NZ Manufacturer November 2023

November 2023

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

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11 SMART MANUFACTURING Manufacturing critical to NZ economy.

20 QSean& ADoherty on advanced manufacturing.

STEEL 25 SCNZ AWARDS The Winners.

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

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

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

The Southland Engineering & Manufacturing Cluster is committed to facilitating growth and the equitable sharing of opportunities. Over the next few months, they will be making contact and introducing the concept and advantages of collaborative pitches and projects.

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

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

Southland’s people are not only highly skilled but also remarkably adaptable, with world-leading technology and projects emerging from the region.

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Brendan Gray, the Southland Engineering & Manufacturing Cluster Manager, stated, “I am thrilled to be on the ground, getting to understand the needs and desires of the engineering community, to fully support their transition and Brendan Gray, Cluster Manager growth into a new era of business opportunities.”

By becoming a part of the Southland Engineering & Manufacturing Cluster, there is a team working with you to support your success, and your business will be at the forefront of this regional transformation.

This initiative is expected to have far-reaching ripple effects throughout the economy, benefiting not only the engineering industries but various other sectors.

The cluster is well-positioned to leverage Southlands natural inclination towards collaboration, confident in thir ability to deliver on projects with excellence.

In the words of Chair Dean Addie, “We are scaling up an already successful industry with a goal to collaboratively be world-leading..”

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C0NTENTS

ADVISORS

DEPARTMENTS LEAD 1 Collaborative excellence in engineering.

6

5 EDITORIAL Manufacturing needs to step up for better results.

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6 BUSINESS NEWS

AI ‘Guardian Angel’ technology enhances road safety.

Argon holds Auckland Inaugural Networking Business.

How to strengthen your business in an uncertain economy.

9 SMART MANUFACTURING

Revolutionising product handling for Midfield Group.

Kirk Hope

Is Chief Executive of BusinessNZ, New Zealand’s largest business advocacy body. He has held a range of senior positions at Westpac and is a barrister and solicitor.

Ian Walsh

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

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11 EMA Manufacturing continues to be critical to

Dr Barbara Nebel CEO thinkstep-anz Barbara’s passion is to enable organisations to succeed sustainably.

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

NZ economy.

MANUFACTURING 12 SMART Off-the-shelf warehouse automation gives SMEs the same gains as the big players.

Securing the Smart Factory.

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16 ANALYSIS How can manufacturers deliver faster whilst coping with volume demands?

17 COMMENT Lifting performance by eliminating data siloes.

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18 SUSTAINABILITY NZ-EU trade agreement is great news for sustainability.

19 ANALYSIS The Industry 4.0 Transformation. &A 20 QSean Doherty on advanced manufacturing.

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INTERVIEW 21 THE Bridget Young, Grayson Engineering.

TOOLS 23 WORKSHOP RS launches NZ warehouse.

Kemppi opens new Welding and Training Hub.

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25 SCNZ EXCELLENCE IN STEEL AWARDS 26 DEVELOPMENTS Bluebird automated warehouse features $26.5m in technology.

New venture to tackle waste in trillion-dollar drinks industry.

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28 THE LAST WORD

Decarbonising our cities.

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Lewis Woodward

Is Managing Director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.

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.

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

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

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

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

CONTRIBUTORS Holly Green, EMA, Business East Tamaki, Ian Walsh, Dr. Barbara Nebel, Adam Sharman, James Robinson, Sean Doherty, Holger Heinzel

Manufacturing needs to step up for better results Putting together this issue has proven with a real challenge… what contributed articles to leave out?

What comes next makes for some great reading.

News that Southland now has an engineering and manufacturing cluster is good to hear (Page 1) for the future of business in the region. There is nothing better than strength in numbers in

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moving forward.

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Brianne West stepped down as Ethique CEO earlier this year, a decade after starting the $100 million business in her kitchen as a 24-year-old biochemistry student.

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

West’s new social enterprise aims to take on the $1.44tn beverage market which produces over 583 billion single-use plastic bottles annually, with less than 10% of these recycled. (Page 27) The new venture will produce concentrated effervescent drink mixers in the shape of a circular tablet which on contact with liquids such as water dissolve to release flavouring.

It’s all about the going forward…

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Sean Doherty, Callaghan Innovation (Page 20) shares New Zealand’s hopes to reach the level of manufacturing represented

by Industry 4.0 – a blueprint made up of a series of government initiatives from around the world. As a nation, reaching this goal would propel the nation forward in several critical ways.

Brett O’Riley, EMA (Page 11) says manufacturing remains critically important to the New Zealand economy, contributing more than $23 billion to our economy, or about 10% of GDP.

T: +64 6 870 9029 E: publisher@xtra.co.nz 121 Russell Street North, Hastings NZ Manufacturer ISSN 1179-4992

It also accounts for 60% of the country’s exports and employs

Vol.14 No.10 November 2023

December issue looks at The Year in Business.

If your company wants to be included with a success story, developments, or thoughts on 2024, please email me, publisher@xtra.co.nz.

Deadline for articles is 7 December 2023.

12% of our workforce. In fact, the number of New Zealanders employed in manufacturing increased by more than 4% last year,

Success Through Innovation

EDITORIAL

reaching over 222,000.

Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.

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BUSINESS NEWS

AI ‘Guardian Angel’ technology enhances road safety In business news, responding to the challenge of improving roadworks safety for workers and other road users, RUSH, a pioneering New Zealand technology company, and Downer’s Transport & Infrastructure business, a leading provider of engineering and infrastructure services in Australia and New Zealand, have been awarded funding in the second round of the Waka Kotahi Hoe ki angitū Innovation Fund.

This funding will support the continued to development of a groundbreaking AI technology that will act as a Guardian Angel for road crews around New Zealand and abroad.

Using the R/VISION platform developed by RUSH and piloted in collaboration with Downer in 2021, the project uses computer vision machine learning - a specialised field of artificial intelligence that trains computers to interpret and understand visual information from the world around them.

safe at roadworks sites. According to Waka Kotahi, approximately 10 road workers or road users are killed and around 30 workers and users are seriously injured at temporary traffic management sites every year.

“The driving force behind our previous pilot project was the urgent need to transform the landscape of roadworks safety in New Zealand. Working on or near roads and construction sites is a high-risk activity. Far too many workers and road users are killed or injured at road works sites and incidents have an annual cost exceeding $4 billion to the economy,” said Abeysuriya.

“We collaborated with Downer to build a use-case for our R/VISION platform that could be used to identify and alert road workers to critical risks, like

When used to monitor roadworks projects, Mobile AI Camera Units are placed around traffic management sites to monitor critical risks and alert workers to make real-time adjustments via alerts, predictive analytics and auto-risk assessments.

According to RUSH Founder & CTO Danu Abeysuriya, the project aims to keep road workers and road users

when a pedestrian enters a no-go zone or oncoming traffic exceeds reduced speed limits.

“The technology acts as a guardian angel, supplementing human decision-making by providing workers with real-time data and predictive analytics crucial to making smart decisions that keep people safe.”

Recognising the potential of this innovation to improve safety in roadworks projects, RUSH and Downer won a successful bid for funding worth over $500,000 in the second round of the Waka Kotahi Hoe ki angitū - Innovation Fund. The fund aims to bolster the private and non-government sectors in creating and expediting innovative solutions that address substantial transport issues.

The integration of AI into operational safety is an exciting development for the construction industry which has long awaited fresh innovation, says Murray Robertson Chief Operating Officer Transport & Infrastructure, Downer Group.

R/VISION has the potential to act as a crucial safety net, providing our teams with the right information to make informed decisions on-site. It doesn’t replace the importance of human judgment, but rather complements it as another valuable tool.

Providing the tools and support to drive business forward.

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

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BUSINESS NEWS

How to strengthen your business in an uncertain economy -John Luxton, Regeneration

Financials If only there was a magic lever to pull that would resolve all your financial concerns.

Unfortunately there is no such lever, but there are a number of things you can do to make a real difference to your financial strength.

The most important thing you can do is become intimately acquainted with your financial reports.

Often over-looked but critical is the Cash Flow Report. You can be fooled by the Profit & Loss Report.

It may very well show that you’ve had an excellent month with plenty of invoicing and a healthy EBIT line. The problem is, the P&L doesn’t have anything to tell you about the phasing of when that revenue will be collected or when those bills are due.

The Cash Flow puts the numbers from the P&L in context by putting the money in and the money out in the right sequence.

You may have invoiced $250,000.00 in November and your bills for the month are only $150,000.00 but the bills need paying in December and much of the revenue you may not see until January or February.

Focus on the Cash Flow will also compel you to do something else that is highly beneficial. That is doing forecasting, (the poor cousin of budgeting). Gather

all available data from the most recent years of the business and look for the patterns. What are your strong sales periods and when are the lean months?

Use this information to start predicting the future.

Last year is less significant because it might have been a particularly good or bad year. Five years is much better because it gives you trends that smooth out the particulars of any one year.

One of the real benefits of using data to forecast is that it is catnip for banks. They love to see that you’ve put the mahi into understanding what’s happening with your business, so when you ask them for financial support like a revolving overdraft or even a term loan, they get security from the fact that you understand what’s coming.

There is no weaker position than when you ask for credit because you need it now. A discussion about the situation three months down the track is reassuring. A “my hair is on fire” conversation puts you in a very weak position.

The same applies with suppliers. If you know you’re in for some lean months, having a civilised conversation with them before it turns to custard id going to get a more constructive response than just not paying your bills on time.

How do I know this? Because I have been in the position to have to navigate these waters on behalf of a number of businesses over the years and I have a pretty good handle on how to make this work.

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

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

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

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BUSINESS NEWS

Argon hold Auckland Inaugural Networking Breakfast Recently, Argon & Co New Zealand held their first ever Networking Breakfast, right in the heart of Auckland.

The morning was filled with inspirational and forward-looking discussions as they delved deep into the future of sustainable productivity.

