your competition are likely looking for ways to enhance the customer experience and stay engaged with consumers in a meaningful way—whether it is staying on top of orders, anticipating seasonal offerings, or planning customized promotions or product offerings. Customer Relationship Management (CRM) solutions help you manage and enhance the customer relationship, turning it into a differentiating feature. Human Capital Management A company is only as strong as its workforce. A modern food and beverage company relies on a workforce with a wide range of skills, from technologists in R&D to procurements teams who must continually find fresh ingredients and anticipate shifting demands.
As your business grows, so does the challenge of managing your inventory of ingredients and finished goods. When you add in the additional challenges of coolers, freezers and even off-site warehousing, visibility and responsiveness become difficult. A modern warehouse management system will embrace a mobility to aid with two-step put-away, cross-docking, slotting and inbound deliveries for a fast and efficient handling of goods to shorten the time to when it is available. But you may not know that a modern warehouse solution in the hands of your competitor could be devastating to you. Think of the competitive edge the new-comer to the market would have if they could handle more orders in a timely manner than you. You definitely want to beat your competition to deployment with this one.
Supply Chain Management
Recruiting, training, and retaining a workforce with such a wide range of skills sets can be a daunting challenge, especially today as skilled workers are such a premium. A HCM solution helps recruit and retain the best talent.
Modern F&B companies typically need to leverage complex supply chains and networks of suppliers — often global. Complete visibility to location and status of shipments is essential for freshness and just-in-time-arrival of ingredients needed for the processing schedule.
Enterprise Asset Management and Internet of Things (IoT)
An advanced supply chain system, which allows you— or your competitor — to make real-time adjustments
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is a game-changer. The company which takes advantage of this technology first is likely to experience a major gain in efficiency and profitability.
Cloud deployment Deployment in the cloud often goes together with updating ERP software or adding new solutions. All the solutions listed above can be deployed in the cloud. In order to stay competitive, businesses need to be using the most agile and flexible solutions. These are just eight of the top solutions that a company in the F&B industry should be keenly aware. Remaining modern requires a constant vigilance and attention to competitive differentiators. Competition is heating up — and will continue to do so as the interest in local-grown and fresh ingredients escalates. This means more competition—often nimble and proactive, aggressively hunting for ways to outshine the existing companies. Be alert. Be ready. Be proactive and make your own investments in game-changing technology. It is one of the most effective ways to hold market share — or get ahead of the pack.
These are powerful applications that will help keep plants running without unexpected downtime.
We did not come to fear the future. We came here to shape it. -Barack Obama
Siemens updates NX Software with Artificial Intelligence and Machine Learning to increase productivity Siemens has expanded the Digital Innovation Platform with the introduction of the latest version of NX software, which has been enhanced with machine learning (ML) and artificial intelligence (AI) capabilities. These new features can predict next steps and update the user interface to help users more efficiently use software to increase productivity. The ability to automatically adapt the user interface to meet the needs of different types of users across multiple departments can result in higher adoption rates, leading to a higher-quality computer-aided technology (CAx) system and the creation of a more robust digital twin. Machine learning is increasingly being leveraged in the product design process to provide a competitive advantage. ML can be used to deliver valuable business insights more quickly and efficiently, and it has the power to process, analyse, and learn from large volumes of data. AI and ML can also be used to monitor the actions of the user, and their success and failures, to dynamically determine how to serve up the right NX
commands and or modify the interface and leverage learned UI usage knowledge for CAx environment personalisation. The Siemens Digital Innovation Platform is continually expanding to enable customers to create the most comprehensive digital twin of the product, the production environment and of the performance of the product. Integrating ML and AI into NX software offers the benefits of speed, power, efficiency and intelligence through learning, without having to explicitly program these characteristics. This offers many opportunities for customers to enhance design process improvement and ultimately their product offerings and reduced time to market. The NX Command Prediction module is the first introduction of the machine learning-enabled NX adaptive user interface architecture to the market, and will be the basis for, and lead to, additional machine learning-driven UI solutions. “Although extensive research conducted in the field of human-computer interaction has resulted in an excellent static interface, we still lack the perfectly-tailored dynamic interface that can suit all users,”
said Bob Haubrock, Senior Vice President, Product Engineering Software at Siemens PLM Software. “The latest version of NX uses machine learning and artificial intelligence to monitor the actions of the user, and their successes and failures, so now we can dynamically determine how to serve the right NX commands or modify the interface to make the individual user more productive. Leveraging this learned-user interface knowledge for CAx environment personalization can help our customers improve overall usage and adoption rates, ultimately leading to a more efficient product development processes.”
Hypertherm introduces new consumable kits for XPR cutting systems Hypertherm, a U.S. based manufacturer of industrial cutting systems and software, is shipping consumable kits for its XPR X-Definition Plasma systems.
By reducing the impact of ramp down errors, XPR consumables can last up to three times longer than those on older generation systems.
These new consumable starter kits are available with or without a torch for mild steel and non-ferrous cutting applications.
In addition, XPR consumables are designed with ease of use in mind. An EasyConnect feature allows operators to quickly plug the torch lead into the torch connect console without the use of tools, while a patent pending QuickLock electrode delivers easy quarter turn tightening to further reduce setup time.
The kits include a variety of consumables to allow for cutting at different amperages, using all of the gas process types supported by the XPR170 and XPR300 systems. The consumables contain several patent pending technologies to improve consumable life and cut quality. Examples include Cool nozzle and Arc response technology, the latter of which protects consumables from the negative impact of ramp down errors, a regular occurrence in real-life cutting.
Another new design feature is a quick-change torch that enables an operator to rapidly change torches with just one hand. Whether cutting mild steel, stainless steel, or aluminum, these new starter kits will make it easy for XPR customers to get all of the consumables they need in one convenient kit. The kits come with a torch
providing the option of having a second torch, or even multiple torches, pre-loaded with consumables for even faster change-outs. Hypertherm designs and manufactures industrial cutting products for use in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes cutting systems, in addition to CNC motion and height controls, CAM nesting software, robotic software and consumables.
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Great things never came from comfort zones. -Neil Strauss
Additive manufacturing leaps from prototype to production The number of production-ready Additive Manufacturing (AM) platforms that ship each year will increase more than 10 times by 2030, as the technology’s use in structural and mission-critical commercial applications comes to fruition. According to a new report published by ABI Research, a market-foresight advisory firm providing strategic guidance on transformative technologies, these systems will produce more than US$360 billion worth of parts and end products each year and nearly US$2 trillion in sum by the end of the next decade.
“Additive manufacturing is moving from the prototype to the production market in a big way,” explained Ryan Martin, Principal Analyst at ABI Research. “A new set of technologies is breaking out to create net-shape parts in a variety of build platform sizes that significantly broaden the overall scope of applications where AM can compete, and ultimately win. The integration of digital and physical production systems will accompany the hybrid manufacturing models that follow for higher degrees of automation and just-in-time, on-demand delivery.” “3D printing” has been around for more than 30 years in specialised aerospace and medical applications (for prosthetics, hearing aids, and dental implants). The latest round of innovation is an entirely different breed. Specialist AM Original Equipment Manufacturers (OEMs) like 3D Systems, EOS, and Stratasys are still in the mix and
have primarily led the charge due to their market tenure and resulting credibility with a wide range of companies and applications, but there are also a number of emerging players, such as Carbon, Desktop Metal, Digital Alloys, and Markforged that need to be taken just as seriously. ExOne, GE Additive, and HP (which plans to start shipping its Metal Jet production system in 2020) are another tier in the middle, but breakout growth across Aerospace & Defense (including commercial aviation), Automotive, Consumer Goods, and Machinery (including tooling) makes it anyone’s game. The automotive industry represents the largest opportunity globally with US$148 billion in additive manufacturing product value forecasted for 2030, but it is closely followed by the machinery markets, and these figures differ from country to country. The United States currently leads the world in terms of AM product value but will be passed by China in 2029 under present conditions.
