NZ Manufacturer March 2021 by Media Hawkes Bay Limited

March 2021

www.nzmanufacturer.co.nz

9 MANUFACTURING TECHNOLOGY

Mike Shatford on the year ahead.

THE CIRCULAR ECONOMY Re-thinking how we use materials in a circular economy.

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

www.akiwioriginal.com

VIEW 27 REAR Why haven’t construction companies demonstrated notable improvement?

High demand and growth puts pressure on manufacturing sector The beginning of 2021 is proving a headache for the manufacturing sector and it could be some time before the pain relief kicks in. The cost of sourcing materials, increased demand, and supply issues are some of the areas industry is grappling with, according to Helen Down, Chief Executive of the Hutt Valley Chamber of Commerce. “It’s clear supply issues are continuing to have an impact as manufacturers are unable to source their

raw materials in a timely or cost effective manner. With limitations to international travel, we are witnessing a dramatic change in customers buying habits, with people spending their money on home and recreational products. “This puts pressure on businesses who can’t keep up with demand in specific areas,” she said. “A wide range of businesses are finding it extremely time consuming to source raw materials. Some components are simply not available, and won’t be available, for many months, coupled with rapidly rising costs for materials.”

continued on Page 24

Can you spend your way to world class? -Ian Walsh, Managing Director, Intent Group Limited I was recently reflecting on a discussion with a company that, like a few at the moment, has seen rapid growth due to increased demand for their products. They reviewed their ability to meet this demand and concluded they need to expand their facilities. This makes sense – interest rates are low, banks are keen to lend, so why not invest in new plant and equipment? Indeed, why not? “Have you optimised your current plant and equipment?” was my response – even if capital is readily available, why spend it if you can meet your needs with what you already have? In my experience many companies don’t know their true

process potential or capacity. Obvious moves such as crewing all shifts and running through breaks have not been implemented, let alone proper debottlenecking and flow improvements. These combined efforts can lead to significant increases in throughput (in many cases 2-3 times) and avoid the need for investment altogether. There’s an assumption that by buying new equipment all the problems will go away and a warm rosy glow will shine on the business – this is rarely the case. Not unless you have deeper pockets than your

continued on Page 25

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oin

CONTENTS Contents

DEPARTMENTS

11 LEAD LEAD High demand and growth puts pressure on Get your carbonsector. diet on track. manufacturing Can you spend your way to world class?

4 EDITORIAL 4 EDITORIAL When EMEX 2021 comes to town. We’re big coal users. BUSINESS NEWS 6 NEWS 6 BUSINESS Manufacturing in the age of sustainability.

Digital Boost is just that. Is NZ’s Covid response world class? Futureproofing your manufacturing business UKK’s CPTPPrisk. a win for exporters. to mitigate

MANUFACTURING TECHNOLOGY TECHNOLOGY 8 MANUFACTURING Hitachi Industrial Edge Computer NZ Codelaunches can make manufacturing more CE Series. competitive. In Conversation – Mike Shatford. Dewalt Design Assist breaking new ground. In Conversation – Sean O’Sullivan.

ADVISORS Kirk Hope

6 8

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.

Ian Walsh

8 12

ANALYSIS 10 ANALYSIS 10 Time for change.

Ian is Managing Director of Intent Group, a master black belt improvement specialist and global lean practitioner. He is passionate about improving productivity and helping to create world class New Zealand businesses.

Do you know your food rules? Anatomy of a data-driven supply chain.

PACKTECH 12 EMEX 2021 14 FOODTECH The importance of Foodtech Packtech show in Floor Plan and Exhibitors. -15 2021. ANALYSIS CIRCULAR ECONOMY 14 THE 16 Three shiftscarbon can scale the circular Achieving neutrality: Oneeconomy. company’s lessons learnt. Students and SMEs hold key to ending waste. Additive Manufacturing: Re-thinking how we use materials in a circular economy. SMART MANUFACTURING

Leeann Watson

14 9

17 Australia launches lunar exploration mission. MANUFACTURING 17 SMART Cutting edge tool for underwater recovery.

22 23 25 25

Lewis Woodward

Combining smart materials and additive manufacturing. Matrix 320 reader empowers traceability for automationPowerTag and logistics. PowerLogic Energy range expanded.

cutting software. Kemppi’s X5 FastMig industrial welder is NEW PRODUCTS “outstanding”. Structural bearings deliver extreme low-level Three steps to energy efficient motors. friction performance.

15 18 19

QUALITY CONTROL 21 MACHINE TOOLSmanufacturing at the NDC sensors control 21 Rotary Tube Pro 3 update of tube and pipe fromt line.

Cost-effective and lubrication – free mounting DEVELOPMENTS of solar panels. Revamped 2021 Diversity Awards NZ open for AC Servo System provides highest-level safety. entries. Industry-led quality assurance scheme reaches DEVELOPMENTS new heights. Mint Innovation raises $20m to build gold NEW PRODUCTS biorefineries. Aqueous heatersteam ends hot waterfor wait. HRS highlights injection food Disinfecting sterilisation.robot prepares for return of students. Is automotive ready for hydrogen?

REAR VIEW VIEW 27 28 REAR Why haven’t construction companies

Climate Change Commission calls for decisive demonstrated any notable improvement over action. the last 20-30 years.

Is the Chief Executive of the Canterbury Employers’ Chamber of Commerce (the Chamber).and is a strong voice for Canterbury business.

25 22 28 27

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.

Brett O’Riley

EMA chief executive Brett O’Riley has a background in technology and economic development. Brett actually grew up with manufacturing, in the family business, Biggins & Co. He currently holds board roles with Wine Grenade and Dotterel Technologies and is also on the NZ Film Commission board.

We’re big coal users

PUBLISHER Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.

Its common to sling the mud at Australia about its coal mines, reliance on coal and exports to South Asia nations. But its something else to realise that New Zealand has been importing coal at levels not seen in 14 years.

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

CONTRIBUTORS Holly Green, Barbara Nebel, Ian Walsh, Simon Ganley, Ian Hosie, Kevin Dherman, Sean O’Sullivan, Stephanie Pretorius, Mike Shatford

1.1 million tonnes were imported into New Zealand last year, much higher than the combined total for 2018 and 2019.

ADVERTISING

Why is this happening? Because the Government three years ago banned exploration for natural gas.

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

We even had a climate – change emergency in December last year with coal imports 41 percent higher than in December 2019.

DESIGN & PRODUCTION

Food for thought? The 2018 ban on companies exploring for natural gas has caused this spike.

Kim Alves, KA Design T: + 64 6 870 8133 E: kim.alves@xtra.co.nz

New Zealand’s manufacturing sector saw a slower rate of expansion during February, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

WEB MASTER Julian Goodbehere E: julian@isystems.co.nz

The seasonally adjusted PMI for February was 53.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was down 4.6 points from January.

PUBLISHING SERVICES On-Line Publisher Media Hawke’s Bay Ltd

PMI Time Series Table

DIGITAL SUBSCRIPTIONS E: publisher@xtra.co.nz Free of Charge.

MEDIA HAWKES BAY LTD T: +64 6 870 4506 F: +64 6 878 8150 E: publisher@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992

Vol.12 No. 2 MARCH 2021

National Indicies

Feb 2020

Oct 2020

Nov 2020

Dec 2020

Jan 2021

Feb 2021

BNZ BusinessNZ PMI

54.1

52.2

54.9

48.3

58.0

53.4

Production

54.9

51.9

55.4

52.4

59.3

57.3

Employment

51.5

52.3

51.3

49.8

56.1

49.8

New Orders

56.2

53.2

56.7

50.5

62.8

56.2

Finished Stocks

53.5

49.3

59.5

45.3

52.9

51.2

Deliveries

53.6

49.1

51.6

45.0

48.8

47.6

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.

Doug Green

NZ Manufacturer March 2021 /

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Success Through Innovation

EDITORIAL

Media Kit

2021

Includes Editorial Calendar

y r o t s r u o y l l e t We www.nzmanufacturer.co.nz

publisher@xtra.co.nz www.nzmanufacturer.co.nz

NZ Manufacturer March 2021

Business News Digital Boost is just that Manufacturing in the digital age

changing, I am able to edit it myself.”

The manufacturing industry is not often associated with social media, digital marketing or website development. With the introduction of the government’s free Digital Boost online learning tool, we caught up with a small Kiwi manufacturing business that is bucking this trend.

He also put a shop on the website to allow customers to purchase online easily.

Haumoana, Hawkes Bay based Raw Concrete Design says that it has benefited from digital upskilling. The business manufactures a range of concrete products including basins, vanities, tables and unique one-off creations such as bars and benchtops for residential and commercial clients. Owner of Raw, Toby Payton, uses concrete reinforced by fibreglass. This removes the need for conventional steel reinforcement, leading to a lighter, thinner and stronger final product. According to Toby, the use of digital tools has been instrumental in his business success. “It is all about streamlining your business and cutting out clutter to try and make life easier.” Toby has successfully used websites, social media and job tracking software to market his products and keep track of projects. With a background in human resources and no understanding of website development, Toby said he decided to build one himself. “It was a big learning curve. But I now understand the backend of it, which means as things need

NZ Manufacturer March 2021 /

“The website adds credibility to the business - it was a great feeling when the first product sold.” The Raw website uses Stripe, an online payment platform that allows for quick and secure online payments. To market his products, Toby turned towards social media platforms Facebook and Instagram. While Facebook enables a broad range of content, Instagram is focused on image-heavy, content-rich posts. According to Toby, his social media accounts had a rapid following from day one. He also posted on the New Zealand Made Products Facebook group, now known as Chooice and received more than 2,500 likes and 350 comments. “Other businesses were sharing our posts. We also did some giveaways, which helped grow the follower count.” He thinks his products are successful on social media because they are visually appealing. “We are producing aesthetically pleasing work, which helps attract people. These followers often turn into leads and sometimes sales.” Raw is also looking at using a job tracking program called Fergus. It helps businesses keep jobs on track, manage costs and find profitability.

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In partnership with the private sector, MBIE has set up the Digital Boost program, which is designed to encourage small businesses to upskill their digital capability as Toby has. Participants are taken through six categories - digital marketing, digital tools, small business accounting, business insights and future technologies. It is aiming to train 50,000 participants across New Zealand this year. Toby recommends using the various digital technologies found in the digital boost curriculum. “It’s a free tool which helps you to understand how digital tools can better your business.” “Accounting, marketing, social media and other tools can be used to streamline your day.” Toby is now searching for a bigger place to expand the Raw manufacturing operation and take on new staff members. Digital Boost is free for any registered business to sign up www.digitalboost.co.nz. It is a self-paced learning journey, with no assessments, daily Q&A sessions, regular fireside chats and access to support people.