Argon & Co Leadership team members including Ian Walsh, Partner New Zealand and Chris Foord, Associate Partner New Zealand were joined by industry expert panel members who explored the future of sustainable productivity, focussing on the below key areas: • Circular Economy Integration: How can businesses adopt circular economy principles within their supply chains to enhance both sustainability and productivity?

• Supplier Collaboration for Sustainability: Discuss the importance of collaboration and partnerships with suppliers to drive sustainable practices and improve overall supply chain efficiency.

• Navigating post-covid supply chain disruptions: How have the supply chain disruptions during the COVID-19 pandemic reshaped the way businesses approach risk management, and what innovative approaches are being employed to enhance supply chain resilience in the face of future disruptions?

• Resilience and Risk Management: Address the relationship between supply chain sustainability efforts and risk reduction, especially in the face of climate change and other global disruptions.

• Sustainable Innovation Challenges: Address the potential challenges and barriers that companies face when implementing sustainability-focused changes in their supply chains, and how to overcome them.

• Scaling Up Successful Initiatives: Discuss strategies for scaling up successful sustainability initiatives from individual supply chains to industry-wide adoption, considering scalability challenges and solutions.

• Reskilling and Upskilling – Discuss the importance of training and development to equip the workforce with the skills needed for sustainable and productive practices.

• Harnessing Digital Technology for Dual Impact: How Can Organisations Leverage Technology to Enhance Productivity and Advance Sustainability Goals?

Ian Walsh, Partner Argon & Co New Zealand, comments, “a great morning with some new perspectives on sustainable productivity and lots of new connections made. A valuable investment of a couple of hours on a Friday morning, looking forward to the next one.”

Chris Foord, Associate Partner Argon & Co New Zealand, comments, “It was great to launch our NZ networking breakfast series with a fantastic event in Auckland. The energy in the room and the connections made were rich as we explored the important topic of sustainable productivity.”

The event was a great opportunity to connect with like-minded professionals, exchange ideas, and network with experts in the field. Argon is planning the next New Zealand Breakfast event for March 2024.

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

Revolutionising product handling for Midfield Group robotic palletising system.

The project was delivered in stages over three years, culminating in the commissioning of the ASRS in June 2023.

ASRS – a game changer

Control Room.

Completion of a significant automation project has revolutionised the back-end of operations at Midfield Group’s meat processing plant in Warrnambool, VIC. A first-of-its kind solution, delivered by MHM Automation, has automated all processes after product is boxed and barcoded, taking it from boning room to pallet without any manual handling.

Cartons of meat are closed, frozen, sorted, tracked, stored, retrieved, palletised, wrapped and labelled by machines, all with minimal human intervention.

MHM General Manager Sales & Marketing, Tony Johnson, said the solution set a new standard for the meat processing industry in Australia.

“This kind of process automation provides the answer to a range of challenges that processing plants are grappling with right now – from labour shortages to the need to reduce their carbon emissions,” he said.

The custom-designed system was the result of intensive engagement and consultation with Midfield Group.

Midfield Group’s objectives for the upgrade included freeing up space for further processing expansion, reducing its reliance on manpower, having the ability to effectively manage inventory for production and sales, and reducing its overall energy consumption.

After intensive engagement and consultation with Midfield, MHM Automation proposed a custom-designed solution comprising a six-mag lidder, four SSO plate freezer stacks, two automated storage and retrieval systems (ASRS) and a three-cell

Delivered by MHM in collaboration with its European technology partners TGW and Inther, the ASRS automatically sorts incoming cartons from the production line by SKU. It then transfers and stores them in a space-efficient racking system and retrieves them on demand to assemble rainbow pallets to fulfil individual customer orders.

Two ASRS systems were installed at Midfield, one for chilled and one for frozen meat products.

Johnson described the ASRS as a game changer for the food processing industry.

“With the ability to deal with a high volume of products in constant motion, the ASRS streamlines the movement of goods in and out of storage effectively and efficiently. It is ideal for plants producing large numbers of SKUs and needing to combine those products into custom pallets to meet customer requirements,” he said.

The ASRS offers a host of benefits, encompassing comprehensive inventory management and seamless integration with production and sales management systems. Its high-speed elevators and live shuttle system enable efficient order picking. Notably, it eradicates manual handling concerns and ensures impeccable traceability.

freeze time, MHM’s plate freezers also deliver significant energy savings of up to 30% compared to blast freezing. Contact freezing between plates ensures the frozen cartons are completely flat, which was important to enable integration with the ASRS and automated palletising system at Midfield.

Added in 2022, the palletising system alleviated labour requirements, which were proving difficult to fulfil in a stretched labour market. It mitigated health and safety hazards associated with manual handling of heavy meat cartons, and also introduced automation to pallet scanning and Meat Messaging label generation, eliminating the need for manual port marking.

A trusted partnership The integration of advanced technologies has not only elevated Midfield’s operational efficiency but has also ushered in a new era of enhanced capabilities.

Midfield Group CEO, Dean McKenna said the project’s success was the result of a trusted partnership.

“At Midfield Group we are committed to providing superior products and reducing our environmental footprint. We strive to be ahead of the curve when it comes to introducing new technologies that help us achieve those goals.

MHM Automation understands our goals and works with us to achieve them. We particularly value their ability to provide an integrated, end-to-end solution.

They have delivered everything they promised, and more,” he said.

Whilst ASRS systems are commonly used in warehouses to handle pallets or cartons of dry goods, MHM’s system is relatively unique in its ability to operate in chilled and frozen environments.

“This makes the technology ideal for food processors,” Johnson said.

Integrated solution benefits Other equipment in the system also delivered important improvements to Midfield’s operations.

The installation of the lidder and plate freezers in 2021 amplified the plant’s freezing capacity to approximately 25,000 cartons per day.

Well recognised by the Australian meat industry as the preferred freezing system to meet stringent export food safety requirements due to its 24-hour

Three-cell robotic palletising system

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What is Industry 4.0?

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

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

Where do I start?

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

IS HERE

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

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

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

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

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

View all Showcases

“

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

Mitchell Sanson, Engineering Manager, Hansa Products

Featuring

“

MANUFACTURING

THE FUTURE OF

EMA

Manufacturing continues to be critical to NZ economy, but changes needed if we are to unlock the sector’s potential

By Brett O’Riley, EMA Chief Executive and Co-Chair of the Advanced Manufacturing Industry Transformation Plan Steering Group

Last month, the Technology Investment Network (TIN) released its inaugural Advanced Manufacturing Report 2023.

Commissioned by MBIE, the report compares national data with the results of a survey of the top 400 manufacturing companies by revenue and employment, providing a comprehensive picture of New Zealand’s manufacturing sector.

Importantly, it includes benchmarks that will be used in future years to measure the health of manufacturing in New Zealand. This makes the report an important read for anyone with even a passing interest in manufacturing.

The key takeaway is that manufacturing remains critically important to the New Zealand economy. It contributes more than $23 billion to our economy, or about 10% of GDP. It also accounts for 60% of the country’s exports and employs 12% of our workforce. In fact, the number of New Zealanders employed in manufacturing increased by more than 4% last year, reaching over 222,000.

Manufacturing isn’t just concentrated in one part of the country. It plays a critical role in almost every one of our regions – accounting for than 10% of jobs in most regions. It is a large employer in Northland, Southland and everywhere in between.

The report outlines some real positives that we need to be celebrate. Between 2018 and 2022, the sector increased research and development from $728m to $886m and reduced carbon emissions by more than 2000 kilotons. By 2024, it is projected the manufacturing will drop behind households to become the country’s third largest emitter.

Despite this, there are some worrying trends identified in the report that we need to address if we want manufacturing to continue to be a cornerstone of our economy and drive our future economic growth.

Labour productivity in manufacturing remains sluggish, growing at just 0.92% last year. This compares to the 1.17% increase in labour productivity that was achieved across the wider economy. More concerning, manufacturing has been the lowest performing sector for productivity growth over the last 20 years.

And while manufacturing exports grew in dollar terms by nearly 15% last year, most of this growth was the result of inflationary pressures and favourable exchange rates. In real terms, the total value of exported products was either stagnant or fell.

That is why the work of the Advanced Manufacturing Industry Transformation Plan (AMITP) is so important. The AMITP brings together business, unions and government to co-create and co-own a plan to accelerate the growth and transformation of advanced manufacturing in New Zealand.

Advanced manufacturing has the potential to transform our economy, improve our competitive and lift our living standards.

Around the world, manufacturing is undergoing a rapid transformation. Known as the fourth industrial revolution, or Industry 4.0, new digital technologies such as augmented reality, AI and robotics are all combining to fundamentally change manufacturing processes.

The Advanced Manufacturing Industry Transformation Plan goal is to ensure that we are providing manufacturers with the right support, incentives and tools so they can take advantage of the change that is happening globally.

But to do this, we need to make sure we are supporting our manufacturers by having the right policy and incentives in place that support

investment. This could include improving the R&D Tax Credit system to invest in innovative technology.

This is something we will be talking to the new government about.

At the EMA, we have been also helping manufacturers take this journey, including by partnering with Callaghan Innovations and BECA to deliver the Industry 4.0 Demonstration Network, which showcases how the latest technology can be used to support manufacturing processes.

If you haven’t had a chance to attend a Smart Factory Showcase, I would strongly encourage you do so.

The Showcase will allow you to see firsthand how Industry 4.0 technologies can support your business.

I believe the future of manufacturing in New Zealand is bright. It can be a driver of our economy, delivering well paid jobs around the country and supporting the economic revival in many of our regions.

But to do this, we need to embrace the technologies of tomorrow today. That is exactly what the Advanced Manufacturing Industry Transformation is working to achieve.

Smart Factory Showcase

Experience the future of advanced manufacturing

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NZ Manufacturer November 2023

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

title ADVISORS text

Sandra Lukey Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business. She has over 20 years’ experience working with companies to boost profile and build influential connections.

Mike Shatford is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers.

Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.

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

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

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

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

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

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

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

Red Hat and Intel deliver open source industrial automation for manufacturers Red Hat has a new industrial edge platform, designed in collaboration with Intel, that will provide a modern approach to building and operating industrial controls.