MiTAC enters Australasian market with strong, customer centric offering World-leading digital technology designer and manufacturer MiTAC has dramatically expanded its presence in Australia and New Zealand after identifying a true gap in the market for versatile, rugged and customisable Android-based mobile computing equipment that is perfect for transport and logistics and supported by local sales and service teams. The award-winning MioWORK range of tablets and accessories has been developed in close collaboration with global leaders in fleet management, logistics, field services, healthcare and retail to ensure every aspect of the products meets the highest standards and usage requirements in the industry. MiTAC Australia and New Zealand managing director Wendy Hammond says the company has invested significant resources in this area. “We’ve built a strong business here on navigation products with leading brands Navman, MiVUE and Magellan working in both B2C and B2B, but we see a real opportunity to capitalise on the strong demand for affordable, ruggedised, secure Android mobile devices by introducing successful products from our parent company,” she says. Hammond has hired Bruce Wong, as enterprise business development manager for the customer-centric Australian operation. Wong is a local veteran in enterprise mobility solutions and is focused on delivering the best solutions to suit individual organisations’ needs. “We know Australian businesses deserve better, highly secure, more flexible options today with dedicated technical project support and the ability to easily customise products to fit their needs,” says Bruce. “Too often customers put up with products or solutions that simply don’t offer the best value, and don’t have the degree of support and the ability to respond to issues quickly, and turn around service in
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Australia, increasing productivity. “Moreover, the need for business to move to reliable, secure and affordable Android-based mobile solutions is increasing every day. The global market is predicted to increase 7 per cent over the next five years and we see Australia being in lockstep with this,” he adds. MioWORK has an exceptional track record in developing products to the highest specifications that are purpose built for specific and tough environments. The company has a strong 20+ year track record in sales and support of its high quality tablets across the US, UK, Europe, Japan, Russia and China in retail, hospitality, transport and logistics and healthcare where requirement for products that withstand dust, heat, cold and drops, that are waterproof, can be wiped, disinfected and accurately used by operators wearing safety gloves is critical. The company even produces military-grade devices. In Australia, MiTAC has launched with three completely customisable MioWORK tablet devices – all offering a wide range of accessories and the ability to be integrated with the company’s world class navigation devices including Navman satnav and MiVUE dash cam technologies. The MioWORK F700 Series operates on Android 6.0 (upgradable to Version 9 scheduled for release later this year) and features a 7” IPS panel with a fast 1.3HZ Qualcomm processor. It has a 2GB RAM and internal 16GB memory, with the ability to add on MicroSD up to 128GB. It also has a built-in accelerometer, ambient light sensor, thermal sensor and vibration motor. It is IP54 rated with a 1.2m drop resistant rating, and shock resistant up to 20G peaks. There are two microphones and one speaker and built-in front and rear cameras with WiFi and Bluetooth and/ or 4G LTE connectivity.
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“This is a great product for transport and logistics because it is lightweight and customisable to their specific needs,” says Bruce The smaller portable IP67 rated MioWORK A500 Series with its 5” screen is perfect for logistics, asset management and courier service because of its long battery life and the fact customers can add in a quick, accurate bar code scan for data capture and numerous other accessories including a pistol grip trigger, single and multi-unit cradles, protective casing, as well as four-slot battery charger and an active vehicle mount. These leading mobile devices can be securely managed and monitored with the state-of-the-art MiTAC Device Management system (MiDM) enabling the company to add apps or update operational system over the air, conveniently update devices at varying time slots and the ability to employ ‘Kiosk Lockdown’ if required, limiting the available applications and usage. Additionally, location services are available to detect and lockdown devices and real-time trouble-shooting to let IT administration view and access the device. “We have created a team that can provide end-to-end support right here in Australia – from sales to customisation, technical support and ongoing service – so quality and productivity are assured,” adds Bruce.
Great things are not accomplished by those who yield to trends and fads and popular opinion. -Jack Kerouac
The Future of Manufacturing at Hannover Messe Critical Manufacturing is helping high-tech manufacturing companies optimise efficiency, enhance quality, reduce costs and make their businesses more agile with its ground-breaking Manufacturing Execution System (MES). It will be showcasing the enormous capability of this modern, Industry 4.0 ready, modular system at this year’s Hannover Messe from 1st to 5th April. Critical Manufacturing MES has been designed for
Beyond that, Connect IoT has a single graphical view
equipment, product and process key performance
complex discrete industries including electronics,
of all automation workflows. Engineers can create
indicators (KPIs). At an execution level, this digital
semiconductor and medical devices.
and update complex logic with no code required in
twin helps better utilize the huge amounts of data
an intuitive fashion. The system also allows visual
available from a smart shop floor to help increase
debugging without external simulators. Once the
operating efficiency and maximize the potential of
power user develops a workflow, it’s reusable.
assets.
Based on de-centralized logic, it enables the move to dynamic production models, where smart products and materials negotiate with intelligent machines to find the most efficient and economical route through
The Connect IoT module is an exciting piece of
The MES enables the easy creation of 3D models of
the shop floor.
forward-looking
easy
the shop floor and can deliver further benefits to
integration of new and legacy equipment and devices
users through its virtual reality (VR) and augmented
to create a distributed, de-centralized architecture on
reality (AR) capability.
The MES uses a breakthrough equipment integration and automation module, “Connect IoT” which simplifies the integration of all devices, equipment and the Internet of Things (IoT) and dramatically
engineering.
It
enables
which to build an autonomous production network using a drag-and-drop logic interface.
product lines, there are enormous benefits in the
reduces the time and cost needed for companies to
Accommodating new and older technology, it
reap the tremendous benefits of smart technologies
provides a clear, straightforward pathway for
and Industry 4.0 manufacturing models.
companies to move towards Industry 4.0 at a pace
The mission of Connect IoT is to dramatically reduce the time and effort to implement equipment or IoT integration. It reaches across all types of devices to create the Industry 4.0 decentralized autonomous
that suits their business strategy. The module is intelligent,
automatically
For manufacturers of sophisticated and complex
abstracting
workflow
elements with specific drivers, and requires no coding to set up.
move to Industry 4.0 technology. The Critical Manufacturing MES has been specifically designed to embrace the IoT, distributed intelligence and vertical integration of services required for a robust, highly efficient smart factory. At this exciting time in industrial history, the Critical Manufacturing MES provides the backbone needed to create a truly
shop floor marketplace. It’s a lightweight, low
The Critical Manufacturing MES also incorporates
smart factory and a pathway for companies to reach
footprint solution to connect older, legacy equipment
digital twin technology to provide clear plant
new levels of efficiency and innovation that will keep
or new devices, any protocol.
visualization, including detailed information on
their business strong and competitive into the future.
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Learn to sell. Learn to build. If you can do both, you will be unstoppable.
NEW PRODUCTS
- Naval Ravikant
Point Pod latest start-up success story A new innovative product that solves your household power problems has teamed up with Australia and New Zealand’s large distributor just six months after making its market debut. Point Pod finally solves the problem of not having enough power outlets in your kitchen by hiding a pop-up unit beneath your stone or timber bench top.
After launching in August 2018, Point Pod has today announced its new partnership with Häfele, Australia and New Zealand’s biggest distributor.
Brisbane builder-turned-entrepreneur, Cameron Singer, developed Point Pod after being frustrated with the limited options on the market.
“I’m excited for Point Pod’s next phase, working alongside Häfele,” Mr Singer says. “Häfele’s commitment to innovation made them the number choice for our distribution partner.”