Business News Futureproofing your manufacturing business to mitigate risk By Kevin Dherman, Chief Innovation Officer at SYSPRO In 2020, Industry 4.0 technologies played a decisive role in many manufacturers’ pandemic responses and it helped these companies to keep their operations running during the crisis. Many were able to keep operating in the face of shortages of workers or raw materials, whilst others struggled to keep up with the sudden spike in demand. How did Industry 4.0 technologies help those companies in their efforts to reduce the negative impacts of the crisis and reduce the risks for their business? The SYSPRO 2020 Manufacturing CFO 4.0 Survey, which was conducted in October 2020, shows how manufacturers and distributors handled the operational shifts brought on by Covid-19. It revealed that 60% of manufacturers and distributors were impacted by supply chain disruptions. 47% of businesses were unable to function due to operational staff reliance on-site; while 29% of businesses felt that their business systems did not provide them with the availability and accessibility to manage the changes that the pandemic introduced. As these businesses attempt to stabilise, many are considering adopting emerging technologies and Industry 4.0 to mitigate the risk of major disruptions in the future. The challenge for many of these businesses is understanding which technologies to adopt, when to pursue this transformation and how to budget for it. There are several Industry 4.0 technologies that have real potential to help futureproof Australian manufacturing and distribution businesses in the next five years.

The automated warehouse It is important to note that transitioning to an automated warehouse is a long and expensive journey. In most cases, it will take three to five years for manufacturing and distribution businesses to be fully automated. At which point there will still at least 65% of workers still in the warehouse.

This is because the automation augments the human capital, it does not replace it, particularly in smaller manufacturing plants. There has been a shift due to the pandemic and we are seeing more of a push for robots to overtake that augmentation to fill a more autonomous role to decrease the possible transmission of disease for example, but what we are seeing at this point is baby steps. We are a long way from a fully robotic scenario with remote monitoring.

Contactless payments What we have seen globally through this pandemic, is that manufacturers started their shift first with online shopping, and then contactless delivery in some instances using robots to enable social distancing. There has been increased implementation of digital and contactless payments. One of the first areas manufacturers can start to make changes is to reduce paper-based systems, and to work on making their distribution more contactless, particularly at the point of delivery. There have been a lot of different approaches in different countries, from robot baristas, drone coffee deliveries to delivering groceries from trucks to front doors using robots. Many manufacturers are still using paper-based systems, so from the time they capture the order, to when it gets printed in the warehouse, picked, packed and delivered, it has been through multiple points of contact. For companies that are running an ERP system, this process can be easily automated and when it comes to devices, most people today have smartphones or tablets that can be used to facilitate it. Particularly for smaller manufacturers, the advent of Bring Your Own Device (BYOD) means that there will not be a huge outlay for specialist devices, so it is an affordable way to start their digital transition.

eCommerce Another way that Australian manufacturing and distribution businesses transitioned during the pandemic was to take their businesses to the cloud, to facilitate work-from-home environments. This allowed for more agile online shop fronts where orders could be automatically captured and processed. There has been a huge increase in online shopping during the pandemic and many organisations have had to upgrade their online presence to enable eCommerce. Those manufacturers who had the foresight to move their technology forward a year or two ago and upgraded their ERP systems were able to pivot quickly to plug in payment gateways, which made a big difference for their businesses. The ability to also plug into a connected supply chain and make use of an established third-party system for the retail and distribution of their products also proved a winning combination. Looking forward it is important to be agile enough to withstand sudden potentially hugely impactful events, such as war or future pandemics.

Baby steps The secret when planning a digital transformation is to look at an organisation’s immediate needs and choose technologies that can help them to unlock the most value, for the least amount of stress and a more realistic cost. Interconnected technologies are the best option, because if everything is connected, there will be a big reduction in the need for paper-based systems. Most organisations have existing technology that they can use, so you do not need to incur costs of buying it all new. A few baby steps like that will take you further into futureproofing and risk-proofing your business.

Self-employed Kiwis selling themselves short on tax Analysis of user data by accountancy and tax app Hnry has revealed that less than a quarter of one percent of self-employed Kiwis need to set aside a third of their income for tax, yet thousands are still being advised to do so. For years, people earning independently - whether self-employed, sole-traders, freelancers or contractors - have been advised by accountants and tax agents to hold back 33 percent of their income to cover income tax, even though having an overall tax rate of that amount is extremely unlikely. In fact, if you earned a whopping $10 million per year, your income tax rate would still only be 32.9 percent, says Hnry CEO James Fuller. Fuller says self-employed Kiwis could be utilising their own money in a far more beneficial way if that outdated and archaic advice was overlooked. “When I first became self-employed a few years ago,

I was told on good authority to ‘hold on to 33 percent of everything I earned’ to cover income tax, and to put away any GST I collected on top of that. Putting away the additional 15 percent for GST made sense that’s a flat percentage - but I questioned why I was advised to put away so much for income tax”. Fuller says it seemed like this was just the established way of doing things and he could only assume that as 33 percent was the top income tax rate in New Zealand at the time, it was based on being safe rather than sorry, or that ACC bills were included. Even so, however, it is still too much to be setting aside based on most people’s actual annual earnings, he says.

“Will we see a surge of people putting 39 percent of their income into their savings accounts, only to see it gain little or no interest in the current economic climate?” “I wonder what the next wave of inefficient, old-school advice will be. For those wanting more accuracy, any good accountant should be able to provide you with up-to-date estimates of all your tax rates on a regular basis - and if they can’t or won’t, it may be time for an upgrade”.

Fuller says that with a new top rate of tax of 39 percent coming into effect from April 1st this year, it remains to be seen whether people will react by putting even more of their money aside.

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NZ Manufacturer March 2021

Manufacturing Technology Hitachi launches Industrial Edge Computer CE series Hitachi has launched the Hitachi Industrial Edge Computer CE series embedded AI model, that was developed in collaboration with Intel Corporation. The product, an integration of Intel’s AI technology and Hitachi’s highly reliable control system design and manufacturing technologies, is a new model that incorporates an image analysis execution platform using AI and deep learning. Through providing this product, Hitachi contributes to the expansion of digital transformation, such as streamlining and automating tasks that rely on visual checks (the inspection process for finished products in the manufacturing industry) and solving management challenges using on-site data. Manufacturing companies are facing many challenges, such as the need for the improvement of on-site work efficiency and the development of a new generation of expert workers, so they are implementing a digital transformation using IoT, AI, and other digital technologies. This trend has been accelerating amid the spread of the Covid-19 pandemic, especially with an urgent need for personnel allocation measures to maintain physical distance between workers on site. In order to fulfil these objectives, it is important to automate and conserve the labour used in visual inspections and other conventional inspections that rely on the sensory judgement of expert workers. Yet, in order for companies to enhance their competitiveness, rapid problem solving and decision making are also required by optimising the entire production tasks and making effective use of management data through the collection,

NZ Manufacturer March 2021 /

processing, and analysis of data from on-site devices. Against this backdrop, Hitachi collaborated with Intel and developed Hitachi Industrial Edge Computer CE series embedded AI model as an edge computer that will enable the effective allocation of on-site workers and achieve automation and labour saving. With a built-in image analysis execution platform that uses Intel’s AI and deep learning, the product will allow the easy introduction of solutions using AI functionality on site. For example, incorporating an application that analyses images from a variety of cameras installed on site determines whether the assembly work is being done correctly according to procedure. The product can reduce the need for manual inspection of finished goods, resulting in labour saving. In addition, data integration and data sharing with existing business systems can be performed on this product, with an application that collects data from a PLC(1) and other on-site devices, images of the on-site environment, and data related to power voltage, vibration, temperature and relative humidity. These enable rapid identification of the affected range in the event of defects, and the detection of environmental changes that may affect the quality of finished goods, contributing to the reduction of loss costs and improvement of the quality of finished goods. Furthermore, the product makes it possible to integrally monitor multiple remote production bases and lines, which is expected to optimize the production activities of companies.

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Intel’s OpenVINO toolkit is pre-installed on the image analysis execution platform of this product to leverage AI and deep learning. By using a variety of pre-trained models that are optimised via the OpenVINO toolkit on the CPU, the detection of objects, estimation of structures, and other solutions using AI functionality that could not be achieved by conventional embedded devices can be easily performed. With its thermal design that encompasses Intel’s Atom processor’s low power consumption feature and Hitachi’s knowhow gained through the development of Hitachi’s information and control systems, the product achieves a fanless, slitness, and spindleless structure that can also be installed in harsh environments, such as manufacturing sites. Going forward, Hitachi will continue to collaborate with Intel’s AI technologies and ecosystems, and will offer platform products that enable control using AI. Offering products supporting Lumada, which is accelerating digital innovation, Hitachi will expand collaborative creation with partner companies and customers, and contribute to digital transformation in a wide range of fields across Japan and global. (1) Programmable Logic Controller (PLC): Control unit for a variety of machines in factories that was developed to replace relay logic systems

Manufacturing Technology In Conversation

Mike Shatford, managing director of Design Energy on the year ahead.

Design Energy does what?

What is your key focus for this year?

We develop and deploy new ways of automating factories and laboratories, and we focus on processes that robots are good at.

Working with customers who’s products and processes (and culture) align with and can benefit from our robotic automation solutions.

This is valuable to our customers as automation is a proven contributor to productivity, profitability and business sustainability.

Where do you see areas of growth for Design Energy?

How has 2021 started out for you? The EMEX show was important for us to connect with industry and it was a blow to have it be cancelled. Despite this setback 2021 looks like it will pan out well for us. How is your company finding current business conditions? Restraint in capital expenditure during 2020 definitely slowed large project sales, however we remain busy in other areas of the business.

In Conversation

So we see our future in developing value dense, small footprint automated systems that solve entire problems for the end user.

In New Zealand our production mix (volumes, variants) often don’t fit with ‘off the shelf’ solutions. This is why we are a bespoke automation solution provider and why we are enabling manufacturing to be internationally competitive and to stay in NZ. How easy is it to find qualified staff? NZ is behind in automation in comparison to other countries – small local market, lower levels of investment in business, the trickier SME production.

Do you have expanding markets?

Because of this NZ tends to be short on the more highly experienced engineers, especially in areas such as robotics engineering, bespoke machinery design and product design for automated manufacture.

Yes, every business which is involved in highly repetitious production or processing is likely to be considering how automation could work for them,

We are however blessed with Mechatronics and Mechanical graduates from our local tertiary institutions – University of Canterbury and Ara.

Sean O’Sullivan, founding director of Empower Marketing NZ Ltd has a chat with NZ Manufacturer.

How is your company experiencing current business conditions? This year, from 1/1/2021 to 22/2/2021 some 7 week period our sales are up approximately 500% from same period on previous years What does your company do? We develop, supply and support the Empower Workshop Productivity and Scheduling Software App to SME and larger manufacturers and engineers, throughout Australasia and further afield. We develop and own all our code and other IP. Our manufacturing and engineering clients set up tablets or touch screens on their workshop floor for staff to access their jobs. Empower schedules all work and tracks jobs, tasks and individual staff in real time. Our clients also set up 50 inch TV monitors in their offices and workshop floor for all workshop staff, all administration staff and all management to see all jobs, tasks, individual workshop staff and all times in real time and this real time accurate time reporting is presented continuously throughout the day. Empower is cloud and web based and developed in the latest technology stack. With touch screens on the workshop floor and labour management and scheduling software driving more of today’s manufacturing and engineering businesses, management must quickly master this technology. This technology generates industry proven 20% to 40%+ reduction in labour time on jobs therefore 20% to 40%+ reduction in labour cost on jobs. Such labour cost savings project to increase annual profit by 60% to 120%+. This is ‘radically disruptive technology’ manufacturing and engineering businesses.