By transforming the way manufacturers operate, scale and innovate with standard IT technologies delivered to the plant floor and real-time data insights, the platform will enable industrial control system (ICS) vendors, system integrators (SIs) and manufacturers to automate previously manual industrial automation tasks.

These include system development, deployment and management, cybersecurity risk reduction, prescriptive and predictive maintenance improvements for factory agility, co-locating deterministic and non-deterministic workloads and reducing turnaround time.

Smart factories, or software-defined factories, are playing a crucial role in amplifying the speed at which manufacturers can innovate. By breaking down the barriers between IT and OT, manufacturers can embrace collaboration with new functionality and proactively strengthen and speed up operations, with the flexibility and intelligence to scale based on demand.

The industrial edge platform is intended to provide a holistic solution that spans from real-time shop floor control and artificial intelligence/machine learning (AI/ML) to full IT manageability - delivering greater customer choice for data gravity or edge-to-cloud style architectures and improved overall equipment efficiency (OEE).

To continuously support this effort, Red Hat and Intel are working to integrate Intel-based platforms and Intel Edge Controls for Industrial (Intel ECI) with current and future versions of Red Hat Enterprise Linux, starting with collaboration in upstream Linux communities like the Fedora Project and CentOS Stream.

This collaboration extends to bringing these controls and platforms to Red Hat Device Edge (early access), Red Hat Ansible Automation Platform and Red Hat OpenShift.

With this collaboration organisations can benefit from: • Fully integrated real-time capabilities from silicon to software, to support industrial automation for predictable performance; • Advanced management and network automation for system deployment and management without heavy handed resource usage, simplifying the industrial network creation and management using open standards-based tools; • Scalability and flexibility through a software-defined platform approach that facilitates more portable, scalable control and maximises adaptability; • Uninterrupted operations supported by high-availability and redundancy attributes built-in with the platform; • Simplified AI workload integration with the ability to take an AI workload and run it next to a control workload, helping simplify hardware complexity, and enabling AI to more easily improve product quality, system uptime, maintenance needs and more; • Enhanced cybersecurity posture by removing human error elements with automated patching and updates, an immutable operating system plane and a platform built on hardened, production-tested components.

To underpin this platform, Red Hat - in collaboration with Intel - will deliver a real-time kernel that provides lower latency and reduced jitter, helping applications run repeatedly with greater reliability.

This new industrial edge platform will be built on open standards and community-driven innovation, driven by thousands of developers globally, helping to drive more simplified integration with other hardware and software components.

Additionally, core code transparency and a clear roadmap and release cycle help take the guesswork out of when new releases are available and their accompanying features.

Red Hat’s industry-leading enterprise developer support backs IT teams with a best-in-class developer toolchain, bringing greater deployment consistency regardless of deployment model or integrator, further removing guesswork and choice paralysis around modern developer tooling.

Software-defined factories in action Manufacturing innovation has been hampered by the limitations of legacy industrial controls and siloed organisational structures for decades.

With this new platform, organisations will be able to benefit from an open edge platform that allows simplified integration of components in an easy-to-use, reliable solution for industrial automation.

Industry leaders like ABB, Schneider Electric and Codesys are already working to successfully implement new industrial edge platforms to build modern industrial controls.

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info@treotham.co.nz NZ Manufacturer November 2023

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

Off-the-shelf warehouse automation gives SMEs the same gains as the big players Warehouse and intralogistics automation is often thought of as a highly customised solution that benefits the major players once they have reached a certain scale.

But as technology advances, it is becoming increasingly available and affordable for Small-to-Medium Enterprises (SMEs), which account for 99.8% of businesses (more than 2.5 million) in Australia and 97% (more than 550,000) in New Zealand. (Sources: Australian Bureau of Statistics, and the New Zealand Government’s Ministry for Business, Innovation & Employment.)

Intralogistics leader, Swisslog, has introduced to Australia and New Zealand a standardised ‘off-the-shelf’ version of its AutoStore roboticised storage and order processing solution, for which it is the world’s number one integrator, with more than 300 major projects globally, incorporating efficiency gains that readily scale down to SMEs. “The standardised model was replicated from Europe, where it has seen great success across a range of industries. Companies have been quick to take up the technology, where they have been seeing immediate benefits. They’ve recognised our experience in implementing these types of standard systems,” says Swisslog Business Development Manager, AutoStore, Ken Chen.

“With increasing labour costs and soaring commercial real estate prices, SMEs are looking for ways to increase storage density and maximise the efficiency of their picking and put-away processes,” he says.

helping SMEs stay competitive locally and globally.

It’s then easily scalable, so it can grow as the business grows in the future,” he added.

Swisslog AutoStore allows SMEs to act fast AutoStore is a high density cube-based automation solution that uses robots and bins to quickly process small parts orders. Its unique design allows the direct stacking of bins on top of each other, and multiple SKUs in a single bin, thereby maximising use of available warehouse space. AutoStore solutions implemented by experienced Swisslog automation engineers can typically deliver the same throughput with a 60% reduction in warehouse space.

“This is where a standardised off-the-shelf solution can provide major benefits, because it can easily be deployed into a running supply chain, with only minor adaptations, where it can greatly improve logistic capacity and unlock further market potential.”

“With Swisslog’s extensive global experience with implementing AutoStore solutions, we are able to help customers achieve the best value for money, fastest payback time, and best ROI for their investment,” says Chen.

“Off-the-shelf warehouse automation solutions like the standardised Swisslog AutoStore system can be implemented with lower costs and a faster installation time, due to shorter design and software implementation time before and during commissioning. This means a faster time-to-market,

The system integrates with Swisslog’s SynQ software, which will allow it to naturally learn which products have a higher rotation, so that these can be automatically stored on the top layer to deliver faster picking times.

“The grid-like structure of AutoStore makes it simple to fit around any existing warehouse space, even around structural columns, different floor heights, or other spatial irregularities. Swisslog works with each customer to deliver the optimal outcome to their warehouse configuration,” says Chen.

“For SMEs, this means they can respond quickly to market changes, and can choose to automate particular product lines or sections of their warehouse that need to scale up. Swisslog’s standard AutoStore solutions can typically be implemented in 8-10 months, with companies seeing a return on investment within 2-4 years,” he adds

Energy efficiency AutoStore is also a highly energy-efficient system, with each robot using approximately 0.1 kW of energy per hour. For comparison, 10 robots would use the equivalent of a toaster.

“Sustainability is central to Swisslog’s company culture – from regenerative braking technology to reducing warehouse space to save energy, which has particularly strong benefits in cold storage facilities – and AutoStore fits with our vision to consistently improve sustainability of our own operations, as well as those of our customers,” says Chen.

Visualisation for Visionaries Design, test, and deploy applications directly from a web browser

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

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

Securing the Smart Factory The incredibly competitive manufacturing industry has evolved from labour-intensive manual processes to progressively more intelligent systems driven by the computing power of the digital revolution.

Even more so with the supply chain shifts resulting from the ongoing trade wars, particularly within the digital technology manufacturing sector.

The Chip War is an example of how tensions between the US and China are escalating, as both countries compete for dominance in chip manufacturing and technological innovation.

This reorganisation of the supply chain has also resulted in Asian countries such as Thailand, India, and Vietnam stepping into the race as specialised manufacturers.

This competitive nature is driving the adoption of digital, highly automated systems, which reduce labour costs and significantly increase production efficiency.

Through this digital transformation, we’re seeing the wider implementation of digital twins – a digital model of the material manufacturing environment – to achieve highly automated manufacturing processes. In a Smart Factory, the digital twin receives data on the physical manufacturing process from IoT sensors.

The digital twin is often cloud-based and uses machine learning to make sense of the IoT data, making decisions that change the manufacturing processes as needed to improve efficiency further and minimise issues.

Security Vulnerabilities Plaguing Smart Factories While digital twins and other connected components of the cyber-physical system of a smart factory provide efficiency, they are not immune to security risks, and instead widen the attack surface of an already highly-targeted sector.

IoT devices are often shipped in an inherently insecure state, and patching them is difficult due to availability constraints and the sheer diversity of the devices with many different manufacturers and patches.

Cloud computing extends the attack surface from the manufacturing floor to the cloud service provider and exposes industrial operations to cloud vulnerabilities.

Digital manufacturers also have an increasingly complex supply chain. In addition, third parties are often critical in providing remote support for digital

manufacturing equipment.

With 40% ASEAN organisations with OT systems having a direct connection to third-party infrastructure or Enterprise IT networks, this becomes another cause for concern.

Attackers now have another entry point to exploit, as these third parties usually have a different level of cyber security controls than large manufacturers.

Smart factories also contain a lot of intellectual property. The specific manufacturing process may be the key market differentiator between two competing organisations. Intellectual property theft can have a material impact on the long-term profitability of an organisation.

Managing the Cyber Security Risks of a Smart Factory Security must be built into every technical and architectural decision, right from factory inception and planning, through to its operational life cycle.

The following steps can help manage the cyber security risk of a smart factory: Zero Trust – a strategic approach to cyber security that focuses on removing implicit trust and always verifying each and every request for data or system access, treating every user, application and system equally. For a smart factory, the key is identifying the protected surface that is most critical to the organisation and having central inspection points where continuous inspection and validation can be performed.

Accountability – A Chief Information Security Officer (CISO) must be responsible and accountable for ensuring cyber controls are implemented appropriately to meet these objectives. Accountability for cyber security is essential in managing the cyber security risk.

Risk-Based Approach – Use a risk-based approach to identify the key risks posed to the smart factory, such as interruption of the factory management system, corruption of the manufacturing equipment or loss of intellectual property. Strong cyber security controls should be enforced to minimise the likelihood and consequence of each risk. This approach ensures limited cyber security resources are channelled to address the cyber threats that pose the greatest risk to the business.