“I developed Point Pod two years ago out of my own frustration of the limited power options available,” says Mr Singer. “After renovating my own house, I was disappointed with what was available to improve access to power for my island bench. There were products online, but they looked so cheap and flimsy in a kitchen we’d spent a lot of money renovating.” With a simple touch, Point Pod’s power points and USB sockets emerge for use. But unlike other power options, it blends seamlessly into your bench top, so it doesn’t comprise your aesthetics. The units are designed for any space where you would use power on a bench top, including the kitchen, bathroom, office and boardroom.
“Häfele brings new innovative products to the market so their customers are always on the cutting edge of what’s available, and we’re excited to be part of it.” “Our distribution agreement gives us access to a larger chunk of the market, but it also means we can focus on manufacturing and developing further products.” Mr Singer says he’s been overwhelmed by the industry’s positive response while showcasing his product at trade shows over the last six months. “I knew there was a need for a product like Point
Pod, but it’s become clear that it’s something people have been looking for.” “I believe so much in this product, that I’ve decided to give up my building business to fully pursue bringing this to the market. It’s taken me two years to get it ready, and now it’s exciting to be taking it to the next level.” Point Pod is waterproof and robust and meets all Australian Standards as well as stringent in-house testing.
Wastewater-to-energy plant can turn an environmental problem into a profit A clean green wastewater technology that can turn an environmental problem into a source of profit is being introduced to Australia and New Zealand by CST Wastewater Solutions.
process can then be captured, stored and used to substitute for expensive and polluting fossil fuels, such as bunker oil. So users get both clean water and green energy,” says Mr Bambridge.
The Global Water & Energy (GWE) anerobic digestion technology has been proven worldwide in more than 400 installations, including food and beverage, and agribusiness operations in Australasia and, most recently, another brewery in a chain of global successes.
Quality improvement
The GWE technologies involved use anaerobic digestion to consume organic contaminants in industrial and municipal wastewater streams, removing typically more than 95 per cent of the previously troublesome content by transforming it into biogas (primarily methane). This resource can then be used to fuel industrial processes such as boilers, or to generate electricity, replacing expensive fossil fuels in both cases. “The quality of wastewater effluent produced by GWE processes from food, beverage and agribusiness processes is often so high that the effluent coming out from plants is substantially better than the water drawn in from the surrounding environment,” says CST Wastewater Solutions Managing Director Mr Michael Bambridge. The technology is applicable to the food and beverage businesses important to both Australia and New Zealand, as well as meat, livestock and crop agribusinesses that must conform with increasingly strict environmental and groundwater statutory obligations. “A huge bonus also – in addition to the environmental benefits – is that the biogas produced by the anerobic
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One of the most recent applications of the technology globally involved a central American brewery, Cervecería Centro Americana (CCA), which is adopting GWE technologies to convert wastewater into biogas while achieving effluent quality improvements of 97% in organic matter removal. CCA’s new wastewater treatment system is designed to remove approximately 97% COD, or Chemical Oxygen Demand – a measure of the organic content in the water. It will produce up to 4,800 Nm³/d of biogas at 76% methane content, which is equivalent to more than 3,200 kg heavy fuel oil/day. This heavy fuel oil is worth approximately $US500,000 a year ($A692,000 approx., $NZ729,000 – This assumes a plant running 330 days a year at full capacity and a Heavy Fuel Oil, HFO, price of US 0.46c a litre.) Like other companies globally adopting the technology, CCA has many choices in order to reuse the biogas. Typical uses that benefit breweries, food processing, and other industries include Combined Heat and Power (CHP) units or other direct combustion systems, such
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as boilers, turbines, or fuel cells. Where national energy policy permits, companies can opt to generate green energy and sell it back to the grid for a profit. Profits from the use of biogas to replace fossil fuels can totally pay for the cost of installing GWE anaerobic digestion, says Mr Bambridge. Total ROI typically occurs in the first 5-10 years of operation. Then the plant goes on producing profits from green energy that go straight to a company’s bottom line, says Mr Bambridge. “Other clean green technologies – such as wind and solar power – get more headlines than wastewater-to-energy technologies for their great potential and benefits.” “But this technology is a quiet achiever that has proven its benefits in Australasia and worldwide and is applicable to a wide range of industries and applications Down Under.”
One of the latest GWE anaerobic digestion plants being installed at a brewery
I would rather be a superb meteor, every atom of me in magnificent glow, than a sleepy and permanent planet.
NEW PRODUCTS
-Jack London
No cabling misconfiguration with connect chain The new tool from one the world’s leading providers of branded cable and connector systems, LAPP, ensures configuring power chains for automation, electrical and process solutions is no longer a complicated task, even for less experienced users.
are compatible every step of the way, especially when it comes to the cables’ minimum bend radius. The cable chain must not have a smaller bend radius than the cable. If this is the case, the configurator will display a warning message and suggest other types of cable chain. Other criteria include the travel length, acceleration, temperature behaviour and shielding. The configurator automatically excludes cables that are not suitable for the application.
The Ölflex Conect Chain configurator automatically switches off all error sources and always finds the best solution, says LAPP Australia General Manager Simon Pullinger. The online configurator, available nationally, acts as a step-by-step guide through the choice of cable chain, cables and relevant accessories.
“When the configuration is complete, users receive a personalised quotation and are then able to choose whether you want to purchase the power chain fully assembled by LAPP or as individual components, with the option of having the cables pre-cut to the appropriate lengths,” says Mr Pullinger.
Ölflex technology will feature in the debut of the new LAPP Australia operation at AUSPACK 2019 In Melbourne from March 26-29 (Stand G130).
LAPP Australia debuts at AUSPACK 2019 in March with a range of quality technologies vital to integrated electrical, process and automation engineering solutions.
The new Ölflex Conect Chain configurator from LAPP Australia will introduce visitors to AUSPACK 19 in March to a simple way to digitally engineer a power chain online with just a few clicks of the mouse.
This first appearance of the fully-fledged LAPP subsidiary in Australia – opened in February 2018 – will provide key markets with a unique overview and personal introduction to Lapp’s globally respected product families, used in Australia for more than 30 years and produced at 18 manufacturing locations on four continents. Ölflex Conect Chain configurator Ölflex Conect Chain configurator ensures components
machinery that enables it to supply a variety of different cables types up to 37mm supplied ready cut and finished to precise lengths. This customer-responsiveness – combined with the speed and flexibility of the LAPP logistics centre in Germany – means Australian customers have access to 40,000 LAPP products with lead times of 1-2 weeks from receipt of order. LAPP Ölflex range LAPP’s Ölflex connecting and control cables are among the most widely used in the world, with proven reliability and compatibility with the most advanced machinery. In 1959, Ölflex was the first control cable to be designed with colour-coded wires and was at the same time the first branded cable in the world.
Its new 3100sq m headquarters at Eastern Creek, Sydney, is purpose-built to meet national demand for advanced technologies backed by outstanding technical service and swift delivery in future-focussed areas of industry. LAPP Australia’s initial range of more than 1000 stocked items has grown quickly in its first year to exceed 1500, a total which will grow beyond 2000 in the second year. The new HQ also houses customising
LAPP Australia customising machinery
THE FACTORY OF THE FUTURE WILL MAKE THE IMPOSSIBLE, POSSIBLE SINGLE PASS WELDS IN THICKNESSES UP TO 200MM WITH NO CONSUMABLES
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PLEASE VISIT FOR MORE INFORMATION
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FOOD MANUFACTURING
It is not in the stars to hold our destiny but in ourselves. -William Shakespeare
Why the agtech boom isn’t your typical tech disruption Five years ago, almost no one knew what agtech was. Inside the industry, we didn’t even know what to call what we were doing. But fast forward to today, and agricultural technology – from vertical farming to data science to farm drones – is the new hot thing in investor circles. The Investment Corporation of Dubai alone just dropped $203 million into agtech investments; another $200 million came from the Japanese holding behemoth SoftBank; and dedicated VC funds are zeroing in on the sector’s potential. In 2017, total investment was over $1.5 billion – a new record for the sector, and one that’s setting the stage for explosive growth. But unlike many of today’s tech disruptions – from smartphones to social media – this one is less about consumer convenience or entertainment than about something far more pressing: our collective survival. The reality is that we must quickly and efficiently bring farming from the industrial age into the digital one.
corporate farms. At its core, agtech is about using advanced monitoring and data analysis to do more with less – to find ways to increase yields without burdening already overtaxed resources such as land and water. Right now, a cross-section of technologies and disciplines – from sensors, artificial intelligence and big data to biotech and robotics – are being used by progressive startups to boost global food supplies. For example, Hortau systems are increasing watering efficiency through smart monitoring, which in turn increases plant yield. Phytech is optimising crop production with its “Plant Internet of Things” – smart devices in fields that send simple colour-coded alerts to smartphones with recommendations and warnings. Meanwhile, the Israeli-based CropX uses hardware and software to measure soil moisture, conductivity and temperature, allowing farmers to save water.