We are strong in the automation of complex, multi-facetted processes where we often mechanise entire processes from raw material to the finished article.

and what it will do to the bottom line.

for

Do you export? Yes in excess of 50% of our sales and business is to

Australia and other export markets including US, Canada, England, Scotland, The Philippines and South Africa How has Covid-19 affected your company? 2020 enquires and sales were down. 2021 so far sales are up approximately 500% from same period on previous years. Where do you see the opportunities for your company to grow? After 18 years’ development we are world leaders in workshop productivity and scheduling software in our space. 90%+ of our manufacturing and engineering clients achieve 20% minimum reduction in job times and 20% minimum reduction in labour costs within 6 months and they achieve significant gains in workshop productivity in the first week of using Empower. We see “hockey stick” exponential increases in sales continuing throughout 2021 driven by 4 factors:

If you are a business owner or business advisor to manufacturing and engineering you need to be aware of this rapidly disruptive technology 2 Word of mouth referrals and recommendations from our 240 very satisfied existing clients. 3 Since the Covid pandemic, manufacturers and engineers in Australia and New Zealand have placed more focus on workshop productivity and the importance of driving down labour time and costs on jobs to remain highly competitive and profitable. 4 Industry “followers” and “laggards” now following their competitors who are already using this technology. We are hoping the NZ Government will get behind SMEs and larger manufacturers and engineers to build regional production, employment and the New Zealand economy.

1 Empower Software’s latest investment in new highly effective web site – which profiles 79 of our clients and 14 production management experts. No other software App in the world, that we are aware of, has a remotely similar level of documented proof of their scheduling and labour tracking software working anywhere near as effectively as Empower Software.

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NZ Manufacturer March 2021

Analysis Do you know your food rules? If you import, grow, manufacture, process, store, transport, or sell food and beverage products, you need to meet food safety requirements, including registering with New Zealand Food Safety or your local council. New Zealand Food Safety (a business unit of the Ministry for Primary Industries) is urging owners/ managers of all existing New Zealand businesses that trade in food, to find out if they need to register a plan or programme. This includes transportation, food service and food manufacturing businesses. Even if food is only a part of a business’s activity, registration may still be needed. New Zealand Food Safety’s Director of Food Regulation, Paul Dansted, says registration helps to ensure food is safe and suitable for customer use, and provides an important link in the chain to assist in tracing food products if a problem is identified.

says. “Some foods and manufacturing processes pose fewer food safety risks than others.”

Zealand Food Standards Code, if sold in New Zealand or Australia.

If you need to register, start the registration process right away! The good news is that it’s easy to do. Go to www.foodsafety.govt.nz/myfoodrules and complete the online questionnaire to find out:

The majority of food sold in New Zealand shops must be labelled. Labelling and composition information, in English, helps consumers to make an informed decision about what to buy, whether it meets their dietary needs, and, if they have a known food allergy, it can help them choose foods that do not contain that food allergen. Incorrect labelling is a major cause of recalls.

• which plan or programme you need to use; • how to register your food business; • who can verify (check) your business.

To help, New Zealand Food Safety has produced labelling guides, including for hemp seed products, alcoholic drinks and honey – available at www. foodsafety.govt.nz/toolkit.

“Food rules are more flexible than they once were, when they used to focus on the place food was made and facilities provided,” Dr Dansted says.

Do you import food and beverages for sale?

“These days, there is a more common sense, risk-based approach to food safety – which puts food businesses in the driver’s seat when it comes to managing any food hazards that might arise.”

Some sectors where importers are not properly registered are: processed food; health and dietary supplements; alcoholic and non-alcoholic beverages; fresh fruit and vegetables; grains; seeds; and nuts.

New Zealand Food Safety also made it easier with a single registration that can cover multiple sites, which provides greater value and flexibility.

If you want to import food and beverages into New Zealand, you must: • Be registered as a food importer with New Zealand Food Safety or use an agent who is registered. For details, go to www.foodsafety.govt.nz/register-asa-food-importer

Unregistered businesses risk fines, delays, prosecution and recalls If you trade in food, you need to register as a food business (with a few exceptions) under either the Food Act 2014, Animal Products Act 1999 or Wine Act 2003. The rules apply if you: • grow horticultural crops; • manufacture fruit, vegetable, meat, fish, poultry, egg and dairy products; • process harvested foods (such as grain, herbs or spices, nuts and seeds); • brew, ferment, distil or manufacture alcoholic or non-alcoholic (inc. vinegar and malt extract) beverages; • prepare, serve or retail food (whether from a shop, a market stall, online and via social media); • transport or store food (such as providing a food storage and distribution service); • import food or beverages for sale (including ingredients); and/or • ‘give’ food away to promote your business. “For manufacturers, what you need to do depends on the type of food you make or sell,” Dr Dansted

“If you are already registered, you can use My Food Rules to check if you are on the right plan or programme for your business,” Dr Dansted says. “There could be a better option.” If you don’t register, New Zealand Food Safety and local councils may take enforcement action (ranging from educational advice, warnings and instant fines, through to harsher penalties including preventing your business operating and prosecution). If you import food, and are not correctly registered, your consignment may get stopped at the border and may not be allowed into New Zealand, it may be delayed, or your foods may be recalled. Either way, this will cost you more. Your customers may also refuse to accept your goods or use your services if you don’t comply with food safety requirements.

What about labelling? The composition of your products and associated labelling must meet the rules in the Australia New

• Check that the food you are planning to import for sale is safe and suitable. o Know the ingredients in the food so that Australia New Zealand Food Standards Code rules can be met, such as correctly labelling the presence of allergens. o Ensure the food is stored and transported safely. o Keep good records to show how you’ve sourced and kept food safe. o Have a plan in place to recall any food you have imported, knowing who you sourced it from and sold it to. • Comply with other New Zealand laws, including the Biosecurity Act 1993, and Customs and Excise Act 2018. Find out more at www.mpi.govt.nz/importing-food Any questions about food rules? Contact New Zealand Food Safety at foodactinfo@ mpi.govt.nz or 0800 00 83 33.

More money to hire people gives business a boost More money to hire people will help its SME business members get back on track after COVID-19, says the EMA. “The expansion of the Government’s Flexi-wage initiative is great news and will give businesses a confidence boost and those out of work more options,” says Chief Executive Brett O’Riley. Businesses can now receive an average of $7,500 per employee, which will help them take on new workers as they regenerate.

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It is also pleasing to see the self-employed being supported

people to get back into work this is a win-win,” says

“Coupled with the fact that it will provide more opportunities for all of our 40,000 unemployed

help with training or in-work support for a new

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Mr O’Riley. He says it is also pleasing to see the self-employed being supported - through $30m in ring-fenced funding - and those out of work wanting to start their own business. “It’s also great that Flexi-wage can be used to employee,” he says.

HEADING title text

Chocolate

Do you grow, manufacture, store, transport, or sell food & beverage products? There are food rules you need to follow. It’s easy. Go to foodsafety.govt.nz/myfoodrules to find out: • the plan or programme you need to use • where to register your business, and • who can verify your business.

Do you import food & beverage products? • You must be a registered food importer (or use a registered agent). Go to foodsafety.govt.nz/ register-as-a-food-importer • You may need a registered plan or programme. Go to foodsafety.govt.nz/myfoodrules

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Any questions about food rules? Contact New Zealand Food Safety at foodactinfo@mpi.govt.nz or phone 0800 00 83 33 www.nzmanufacturer.co.nz

NZ Manufacturer March 2021

FOODTECH PACKTECH Food and beverage led economic recovery highlights the importance of Foodtech Packtech show in 2021 Locally and globally the environment, freight, food safety, traceability and security are becoming increasingly relevant to consumers and governments. As people ask where their food came from, food and beverage manufacturers need support and expertise to ensure that they meet the demands of buyers and legislators alike. It is times of intense change where a trade show spanning decades provides vital support to the industry by showcasing new technology, products, solutions and know-how. Meeting industry specialists is essential to helping you innovate and stay relevant through New Product Development and Process Improvement. Running from April 13 to 15 at ASB Showgrounds the co-located Foodtech Packtech and Materials, Handling and Logistics Expo give visitors the opportunity to meet over 200 new and existing suppliers in packaging, ingredients, logistics, machinery, technology and much more. Whether you are looking to take your new plant food solution the rest of the world, launch the family’s secret sauce or ensure that your multimillion-dollar global company is keeping up-to-date, this show will help you achieve your goals. Packed with features the event is a one-stop shop, with two shows key to the food and beverage

industry under one roof. You will meet new and existing suppliers, as well as industry experts, and associations, so you can help New Zealand kick start the economy. Seminars With 32 seminars and workshops across three days, you are connected with the experts and answers to your most pressing food processing, manufacturing, packaging, sustainability and distribution questions. Business Growth Hub The show’s Business Growth Hub is supported by the Food Innovation Network, Auckland Unlimited, NZ Food Awards, Callaghan Innovation, New Zealand Trade & Enterprise and New Zealand Institute of Food Science & Technology Inc. You can book a one-on-one session at https://www.foodtechpacktech.co.nz/visitor-information/business-growth-hub/. Digital Lean Introductory Workshop A Digital Lean Introductory Workshop is offered on Wednesday 14 April, facilitated by Callaghan Innovation’s Robert Blache and strictly limited to 30 people, with a maximum of three per company. The interactive workshop is for businesses that have a Lean culture in place, and explores how Callaghan Innovation’s Digital Lean programme can boost your competitive advantage through Industry 4.0, the fusion of technologies that’s blurring the lines between the physical, digital and cyber-physical. Design for Manufacturing

Additive

Foodtech Packtech is hosting a two-day Design for Additive

• • • • • •

Over 200 exhibitors Business Growth Hub Callaghan Innovation workshops 3 full days of seminars presented by the industry’s leading experts Rapid learning cycles workshop DfAM 2 day training course

Manufacturing course, across two days, run by Olaf Diegel, Professor of Additive Manufacturing and Head of the Creative Design and Additive Manufacturing Lab at the University of Auckland. The course is available to a limited number attendees for $195 + GST on a first come, first serve basis and includes lunch and morning/afternoon breaks. Time-poor visitors use Foodtech Packtech and the Materials Handling & Logistics Expo to find answers, catch up with existing suppliers, attend free seminars, join relevant workshops and meet specialists for advice. At no other time has an event like this been so important to the progression and profitability of the sector. Take advantage of the local and global trust in New Zealand food and beverages and optimise your full supply chain potential by connecting with the experts. Foodtech Packtech is an excellent opportunity to network, discover and get excited about the future of your business. Show registrations are ahead of 2018, demonstrating the importance that Foodtech Packtech holds as New Zealand moves toward a food and beverage led economic recovery. Free to attend for all industry professionals, simply visit www.foodtechpacktech.co.nz to register today.

Featuring

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Where New Zealand’s food & packaging innovation takes off

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NZ Manufacturer March 2021

The Circular Economy Three shifts can scale the circular economy Approximately $57 billion of global electronic waste is generated every year. Additionally, food loss and waste accounts for $950 billion in lost value – a number equivalent to the Netherlands’ annual GDP. Given the twin crises of the pandemic and the global economic downturn, system reset is more relevant than ever. It’s time to leave behind current wasteful and polluting models to usher in better growth-based business models and innovative regenerative strategies.