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Alex Nehmy, Field Chief Security Officer, Critical Industries, Japan & Asia Pacific, Palo Alto Networks Architecture – Modern manufacturers must build cyber security into their smart factory from the ground up, starting with a secure architecture that incorporates the principles of Zero Trust and a platform approach (also known as Cybersecurity Mesh Architecture), which will ensure greater efficacy, a lower cost and a more effective ROI. Segregation – Segregation is a key control in reducing the likelihood of a threat actor moving laterally from a compromised IoT device and into critical manufacturing control systems. It also provides a mechanism to channel data through inspection points to monitor for signs of a security incident, perform continuous trust validation, and enforce least privilege.

Monitoring – Modern digital organisations must assume they will be breached and strive to detect incidents immediately. In line with the Zero Trust strategic approach, it is essential to perform continuous security inspection of data, especially as it traverses to and from the protected surface.

Incident Response – CISOs know it is a matter of when a breach will occur, not if. Therefore, it is essential to plan for a breach and be sufficiently trained to respond efficiently and effectively to minimise the impact of the breach and ensure the timely restoration of the business’s most critical systems and processes, such as manufacturing equipment and control systems.

Resilience – Systems must be designed not only to withstand a cyberattack but also to recover and resume operations in the quickest possible time.

Resilience is the key to ensuring manufacturing systems have maximum uptime and production capacity, as well as the ability to achieve timely recovery and resumption of production.

December issue looks at The Year in Business If your company wants to be included with a success story, developments, or thoughts on 2024,

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Please email publisher@xtra.co.nz Deadline for copy: 7 December

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NZ Manufacturer November 2023

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A N A LY S I S

How can manufacturers deliver faster whilst coping with volume demands?

-James Robinson, Vice President of Services for Asia Pacific, SYSPRO

The Industrial Machinery and Equipment (IME) industry is an important sector within the global economy, encompassing a wide range of products such as heavy machinery, construction equipment, agricultural machinery and more.

There is a growing list of challenges facing IME manufacturers, but delivering products faster while coping with ever-increasing volume demands stands out as the primary one. Additional challenges include inaccurate inventory forecasting, supply chain disruptions, and disconnected legacy systems.

and quality control of operations for job shop, batch production, production line and mixed mode environments.

End-to-End supply chain visibility

To succeed in this highly competitive industry, IME manufacturers need to find ways to provide more accurate price forecasting, implement strong financial controls and have full traceability, so they can implement warranties on the industrial equipment they make.

A robust supply chain is the backbone of any IME manufacturing operation. Manufacturers in this industry must have complete visibility into their supply chain, from raw material procurement to finished product delivery. Without this visibility, it becomes challenging to optimise processes, mitigate risks and meet delivery deadlines.

The level of precision required to provide more accurate costing requires a complex Bill of Materials (BOM), unique scheduling, end-to-end supply chain visibility and integrated Quality Management capabilities.

An ERP solution tailored to manufacturers will help IME producers to source the right materials at the best prices from reliable suppliers. This will give them a competitive edge and will enhance their reputation by improving the customer experience.

Complex Bills of Materials and accurate costing

Integral Quality Management

One of the fundamental challenges faced by IME manufacturers is the highly complex specification and production required for their products. Their machines often consist of thousands of components, sub-assemblies and materials, which all need to be accounted for.

This intricacy extends to the bills of materials (BOMs) required to assemble these machines.

With an Enterprise Resource Planning (ERP) system tailored for manufacturing, IME producers can excel in managing the accuracy of their BOMs, while providing precise costing information on demand in real-time.

Unique scheduling and resource management IME manufacturers frequently deal with custom orders, specialised machinery and unique production schedules. A standard ERP system may not be equipped to handle these intricacies effectively.

To manage their unique scheduling requirements better, ensuring efficient resource allocation, meeting lead times and minimising downtime, they should consider complementing their ERP system with a fully integrated Manufacturing Operations Management (MOM) solution.

MOM provides plant-wide manufacturing lifecycle management from planning, scheduling, publishing, collecting, tracking and analysing to optimise and improve end-to-end manufacturing operations. It offers a unique level of delivery, cost

Quality control is critical in the IME industry. Any defect or subpar component can have severe consequences, including safety issues and costly recalls. An ideal ERP system for IME manufacturers should incorporate integral quality management capabilities, ensuring that every product meets the highest quality standards.

The role of ERP and AI in addressing IME challenges To overcome the many challenges and deliver products faster while managing volume demands, IME manufacturers require a specialised ERP solution that is designed for manufacturers.

This will provide detailed and real-time costing information so they can provide comprehensive quoting.

This enables IME manufacturers to analyse costs at every stage of production accurately. With precise costing data, these companies can identify cost-saving opportunities, optimise both resource allocation and inventory management and make more informed pricing decisions.

Managing complex BOMs becomes more straightforward with the right ERP system.

Manufacturers can track the usage of materials, components and sub-assemblies efficiently, ensuring that all necessary parts are available when needed.

This reduces production delays and minimises the risk of costly errors resulting in wastage, whilst also alleviating their scrap management challenges.

IME manufacturers can also leverage the power of Artificial Intelligence (AI) and Machine Learning to

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

get rich insights, unidentified trends and anomalies in their business. By integrating AI technology with their ERP system, manufacturers can leverage AI technology to identify potential downtime and accidents by analysing the sensor data.

AI systems help manufacturers forecast when or if functional equipment will fail so its maintenance and repair can be scheduled before the failure occurs.

The takeaway In the highly competitive world of IME manufacturing, the ability to deliver products faster and cope with volume demands is essential. With an ERP integrated with a MOM system that are both designed specifically for the manufacturing sector, IME manufacturers can connect machines and other devices to digitise their factories and gain competitive advantage.

This will help them to streamline their operations, reduce costs and meet customer demands with absolute precision.

To stay ahead of the curve, it’s essential to gain a competitive edge. Forward-thinking IME manufacturers should consider shifting their perspective from looking solely at past performance to incorporating predictive modelling and data insights into their decision-making process.

By doing so, they can position themselves for success in the future and thrive in an increasingly competitive market with growing demands.

To succeed in this highly competitive industry, IME manufacturers need to find ways to provide more accurate price forecasting.

COMMENT

Lifting performance by eliminating data silos -Adam Sharman, Senior Partner, Dsifer Organisations are collecting more data then and this trend is only set to continue as IoT adoption accelerates. However, too often, this valuable resource is locked away in silos, inaccessible to the people who need it most. These data silos can stifle innovation, hinder collaboration, and prevent organisations from fully realising the potential of their data.

In this article, why data siloes form and how to overcome them to create a more data-driven and agile organisation.

Data silos are isolated pockets of data within an organisation that are segregated from the rest of the data ecosystem. These silos can emerge for various reasons, including departmental boundaries, incompatible data formats, or data stored in separate systems that don’t communicate effectively. When data is trapped within these silos, it can’t be easily shared, analysed, or leveraged for making informed decisions.

Several factors contribute to the formation of data silos within organisations: Lack of Data Governance: Without a robust data governance framework in place, there can be confusion regarding data ownership, definitions, and quality standards, allowing multiple data repositories to form with multiple governance approaches which can exacerbate data silos.

Departmental Barriers: Different departments within an organisation often maintain their own data repositories and systems. This division can lead to data silos, as departments may be hesitant to share their data due to concerns about data security, ownership, or privacy.

Legacy and Rogue Systems: Outdated technology and legacy systems may not support modern data integration and sharing. This can result in data

becoming stuck in older systems, inaccessible to newer, more agile solutions.

Rogue systems are those that sit outside the organisation’s formal governance framework and, as such, are typically not integrated in to the organisation’s data architecture.

Cultural Barriers: In some cases, a culture of information hoarding can develop, where departments or individuals may be unwilling to share data for fear of losing control or relevance.

Data silos can significantly impede an organisation’s performance and productivity through poor decision quality resulting from incomplete information, negative customer experience resulting from disconnected service, bloated cost of IS and data storage resulting from duplicated systems and culture impacts resulting from frustration and lack of trust between teams.

All of which has a real impact to an organisation’s bottom. In fact, Gartner reported that every year in the US, poor data quality costs organizations an average $12.9 million.

To address data siloes, a multi-pronged approach must be employed that focuses on technology, governance and culture.

1. Technology An organisation’s technology ecosystem must be designed to avoid the creation of data silos. Key to this approach is the centralisation of data in to a data warehouse supported by a robust extract, transform, load protocol. This approach ensures data availability across business departments and systems, reduces storage and processor costs, simplifies data validation and maintenance and allows for legacy or rogue system decommissioning without impacting data availability.

2. Governance Robust and clearly defined data governance frameworks are essential to removing data siloes as they define naming, ownership, format access and data quality standards for the organisation’s data.

Effective data governance is well documented, clearly communicated and systematised (e.g. through role profiles) to ensure adoption and compliance to the standard.

3. Culture Whilst in an organisation’s data may be where the disconnect is observed, data siloes are often just the symptom of a siloed organisational culture in which lack of trust between teams or organisation levels is pervasive.

In these cultures, protectionism can be a strong motivator to resist collaboration, including with respect to data. In order to address data siloes, the organisation must, at the same time, address any trust or lack of collaboration issues in its culture.

Whilst this dimension of addressing data siloes is potentially the hardest to transform, a good starting point is typically to build empathy between teams by collaboratively mapping out a data flow end to end.

This activity highlights where each team is reliant on data from the other to be successful. We have facilitated a lot of these types of discussions and there are always some lightbulb moments.

Removing and or avoiding the creation of data siloes is typically an activity that an organisation knows should be prioritised but is often put in the ‘too hard basket’, especially as the focus goes to exciting new systems.

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NZ Manufacturer November 2023

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

NZ-EU trade agreement is great news for sustainability

Photo credit: Ports of Auckland Limited.

It’s been a long time coming! In July, New Zealand signed a free trade agreement (FTA) with the European Union.

local manufacturers will be competing with EU manufacturers who may have been making their products more sustainable for some years.

by 2030 (from 2010 levels) and reach net zero by 2050. To stay competitive, you need to measure your greenhouse gas emissions and follow a plan to cut them. Our articles in September and October will help you do this.