In this respect, booming investor interest in agtech should hardly come as a surprise. Market potential is nearly limitless precisely because our appetites are too. We all need to eat, and our population is rapidly growing.
This disruption is so unique precisely because it’s utterly necessary. Unlike Apple’s continuous need to convince consumers to purchase new products via planned obsolescence, the agtech market will grow organically (indeed, exponentially) over time, giving early entrants an edge and access to an ever-increasing customer base.
9.8 billion mouths to feed
Tech to make farming viable again
With a predicted global population of 9.8 billion by 2050, we’re going to need to figure out how to feed a much larger population, and fast. Studies show this could mean we need to grow as much as double the amount of food we do today, simply to avoid food security issues and mass social disruption.
Apart from the pressing need to keep us fed, agtech addresses another crucial pain point: keeping farming viable for the next generation of people who grow our food.
And climate change is making it harder to feed the world through conventional means – in fact, with our current rate of crop yields, we’ll only have enough food for half of that projected population. Doomsday predictions about not being able to feed the world have been around since the days of Thomas Malthus, and it’s not my intent to deliver any more here. But it’s critical to note that growing enough food will be no small task in the years ahead, and that the kind of agriculture practised today – reliant on industrial-era concepts of land use and productivity – isn’t poised to get us there. This is where digital technology has a critical role to play. I’m not talking about developing new, synthetic chemicals to apply to fields, or building ever larger
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Farmers have never been shy about embracing new technologies – the wheel, tractors and chemical compounds in fertilisers a just few that have made a world of difference through the centuries. Yet a yawning tech gap in farming has emerged in recent decades, with real-life consequences. In our approaches to land management, resource use, labour, transportation and more, we’re firmly stuck in an outdated industrial model – emphasising large-scale farms and massive output at all costs, while ignoring externalities from environmental impact to financial repercussions and human tolls. Cainthus, an AI facial recognition software for cows, allows small farmers to maintain larger herds and track the health of individual animals, right down to how much they’ve eaten each day and how much milk they’ve been given.
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Where is a next-gen Farmers’ Almanac, monitoring and forecasting the weather with pinpoint accuracy thanks to a global network of 1.4 million weather stations. Drones and robots from companies like Farmbot are helping fill the farm labour gap, with drag-and-drop interfaces that allow farmers to build sequences of actions for hardware or set repeating growing regimens. Blue River Technology, recently acquired by John Deere, uses cameras and AI to dole out herbicide more precisely as needed.
Feeding the shifting tastes of consumers Aside from these pull factors, there’s a critical push factor behind the agtech boom: consumer demand for cleaner food. Amazon’s recent acquisition of Whole Foods is a clear sign that big business is responding to consumer interests in natural food. Even Walmart has gotten into the organics game, and is now one of the biggest organic grocers in North America.
Technology will need to fill the gap. To trace food, ripe.io’s technology maps its journey from field to shop shelves, so that retailers, chefs and consumers know their purchases are truly sustainable. My own company, Terramera, is developing natural, “plant-intelligence” pest control to increase yields without resorting to chemical pesticides. On the vertical farming front, Mirai is using LED lighting and automation to stack farming plots indoors, maximising every square foot for output and minimising hands-on labour. There’s one difference between the agtech revolution and the many tech disruptions that have preceded it: most of us won’t notice it’s happening. The digitisation of agriculture is necessary simply to maintain the status quo. If we want to continue to go shopping – to continue filling our baskets with healthy, affordable food – we need to fundamentally rethink how we do agriculture. Behind the scenes, a radical shift is needed to retool our food systems and make the most of what we have for a growing population. Failing that, the average trip to buy food may soon be anything but.
When you know what you want, and want it bad enough, you will find a way to get it. -Jim Rohn
FOOD MANUFACTURING
CRC launches new food grade bio-degreaser CRC Industries has introduced a new NSF A1-rated CRC Food Grade Bio Degreaser which expands its leading CRC Greenlight Food Safe Program range. The degreaser is an extra heavy-duty cleaner formulated to penetrate and dissolve tough grease, oil and contaminants for easy removal – safely. CRC Industries Australia Managing Director, Shona Fitzgerald, said the product had been scientifically formulated for use in food processing applications. Biodegradable, non-toxic, non-hazardous, non-flammable, pH balanced and water soluble; the degreaser’s advanced formula is powerful but non-abrasive, non-corrosive and solvent-free. The product can be used confidently on all metals and alloys and will not damage bright metals including aluminium and brass. It is safe for use on fibreglass, glass, plastics, rubber, painted surfaces
and laminates. It is also gentle on the environment with all ingredients readily decomposable. “This product has been specially formulated to penetrate and dissolve tough grease, oil and contaminants for easy removal – with a focus on personal and environmental safety,” Mrs Fitzgerald said. “These properties make it ideal for use in many applications especially where there are regulations or restrictions in place concerning the types of products that can be safely used or allowed. “It can be used to quickly and effectively clean mechanical equipment motors, tools, benches, walls, floors, filters, grills, drills, grinders, rollers, dies, moulds (injection, plastic, steel, aluminium), chains, conveyers, wire rope, robotics, hoists and more.” CRC Food Grade Bio Degreaser is available in 5L and
20L bulk containers as well as a 750mL trigger pack. “The launch our new CRC Food Grade Bio Degreaser is an important milestone for CRC as we remain focussed on adding customer value through extensive research and development, anticipating demand and delivering the right solutions in an ever-changing market, whilst adhering to the strictest protocols for food safety,’’ Mrs Fitzgerald said.
New water removal technology increases food waste biogas CHP performance If New Zealand’s food industry is to fulfil its potential to develop anaerobic digestion (AD) plants fuelled with food waste, then it is critical that these plants optimise every part of the AD process in order to maximise economic and environmental returns. The majority of food waste AD plants produce electricity (with or without using the heat generated) using combined heat and power (CHP) generation units. When using CHP to create energy from the biogas produced by AD, one area which is often overlooked is ensuring that any water present in the raw biogas is removed; if water enters a CHP engine it can decrease its efficiency, resulting in reduced biogas yields and engine damage. The new Biogas Dehumidification System (BDS) from HRS Heat Exchangers removes water from biogas, protecting CHP engines from corrosion and cavitation. It also comes with a heat recovery section as standard, increasing an AD plant’s overall energy efficiency.
Increased profits The importance of optimising your AD plant cannot be underestimated. While many of today’s food waste plant operators invest time and money in performance-enhancing additives and systems, removing water present in the raw biogas can be a lower priority. But with CHP engines being one of the most expensive pieces of equipment to replace on an AD plant, this is a false economy. Additionally, an inefficient CHP engine will result in lower electrical output and higher capex, and therefore reduced profits – a 1 MW digester operating at even 80 per cent capacity could be losing around $19,000 each month in lost electricity sales. The BDS reduces biogas temperatures from around 40ºC to approximately 5-7ºC, condensing more than 90 per cent of the water volume. It works via a chiller system which supplies a coolant that is transferred to heat exchangers. Biogas flows on the product side
of the exchanger, while the coolant flows on the service side. As the biogas cools, the water condenses from the gas, leaving a clean and dry biogas ideal for use in CHP engines. Energy efficiency Heat recovery comes as standard with the HRS BDS. The resulting cold biogas is used to pre-cool any incoming biogas, reducing the load on the final cooling heat exchanger and recovering as much as 20 per cent of the energy needed for the process. Any extra investment required is soon recouped in energy cost savings. Suitable for AD plants of all sizes, the HRS BDS comes skid-mounted for easy access and freedom of movement and features an automatic control panel for full process control.