Foundation’s Jeans Redesign, which brings together key brands working towards a world where clothes never become waste.

Such a transformation is possible – but requires scaling circular economy solutions and forging new collaborations, across businesses, governments, researchers, financial institutions, and civil society organizations.

Such projects reflect the growing recognition that circular design is a significant business innovation opportunity, one that allows us to create value without relying on the consumption of finite resources.

Stepping up circular economy efforts globally will also mean triggering strategic shifts across sectors. To that end, these 3 shifts are key:

What’s needed next: Favouring circular design requires a host of measures that encourage and enable this shift. That could include increasing the supply of competitively-priced recycled materials in order to meet demand. It could also require investing in new technology and significantly scaling up facilities.

Design for circularity In the circular economy, waste is eliminated, products and materials are kept in use throughout their product lifecycle and natural systems are regenerated. Such an approach is dependent on systems designed with a focus on reuse, repair, refurbishment and (when a product can no longer be of use) recycling. That means changing what we produce and how we produce it – both in terms of inputs and when it comes to the end of its first useful life. It can mean adopting modular design, designing for renewable materials, designing for easy repair and disassembly, and designing new products with backwards compatibility in mind, so that parts can have multiple applications and be used longer. Making sectors circular: What change could look like • For consumer products (such as clothing): Shifting from textile blends that can’t be separated and towards natural fibres or blends that lend themselves to be cycled. • For consumer electronics: designing products with less raw materials and using more recycled plastics or parts, and designing for disassembly. • For capital equipment producers: Designing for serviceability, upgradability, modularity, and refurbishment. Who’s already benefiting: Many success stories already exist, such as the Ellen MacArthur

To date, over 65 organisations have committed to produce nearly 2.5 million pairs of jeans in line with the Jeans Redesign Guidelines by May 2021.

Policy makers also play a key role. Regulators could consider legislative incentives that include circularity in public procurement guidelines or tax incentives that encourage the use of reused, refurbished or recycled products and materials. Governments, businesses, and researchers can also collaborate to develop and harmonise the way we measure circular design, and to create and implement product design standards or repairability requirements. Shift to new business models There is huge growth potential for new business models that move away from short-lived products that quickly end up as waste. Where a business shifts to a ‘product as a service’ model, customers pay for any resulting value, outcome or service, but any physical products are owned by a business. Models such as subscription, rental, and re-commerce keep products and their components in use for longer periods of time while preserving and maximising value. This offers a clear incentive for companies to keep products and materials in use for longer. Meanwhile, customers benefit from being able to access products without the full cost of buying it upfront. Who’s already benefiting: New circular models already work well for capital equipment. Large machines such as MRI scanners or agricultural equipment are inherently of high value and it’s easy to make the business case for repair and refurbishment.

Healthcare customers have the opportunity to buy a refurbished MRI scanner, a pre-owned system that has been thoroughly upgraded and quality tested. Through these kind of practices, Philips no longer relies on the use of natural resources. What’s needed next: There is an important role for research organisations to develop new science-based methodologies and tools to guide new business model design and measure impact, and we also need to see governments and financial organisations provide an enabling environment to support companies implementing these kinds of circular business models. The incentives must be put in place for both consumers and business-to-business customers to return products through deposit and buy-back schemes, and refurbishment. At a consumer level, there is an important role for information campaigns, as well as initiatives such as pricing schemes that make circular solutions attractive. It will also be crucial for businesses to share their success stories and learnings to show the way. Resource management systems preserve value The fundamental shifts already described eliminate waste from the system through deliberate upstream strategies. This focus must be complemented by resource management systems that enable value to be preserved. Such an approach includes reverse logistics, the separation of technical and organic by-products to avoid contamination (and generate “clean” flows), and refurbishment and remanufacturing. It also means leveraging high-quality recycling facilities as a last resort. Who’s already benefiting: Investment in innovative recycling technology ensures that the maximum value of products and systems can be maintained for as long as possible. For instance, Apple’s disassembly robot Daisy can disassemble 200 iPhones an hour. This makes it possible to recover key materials (such as tungsten and rare earth magnets) in higher quantities and at higher qualities than most conventional recycling processes. Additionally, the Producer Responsibility Organization established in Nigeria, with the help of PACE and UNEP, has created one model for a circular electronics system to be applied in Nigeria and replicated across other countries in Africa.

Philips, for example, is working with many others in this field as part of PACE’s Capital Equipment Coalition.

By convening public and private partners it supports the recovery of valuable materials at the end of their use for their reuse in local production processes and the safe handling of hazardous components.

Following the World Economic Forum pledge in 2018, they are now repurposing all large medical equipment that becomes available to them in a responsible way.

It also strengthens the enabling conditions for a self-sustaining system of extended producers’ responsibility legislation for the electronics sector in Nigeria. “Only with collaborative action can we realize systemic change needed to scale circular innovation.”

continued on Page 24

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The Circular Economy Students and SMEs hold key to ending waste Robots that can sort e-waste ready for recycling and 100 per cent biodegradable food storage inspired by bananas are just two of the award-winning ideas from the inaugural India-Australia Circular Economy (I-ACE) Hackathon held this month, hosted by Australia’s national science agency, CSIRO, and NITI Aayog Atal Innovation Mission (AIM). Almost 80 teams of students and small and medium businesses from India and Australia turned their collective minds to solving the world’s global challenges with a focus on stopping waste and creating sustainable business practices. The concept of the I-ACE Hackathon originated last year at a virtual summit where the Prime Ministers of both countries committed to working together on circular economy innovation initiatives. Honourable Prime Minister of India Shri. Narendra Modi expressed his words of appreciation to the young innovators. “All participants of this circular economy hackathon are winners and commend your spirit to innovate in this time of COVID 19. We are not the owners of all that mother earth has to offer, but merely its trustees for all the future generations to come,” Prime Minister Shri. Narendra Modi stated. “We [India and Australia] must explore ways to scale up innovative ideas and must look at consumption patterns and reduce ecological impact, not only in two countries but for the whole world. “Recycling, reusing, eliminating waste and improving resource efficiency should become part of our lifestyle. “The Power of youth comes from openness to new ideas, innovation and ability to take risk. “The strong India and Australia relationship will play an important role in shaping the post covid world.” Teams of Australia and India’s brightest students and most innovative start-ups targeted problems such as reducing packaging waste, avoiding waste in food supply chains, reducing plastics waste, and recycling critical energy metals and e-waste. CSIRO Chief Executive Dr Larry Marshall congratulated all the innovative participants. “CSIRO has a long history of collaboration and partnership with India on science and research, and we’re excited to be working together on achieving a zero-waste economy,” Dr Marshall said. “This is a big issue for the sustainability of our two countries, and indeed humanity, but it is a wickedly complex problem, and it will take many minds working together to solve.

Innovation Mission, NITI Aayog Mr. R. Ramanan thanked all the participants, organizers and others involved in the event. “The IACE Circular Economy Hackathon is a splendid example of innovation collaboration between India and Australia resulting from the commitments of Honourable Prime Ministers of Australia and India for responsible production and consumption in the virtual summit last year,” Mr. R. Ramanan said. “Atal Innovation Mission is proud to have partnered with CSIRO, Australia’s national science agency, in the launch and execution of the same resulting in some incredibly exciting ideas/innovations from the student and startup community of both the nations.” Four student teams and four SME teams each from Australia and India were awarded across the four themes. The winning teams are: Australia: • Charopy (Sydney, NSW) created a ‘Smart Bin’ solving soft plastic contamination by only accepting eligible containers and supplies real time data to sustainability managers to monitor impact and reduce costs. • Two Monocles (University of Melbourne, Melbourne, VIC) are focused on food delivery services without all the plastic. Box’Em is a reusable packaging service that partners with food delivery platforms to offer reusable containers for their deliveries via an app. • Greenbeans’ (Brisbane, QLD) pitch was two-fold: an AI platform for farmers to help make sense of the data available to them, and a system for converting waste into plant available nutrients – providing stable sources for farmers. • Plasticombat (University of Sydney, Sydney, NSW) will connect Australia’s National Foodwaste Baseline report and behavioural economics, connecting farmers to families and drive more conscious consumption. • GreenBatch (Perth, WA) is giving plastic waste a new life! Buying platform ‘Plastic Connect’ will connect manufacturers with plastic products – preventing the product from entering landfill. • The Planet Puff Girls (University of Sydney, Sydney, NSW) are pitching the introduction of the world’s first digital B2B marketplace for planet-friendly packaging. Through their marketplace, you can select greener packaging options, calculate your

impact and more. • Lyro (Brisbane, QLD) is bringing Wall-E to life; building robots to sort through e-waste to sort and find materials that can be re-used and recycled. • E-waste to Energy (Monash University, Melbourne, VIC) team is looking to revolutionise the way in which batteries are recycled – offering an opportunity to tackle a real source of waste, whilst creating jobs and a new market.v India: • Team-Bambrew is proposing a 100% water and tamper proof packaging product is made entirely from bamboo, offering a new way to transport food and other products in a sustainable way. • ModernPackers presented ‘panel-it’ - a sustainable, modular packaging solution which minimises the amount of material used. Using modular, inter-connectable panels which don’t require adhesives, the panels snap together and are an eco-friendlier packaging solution. • Adapt India designed cloud-connected sensors that give real-time information of your consignment anywhere on the planet, meaning you will know how your products are being maintained while in transit. • Burpp will use data analytics and machine learning to prevent 350,000 meals going to landfill in three years. • Recycle X are India’s first start up to manufacture building products from plastic, industrial and C&D waste that is eco-friendly, cost-effective, recyclable and certified. • EcoDabba were inspired by the practice of storing food in banana leaves and offer a 100% biodegradable food storage packaging that quickly biodegrades, replenishes the soil, and creates value for farmers. • Ziptrax Cleantech winning pitch uses Internet of Things (IoT) tech to monitor and improve the performance of their Li-ion batteries – a cleaner, safer, and more eco-friendly battery source. • Ecosafe is bringing waste producers together, pitching the development of an app that brings producers of waste together with the recycling units, refurbishing units, and repurposing units all under one roof.

“We believe industry and environment can be partners, instead of competitors, and we believe sustainability can be profitable – delivering economic returns and jobs, while also protecting our environment.” Mission Director Additional Secretary,

I-ACE is generously supported by the Australian Department of Industry, Science, Energy and Resources (DISER), AIM Atal Incubation Centre network, and various domain experts.

and Atal

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NZ Manufacturer March 2021

The Circular Economy Additive Manufacturing: Re-thinking how we use materials in a circular economy By Dr. Jim Goddin, Technical Director of Circular Economy at thinkstep-anz. http://www.thinkstep-anz.com/ The circular economy presents a more economically sustainable and lower-risk alternative to the highly wasteful, linear, take-make-dispose economy. The regenerative model proposed by the circular economy shows that when the things we make are designed to last, their economic value can be recovered for the benefit of the business. If delivered well, the circular economy can also provide significant environmental and social benefits. The circular economy presents key opportunities for products that rely on advanced manufacturing processes such as Additive Manufacturing. Additive Manufacturing (AM) — sometimes called 3D printing or near-net-shape manufacturing — is the process of building a part layer by layer through selectively fusing (or sintering) the material using a laser or electron beam.