New Zealand’s exports of goods to its fourth largest trading partner were worth NZD4.68b in 2022.

These goods included many manufactured products – machinery, medical appliances, food products, plastics, aluminium and others.

As customers here and in the EU prioritise ‘responsible purchasing’, make sure you’re prioritising ‘responsible manufacturing’. Ask yourself these questions. Are we sourcing our materials, and designing, making and transporting our products with people and the planet front-of-mind? Do our customers use our products and dispose of them in socially and environmentally sustainable ways?

More than 91% of New Zealand’s trade into the EU will enter duty-free when the FTA comes into force (expected to be in the first half of 2024). Many goods, including some manufactured products, will have no tariffs at all from this date.

Secondly, the agreement includes commitments to sustainability and sanctions to enforce them. It’s too early to say what these sanctions will look like, but let’s see how the FTA promotes sustainability and how businesses can prepare.

Review your supply chain and identify any risks of modern slavery. The government plans to introduce legislation that will require large organisations (over $20 million in revenue) to be open about their supply chains in a public register.

This means many millions of dollars of tariff savings each year on exports to the EU. After seven years, when the agreement is fully in place, 97% of current trade will enter the EU duty-free.

Provisions relevant to manufacturers

If your revenue is below this threshold, publishing a modern slavery statement is still a good idea. EU and other customers are likely to ask you for it.

Good news for manufacturers too

How the new FTA promotes sustainability The FTA will make trade more sustainable and create opportunities for businesses that deliver more sustainable products.

The agreement is the first FTA built around the EU’s ’Together for Green and Just Growth’ approach to trade and sustainable development. It contains ambitious sustainable trade outcomes in many areas.

Environmental outcomes include addressing climate change and subsidies on fossil fuel. Social outcomes include promoting labour rights and women’s economic empowerment.

The upside for manufacturers – and some warnings The FTA will have a big impact on trade between New Zealand and the EU. The potential upside for local manufacturers is significant: easier access to one of the world’s most lucrative trading blocs; lower costs for materials imported from the EU. However, the FTA comes with warnings too. Firstly,

The agreement promotes sustainability by: • making climate commitments standards enforceable

and

2. Procure responsibly

3. Investigate circular economy labour

• fostering gender equality • progressively reducing fossil fuel subsidies in line with the EU’s Green Deal • introducing zero tariffs on environmental goods and services, such as energy-efficient products • promoting biodiversity, sustainable forestry and sustainable fishing • supporting a circular economy that uses resources efficiently and supply chains that avoid deforestation.

You need to prepare your business If you have a sustainability programme in place, press on (and speed up!) If you’ve not yet started, here are three areas to focus on.

1. Measure and reduce your carbon emissions Both parties to the FTA agreed to ‘refrain from any action that materially defeats the object and purpose of the Paris Agreement’.

To meet this goal, CO2 emissions must fall by 50%

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

To prove you’re on the right track, consider setting a science-based target that will reduce your emissions to net zero by 2050 and/or join other New Zealand businesses in the Climate Leaders Coalition.

A circular economy reduces waste and consumes fewer non-renewable resources. It promotes economic growth by designing and manufacturing long-lasting products that customers can reuse, repurpose, remanufacture, recycle or reintroduce to the environment.

Consider the design of your product. Are we keeping materials in use? Is our product made to last? Is it easy for customers to reuse our product or get it fixed?

Keep the EU’s possible ‘right to repair’ consumer legislation in mind.

Think about your packaging too. Can our customers (or someone else) reuse it or recycle it? How much recycled content does it contain?

Calculate your ‘circularity’ with the Ellen MacArthur Foundation’s Material Circularity Indicator (MCI) or the Circular Transition Indicator tool (CTI). They’ll help you understand where you can improve and communicate what you’re doing to become more circular.

Trade’s going more sustainable. Don’t miss the boat! www.thinkstep-anz.com

A N A LY S I S

The industry 4.0 Transformation An update from the innovation frontline

By Holger Heinzel, senior engineer- advanced manufacturing, hera

Where specific organisations are in their Industry 4.0 journey varies greatly, and many are already taking advantage of the benefits presented by the fourth industrial revolution.

As the uptake of Industry 4.0 deepens and gathers pace, more data and case studies are emerging which show how the fourth industrial revolution is rapidly transforming the way things are made, improving quality and reducing waste, and making manufacturing and production processes more productive, flexible, and efficient.

Industry 4.0 are geared to achieve this.

There is a major opening now to accelerate this uptake across many sectors,and acknowledge and support the pivotal role manufacturing plays in the New Zealand economy, by appointing a Minister for Manufacturing.

At HERA we have been leading the mahi to support members through our Industry 4.0 Innovation Cluster.

A pan-material Minister could represent the industry broadly across all building materials, which would improve outcomes for those in the manufacturing sector and those who rely on its products and services.

It would also send a message and help create the necessary structure to enable widespread innovation and adoption of Industry 4.0 methodologies and infrastructure.

Our cluster meetings have covered topics like data gathering, storage and connection, the tighter integration of services within a company and across company boundaries, to name just a few.

As we know, the challenges of implementing innovation include the cost and effort of change, especially for small to medium businesses which have fewer internal resources to scope and define the work and meet the initial workload.

On top of that, established manufacturers face the expense of overhauling, replacing and integrating existing systems and upskilling their trusted workforce.

HERA’s efforts to promote, assist, and effect the transformation are multifactorial, and sympathetic to the opportunities and complexities faced by manufacturers and fabricators.

The steel fabrication industry is a specialised sector within manufacturing, concerned with creating large and intricate products that are made to the specific requirements of the customer, with welding the primary method of fabrication used to manufacture these items.

Good industry leadership in Industry 4.0 adoptions includes the creation of clusters of like-minded organisations who can learn from their respective experiences and strengths and help one another make progress, and to provide ideas and inspirations from near and far afield.

4.0 Innovation Cluster in action

A recent series of meetings included a mid-September session (both on-site, at the HERA Fab4.0Lab in Manukau, and online) on welding productivity, with a focus on maximising efficiency and minimising costs.

The session underscored the important role of equipment, consumables, and well-trained personnel in the shop floor environment and emphasised that productivity improvement is rarely an isolated effort – mirroring the holistic approach of Industry 4.0.

In late September our ‘Robot Welding Workshop’ explored the opportunities and challenges of robot welding as an established automation technology, its effect on workflows, and what can be done to help members and the industry harness this technology effectively.

Robotic and cobot (collaborative robot) welding solutions for steel fabrication have seen a significant expansion in recent times, through improved hardware and software capabilities and the application of AI. HERA is helping to make the technology more accessible for the heavy

engineering industry, so members can benefit from its transformative power.

The workshop also identified the training requirements for technicians, engineers, and operators to enable a skilled workforce capable of harnessing the full potential of the technology; and explored offline programming for complex geometries and simpler programming through lead-through techniques.

In the 7 December cluster meeting we will explore digitisation of information that is manually captured in a company via paper forms. Using apps instead of paper forms and setting up workflows for the gathered data enables better analysis and much faster response times.

We will look at where the technology could be useful, how to roll this out, and what changes the implementation could have.

HERA hosts the national centre of excellence in Fabrication 4.0, the Fab4.0Lab, and is leading Aotearoa’s largest research project on Construction 4.0, supported by a $10.3 million MBIE Endeavour-funded grant. HERA also supports individual members with their industry 4.0 transformation, including by offering Industry 4.0 and automation assessments.

The Industry 4.0 assessments are based on the Smart Industry Readiness Index (SIRI), a globally recognised set of tools, frameworks, and metrics designed for manufacturing.

It provides a holistic review across the whole company, identifies and prioritises innovation opportunities, and assists companies tackling Industry 4.0 with a continuous step-by-step improvement process.

These SIRI assessments are eligible for funding by Callaghan Innovation through its recently announced Smart Factory Assessment scheme.

The automation assessment has been developed by HERA in cooperation with the Facility for Intelligent Fabrication (FIF) at the University of Wollongong.

Fabricators can use it to assess the automation potential of their welding and fabrication processes.

Since they are usually produced in small quantities, often only a single item, fabricators have honed their skills to accomplish this flexibility, while mainly relying on highly trained workers (and plenty of paperwork) to get the job done.

Manufacturing, on the end of the spectrum, typically aims to make as many items of a single design as efficiently as possible using automated processes.

The aim is to bring these two objectives together, so companies can make customised products as efficiently as possible, also known as mass customisation. The concepts and technologies within

We are encouraging others to join the Industry 4.0 Innovation Cluster so they can stay ahead of the innovation curve and clear the path for their organisation’s own transformation.

For more information on the outcomes of past workshops, or to join the Industry 4.0

Cobot demonstrations at the Fab 4.0 Lab

www.nzmanufacturer.co.nz

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Q & A

Sean Doherty Advanced Manufacturing Industry 4.0 Product Owner at Callaghan Innovation How can Advanced Manufacturing take NZ forward?

Advanced manufacturing involves the use of technology to supercharge the manufacturing sector. Already an incredibly pivotal part of our nation’s economy and operations, there is real value to be found in unlocking the full potential of our manufacturers.

The implementation of smart products and processes such as artificial intelligence, robotics and 3D printing are just some of the key ways we can look to automate, digitise and further develop operations.

New Zealand hopes to reach the level of manufacturing represented by Industry 4.0 – a blueprint made up of a series of government initiatives from around the world. As a nation, reaching this goal would propel the nation forward in several critical ways.

Manufacturers can harness new technologies to revolutionise their products and processes, effectively increasing their quality of output, and driving productivity forward.

Economically, this creates an increase in profitability, enhances market competitiveness, and helps to generate higher-value jobs by automating lower-level tasks. Fostering innovation, this strengthens our supply chain resilience, and reduces our dependence on foreign sources.

We can also work towards realising our full potential as a ‘clean, green New Zealand’, by encouraging resource-efficient, environmentally friendly practices.

We are not a country rich with natural resources, except for dairy, horticulture and agriculture. We once made cars and TV sets.