Fonterra to explore opportunities in complementary nutrition Fonterra has taken a stake in Motif Ingredients, a US-based food ingredients company that develops and commercialises bio-engineered animal and food ingredients. Fonterra joins Ginkgo Bioworks, Breakthrough Energy Ventures, Louis Dreyfus Companies and Viking Global Investors. Judith Swales, head of Fonterra’s Global Consumer and Foodservice business, says the move is part of the Co-operative’s commitment to its farmer-owners to stay at the forefront of innovation to understand and meet the changing preferences of consumers. While the terms will not be disclosed, Fonterra’s investment represents a minority stake in the business.
“The complementary nutrition category – where plant, insect, algae and fermentation-produced nutrition co-exist alongside animal proteins, including cows’ milk – is fast evolving. It’s not a case of either/or, but both,” says Judith. “If we fast forward 30 years, there’ll be two billion more mouths to feed and there simply won’t be enough food to go around just using today’s methods. A combination of traditional and complementary nutrition sources will be required to meet the world’s increasing need for food, especially protein.
“Farmers expect their Co-op to get the most value from every drop of their milk and also keep an eye on tomorrow to futureproof their Co-op for generations to come.
“Consumers around the world will continue to want natural, grass fed dairy as a premium source of nutrition. At the same time, we recognise that no two consumers are the same. As diets and preferences continue to evolve, we want to be there, providing people with choices.
“Dairy nutrition will always be at our core, but we also want to explore how we can capture more value from new types of nutrition.
“Our stake in Motif will help us be part of this emerging next-generation fermentation-produced nutrition sector,” says Judith.
Motif has been established by Ginkgo Bioworks, one of the world’s leading organism companies. Using a process similar to how insulin, vitamins and beer are made, Motif’s Judith Swales, head of team of world leading Fonterra’s Global Consumer and Foodservice business biotech experts will harness state-of-the-art genetic science and fermentation technology to re-create and sell animal proteins and food ingredients, including those similar to dairy ingredients. Jonathan McIntyre, Motif Ingredients’ CEO, says “Through biotechnology and fermentation, Motif will propel the next food revolution with affordable, sustainable and accessible ingredients that meet the standards of chefs, food developers, and visionary brands.”
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If you don’t know where you are going, you will probably end up somewhere else.
DEVELOPMENTS
-Laurence J. Peter
Predicting the future of maintenance In 1927, Thomas Parnell set up the pitch drop experiment, which examines the viscosity of a tar-like substance by the speed at which it flows from a funnel into a jar. The test has seen just eight drops fall in as many decades and, despite the experiment being displayed in the University of Queensland’s physics department, no one has ever seen a drop fall. Just like this test, the need for factory maintenance often goes unnoticed. Here Gernut van Laak, group automation solutions leader of ABB’s Food and Beverage Program, explains how plant managers can budget for maintenance and ensure optimum efficiency for all processes.
Paper to glass In terms of research and development, food and beverage is a leading industry because of its use of new, innovative technology. However, when it comes to maintenance, many companies find themselves keeping paper records. While regulation and compliance requirements historically drove these companies to work with paper, advancements in digital tools mean this is no longer the case. Unfortunately, once paper-based systems are in place, they can be difficult to eradicate. Companies become stuck in their ways, which leads them to ignore the significant cost savings, efficiencies and competitive advantages electronic systems can provide. The most important driving force for a company’s success is its employees. Today’s maintenance engineers have the computing knowledge to make the switch to digital. Providing them with a familiar interface that quickly connects employees across the organization allows staff to work faster and smarter, increasing productivity. Electronic records also eliminate time-consuming and error-prone data entries that are necessary with paper-based systems. While staff are the most important factor of any
company’s success, the biggest cost of manual maintenance comes from people. Human errors that occur during manual record-keeping can result in redundant actions, rework and audits. Electronic records also eliminate the costs associated with printing, reviewing and retrieving paper documents. Giving maintenance staff access to electronic devices on the factory floor allows them to input data faster and gives them more time to spend completing maintenance tasks. Having a digital record of the machinery that regularly needs work also means that engineers have easy access to the data when it is time for the next round of maintenance.
Preventative maintenance Unplanned outages seem to occur at the worst possible moment, whether it be during high season or large batch production. These outages often lead to waste, as the product being made at the time of the outage often must be disposed of. If it doesn’t lead to wasted product, outages will most certainly cause varying degrees of downtime, which not only causes lost production but can lead to orders being cancelled and contracts being lost if deliveries are not made on time. By considering potential problems on the production line, plant managers can reduce disruptions and help secure long-term competitiveness. All food and beverage manufacturers have periods where they
are producing much less than during the high season. This is the ideal time to be carrying out maintenance. If a plant manager knows that their motor is likely to need repairing every year, they can carry out the work during quiet periods, minimizing the amount of downtime and lost production. Overall Equipment Effectiveness (OEE) is a versatile measurement for production efficiency. It takes into consideration three factors — availability, performance and quality. Availability is reduced by equipment failure, setup and adjustment; performance is reduced by idling, minor stops and reduced speed; and quality is reduced by process defects and start-up losses. Improving these factors will majorly impact efficiency — carrying out preventative maintenance helps improve all three by reducing equipment failure, stoppages and defects. Just like plant maintenance, the pitch drop experiment has recently gone digital. Anyone can log into an online platform to keep watch of the apparatus and hopefully catch the next drop, which might not happen for another eight years. Unlike the pitch drop experiment, factory maintenance can be predicted to save plant managers time and money, while keeping production on course.
Innovative kiwi collaboration in China Two companies, Douglas Pharmaceuticals and Rockit Global, are looking to another New Zealand company, Primary Collaboration New Zealand (Shanghai) Co Ltd (PCNZ), to increase their presence and sales in China. Both already have market exposure in China but
ground advocating the brand and directing the
will tap into PCNZ’s strength and experience in that
channels. PCNZ has already recruited two people to
country to accelerate their business growth.
provide the support to Douglas Pharmaceuticals and
PCNZ now represents 13 New Zealand brands in
they will be responsible for managing the cross-border
China and has built up a team of 22 to support
channel and implementing the marketing plans for
the growth of its clients in this market. Its brands
Clinicians,” he said.
are all experiencing strong sales growth and more
Hawkes Bay-based Rockit Global Ltd is building a
importantly getting a deeper understanding of the
unique proposition in China with its 12-month supply
China market.
of miniature apples packaged in a convenient tube.
Scott Sheriff, Chief Commercial Officer, Douglas
Instead of competing directly with other produce
Pharmaceuticals, said the Clinicians range had
categories Rockit is creating a new healthier snacking
demonstrated strong growth and they felt the time
category to help families with young children.
was right to build on that growth with the support
Austin Mortimer, CEO Rockit Global, said that in
of PCNZ.
order to succeed in China the company needed to
“There is no substitute for having people on the
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take a structured approach to growing the brand.
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“PCNZ and Eric Dai came onboard in the middle of 2018 and we have already seen a huge improvement in our knowledge of this dynamic market. Subsequently he has developed a clear roadmap that will see us align with key partners and achieve our goals over the next few years,” he said. Douglas Pharmaceuticals and Rockit Global join other PCNZ clients – Anzco, Mr Apple, Bostock, Freshmax, Pamu, New Zealand King Salmon, Sealord, Silver Fern Farms, Synlait, Taharoa and Villa Maria in collectively tackling the China market. Over the past four years these companies have reported several successes including growing sales, deeper insights and knowledge, greater distribution reach and closer relationships with partners and customers.