• creating durable products that deliver value for longer. AM can be a key enabler for these so-called ‘inner loops’ of the circular economy.

Reducing material use with AM As a technique, AM focuses on the minimisation of materials and the optimisation of the product. In rapid prototyping, AM enables the production of whole assemblies in one go that would have previously required the manufacture of expensive, specialist tooling for each iteration. This approach is already widely adopted in the automotive sector by the likes of BMW. Air New Zealand also used this technique in collaboration with Auckland based Zenith Tecnica to rapidly prototype metal framing for their Business Premier cabin.

This layer-wise process delivers design freedoms that are unavailable in more traditional manufacturing techniques.

In production, AM can produce highly optimised designs that only contain the amount of material necessary to facilitate the desired function.

World-leading AM collaborations are incorporating Life Cycle Assessment principles when developing AM processes and parts, including the €18M (NZD $30M) AMAZE project — Europe’s largest and most ambitious metal additive manufacturing research project.

This is achieved by using materials simulation and topological optimisation — a mathematical process that optimises the material layout within a volume for a given set of loads.

Many AM projects also have a strong focus on resource efficiency. Metrics, such as the Material Circularity Indicator (MCI), enable us to gauge resource efficiency and in turn, quantify how circular products are. How then might AM be promoted based on circularity?

Recovering manufacturing value in a circular economy The circular economy is estimated to represent a $NZD $7.5T global economic opportunity. This massive economic value stems from the reduction of supply risks and the recovery of value that is currently lost through products which are designed inefficiently, under-utilised, or which otherwise go to waste. Recovering materials through recycling is a prominent part of the circular economy and serves an essential purpose in reducing waste. However, recovering raw material value only accounts for a tiny portion of the circular economy’s economic potential. The more significant value for most products is the value added to the materials through manufacturing. This is especially the case for products that rely on advanced manufacturing processes such as Additive Manufacturing (AM). Recycling doesn’t recover the manufacturing value. This is why the circular economy places a greater emphasis on: • reducing the use of materials in the first place • reusing or remanufacturing products and parts

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The ability to deliver optimised, lightweight designs has been a significant selling point for AM in the aerospace and automotive industries where weight reductions can provide substantial fuel savings and additional performance. Fuel savings are also part of the circular economy, which mandates a shift to renewable energy use and away from the linear burning of fossil fuels. The initial use of AM often resulted in a significant waste of the material powders used, which tend to oxidise when removed from the machine’s inert environment. Now most leading AM machines incorporate ‘in machine’ reuse and recover powder without removing it from the inert gas. This development seeks to deliver additional economic savings by recovering high-value feedstock. Consuming less material and producing less waste are fundamental principles of the circular economy. The material savings from reusing powders, avoiding tooling, optimising designs, and reducing fuel burn are tremendous circular economy developments.

Supporting the singles approach From a manufacturing perspective, inefficiencies can result from multi-material and multi-part products. Having multiple parts means introducing materials that serve no purpose other than holding the components together. As well as adding more weight and more time for assembly and disassembly, it also introduces additional points for failure. AM has already enabled significant part count reductions through integrated builds, where one

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printed part replaces many components. For example, by Dr. Jim Goddin incorporating internal cooling channels, as an AM ice cream mould from Tauranga based RAM3D demonstrates, AM can also reduce the need for complex, multi-material cooling systems. From a circular economy perspective, products containing multiple materials or material grades tend to be recycled less. An economic balance exists between the cost of disassembling a product into different materials and the value of the recovered material. If the cost to disassemble products is greater than the recovered materials’ value, there is a greater chance that the materials won’t be separated. Downcycling is then the most likely result — the materials are recovered at a lower quality and economic value due to cross-contamination. While there is still plenty of discussion over multi-material AM, the reality is that most manufacturers prefer to dedicate a machine to a single material to avoid the assurance risks associated with powder contamination. This tendency of AM to utilise single grades of material and reduce disassembly requirements enhances the product’s eventual recyclability. It lends itself to higher quality recycled materials, thus contributing to both facets of the circular economy.

Printing the future green Increasingly, AM is enabling the printing of parts on demand for various applications. Print on demand means that there’s no longer the need to maintain a significant inventory of components that might never get used. It also means that stock will never run out, meaning that legacy products can continue in operation for longer, again fulfilling one of the circular economy’s core requirements. The powder or filament required for AM can be the same for multiple components across multiple products, therefore minimising the overall need for materials within the business. Inventory for AM can be held anywhere for localised printing, as evidenced by installing an AM machine on the International Space Station. Getting new parts into space is notoriously expensive, but if you have the material and a printer, you can make whatever you need. Of course, AM isn’t the best solution for every product. The strategy for selecting AM as a manufacturing route should, however, incorporate circularity and environmental performance. Methods such as the Material Circularity Indicator (MCI) and Life Cycle Assessment (LCA) ensure that manufacturers can design for these benefits of AM and easily communicate them to the customer afterwards.

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.

Iain Hosie

Iain Hosie, Revolution Fibres, Technical Director and Founder Iain is the co-Founder and Technical Director of Revolution Fibres. Iain has been deeply involved in nanofibre production and the development of many unique nanofibre products in the past ten years. Iain co-founded Revolution Fibres in 2009 and led the business since 2012, taking it from a small start-up to a recognszed leader in nanofibre production. Iain has recently moved to the Technical Director role – with a focus on keeping Revolution Fibres at the forefront of textiles innovation.

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NZ Manufacturer March 2021

Combining smart materials and additive manufacturing title text

~ The potential for 4D printing in manufacturing ~ Chameleons can change color to attract mates, regulate body temperature or warn off intruders. Similarly, the development of smart materials that can change or react to specific environmental stimuli is being combined with additive manufacturing to allow scientists to design objects that can not only change color, but also change shape, in response to stimuli.

Adding a dimension Most manufacturing processes are subtractive. Whether it is milling, laser cutting or carving, this involves cutting out, removing or subtracting material. Additive manufacturing, or 3D printing, involves adding material layer upon layer. Originally used primarily for prototyping, 3D printing is beginning to have a profound impact on many manufacturing industries by allowing for more complex designs and reducing waste in the manufacturing process. It has also laid the groundwork for a further technological evolution: 4D printing. 4D printing was coined by MIT architect and computer scientist Skylar Tibbit in 2013. The term is a bit of a misnomer, as 4D printing relies on 3D printing. Rather than adding another dimension, 4D printing offers functionalisation over time. By combining smart materials with 4D printing, scientists and engineers can 3D print materials that change or modify in response to environmental

stimuli. These stimuli might include, for example, temperature, humidity, light or moisture.

From med tech to defence Objects that have this functionality programmed into them would have enormous benefits and a wide range of potentially transformative applications. Tibbit has stressed the potential of self-assembly, structures that could autonomously assemble themselves under certain conditions. In theory, this would make it possible to erect structures or even entire buildings in places that are usually hazardous or difficult to reach. Self-adaptability is the next key function that 4D printing promises. Imagine objects or structures that respond to weather conditions for example, by changing shape. This could help reduce costs as fewer parts would be involved in the assembly. A related function is reversibility. For example, scientists from the Singapore University of Technology have recently made it possible to develop this characteristic without either human intervention or the need for hydrogel. Until very recently, hydrogel was necessary to achieve this outcome, but this lacks mechanical strength and is therefore not suited to load bearing applications. The final possibility is that of self-repair or self-healing. Imagine implants that can self-heal and thereby limit the need for more invasive surgical procedures, or a leaking pipe on a battlefield that could repair itself without detection or intervention from human beings. The range of possible applications is exciting. Healthcare is an obvious starting point, with the ability to produce implants or stints that modify in response to certain conditions a fantastic opportunity

for medtech. For example, a tracheal stent ─ a tube placed inside a patient to enable breathing ─ could be manufactured with a seal that responds to a certain amount of pressure or water to help keep a patient safe. Military, aerospace and space applications are also possible. NASA has been developing woven metal fabrics that change shape and are foldable. This could be used for shielding spacecraft or erecting antennae in space. Airbus has been investigating how 4D components could reduce the weight and improve the performance of aircraft.

4D in manufacturing So, is 4D printing about to revolutionise manufacturing? The short answer is no. We can debate the extent of its potential, but as things currently stand it is a long way from being available in most commercial applications. According to Mordor Intelligence, the 4D printing market was valued at a mere $62.2 million in 2020. That market is expected to grow to a more sizeable $488 million by 2026, but there are many obstacles to overcome before 4D printing begins to make a mark on manufacturing in any tangible way. One obstacle is the limits of smart materials. These are usually made from a limited range of polymers and therefore restricted to specific environmental conditions. It is also difficult to control the speed of transformation with the level of precision required for certain applications. Programming an object to transform is one thing, getting it to transform at the exact right speed is more complicated. Programming each part and component in a structure is a complex and time-consuming manufacturing process. Furthermore, many of the 3D printers currently available are limited because they can only print 4D structures out of a single material, which further constrains design choices. According to Tibbit, 4D printing ‘might be the manufacturing technique that allows us to produce more adaptive infrastructure in the future’. For the time being though, the technology is mostly confined to R&D labs and niche innovations in healthcare and defence. So, while manufacturing techniques that produce objects and structures with Chameleon-like qualities are not exclusive to science fiction, manufacturers will have to wait a bit longer before this future tech is widely available for commercial use.

NZ Manufacturer March 2021

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title PowerLogic PowerTag Energy range expanded text

Schneider Electric, has announced enlargement of the PowerLogic PowerTag Energy range, which includes the world’s smallest wireless Class 1 energy sensor. Designed to enhance the monitoring of electrical assets with an easy and compact connection to electrical devices using wireless communication, PowerTag Energy provides monitoring and accurate energy metering at the zone and load level.

energy efficiency programs (IEC 60364-8-1, ISO 50001, NABERS, GreenStar…), enables energy management features, like energy breakdown, cost allocation and complies with local standards (NCC2019 Sec J, ACMA RCM certification)

Now available up to 2000 A and a remote display The PowerLogic PowerTag Energy further expands its range with three new products

PowerTag Energy is truly the energy monitoring system of the future. This compact, modular wireless technology can be quickly added to electrical distribution protection devices. PowerTag Energy is delivering combined metering and alarming close to loads, with authenticated and encrypted communication. In the past, metering was often on the main incomer circuit breaker and provided a broad overview of the electrical system. Today customers need to know proper functioning of critical loads, energy consumption by zone or process, and to better interact with their installations. In fact, a business operating without this IoT-enabled strategy is overlooking enormous new opportunities to impact energy efficiency, improve resilience, and create new value.

PowerTag Energy 160 A (A9MEM1580)

PowerTag Energy main benefits: PowerTag Energy Rope 200A, 600A, 1000A, 2000 A

PowerTag Link Display (A9XMWRD)

The first of its kind Designed for any type of building, the PowerTag Energy monitors and measures current, voltage, power, power factor, and energy.