When that stopped it couldn’t be started again.

So where can Advanced Manufacturing help to turn things around?

Market demand, competition, global economic conditions and access to raw materials play crucial roles in the ability for a country to operate in a highly competitive industry – which is largely why dairy, horticulture and agriculture are particular strengths for New Zealand.

However, advanced manufacturing holds endless possibilities for improvement. As we increase our

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capabilities, this certainly creates new opportunities for growth in a variety of industries – most notably in sectors such as agritech or health technology, where we have demonstrated proficiency in the past.

Already, there are a number of high-tech manufacturers that should be acknowledged as key to diversifying New Zealand’s economy, such as Fisher & Paykel Healthcare, LIC, TOMRA Food, Scott Technology, Temperzone and Rakon, who are all $150 million dollar businesses and experts in their respective fields.

Playing to our strengths is key. Therefore, given our most successful business players are in niche markets, we don’t see the mass manufacturing of automotives or consumer electronics as something that will return any time soon.

Land-based industries are big players in export earnings – how can technology help the manufacturing workshops catch up?

Already, manufacturing is a key player in exports, with MBIE finding that 60 percent of New Zealand’s total exports are accounted for by the manufacturing sector annually. This is because in New Zealand, manufacturing is largely interconnected with our strong land-based industries – creating processes and equipment for land-based operations, as well as enhancing the raw materials they produce to make them fit for sale.

Therefore, where land-based industries are performing well (in export earnings or otherwise) this is positive for the manufacturing sector too.

However, as we enter the fourth industrial revolution, technology creates the opportunity for continual improvement, evolution and growth. Currently, we are ranked 27th out of 63 countries overall for our digital competitiveness, with vast potential to improve.

Where the productivity of processes can be increased by implementing smart technologies, this allows for higher production volumes and the ability to meet international demand. For example, automation, robotics and the Internet of Things can optimise production processes by reducing labour costs and minimising errors.

Enhanced quality control and data analytics can also ensure that products meet international standards, increasing customer satisfaction and driving repeat

business. These increases in output efficiency and quality of delivery are just two ways in which technologies could accelerate manufacturing profitability through export earnings.

Are companies prepared to take the financial risks investing in technology without confirmed contract manufacturing contracts on a large enough scale to make it worthwhile?

Research and development is essential for future-proofing the sustainability of a company.

Data and new business models are unlocking hidden value and disrupting the world, and you don’t have to look very far or very hard to see it.

Take Uber’s disruption of the traditionally dominant taxis, or Netflix and YouTube changing the way we watch content. Typically, we may not set aside the time and monetary resources for implementing smarter products and processes until a pain point arises. However, an investment in manufacturing technologies really needs to be viewed in its simplest form – as an investment.

In this fourth industrial revolution, the manufacturing landscape is changing significantly, with the potential to significantly boost productivity, output and quality of operations.

As supply chains become more resilient and new players enter the New Zealand market from offshore, we have to ask, are we globally competitive?

Companies failing to uptake new technologies as they arise risk being left behind, and will struggle to remain market competitive.

Often part of the fear is understanding what the technology can do , and in most cases its cheaper than people think. The industry 4.0 demonstration network is a great place to start get an understanding of how it might fit into their business to unlock productivity.

The industry 4.0 Transformation An update from the innovation frontline

cluster or assist with Industry 4.0, please visit https:// www.hera.org.nz/industry40/

Case study: Industry 4.0 in fabrication A large-scale manufacturer had grown significantly in recent years, leading to considerable changes in the technology and tools used by each business unit.

The fabricator was using a fabrication management system to plan and document their work, but the fabrication workshop was still using paper to receive and feed back information, which then needed to be manually entered into the system.

The problem: The manual process of receiving and feeding back information from the fabrication workshop was inefficient and time-consuming.

It also led to errors in data entry. The delay in the availability of information made it difficult to track progress and identify potential problems early on.

The solution: The recommendation was to investigate the possibility of providing the workers in the workshop with digital access to the fabrication management system.

This would allow them to receive and feedback information directly into the system, eliminating the need for manual data entry and reducing the delay

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in the availability of information.

Manufacturing, on the end of the spectrum, typically aims to make as many items of a single design as efficiently as possible using automated processes.

THE INTERVIEW

Bridget Young, Grayson Engineering Tell readers what it is exactly you do?

I work for steel construction contractor Grayson Engineering as both a structural steel project manager and a mechanical/temporary works engineer.

As a project manager I ensure the projects assigned to me are delivered on time and result in satisfied clients. I work with various managers in the Grayson team who are involved with the projects, as well as coordinating with the main contractors and external suppliers.

As a temporary works engineer, I assist in the analysis of structures in their temporary state and determine what kind of support is required during erection of the structural steel.

What do you credit your success with?

Perseverance and determination. Engineering is hard, and university was full of ups and downs, but I love it. When things didn’t turn out exactly how I would’ve liked, I just kept going and I got there eventually. It definitely wasn’t easy, but I’m so pleased I stuck with it and I can’t imagine doing anything else.

What drew you to engineering?

Growing up I loved building Lego and doing puzzles, and I really wanted to be doing something that had that challenging problem-solving aspect to it. Engineering is such an expansive field and it’s exciting to know that there is infinitely more to learn, especially as the industry continues to evolve from new research and technology.

out the temporary propping on the stadium. When you spend hours and hours working on something, looking at drawings and 3D models on your computer, actually getting to site to see it – it’s so cool.

Decarbonisation of steel – where is that at with your company, Grayson Engineering?

Grayson is committed to reducing its carbon footprint, which is a process of continuous improvement. We are a member of the Sustainable Steel Council, which has been guiding us on our sustainability journey.

Our aim is to carry out our business with the highest level of efficiency and minimal environmental impact. We believe we can do this by implementing effective processes and procedures, and embracing new technology where appropriate.

We have also just completed our ISO 14001 and ISO 45001 audits.

Do you see changes in engineering for the better?

Engineering is such a fast-paced industry where there is a constant stream of new developments. It’s fascinating to see how the advances in both research and technology impact the site-level work I see as a project manager.

For women in steel, Steel Construction New Zealand has initiated a number of events to engage women in the steel subsector. More generally, within the engineering and architecture fields there is the Diversity Agenda.

What is the favourite project you have worked on?

What are your professional aims for the future?

This year I’ve been involved with the temporary works for the west stand of the new Te Kaha stadium in Christchurch. The design is so different to anything I’ve worked on before and the scale of the project is mind-blowing, so it’s been really exciting to be involved with it.

I’m working towards my engineering chartership.

It’s still a few years away, but I’m on track. I’m lucky that my work with Grayson provides both great opportunities for me to achieve my development hours and great mentoring.

*As an engineer, what provides you with the greatest satisfaction?

What advice would you give to other young women considering a career in engineering?

Seeing something I’ve worked on come to life on site. Earlier this year I went to Christchurch to check

Stand up for yourself and don’t let anyone let you feel less than what you are. I’m not a naturally confident

person so it’s taken time for me to reach the point where I feel comfortable standing my ground, but it makes a difference. I think as more women come into engineering, the more the industry can continue to grow.

What if any challenges have you faced as a young woman in a male-dominated field?

Being heard. There are people who are so quick to dismiss you because you’re young, or female, and haven’t been in the industry for as long as them, but that doesn’t mean your ideas should be overlooked.

If traditionally male-dominated boards of directors can recognise the benefit of diversity in their workplaces, I am sure that our field will get there also.

Last book read?

Lessons in Chemistry by Bonnie Garmus. The book is an interesting dialogue on the stereotypes of women in the 50s and trying to overcome those boundaries. I don’t want to say too much, but it’s worth the read.

Favourite quote.

“It’s important to celebrate the tiny victories along the way.” Working on multiple projects at a time, it’s easy to get overwhelmed by how much there is to do, so I try to break them down and focus on what I can control.

At the end of the day, a win is a win no matter how small or personal it is.

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WORKSHOP TOOLS

Planting machines in “Machine-tending” — Operations in a collaborative Industry 5.0 world -Shih Pin Tan, Asia Pacific, Universal Robots.

Boasting a fleet of over 10,000 aircraft, taking a commercial flight in Asia might not be as novel as before. In generations prior, it was not as easy to manufacture these machines, with the average commercial jet airliner comprising of over 350,000 individual parts.

In crafting these parts—whether metal or plastic, one process is essential: machine tending.

A well-functioning manufacturing workflow relies on machinery consistently being loaded and unloaded with parts or materials. When done well, machine tending increases productivity and yields – driving down the cost of production over time.

Without it, production would grind to a halt. As the sector looks forward into the future, advancements in manufacturing will rest on optimising this crucial task.

The next industrial revolution Stemming from the early 2010s, Industry 4.0 saw manufacturers integrating new technologies into their production facilities and throughout their operations.

Industry 5.0 builds on this, using R&D to transition to a more sustainable, human-centric and resilient industry. With that, collaborative automation has a vital role to play.

Already integral to Industry 4.0, greater automation of machine tending – more specifically collaborative robotics – will help manufacturers transition to Industry 5.0. In fact, the European Commission sees Industry 5.0 as playing a vital role in providing solutions to challenges for society, including the preservation of resources and climate change.

The future of manufacturing and the transition to Industry 5.0 rests on ensuring machine tending benefits from both human skill and automated consistency, something collaborative robots (cobots) are specifically designed for.

The man-machine partnership Over decades, human machine operators have been slogging away at the repetitive and physically demanding task of machine tending. This poses a multitude of issues for both workers as well as manufacturers and must be addressed.

For one, machine tending is unsafe for workers, posing high risk of injury while on the job. Machine tending tasks are often performed within small working spaces, involving aggressive cutting fluids and sharp edges, which provides the perfect recipe for worker accidents.

In addition, these tasks are performed for hours on end with little natural light that takes a mental strain.

Due to these less than favourable conditions, fewer people are drawn in to do this type of work—resulting in manpower constraints and issues in recruiting workers to fill these voids. This process is also not scalable with the constraints of manual labour.