Little by little, one travels far.
DEVELOPMENTS
-J. R. R. Tolkien
CRC Australia celebrates 50 years CRC Industries Australia celebrates 50 years of manufacturing in 2019, marking a very special milestone for the Australian division of the global CRC Industries company. CRC Industries is a leading supplier of speciality products for maintenance, repair and overhaul (MRO) professionals across a wide array of industries including Automotive, Industrial, Mining, Food and Beverage, Utilities and Defence. While CRC was first established in 1958 in a small Pennsylvania garage, the company started manufacturing in Australia after being incorporated as a propriety Company of Australia on 13 October, 1969. What many don’t realise though is that CRC’s journey ‘Down Under’ actually began almost a decade earlier, with CRC product distributed within Australia from the United States throughout the 1960s by the Balfour Buzzacott Division of Email Limited; which also distributed the product of the well-known Dymo Labels. Following the incorporation of CRC Industries Australia as an Australian Company, the business model switched to a focus on manufacturing and facilities at North Ryde in Sydney were established. By 1974, the installation of aerosol and bulk filling lines were completed, allowing locally manufactured CRC product to be sold throughout Australia and the rest of the Asia-Pacific region. The company enjoyed such growth that by 1980, a larger facility was needed and was opened in Castle Hill in Sydney’s north west region. Progress continued for the company and in 2004, CRC Industries Australia acquired iconic Australian auto care brand Kitten to join its growing stable of products. To this day, Kitten sits amongst a full range of CRC
products which are produced and packaged in the Castle Hill factory including market-leading products such as CRC’s famous 5.56, Brakleen, Penetr8 and CO Contact Cleaner. CRC Australia has also been proud to establish export agreements with more than 15 countries throughout the Asia-Pacific region. “What an exciting time this is for all involved in CRC Industries Australia,” CRC Industries Australia Managing Director, Shona Fitzgerald, said. “Fifty years of manufacturing is a tremendous milestone and one that we are very proud of. From the establishment of a small operation in Sydney in 1969 just 11 years after the global beginnings of the company, CRC Industries Australia has experienced exponential growth to today be a market leader and a key contributor to the global success of CRC Industries. CRC Industries is a global supplier of chemical specialty products; manufacturing more than 1,300 items and developing specialised formulas to meet the unique needs of its customers. The company operates 26 facilities throughout the world. CRC Australia’s registered brands include Kitten, So Easy, RE-PO, Trefolex, Aerostart, Maniseal and the CRC Greenlight food safety program.
Hypertherm works with police to seize tens of thousands of dollars of fake product Hypertherm is pursuing legal action against four manufacturers and distributors of counterfeit product following four separate raids, the arrest of five executives, and the seisure of tens of thousands of dollars of fake Hypertherm consumables. The action, conducted in China’s Changzhou province, involved two of the world’s largest manufacturers of counterfeit product and their principle distributors making this the biggest anti-counterfeiting operation in Hypertherm history. The raids followed more than a year of investigative work and the involvement of law enforcement from two Chinese provinces. In addition, police were able to seize a list of companies conducting business with the illegal manufacturers.
Family-owned investment management company, Berwind, acquired CRC Industries in 1981. With its roots dating to 1886, Berwind has evolved from its beginning as a coal mining company to a diversified portfolio of highly successful manufacturing and service companies, which are leaders in their respective markets. Hypertherm’s operations
Polytech reform will see more foreign labour Uncertainty caused by a widespread reform of the vocational education industry will see employers turn to foreign labour rather than training apprentices according to an industry expert. Neil Pritchard general manager of the Collision Repair Association (CRA), which represents hundreds of panel beaters from around NZ, says the proposed sector overhaul will hit rapidly evolving, tech industries the hardest. He says the current pace of technological change in automotive repair as a result of more new construction materials, autonomous driving technology and advancement of electric vehicles is faster than at any time in the past century. “Keeping up with the pace of change is critical to ensuring quality repair work and the maintenance of safe vehicles on our roads,” he says. Pritchard says trade organisations such as the CRA rely on specialist Industry Training Organisations (ITOs) such as the Motor Industry Training Organisation (MITO) which ensure their training needs are
up-to-date with international standards. “Under the current model our industry is effectively represented by expert member volunteers on various review committees which review new vehicle trends. This ensures we drive appropriate changes to the qualification and training. “Training organisations like MITO have field staff which have spent years developing expertise and intellectual property to meet the training needs for the industries they represent, “Under the Government’s proposal ITOs such as MITO would be removed, leaving a gaping knowledge and relationship hole that we have little faith can be readily filled,” he says. Pritchard says the impact of removing this layer from the training process would be widespread and immediately disruptive to businesses.
Counterfeit operations
“Like nearly all companies, Hypertherm is concerned about the impact and safety risks of counterfeit product on our business and customers and is committed to disrupting the illegal manufacture of products that adversely impact the performance of our systems,” said Brett Hansen, Hypertherm’s Intellectual Property Manager. “Our consumables are manufactured to strict specifications and often contain patented technologies that are difficult to correctly replicate. As a result, customers who unknowingly purchase these counterfeit products will not achieve the same consumable life or performance as the genuine product and are at risk.” To ensure you do not fall victim to counterfeiting, Hypertherm recommends customers only buy product from approved and authorised distributors, and exercise caution when coming across abnormally low prices for “genuine” consumables and software especially when purchasing online. In addition, carefully check the appearance of consumables and packaging for discrepancies. Though counterfeiters are often very good at mimicking the exact appearance of original products, mistakes are sometimes made. Another warning sign is poor or inconsistent consumable performance compared to what you are used to.
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The shortest way to do many things is to do only one thing at once.
SUPPLY CHAIN
-Samuel Smiles
How pharma supply chains can thrive in the digital era By Rajeev Mitroo, Asia Pacific managing director of Aera Technology
Pharma supply chains are complex, highly regulated and reach a customer base rivalled by few. Increased access to copious amounts of data and the rise of data-driven technologies – such as artificial intelligence (AI), internet of things (IoT) and cognitive computing — are transforming capabilities to manage this massive network of manufacturers, distributors, pharmacies and patients. Businesses that will ultimately thrive are those at the forefront of digital transformation, capitalising on these new technologies — those that don’t will lag. Gain “outside-in” visibility Many pharmaceutical companies don’t have end-to-end insight into their supply chains. Spreadsheets are still prevalent and data is siloed in various systems. Error-prone manual processes, guesswork due to incomplete data and data latency have a negative impact on supply chains. To achieve digital transformation, pharma companies need to break down data silos and bring data from dozens of sources together in one place. A unified data set connects the business so they can better manage supply, quality and cost based on real-time data from the shop floor to the patient. The business can also leverage information from third parties, social media, clinical research and even weather patterns.
optimal actions. Powerful cognitive automation capabilities can be applied to all supply chain processes, from demand and supply forecasting to inventory optimisation, manufacturing performance, procurement automation and supplier reliability assessments. Consider the available-to-promise (ATP) function, for instance, which responds to customer order inquiries based on resource availability. In traditional software, ATP is fundamentally a rules-based calculation based on theoretical lead times and allocation rules that are variable and volatile. Using those data points in ATP calculations can result in wrong ATP dates. In contrast, AI can automatically generate a “supply chain map,” showing details about an order that include metrics like allocated quantity and expected delivery date. The AI system then delivers highly accurate recommendations and predictions based on machine learning and data science.