• Robust wireless communication that is standards-compliant • Alarming features close to the load (voltage loss, overload, …) • Installation and commissioning are fast and simple, with minimal commissioning and integration time

Data is sent wirelessly to a concentrator/gateway, which can provide data to energy or building management systems, or through webpages. Customised e-mail or SMS alarms enable facility managers to remotely monitor their electrical assets. Non-intrusive, wireless communication immediately enables easiness of installation and commissioning. PowerTag Energy is a key enabler of IoT EcoStruxure Power architecture. It brings new opportunities to today’s power systems and energy management applications. • World’s smallest wireless energy sensor, at Class 1 Active Energy Accuracy, supports

• Space saving: The PowerTag Energy, an industry-leading innovation, is the only energy sensor that can be tagged to the breaker. There is no requirement for additional horizontal mounting space in electrical panels, which makes it perfect for both greenfield and retrofit installations. • Ease of installation: it greatly reduces installation time by up to 90% and its wireless capabilities mean there is no need to add communication cables. • Modular, flexible, and scalable: Perfectly suited to adapt to changing business needs, energy regulations, or certifications, and can retrofit on any device. • Comprehensive range: Complete solution up to 2000A with a full range of wireless energy sensors. • Advanced connectivity: An innovation to enable Schneider Electric EcoStruxure solutions.

• Scalable capability makes it easy to adapt to new regulations, requirements, or changing business needs

PowerTag Energy is natively integrated into Schneider Electric’s EcoStruxure platforms to provide customers an all-in-one monitoring and control solution for building, grid, industry, and datacenter. PowerTag Energy is a significant addition to the company’s industry leading connected products offers and is a valued new platform within a connected and integrated power distribution network.

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NZ Manufacturer March 2021

EcoStruxure solution meets Mataura Valley Milk’s requirements Building the world’s best nutritional business is the ambitious goal that New Zealand dairy company Mataura Valley Milk set out to achieve in August 2016. Now the company’s milk production plant is an impressive accomplishment that comfortably justifies its early ambition. Mataura Valley Milk is now benchmarking innovation and performance for other milk plants. Situated north of Gore at the bottom of the South Island, the state-of-the-art facility was delivered on-time and within budget, an impressive achievement for a greenfield project. “To achieve our goal, we knew that choosing only the best people, partners, and infrastructure was crucial,” says Brent Robinson, Mataura Valley Milk’s Projects Manager. “The success of the project was a consequence of meticulous planning and strategy. We sought out and hired the most skilled staff; we chose construction partners with proven expertise; we purchased best-in-class plant and equipment; and we partnered with industry-leading suppliers and fabricators.” Schneider Electric was one such expert partner that delivered its EcoStruxure solution, tailored to Mataura Valley Milk’s strict requirements for a fully connected and integrated facility with real-time visibility of every process. Connectivity At Mataura Valley Milk’s core is its dedication to customers.

“We must have agility around what we produce with no sacrifice of quality. Producing nutritional products is a complex, high reward approach so the plant must be nimble and our expertise unmatched. To confidently make these decisions, visibility and trust in our data is crucial” says Robinson. Schneider Electric’s EcoStruxure Plant solution delivers and provides context to live, real-time data on every process at the plant through AVEVA’s System Platform, Batch Management and Manufacturing Execution System (MES) software. In short, Mataura Valley employees receive any data they require immediately and know they can trust it. Goal Mataura Valley Milk wanted to build a business that could quickly tailor production to specific customer requirements while guaranteeing the delivery of best-in-class quality products. Mataura Valley Milk’s first operating season proved that the plant can consistently manufacture world-class nutritional products with microbial results well below standard requirements. Over 3,300 Aerobic Plate Count tests were performed during the 2018/19 season to identify colony forming units per gram (cfu/g). Mataura Valley Milk’s highest recorded result was a mere 190 cfu/g, with the accepted limit being 5,000 cfu/g, believed to be a first for New Zealand and indicating that the plant’s critical hygiene areas and processes benchmark performance worldwide. Schneider Electric specified a robust EcoStruxure Plant and Power solution that delivers connectivity

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across all layers of the operation, minimises energy usage, guarantees power quality, and provides real-time data so that transparency and integrity are maintained across the supply chain, from farm ingredients to manufactured products. Results A connected and scalable backbone that enables Mataura Valley Milk to seize market opportunities, secure in the quality of its product and the reliability of its infrastructure. “We’re able to track and trace every ingredient on its journey from the farm and through the facility. This track-and-trace approach provides complete transparency and trust for our suppliers and customers. “This visibility also contributes to our innovation programme and delivers great value in terms of R&D and process efficiencies. Data can’t be useful without precision and the Schneider solution gives us all the connectivity and accuracy we need. “The Ecoteur solution delivers connectivity to all our business layers. It proves itself to us every day as we interrogate data in the MES. We’re able to fault find and resolve issues immediately, receive alerts on any irregular findings throughout the plant, test and introduce process efficiencies quickly, and positively affect our final product.” says Robinson.

Machine tools Rotary Tube Pro 3 update of tube and pipe cutting software Hypertherm has released Rotary Tube Pro 3, a major version update of its tube and pipe cutting software for machines with a rotary axis. This new release contains new features and enhancements making it easy to design and cut tube parts. These features include: • Common line cutting which allows operators to cut two or more parts so that they share at least one common line with one another. This provides greater material utilisation and better consumable life. • Costing for parts, nests, and jobs to include factors such as consumable wear, machine operating cost, labour costs, electricity, etc. • Auto-select of material so operators can enter basic material descriptions in settings and automatically map to available materials. With this feature, operators no longer need to separately pick a material and thickness once a tube size and wall thickness is selected.

With Rotary Tube Pro 3 features and enhancements take a big step forward. With common line cutting, users now have the ability to completely eliminate scrap between parts, potentially reducing their material costs and achieving better overall efficiency. Customers with an active maintenance plan can upgrade to the new version at no additional charge and continue to receive unlimited technical support and other benefits.

Kemppi’s X5 FastMig industrial welder is “outstanding” Leading international welding equipment manufacturer, Kemppi, recently released its new X5 FastMig multi-process welding system for MIG, DC TIG and stick welding (MMA) as well as gouging, to help improve welding productivity. According to Kemppi, the X5 FastMig is designed specifically for steel welding and delivers a range of key features to help enhance arc welding productivity. Using the X5 FastMig, WiseSteel and the Flexlite GX guns, the machine was put through its paces by an arm of global engineering group, Sandvik.

Touch Sense Ignition for better and greater welding The X5 FastMig features the latest ignition technology, Touch Sense Ignition, as standard. When combined with WiseSteel software, which also comes as standard with every model, the X5 FastMig delivers precise ignition capability and stable arc control. It tackles the challenges of globular arc by alternating between short arc and spray transfer. In short-circuit transfer, it improves the arc stability adaptively, provding better out-of-position steel welding capabilities.

months piloting the X5 FastMig in Finland in 2020, the machine’s Touch Sense Ignition and WiseSteel software work to tackle the challenges of globular arc range.

Easy to operate The X5 FastMig also features a large, graphical and impact-resistant TFT display panel that illustrates all the required information clearly and without the use of abbreviations. Welding parameters are set automatically when the user adjusts the wire feed speed. And memory channels are also available to customise and save personal settings. The operating basics of the X5 FastMig can be grasped quickly and the wire feeder’s sturdy rotate-and-push buttons can be operated with gloves on or off, helping to save time and improve productivity. While using the X5 FastMig on tasks related to MIG/

MAG welding with mild and stainless steel, the team at Sandvik appreciated the graphical user interface of the wire feeder, which helped make it easy and comfortable for them to weld with the machine. They also especially acknowledged the ergonomics and usability of the X5 FastMig. “X5 FastMig works just as a good welding machine should. It has heaps of features, and its usability and ergonomics are outstanding,” said Petri Anttalainen, welding foreman, Sandvik Mining and Construction Oy.

Ergonomic The ergonomically-designed top-loading wire feeder places less strain on the user’s back when changing the wire spool, helping to improve occupational safety. The Flexlite GX guns also help reduce welder fatigue thanks to their ergonomic design. Each gun is lightweight and features a flexible cable set and innovative ball-jointed cable protection that reduces the load on the welder’s wrist. The pistol grip handle has been designed so that it feels like an extension of the welder’s hand. Providing excellent balance, it allows for a natural wrist position, which makes the work at hand easier and more effortless, particularly when doing long welds.

In spray transfer mode, micropulsing of the current and voltage increases travel speed significantly. In doing so, the X5 FastMig helps to minimise the spatter produced by a traditional globular arc, as well as the need for post weld cleaning, saving the welder both valuable time and cost, while helping to deliver better quality welds.

Modular, quality machine

For more challenging applications, the arc control can be further optimised with optional welding programs and other Wise special processes. According to Sandvik Construction Oy, which

The X5 FastMig’s modular system allows users to choose from a range of accessories to ensure the optimal solution for every application, and its strong, robust construction will also be appreciated by welders.

Mining and spent several

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NZ Manufacturer March 2021

Machine Tools Lead-free brass cable glands pioneer sustainability compliance trends A new range of lead-free brass cable glands is being introduced by LAPP to help ensure manufacturers, machine builders and production automation engineers and operators achieve compliance with current and forthcoming global sustainability requirements. This will be the first manufacturer in the world to offer cable glands in a lead-free brass version, staying ahead of increasing restrictions on lead use.

Initially, the most popular LAPP cable glands will be available in the new lead-free version, with first products including the popular Skintop MS-M and MS-SC-M models, as well as the counter nut Skindicht SM-M Skintop MS-M, which is the first choice for a wide range of applications in machine and plant construction, measurement, control and regulation technology, and where there are tough demands in terms of mechanical and chemical stability.

protection class from the full local branch of LAPP, which offers 20,000 products online 24/7 from local and global inventories of product and engineered solutions backed by outstanding local service and technical backing.

It offers optimum strain relief, wide clamping ranges, numerous approvals and a high

In recent months, LAPP has investigated various lead-free alloys. This included tests in production to ensure the reliability of the processes and the suitability of the tools.

LAPP says the Skintop MS-SC-M EMC cable gland, with highly conductive, flexible EMC contact spring, has a low-resistance screen contact for EMC-compliant earthing of the braided shield. All of these versions will be available immediately from stock in metric sizes M12 to M63. Further product groups are gradually being supplemented with lead-free versions. The previous versions will be still be available from global stock for the time being.

Three steps to energy efficient motors Electric motors are the backbone of manufacturing, but they are also among the most energy-intensive pieces of equipment. More than 65 per cent of electrical energy in industry is consumed by motors, and the annual cost of running one of them can be up to ten times its original price. Here are three tips to make your motor more energy efficient. A major trend in the Asia Pacific electric motor market is the development of high power to weight ratio electric motors. Sustainability concerns, as well as the necessity to cut costs and increase profit margins, are encouraging manufacturers to invest in the latest energy efficient technology. However, improving the energy performance of an electric motor does not necessarily mean swapping your trusted favourite for a new one — maintaining it properly and installing a few relatively inexpensive add-ons can be enough to drastically cut costs in the long run.