In line with industry 5.0, using collaborative robots (cobots) for machine tending applications can help to solve these issues. Cobots can be programmed to reduce contact in a defined space, enabling them to work seamlessly alongside humans.

New generation cobots can effectively perform the extremely precise work required in machine tending. Offering up to six-seven degrees of movement cobots have the “human touch” while working alongside workers.

Cobots not only help to ease the pressure caused by current skills gaps but create a more attractive workplace leading to higher retention of current workers.

For example, Vinacomin Motor Industry Joint Stock Company in Vietnam was struggling with low productivity and inconsistent quality from heavy reliance on manual machine tending.

Through the deployment of two UR10 cobots, the company has seen productivity increase two to three times and consistent product quality. This has led to a 50-60 percent rise in orders and subsequently to an increase in workers’ income.

Strides are also being made with AI inside the machines. By analysing data from sensors and other sources, plant operators can identify patterns and trends to help improve efficiency and reduce downtime.

The automation of machine tending is already enabling real-time monitoring and analysis for manufacturers, as well as predictive maintenance and remote operation, improving overall efficiency, productivity, and profitability.

Wholesale improvements with technology Though human cognition and analytical capabilities remain irreplaceable, collaborative automation can help manufacturers to meet increasing demands.

Demands such as greater mass personalisation and hyper-customisation can be met, with automation in machine tending allowing greater flexibility for more adaptable production in a parametric and generative design.

By having cobots taking over tedious machine tending tasks, workers are freed to do more valuable and rewarding aspects of the job. At the same time, there will be the possibility of longer machine tending shifts due to automation, as minimal human supervision is needed.

28-30 May 2024, Auckland Showgrounds

This can translate to growth within 24/7 factories, as manufacturers obtain a consistent source of output with factory downtime being practically wiped out.

For regions battling low growth and productivity the notion of non-stop factories is an attractive one.

New Zealand's Premier Manufacturing & Engineering Solutions Event

The future of industry lies in increased cooperation between humans and machines. By implementing this strategy in machine tending, businesses can create a manufacturing sector that is both sustainable and resilient.

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

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

This not only enhances the working conditions for factory employees by allowing them to concentrate on more valuable tasks, but also enables companies to optimise their operations and increase production.

Collaborative automation is essential for the shift towards Industry 5.0, as it has the potential to revolutionise machine tending. Without embracing this technology, many manufacturing companies run the risk of falling behind.

WORKSHOP TOOLS

RS launches NZ warehouse Launched in November, RS will stock 500+ products in their new Auckland warehouse for next-day delivery across New Zealand RS have further committed to the New Zealand market, leveraging the Group’s logistic partnerships with the upcoming opening of a state-of-the-art warehouse facility in Auckland. This commitment will ensure that customers can expect shorter delivery times with next day delivery available on many selected products.

Established in New Zealand in 2013 RS, a global omnichannel product and solutions provider, has forged valuable partnerships with prominent industrial customers by augmenting their procurement, inventory, and maintenance operations. This recent expansion exemplifies RS’s dedication to minimising costly downtime for its clients.

Customers can now readily access industry leading brands such as Schneider Electric, Fluke, TE Connectivity, Honeywell, and Amphenol Industrial through this facility, along with RS PRO, RS’s own brand which offers customers a price competitive advantage.

It is expected that RS over the short term will expand the number of brands available directly through this warehouse, offering customers more locally sourced options.

“The team at RS in New Zealand are excited to have leading brands locally available to enhance our service offering to New Zealand customers,” explains Angie Shears, RS’s New Zealand Sales Manager.

With market leading brands now available in the country, and access to over 700,000 products, there are few procurement solutions in New Zealand that RS cannot deliver.

“We’re particularly looking forward to being able to provide our customers at short notice with a wider range of products including dangerous goods such as lithium batteries, adhesives, and silicon, as well as brands previously unavailable in New Zealand. “

RS has been operating as RS Components Ltd in New Zealand since 2013.

This new warehouse is another reason manufacturers and other industries throughout New Zealand should have RS as their preferred MRO supplier.

Cost incurred through forced down time is a major issue for business in New Zealand, RS works diligently with its customers to minimise these.

RS also builds efficiencies in their customers’ procurement through helping them consolidate their supplier base whilst tailoring solutions to meet unique MRO needs of specific industries.

Power and pulse, ready to go

High performance, low weight

For more information call Matt on 0220 200 626

www.kemppi.com

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WORKSHOP TOOLS

Decades of dedication: Hydraulink Tokoroa’s legacy of service excellence

Kemppi Australia opens new Welding Innovation and Training Hub

Hydraulink Tokoroa’s Geoff Gurr (Area Sales Manager) and Doug Griffiths (Branch Manager) have seen the town grow from being perceived solely as a timber industry leader, to also become a broader hub for a wider host of producers in the bustling South Waikato centre in New Zealand.

International welding equipment manufacturer, Kemppi, has opened a Welding Innovation and Training Hub in Australia.

“This town always had a good strong heart of hard-working, genuine people who believe in their community. If you serve them well, and share their vision, they will reward you with good old-fashioned trust, respect, and strong business relationships,” says Hydraulink Area Sales Manager Geoff Gurr.

Geoff and Doug have witnessed the transformation of the town over 30 years, the most recent 15 as a wholly owned Hydraulink NZ investment that has flourished with the local community as an integral part of the Hydraulink network extending over 400 service points in New Zealand, Australia and up into SE Asia.

“Tokoroa was known almost exclusively back then as a timber town, which was and is a great business. But far-sighted businesspeople could see broader opportunities too, which have seen it evolve into what locals often call the Hub of the Country, being very central to both coastal areas and cities. This close-knit community has a vast range of industries nowadays, with engineering, motor vehicle, marine, manufacturing, mining and milk product sites situated on the main railway line to Tauranga for exporting goods to Australia and worldwide.

“As our business has grown, so also has our commitment to big new business opportunities such as dairy, which is huge. Our 4WD service vehicles are key to serving this industry because cows don’t feed on roads, we have to go out to their paddocks, so the fleet of off-road vehicles is key to keeping the industry going on-site, where they are needed,” said Geoff.

The Hub will allow Kemppi to train welders in Australia and New Zealand on Kemppi equipment so that they can improve productivity and performance in the workshop and on the work site.

Kemppi dealers and service agents will also benefit from the Hub’s opening as it will facilitate product knowledge transfer and allow them to train-up on new welding machines away from normal working day distractions.

The opening of the Welding Innovation and Training Hub occurred on site, at Kemppi Australia’s head office in Sydney, where the new Hub has been constructed within Kemppi’s facility. Some 65 people attended the event including dealers, service agents, overseas visitors and local officials.

The purpose-built and fully-equipped Welding Innovation and Training Hub, consists of three dedicated areas comprising of two welding bays for demonstrations and training, a presentation area for classroom training and learning, and a compact showcase.

According to Kemppi Australia’s Managing Director, Mr Paul McVicar, the Welding Innovation and Training Hub will provide welders with training on Kemppi equipment, new features and technology so that they can get the most out of their machines.

“The new Hub will let us bring welders up to speed on these features and the software so that they can get the most out of their equipment. The better they understand their equipment, the more effectively they will be able to employ it to increase productivity and welding quality,” explained Paul.

He also points out that the Hub will help empower welders so that they can improve their performance and do more in a market where there is a general lack of highly skilled welding labour.

Doug says local business knows Hydraulink is in it for the long haul “and has invested lots into the branch here with modern equipment, vehicles and the great group of staff that know what it takes to be the ‘Best Under Pressure’”

“In many industries around the world there is a shortage of professional welders and Australia and New Zealand are no exception. However, a welder with the right gear and training may be able to output more, helping to minimise the impact of welder shortages on industry,” said Paul.

“Production machinery must be maintained in peak productive capacity to achieve the safety and efficiency required on major equipment brands such as CAT, John Deere, Tigercat and Hyundai. Equally vital transport machinery that depends on good hydraulic service includes Kenworth, Scania, Freightliner and diverse trucks, harvesters, specialist agricultural and civil engineering machinery, bin trucks, and forklifts.

Kemppi dealers and service agents will also benefit from the Hub’s launch.

“The Hub will allow us to strengthen our collaboration with our dealers and service agents because we now have a dedicated space where we can demonstrate and train them-up on our equipment and impart knowledge away from the everyday pressures of their typical work day,” added Paul.

Equally important, manufacturing firms will have the opportunity to see robotic welding solutions such as the Kemppi AX MIG Welder in action at the Hub. Oil and gas, mining and other industrial operations will be able to witness the benefits of equipment as well as welding software solutions such as WeldEye – a universal solution for managing welding production.

Welders and other stakeholders can also request a standard or bespoke demonstration and training session on Kemppi equipment and software for their staff by simply phoning or emailing the company directly.

Hydraulink Sales and Service Technicians Phil and Daniel celebrate 15 years at Hydraulink Tokoroa 24/7 hydraulic hose and fittings service HQ.

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SCNZ EXCELLENCE IN STEEL AWARDS

Steel awards showcase local industry’s strength and innovation Steel Construction New Zealand (SCNZ) 2023’s SCNZ Excellence in Steel Awards winners were announced on 27 October in Queenstown, where more than 200 structural steel industry leaders and specialists gathered to celebrate the best of the best at an event that showcases the sector’s commitment to innovation, best practice and collaboration.

This year, 21 finalists were selected from a pool of 32 impressive submissions, which demonstrate the remarkable design and execution possible when steel is used as the primary construction material.

structural steel industry for 2023. It’s the second year in a row that Napier-based Red Steel has produced an Apprentice of the Year, and the third time since the award was introduced in 2016.

“The high calibre of entries is testament to the industry’s ongoing commitment to raising the bar,” says SCNZ Chair David Moore. He notes there has been widespread emphasis on best practice amongst structural steel contractors and a drive to adopt global initiatives such as Industry 4.0.

“Our local industry has also maintained its programme of investment in new cutting-edge plant, machinery and technology. These advances in technology have made it possible to construct highly complex steel structures that were previously out of reach,” says Moore.