Smoother M&A integration
The power of AI and cognitive automation The potential for AI-driven cognitive automation to transform the pharma industry is powerful. It’s poised to disrupt supply chains with breakthrough capabilities to process huge amounts of real-time data and deliver prescriptive recommendations to create a truly data-driven business. Early adopters will lead the pharmaceutical industry in years to come. AI taps into machine learning algorithms to learn and refine in real-time as it crawls internal and external data sets, such as inventory data, supplier performance, demand fluctuations and even weather or road conditions. This disparate knowledge is combined to make recommendations or decisions on
Most M&A activity over the last few decades has been dominated by manufacturers. We’re now starting to see what was once unthinkable — M&A activity across the network of manufacturers, distributors, pharmacies and insurers. In recent years, we’ve seen Roche acquire Genentech and we’ve even seen Pfizer look to strike deals with companies like Allergan and AstraZeneca. In December 2017, the largest US pharmacy chain, CVS, rocked the industry with its decision to buy Aetna for US$69 billion. This was bold news merging health insurance services with retail offerings. Although M&As create prolific opportunities for pharma companies to expand their portfolios and reduce costs, combining supply chains is no easy
feat. End-to-end supply chain visibility is especially challenging. Embracing digital transformation is key to making large scale mergers as seamless as possible. Quickly harmonising data across multiple supply chains is a good place to start. Especially in pharma, a steady, functioning supply chain can make or break a company’s success as it undergoes major changes. The ultimate goal is customer satisfaction.
AI taps into machine learning algorithms to learn and refine in real-time. About the author Rajeev Mitroo is managing director of Asia Pacific for Aera Technology. Mitroo leads Aera’s go to market strategy and initiatives across key markets throughout Asia Pacific, working with partners developing self-driving enterprises.
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We know what we are, but know not what we may be.
DEVELOPMENTS
-William Shakespeare
New Plymouth facing unique challenges A CouncilMARK report issued for New Plymouth District Council says that while the region has experienced relative prosperity and growth, changes to the economy of New Zealand’s ‘energy capital’ may present challenges. The report, released by the Independent Assessment Board, delivered a BBB grade to the council, praising their extensive communication and engagement with the community and strategy in addressing risks to the region’s key industries, particularly in relation to a zero-carbon economy. CouncilMARK incorporates an independent assessment system that assesses how councils are performing and is designed to support individual councils to improve the service and value they provide. Councils receive an overall performance rating, from C to AAA from the Independent Assessment Board as well as commentary on their performance. The report found that economic risks should serve as a catalyst for further analysis on the affordability of the current service levels in response to economic changes, as well as developing better budget resilience. “The council are rightly looking at how the region’s economy can transition and grow beyond the traditional industries of energy and dairy, which have been cornerstones of the region for over 40 years,” says CouncilMARK Independent Assessment Board Chair Toby Stevenson. “It’s clear that New Plymouth residents have great lifestyle opportunities on their doorsteps, which the council and staff are seeking to grow. They’ve done a great job of consulting with the community, who
have called out zero waste, three waters, the CBD and the Walkway as priority areas.” “Having a tighter focus on a smaller number of goals could assist the council with making the most of opportunities. The council have good operational strength across their roading and three waters networks, and their day-to-day services could be enhanced by similar planning and performance measures.” LGNZ President Dave Cull praised the council for undergoing a CouncilMARK assessment. “Going under the microscope of a CouncilMARK is not always easy. The ratepayers of the region should be proud, not just of the strong result, but the council’s commitment to transparency and continuous improvement.” IAB Chair Toby Stevenson says the CouncilMARK report, which can be found here, measures indicators across leadership, finance, asset management, service delivery and community engagement. “The report has been completed by independent assessors under the direction of the board and offers an independent assessment of the council’s performance in key areas, providing valuable information to the council and its community. Measuring performance means councils can assess how to better deliver ongoing and increased value to ratepayers.”
Changes to the economy of New Zealand’s ‘energy capital’ may present challenges.
Kiwi technology receives Australian recognition Cutting-edge technology aimed at minimising waste in the food processing industry has received major recognition at Australia’s largest agricultural technology event. Dr Matthew Jones, of Christchurch start-up company CertusBio, took home the top cash prize of $20,000 in the Investment Ready Pitch Tent competition of the inaugural EvokeAg event in Melbourne. The Christchurch-based innovator was one of five finalists from Australia, New Zealand and Israel. The participants pitched their agricultural challenges, solutions and business ideas over the two-day event to a panel of expert venture capitalist judges. Strong attendance of 1,100 delegates at the event showed an increasing international interest in new agtech technologies, including sensors, artificial intelligence, robotics and automation. Dr Jones’ winning concept is an automated technology that reduces industrial food waste by 40 per cent. CertusBio commercialised the solution, which was developed by the Lincoln University-owned multidisciplinary R&D company, Lincoln Agritech Ltd. Dr Matthew Jones, CertusBio CEO, wins the AgriFutures EvokeAg Investment Ready Pitch Tent prize in Melbourne.
Dr Jones said that with 2-3 per cent of all processed milk disappearing down the drain, the dairy industry loses a staggering NZ$12.8 billion per year globally.
“CertusBio is transforming industrial food production to prevent this type of waste,” he said. “Our solution saves money for processors and helps them meet their social responsibility to safeguard the environment for future generations.” The technology includes a biosensor device that provides real-time insights into when food is wasted, a dashboard giving company managers unprecedented visibility on losses and a dedicated consultant to optimise food production. “The solution can be installed without interruption to existing processes,” Dr Jones said. “Other companies have been in the market a long time but do not provide accurate enough information to prevent this type of food waste.” Dr Jones said he developed CertusBio to combine two of his great passions – the reduction of waste and the development of great science. He is now seeking an investment of $2 million to meet the demand of customers in the international dairy industry and grow the CertusBio team. “I’m looking for investors who care about reducing waste using validated technology in the food processing industry.”
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Begin now to be what you will be hereafter.
ANALYSIS Last year, more than 70,000 workers walked off their jobs in New Zealand – the highest number of people on strike since the late 1980s. The reasons for the strike wave are political and economic.
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-Saint Jerome
Overworked and underpaid: the revival of strikes in New Zealand Strikes were supposedly something of the alleged “bad old days” of the 1970s. But during the first year of Aotearoa New Zealand’s Labour-led government, a strike revival ensued. At least 70,000 people, if not more, walked out last year. Strikers included nurses, teachers, bus drivers, port workers, fast-food workers, retail workers, steel workers and public servants. While official figures for 2018 have not been published yet, this represents the highest number of people involved in strikes since the late 1980s, and possibly the most working days not worked due to stoppages since 1992. For many strikers, it represents the first time they have participated in walkouts.
An unexpected strike wave? According to some, this strike wave was not supposed to happen. Trade unions were thought to be too weak to strike. One employment relations textbook asserted in 2009 that “strike action is seen increasingly as an inefficient and outdated strategy”. The Public Service Association (PSA) secretary Erin Polaczuk recently argued that as unions today have become more feminised and mature, they have increasingly avoided “stupid oppositional behaviour”. Nevertheless, women have led the strike wave. Women made up most participants in most strikes, and female union delegates were often at the forefront of disputes. Indeed, stoppages have mostly occurred in majority female occupations such as teaching, nursing and government sector work in general. It is as difficult to predict strike waves as it is to predict recessions. This is because both are the result of many complex causes, including the unpredictable nature of human agency. This wave is no exception.
Political causes Political factors help to partly explain the stoppages, but cannot be blamed solely for causing the unrest. In their classic 1974 study, Strikes in France, Edward Shorter and Charles Tilly argued somewhat controversially that greater political opportunities produce strike waves. This view concurs with the opposition National Party’s attempt to pin blame for the strikes on the new Labour-led government because that government has raised expectations that wages will increase. But when compared to another political factor, rising expectations and greater political opportunities seem to be a minor cause. That variable is how successive Labour and National-led governments since 1984 have been wedded to a neoliberal practice of tight government spending. Even if Labour has somewhat loosened the government purse strings recently, it still strongly adheres to “fiscal responsibility” through its budget responsibility rules. The level of government spending is a significant factor in causing the strikes simply because the government employs most workers who have gone on strike. Long-term neoliberal
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austerity has caused public sector workers’ wages to fall well behind those of most others.