However, efficiency progressively decreases at a load factor of 50 per cent or less.

in some cases, the initial investment for a VSD can be amortised in just a few months.

As a result, it is essential to install the right motor size for your application. Bigger is not always better — in fact, an unnecessarily large motor capacity will substantially increase your electricity bill.

In spite of this, less than 10 per cent of all electric motors used globally are equipped with VSDs.

Variable speed drives Variable speed drives (VSDs) regulate the speed and rotational force or output torque of a motor, so that it matches the speed required by the process is it driving. Without a VSD, your motor will run at full capacity all the time, even when a much lower speed might be sufficient to effectively power your application. Using a VSD can reduce a motor’s electrical consumption by up to 55 per cent. This means that

The load factor represents the average load of a motor compared with its capacity over a specific period of time. The load factor significantly impacts the energy consumption of an electric motor.

Using an automated switch-off system can be helpful to give your motor a break whenever possible. To reduce the strain of frequent start and stop, you can also invest in a soft starter. This device can be added to an electric motor to limit the surge of current and torque that characterises the start-up process, to achieve a smoother, more gradual start. Not only will a soft starter reduce your motor’s energy consumption, it will also limit mechanical stress on the motor, its shaft and the power cables.

Even though energy efficient motors can be a great long-term investment, with these simple tricks you can cut the energy consumption of your existing devices, while also extending their lifespan.

Motors are most efficient when operating at full or near full load conditions, and the highest energy efficiency is achieved at load factors of 75 to 80 per cent.

NZ Manufacturer March 2021 /

As obvious as this might sound, leaving a motor on when not in use is not only wasteful, it also leads to overheating and ultimately shortens your device’s lifespan.

Improving your factory’s energy efficiency is not always synonymous with replacing your equipment with brand new alternatives.

The right load factor

Switch it off

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Developments Industry-led quality assurance scheme reaches new heights Industry-led quality assurance initiative Steel Fabrication Certification (SFC) has recently welcomed the fiftieth qualified member to its ranks. It means that approximately 88 percent of the structural steel sector’s annual output is now produced by companies that are certified to manufacture structural steelwork in line with international best practice. “SFC remains a cornerstone of our structural steel industry’s quality and compliance activities,” says Darren O’Riley, General Manager, Steel Construction NZ (SCNZ). “We’re delighted to say that there is increasing recognition of the scheme amongst specifiers, particularly structural engineers, who value SFC’s ability to provide certainty of product quality and significantly reduced compliance risk.”

traceability of product being of high importance and a concern to parties in the construction industry, SFC certainly gives us confidence that the end product will be as specified at completion.” The scheme also enjoys national coverage, says Mr O’Riley. “There are SFC-qualified structural steel fabricators throughout the country, from Whangarei to Dunedin. No matter where in New Zealand a project is being rolled out, there is a certified structural steel contractor with the appropriate personnel and quality management systems in place to deliver projects to global best practice.”

Recognising experience and training is central to the SFC scheme and is based on the competency requirements of the personnel involved. SCNZ and the Heavy Engineering Research Association (HERA) have partnered to develop training modules to support the success of SFC. Participating structural steel contractors are certified by an independent auditing authority, HERA Certifications. Certification is valid for five years but is subject to an annual surveillance audit to ensure the integrity of the independent scheme.

Vijay Patel, Beca’s Technical Director – Structural Engineering, says that SFC provides him with confidence in the quality and compliance of the materials being used on projects. “It gives me confidence as a technical specifier to know that a quality product is being provided that is commensurate with the designs I provide. As we continue to push boundaries with our structural designs, knowing we can depend on the product supplied under SFC is key to allowing us to keep innovating.” Scott Miller, Principal at Silvester Clark Consulting Engineers, agrees: “With compliance, quality and

Revamped 2021 Diversity Awards NZ open for entries Significant changes to the Diversity Awards NZ for 2021 recognise the increasing maturity in workplace diversity and inclusion programmes in Aotearoa. Entries are now open for this year’s awards and Diversity Works New Zealand Chief Executive Maretha Smit says the programme has a new format and new categories. “Over the past three decades, the conversation about workplace diversity and inclusion has matured to the extent that our collective perspective of excellence has become more refined, with multiple opportunities to showcase innovative approaches in respect of specific dimensions of diversity.

“Through an extensive literature review over the past six months, Diversity Works New Zealand has developed a comprehensive framework of the specific organisational factors required to build inclusive workplaces. “We wanted to ensure our awards programme aligned with that framework.” The Diversity Awards NZ, now in their 24th year, offer organisations an opportunity to showcase a variety of innovative people initiatives and publicly commit to being held accountable for tangible progress in building work environments where everybody is safe to bring the best version of themselves.

This year there will be four award categories for private and public sector organisations to enter – Leadership Award, Diverse Talent Award, Inclusive Workplace Award and Mātauranga Māori Award. The judges will be able to recognise large organisations with more than 100 employees and small to medium organisations with fewer than 100 employees in each category. All winners in these categories will be eligible for the Supreme Award. In addition, there will be an Impact Award open to private sector and charitable organisations whose core business it is to facilitate the provision of more equitable workplace opportunities. • Previous Supreme Winners include the Ministry of Business, Innovation and Employment, Vector Limited, the New Zealand Defence Force, Real Journeys, New Zealand Police • Winners are chosen by an independent judging panel. • There are four categories for private and public sector organisations to enter. • The Impact Award is open to private sector and charitable organisations whose core business it is to facilitate the provision of more equitable workplace opportunities • Entries close 3pm, Tuesday, 4 May 2021 • Finalists announced in early June • Winners announced in September. For more information on changes to the programme, category definitions, judging criteria and to enter, visit diversityworksnz.org.nz

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NZ Manufacturer March 2021

Developments continued from Page 1

High demand and growth puts pressure on manufacturing sector Shane Lowe, National Sales Manager of freight forwarding company 360 Logistics, based in Lower Hutt, said they are they facing increased shipping and air costs, and there is a general slowdown at the moment in the ability to move goods.

with the manufacturing sector remaining robust, it has pushed demand past capacity, especially on sea freight, he said.

lines charging Detention on containers if they haven’t been returned within a set timeframe, which is usually only 7-10 days.

Industry targeted support from government needed

“The southbound rates from Asia continue to hold at peak levels as demand continues to outstrip capacity.

The Chamber would like to see the Government support specific programmes to target the manufacture sector and to help them around supply, skill shortages, plant and equipment investment.

“They shouldn’t be charging Detention in this environment and placing more pressure on these companies because the fact of the matter is the shipping line depots cannot accept any more units because they are full.

“The USA congestion issues over many ports, and the capacity and congestion problems between New Zealand and Australia, are forcing the need to look at different options,” he said. “We are in the middle of the peak export season for New Zealand, and we are finding some route pricing has been pushed up and as a result we are struggling to find space to ship the product.” Shane Lowe said they are also seeing delays from suppliers because the factory supplying finished goods is also waiting on components. “These delays seem to be caused by a combination of freight and factory capacity due to workers either not being able to get to work or being limited on how many can be on site.”

Managing high risk growth Helen Down said the sector is also experiencing new rapid growth, enabled by Covid-19, but that creates more risk.

Helen Down said support needs to be more focused and specific for the sector rather than treating manufacturing like all other businesses. Meanwhile, Shane Lowe says the Government could have influence on providing skilled labour to reduce port congestion in places such as Auckland but admits it is also a problem the whole world is facing at the moment. “In addition, there are probably few levers to pull on what is happening with shipping as it is a worldwide issue that has many components such as ship rotation, container, stock location and cargo direction. “We have seen the Government support export airfreight, but not all commodities can afford a change from sea to air.” Lowe said another area Government could be of assistance is in investigating the practice of shipping

“While growth is seen as a positive part of the business lifecycle, it is actually a time when costs can easily get out of control, profitability reduces, and the pressure on business is at a peak. Growth is a time when many businesses fail due to poor cashflow.

“The cost to New Zealand importers is significant and misaligned with the real issue.” An uncertain future Helen Down said being an innovative, agile economy with a strong manufacturing base is not enough to address the challenges ahead. Businesses are facing congestion, increased costs, complete lack of supply in some areas, extended time frames, and increasing supply costs. “The new variants of Covid-19, along with the on-going alert level changes, are causing anxiety and stress for businesses increasingly impacted. “The difficulties the manufacturing sector is experiencing creates a barrier for our economic recovery. This is another reason why the Government and the whole community should be doing all it can to support this sector,” Helen Down said. Shane Lowe said he would be surprised to see a softening in either pricing or demands for the next 12 months and is encouraging people to be prepared and plan ahead. He recommends, if cash flow and forecasting allows for it, ordering ahead of the curve to give manufacturers the best opportunity to use the most cost effective methods of shipping.

“People may consider business growth as a time when companies can afford more costs, however this is when these businesses are at their most vulnerable,” Helen Down said.

Then if the shippers would work with us to achieve the end result, we may find solutions they have not thought about.

Shane Lowe agrees. We are definitely witnessing a surge in “non” manufactured goods being imported and exported and, coupled

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Three shifts can scale the circular economy What’s needed next: For the circular economy to reach scale, governments and businesses need to invest in collection and sorting facilities – and plan them strategically so they’re in the right place and work efficiently. It is also important to enable efficient transboundary reverse supply chains, in compliance with the Basel Convention, so that products can be shipped to the places where they can be reused or processed. Looking Ahead: Only with collaborative action can we realise systemic change needed to scale circular innovation. That’s why PACE (Platform for Accelerating the

NZ Manufacturer March 2021 /

Circular Economy) recently created the Circular Economy Action Agenda, which aims to help this co-creation process and stimulate actions we should all take. Everyone has a role: governments, by taking away roadblocks and stimulating green regulation and sustainable production; businesses, through execution and leading by example; NGOs through promoting, and critically, monitoring efforts and progress. The Agenda draws from the collective knowledge, experience and expertise of more than 200 experts from 100 organisations and provides guidance on how to drive and adopt circular practices and ways

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of working in five key areas — plastics, textiles, electronics, food, and capital equipment. The knowledge, expertise and analysis forming the Action Agenda is informed by PACE members and learnings from a vast portfolio of concrete initiatives (among which the New Plastics Economy, New Vision for Electronics, and the Capital Equipment Coalition). They provide the blueprint we need to decide our future direction. Every single actor (corporates, citizens, governments, academics, and more) needs to play an integral part in the transition to a circular economy, and increased consumer demand will accelerate the shift.

New Products

HEADING NZ MANUFACTURER FEATURES

Fire suppression technology protects lives and assets The latest environmentally friendly fire suppression technology is being introduced to the New Zealand market by Hydraulink Fire Suppression, to protect lives, assets and product. Fire Suppression is vital to markets such as mining and energy, rail, steel and metals processing, highway, and roads, agricultural, forestry, waste management, construction, defence, and anywhere that machinery works could lead to a fire and damage equipment, stock, or worse, put lives in danger. Hydraulink Fire Suppression, which services all New Zealand, now specifies Fluorine-free F3 foam on all new pre-engineered fire suppression installations, because it is more environmentally friendly, and safer for workers and machinery operators. “This is the industry’s new gold standard, which excludes components that may have harmful effects on people and the environment and were found in other firefighting Aqueous Film Forming Foam (AFFF) types. F3 is a more sustainable option that performs the required task efficiently and safely,” said Mr Murray Allen, New Zealand Industrial Manager, Hydraulink. Hydraulink Fire Suppression is the sole New Zealand distributor for Muster Fire Suppression systems. Hydraulink Fire Suppression teams also perform

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April 2021 Issue

s c h e d u l e d inspections and service for most brands of fire suppression systems operating in the NZ market.

INDUSTRY 4.0 PRODUCTIVITY

“Even though there’s no set standard governing fire suppression in New Zealand, Hydraulink Fire Suppression made the decision to ensure our systems were all AS5062 compliant – the strict standard that Muster follows for installations in Australia,” said Mr Allen.

PRODUCT DESIGN

“AS5062 means that all installations and all products abide by strict quality assurance practices, which means our customers are assured of a quality system, installed by trained staff, and maintained for the lifetime of the product,” he said.

ROBOTICS RECRUITMENT

Hydraulink Fire Suppression now also utilises Linear Heat Detection (LHD) to further minimise costs and downtime for customers. The major advantage of using LHD, is that there is no leakage of gas through the system.

CONSTRUCTION INDUSTRY

All fire suppression systems come with a recommendation to service them annually, with visual inspections at 3 or 6 month intervals.

Can you spend your way to world class?

competitors can you outspend them to world class! I think back to discussing equipment with the plant manager of a world class facility in Japan. He explained to me that they hate new equipment, that they know and understand their existing equipment, and with it they are already stable and performing. Their competitive advantage wasn’t in buying new equipment, but instead innovating and operating with their existing equipment better than anyone else. Contrast this with most companies where they assume the first day of new equipment will be the best, and every day after their investment diminishes through degradation: it has wear and tear so becomes less valuable. They place no financial value on their understanding and ability to operate their equipment. In fact, we depreciate it! This likely explains the reluctance of many companies to invest in proper training and education ahead of installation. These companies expect their untrained operators to get the best performance out of a newly installed machine that they’re learning on the job. The associated extra costs are often omitted from the business case to make the purchase viable – “we have no option but to buy new capital, so we have to make the business case stack up”. The first cost dropped is training. This is like buying a Ferrari, giving the keys to a learner driver, and wishing them good luck. The obvious impact is the new equipment doesn’t perform (because we’re learning as we go), we don’t meet projections, our inventories get low, and we end up creating more downtime.

Advertising Booking Deadline – 9 April 2021

We must then run extra shifts, and other expensive band-aid fixes, to meet customer demands. The cost of all these impacts far outweighs the cost of doing it right the first time!

Advertising Copy Deadline – 9 April 2021 Editorial Copy Deadline – 9 April 2021 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz

So, what do world class companies do? Firstly, they extract every piece of potential out of the existing assets. One company I worked with had increased their line efficiency from 65% to over 97% over three years, while improving quality and increased running speed from 500 per minute to 750.

Editorial material to be sent to : Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay

This is almost a doubling of throughput with no capital spend. Then if they can’t keep up with demand still, they invest in new capital in a scalable manner. Only buy what you need now and build the infrastructure to allow for future expansion (but don’t spend that money now). When they must commit to new capital, they create multi-function project teams well in advance. This ensures operators, maintenance, quality assurance and others are trained and competent before commissioning. These people are involved in commissioning and develop all the training materials, controls, schedules, 5S and other standards included in the installation. They set targets for start-up, which typically aim to achieve normal running by the end of day 1! The results are outstanding – one plant I worked with outperformed an identical existing plant by the end of the second day! Unfortunately, I have experienced many of the more traditional approaches. Even worse, many of these companies then repeat the process!

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

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NZ Manufacturer March 2021

New Products Aqueous heater ends hot water wait With the average mains supply tap spitting out 10-15 litres of water a minute, it doesn’t take long to become a water waster.

hospitality, food and beverage, and industrial users with near-instant hot water while saving time, energy, water and frustration.

And if you are running cold water down the sink while waiting for the hot water to come down the pipe, it is not only wasteful but frustrating.

With dimensions of just 305 by 305 by 304 mm, it is designed to sit snugly in cupboards near the tap, or under the floor just below them.

This problem has become larger as pipe runs in households and businesses have become longer, as many premises get larger. Now, the water often has to run a lot further than before from the main water heater, before it comes out hot at the tap.

It is so compact that it is also used in portable catering vehicles and boats, where space is precious, to ensure immediate hot water for washing, hygiene and convenience.

And when you turn off the hot tap again, the hot water sucked into those long pipes cools down again. ‘It can become a double whammy – you waste more cold water running it down the sink while you spend more money heating it up to travel longer distances to get to you,” says Jay King, who has engineered a solution to the problem in the shape of Aus J’s ruggedly engineered Aqueous MK2 6-litre compact water heater. Aqueous 6L water heaters are Aus J’s most compact model, fitting easily into both commercial and domestic settings as well as mobile and marine applications The Aqueous MK2 6-litre water heater from Aus J Hot Water Solutions is the most compact model yet, designed to provide domestic, commercial,

where it is required for hand and small Aus J’s 10L Aqueous MK2 hot water system, which is the latest product in an innovative series proven worldwide for more than a decade. The product has WaterMark approval.

equipment washing to maintain hygienic production and OH&S practices. With the current Covid pandemic, these applications are highly relevant to businesses including commercial offices, food and beverage outlets, manufacturing, hospitality and industrial processing. The Aqueous MK2 6L and 10L models come with Australian WaterMark accreditation, which means that it passed extensive tests and requirements regarding its suitability for safely supplying water for human consumption.

Aqueous 6L and 10L models are available in 240v and 12v models, while the complementary Aus J Duoetto 10L water heater incorporates automatically switched 12v/240v operation.

The compact design means it is very suitable for use in applications ranging from homes with taps some distance from the main hot water supply, to point-of-use applications in offices and factories

Even if turned off for a while the new heaters take only a few minutes to have hot water on tap when people return, says Mr King, whose company’s innovations sold worldwide include 12v/240v Duoetto types for business and private use, as well as recreational vehicles, boats and holiday homes. The Aqueous MK2 can also be used in several mobile and recreational and work vehicle applications.

Disinfecting robot prepares for return of students Gen2 is using the innovative technology to disinfect the workshop area and main atrium at its HQ and training centre in Cumbria, UK, ahead of welcoming staff and students back to the building. The remotely-operated robot was developed by Forth in Cumbria last year as a response to the fight against Covid-19. The firm is known for its innovations to solve complex industry challenges all over the world in nuclear, oil and gas, renewables and other sectors. Disinfecting of the workshop area and main atrium will enhance current Covid-19 safety measures in place throughout the building, and provide extra peace of mind for staff and students. Gen2 has worked closely with Forth over a number of years delivering apprenticeship programmes and training for the engineering firm, which is based in Maryport, Cleator Moor and Barrow in Cumbria. The Forth team developed the disinfecting robot in a matter of weeks by combining its tracked robot, vapour cannon, camera and lights. The robot is able to be worked remotely, controlled from a safe distance, to disinfect any area - inside or outside - to help the country safely emerge from lockdown. It can be used in offices, warehouses, transport hubs, schools, shopping complexes, or on the streets, anywhere inside or outside, wherever it’s required. It can be deployed in any building or any area, before people return after lockdown to make sure the space they are going back to is safe to use, and can be regularly re-used to decontaminate areas, whether that’s once a week or several times a day. Radio-controlled, wireless and tetherless, the disinfecting robot can perform fogging or misting. It has the ability to climb flights of stairs and can disinfect large areas in a matter of minutes. It works in a similar way to a vapour cigarette in that it fires high pressure vapour which will settle in every part of a designated area.

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Rear View Why haven’t construction companies demonstrated any notable improvement over the last 20-30 years? -Stephanie Pretorius, Intent Group The construction industry has been quite resilient to the continuous improvement philosophy that has made large inroads in manufacturing. The pattern that emerged from the McKinsey report of lagging construction productivity will continue until the industry takes productivity improvement seriously. The industry cannot keep growing the way it is with more resources being tipped in to create poor or suboptimal outcomes, often for all of the parties involved. Striving to be the best is a wide-open field in construction and is going to generate huge opportunities for those who take action in coming years.

What are the impacts if construction don’t make a significant change? The costs of an inefficient construction sector are already becoming more burdensome, for all parties including society in general. Poor planning processes create and enable disruption which affects large communities. The workforce who are working in an environment that accepts poor performance and is inefficient, or doing things because they have always been done that way, creates a workforce that is not engaged and not able to perform at their best. Infrastructure is not on time to meet the needs of the population. Value add delivery is constrained by mis-aligned processes, inadequate contracts and dysfunctional organisational relationships. Sub-contractors struggle to survive. The project mentality of ‘just get it done and move on to the next project’ means an ongoing cycle of reliving the same performance – different projects; the same issues.

Why is the sector so resistant to improvement? From procurement through to planning and delivery, it seems the industry is on a treadmill and cannot take the time to step back and ask – is there a better way? Skills shortages, changing programme dates, unclear forward work and urgency all add up to a high stress environment where few have the time or inspiration to try a new way. Late decisions and late changes set projects up for failure from the start. By doing their best to respond, the supply chain inadvertently create yet another cycle on the treadmill and reinforce unrealistic expectations. It seems the industry is in a rut.

What needs to change to address systemic problems? There are several key areas that will support construction to deliver better performance and better outcomes. Value Add must be the Priority – the industry must focus on enabling each party, from client to contractor to sub-contractor, to be able to do their best and deliver value adding work in an efficient way. The flow on effects of poor process performance in inter-related organisations means inefficiency and waste downstream and suboptimal outcomes for all. Enabling value delivery needs to be the core goal for all parties. Processes First - moving the focus from projects to processes is the long-term way forward. Projects are

planned and done, o f t e n relying on the skill of a few key individuals on whom performance is dependent. Processes repeat again and again, and if they are invested in, will deliver better performance consistently over time. Processes that build in what works for each party in a shared process is infinitely better than a process that is dysfunctional or inefficient or caters to only one party’s needs. Own Your Outcomes - clients must take a leadership role with their supplier base and actively engage with their contractors to see how they, in their client role, can support better performance over a long-term relationship. Clients must take ownership of their own performance and the impacts it has on contractors. Contractors must take ownership for their own performance and the impacts it has on delivery. And both must work together to create the shared processes that will enable value delivery. Monitor Performance – know what is being done to generate the current result by monitoring the effectiveness of processes and relationships. Transparent process performance is what will enable all parties to respond and act to adjust when outcomes do not meet expectations. If any issues or opportunities for improvement are identified, work together to identify where the process failed and act at the point of cause. This is the cycle of learning and ongoing improvement which go hand in hand. Leadership with Constancy of Purpose – remember it takes time to change. Leaders must set the direction for continuous improvement and follow-through with the discipline and constancy of purpose required to embed changes over time. Construction needs a new way forward - for better outcomes for clients, contractors, projects and society. Improvement will come through more effective collaboration that optimises core value delivery and enables productivity improvement. Construction - will you pick up the challenge?

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NZ Manufacturer March 2021

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