Economic causes Economic factors (or political-economic factors) other than neoliberal cutbacks are also crucial. Academic research generally regards economic variables as pivotal. Economist Ganesh Nana has suggested that neoliberalism has suppressed wages for the vast majority of workers for a long time, leading to a low-wage economy. Studies have found neoliberal politics and economics have mostly enriched those at the top at the expense of the rest of the population. According to Council of Trade Unions economist Bill Rosenberg, labour’s share of national income has declined from a peak of 71% in 1981 to 61% in 2016. At the same time living costs have risen, particularly in recent years due to rising accommodation costs. Hence it seems this is a “catch-up” strike wave to reverse decades of stagnant or declining real wages. This corresponds with theories that strikes happen in “long waves”, with strike peaks emerging after periods of subdued activity. Scholars like Beverly Silver argue that increased exploitation and commodification of labour (such as under neoliberalism) can lead to a delayed, pendulum-swing counter-response. This rejoinder reflects shifting patterns of workplace bargaining power and class composition (such as the rise of white-collar labour and the “knowledge economy”).
Subjective causes Political and economic factors, long term or short term, cannot explain all. The subjective side of strikes is also important. If we listen to strikers, they commonly claim they are being underpaid and overworked. Working in underfunded and understaffed occupations produces unrelenting and unhealthy high-pressure jobs. Being lumbered with more work for less or stagnant pay (in real terms) has caused much underlying dissatisfaction over the long term. This discontent has finally bubbled to the surface in the form of strikes. Research suggests strike waves sometimes occur simply because people see others striking. Sociologist Michael Biggs argues that “optimism escalates with participation”, making the unthinkable achievable. In short, successful strikes breed more strikes. Some fear that the strike wave of 2018, which looks set to continue into 2019 due to several recent junior doctors’ strikes, will mean a return to the strike-prone decades of the 1970s and 1980s. A major strike wave is probably unlikely given, among many other factors, the legal restrictions that outlaw most forms of strikes, including strikes outside bargaining periods between unions and employers, political strikes, solidarity strikes and wildcat strikes. Unions represented only workforce in 2017 and are concentrated in predominantly white-collar public sector unions that lack traditions of striking. Finally, most recent strikes have been short-lived and have generally not occurred in economically strategic or vital industries. The strike wave would probably have far greater economic and political impact, for better or worse, if it spread to those working in key economic sectors, such as in the tourism, dairy and meat-processing industries, and in logistics and the financial sector. Yet it seems at this stage workers in most of these sectors are unlikely to strike, despite indications of a similar underlying discontent with wages and conditions. -Toby Boraman, Massey University
You have to risk going too far to discover just how far you can really go.
REAR VIEW
-Jim Rohn
Steps towards a circular economy Moving towards a more circular economy is a logical proposition. Use fewer natural resources, reduce pollution, tackle climate change, enhance consumer satisfaction, while also improving the bottom line. The rational path, however, is not always the path of least resistance. As we now operate in an economy where disposability and linear throughput reigns, shifting the system will take leadership, collaboration, innovation and commitment to break the status quo. This was the focus of the circular economy discussion during the 2019 Annual Meeting in Davos, with four key priorities emerging for the year ahead.
Leadership is critical For the fifth year running, the Circulars awards celebrated leadership and champions of the circular economy – from large businesses, to governments, investors and innovators. The European Commission unsurprisingly took the prize for public sector leadership given their efforts to push the Circular Economy package across Europe. Triciclos, which operates the largest network of recycling stations in South America won the people’s choice awards; while Winnow, which develops technology to help chefs achieve greater visibility in their kitchens, and make better decisions that lead to dramatically reduced food waste and costs, took the award for tech disruptor. These leaders and entrepreneurs have tapped into the slack and inefficiencies in the current economic systems to derive positive benefits all round. This has however required energy and courage to challenge the status quo, which is why celebrating their leadership is so critical. The Platform for Accelerating the Circular Economy, which now convenes over 50 CEOs, Ministers and experts, will continue to do just this, while also challenging the leaders to bring more of their peers onboard to shape practical actions, commitments and collaborations. 2019 is kicking off well, with Ikea last week announcing a move towards a furniture leasing-based business model.
Leverage the potential of the Fourth Industrial Revolutioni With the Davos Annual meeting focused on
“Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution”, one theme in focus was how the Fourth Industrial Revolution can enable positive transformations towards the circular economy. A white paper released in Davos focused on the potential of technology and value chain innovations in electronics and plastics – from shaping provenance tools, to product passports and an internet of materials. These possibilities have yet to be fully leveraged. At the same time, with the right channelling of effort and innovation, they can take hold quickly. Google and SAP also launched the Circular Economy 2030 contest over the next five months to engage innovators in designing circular solutions, and the World Economic Forum and its partners are shaping a programme – Scale 360 – to collaborate with countries to support entrepreneurs to scale their circular solutions. While the potential remains largely untapped, the speed with which such technologies have taken hold in other domains provides hope.
Circular material value chains From plastics, to electronics, to food and fashion, efforts continue to drive more circularity into material value chains but must move from incremental steps to net positive progress. 2019 must be the year where we translate the positive momentum and commitments to shape a circular plastic economy into tangible investment and actions globally. In Davos, public and private leaders debated how to make this happen, and the Global Plastic Action Partnership is now poised to move into action in collaboration with Indonesia, Vietnam and other partners as 2019 kicks off. This year also drew attention to the positive value that can be generated from the electronics sector by shifting towards a circular model. A report launched in Davos – A New Circular Vision for Electronics, Time for a Global Reboot – in collaboration with the UN E-Waste Coalition noted the annual value of electronic waste at $62 billion, three times the worth of all the silver produced in a single year. As a positive step in this direction, Davos saw the announcement of a collaboration between the Nigerian government, Global Environment Facility
(GEF), UN Environment, Dell, HP, Microsoft and Philips, to launch a $15 million investment to create a formal e-waste recycling industry in Nigeria. The ambition is to roll out this collaborative effort to other global markets, while also working with business to rethink business models and product design to fully benefit from the untapped circular opportunities. Food system transformation is another area that has seen positive acceleration – the launch of the EAT Lancet report in December put a spotlight on the incredible benefits of a plant and people healthy food system, while the Ellen MacArthur Foundation launched a report at Davos focused on the potential of a circular economy for food, which could generate $2.7 trillion in benefits annually for society and the environment, while averting an estimated 5 million deaths every year by 2050. Fashion is also increasingly in focus. The Fashion for Good initiative, EMF’s circular textiles initiatives, are shaping more circular and sustainable solutions, but only recently have governments started to take a bolder stance in tackling what has become an incredibly wasteful and polluting sector. France, for example, passed a law to forbid the practice of burning unsold clothes. 2019 could see the stepping-up of actions across governments to continue to scale leadership in this space, in particular with France’s G7 presidency.
Collaboration is key While the momentum and positive progress is clear, we still have a long way to go. The Circular Gap Report reminds us that still only 9% of the resources put into the economy get reused. This remains unchanged from the previous year. With PACE scaling up its efforts in 2019 in collaboration with the World Resources Institute and other partners, scaling leadership, tapping into innovation potential and starting to shift global material streams away from linear models, we will hopefully see the trend improve when we revisit progress in 2020. This will, however, require more than tinkering around the edges of our current system. We will need to think about how we can take efforts like the Loop Alliance or Ikea’s leasing-based furniture pilot from the fringes and onto the main stage.
Ikea has announced a move towards a furniture leasing-based business model.
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