“The high standard of projects is also a reflection of the professionalism demonstrated by the fabricators, builders, architects and engineers that collaborate to bring these projects to life.”

The 2023 winners are:

Steel Construction NZ (SCNZ) Chair’s Award

• $500K-$1.5M Winner: All Steel Services for Tryp Hotel The 1930’s art deco, heritage-listed hotel boasts 77 striking hotel and studio apartments, and the largest luxury penthouse in New Zealand. The project involved significant strengthening work on the existing heritage site in Wellington’s CBD and an additional three-level extension was added above.

• Under $500K Winner: Cambridge Steel Fabricators for Cambridge Tree House The architecturally stunning Cambridge Tree House blends seamlessly with the beautiful Waikato landscape, offering expansive views of its surroundings.

• Earthquake Strengthening Winner: Jensen McArley & Associates and Jay Cee Welding for HB Central The Hallenstein Brothers building in central Auckland was built in 1912. Earlier this year, work to preserve and restore it was completed. Thanks to structural steel, this elegant and historically significant building is enjoying a new lease of life.

• Standalone Residential Winner: Black Steel Mobile for ŌOrakei Basin Home

• Supreme & Over $3M Category Winner: MJH Engineering for One Whitmore Street Occupying a full city block, One Whitmore Street is a landmark 12-storey office tower in Wellington.

The 17,500sqm building with its 1,420sqm floorplates and soaring three-metre-high ceilings will be the new home of the BNZ.

SCNZ Chair and Grayson Engineering Managing Director David Moore presented Klemick with the award and noted Klemick’s selfless service to SCNZ over many years. “Mike has served on the executive council for three separate terms. He hasn’t done so for personal gain or for the benefit of the organisation he works for; Mike is purely focused on playing his part to help advance the industry as a whole. He is a true ambassador for steel.”

Young Achiever of the Year

The street-facing façade of this impressive Auckland home features an artistic zigzag design, offering spectacular views over the Orakei Basin.

Built over a swimming pool, structural steel is used to support the house.

Apprentice of the Year

The structure is designed to withstand Wellington’s unpredictable weather, with a convex profile and rounded corners that help to counter the city’s strong winds.

Grayson Engineering employee Bridget Young was recognised as New Zealand’s top young achiever in the structural steel industry. It’s the second year in a row that Manukau-based Grayson Engineering has produced a Young Achiever of the Year.

• $1.5M-$3M Winner: VIP Structural Steel for LPC Straddle Crane Workshop The new workshop and wash bay will improve the Lyttelton Port Company’s ability to maintain and operate its brand new fleet of straddle cranes. The machines are capable of stacking containers four high, compared to the three-high limit of the old cranes.

Mike Klemick, Technical Specification Manager for Dimond Steel, is the 2023 recipient of the prominent Steel Construction NZ (SCNZ) Chair’s Award. The annual award recognises individuals who have made a significant and lasting contribution to New Zealand’s structural steel industry.

Red Steel employee Caleb Ireland has been recognised as the best apprentice in New Zealand’s

Steel Construction New Zealand’s (SCNZ’s) Young Achiever of the Year award celebrates those whose skills, drive and willingness to learn has helped them to achieve outstanding outcomes. It recognises well-rounded people who demonstrate not only talent, but display traits important to the industry – commitment, innovation and agility.

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DEVELOPMENTS

Bluebird automated warehouse features $26.5m in technology Wiri-based snack food manufacturer, Bluebird, has celebrated the commissioning stage of its new automated warehouse, featuring a $26.5 million state of the art automated storage and retrieval system (ASRS).

The Bluebird ASRS is one of the largest systems of

its type in New Zealand and can hold 13,500 pallets of chips.

With a footprint of 3300m2 and an elevation of 38 metres, the automated warehouse will allow the company to increase its operational efficiency by optimising space and reducing material handling and product waste.

The new system is part of the $40 million invested into the business over the past three years, with upgrading technology, improving employee facilities, and enhancing environmental performance of the business, being key focus areas.

Bluebird General Manager, Michelle Cassettari, says the ASRS warehouse is one of Bluebird’s biggest projects since PepsiCo acquired the iconic Kiwi brand in 2007.

Sustainability continues to be a priority for Bluebird, with the iconic snack brand continually looking for new ways to reduce its environmental footprint.

Currently, more than 90 per cent of all waste materials from the Wiri site are recycled – including dirt, peel, packaging, cardboard and plastic.

Water usage has been reduced by 28 per cent over the past five years and the site is powered by 100 per cent renewable energy.

In April this year Bluebird celebrated its 70-year anniversary. The company was founded in 1953 by young entrepreneur, Les Saussey, who first began selling popcorn at the Western Spring Speedway in Auckland, later moving into potato chips, and fast becoming a Kiwi favourite.

New venture to tackle waste in trillion dollar drinks industry A new startup launched by the founder of NZ’s largest regenerative beauty product export business is set to cut the global use of single-use plastic drink bottles by tens of millions every year.

Brianne West stepped down as Ethique CEO earlier this year, a decade after starting the $100 million business in her kitchen as a 24-year-old biochemistry student.

West’s new social enterprise aims to take on the $1.44tn beverage market which produces over 583 billion single-use plastic bottles annually, with less than 10% of these recycled.[1][2] The new venture will produce concentrated effervescent drink mixers in the shape of a circular tablet which on contact with liquids such as water dissolve to release flavouring. Each ‘Incrediball’ makes up the equivalent of a 350ml beverage and can be added to both alcoholic and non-alcoholic hot or cold beverages to enhance the taste.

West says the product will be the world’s first effervescent drink tab in fully home compostable packaging and could prevent over 10 million single-use bottles from entering the waste stream every year from 2030 and expects this to grow significantly over time.

She says while effervescent concentrates in this form usually require plastic wrapping, they will launch new technology within the tablet to protect the product from moisture before use.

“When water is literally on tap in your kitchen, it seems crazy to ship it around the world.

“Incrediballs is designed to address this - we are looking to transform the traditional model under which drinks are sold in their ready-made form by allowing consumers to purchase the flavouring component in a concentrated format that can be added to sparking, still, hot or cold tap water in a reusable container, as well as a wide range of other beverages.

West says mainstream adoption of the product will be essential to making a meaningful environmental impact and the communicating ‘green’ benefits of the product will not be enough to elicit widespread change by itself.

She says the idea for the business was developed

from the recognition that shipping around the world was inherently inefficient and contributing to a growing plastic pollution problem.

“With billions of plastic bottles manufactured every year, we know that our offering will need to have universal appeal to all segments of the market to have any chance at changing an entrenched set of consumption behaviours.

“To achieve this objective the primary focus will be on creating a product with an amazing taste profile that attracts consumers organically.

“We want to make sure the format is convenient as well, allowing people to drop a couple of flavour tabs in their bag as an alternative to carrying a full bottle of liquid to work.

“We recognise that waste reduction benefits will be secondary to many parts of the mainstream market and the product needs to fulfil other consumer needs in order to have downstream environmental outcomes at a global level,” she says.

Brianne West.

“Our international distribution channels will be online to begin with as we soft launch the product and get a read on how consumers are responding to the flavours.

“From there we expect to expand quite quickly into FMCG channels in North America, Australia and of course New Zealand,” she says.

West says by removing the liquid and packaging components of a beverage, the weight and volume are reduced by over 99% - which helps reduce the carbon footprint of exporting significantly.

West says they are looking to develop both functional and non-functional concentrates, which may include the use of Manuka, kawakawa and kiwifruit extracts.

“In ready-made flavoured drinks, water can make up 90% of the product’s weight. On top of this, plastic packaging represents up to 10%.

“In the first stage, we will introduce a range of flavours that will resonate with the majority of consumers.

“As a result, beverage exporters end up paying to ship their lowest cost ingredient in single-use plastic packaging that is increasingly out of alignment with the evolving needs of environmentally conscious consumers.

“The second stage will see a new line of functional concentrates that have a range of health benefits.

“This might include the use of native New Zealand Manuka for its antibacterial benefits, and essential vitamins, minerals and electrolytes for post-workout recovery for example,” she says.

West says the export potential of the product is significant and they expect it to become a $30m business within the next five years.

She says industry feedback from the market has been positive and they have already been approached by local supermarket representatives interested in stocking the product when it launches in April next year.

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“In contrast, the Incrediballs reduce the volume of a shipping container which holds around 68m3 down to just 1m3. In other words, we can ship the equivalent of 100 times as many ready-made drinks in the same size container.

“Despite the reduced size, the export value of this shipment in dollar terms is roughly the same however,” she says.

West says the new business will be based in Christchurch and the current team of four staff will expand to over 12 within the first few years of operation.

DEVELOPMENTS

Burning bright “I didn’t just want a job, I wanted a career,” says Jodie Spence-Ord. It’s exactly what the Cantabrian mum of two has achieved, and in the process, has paved the way for other women to enter the fire industry.

A busy family life and a full-time job didn’t stop Jodie from quickly completing several qualifications, including a New Zealand Certificate (NZC) in Hand Operated Fire Fighting Equipment (Level 3), a NZC in Systems Technology Testing (Level 3) and a NZC in Routine Compliance Inspections (Level 4).

The award winner was recognised when she was named Fire Learner of the Year at the Fire Protection Association New Zealand (FPANZ) conference in Auckland. It’s an honour Jodie was thrilled to receive.

FFP Service Manager Andrew Bryant says Jodie has “excelled since day one”. It’s a sentiment shared by training organisation Competenz Te Pūkenga’s Training Advisor John Terry.

“Jodie is committed and beyond dedicated to her study work and workplace practices. She has achieved remarkable milestones in her training journey and now runs an internal study group for other learners within FFP. She also recently stepped up to become an in-house verifier for Competenz Te Pūkenga. She sees a great future ahead with FFP that

includes more learning.”

Jodie decided on the fire protection industry as a career while she was working as a security guard.

“I knew someone who worked for a fire company, and I got really interested in it. Then someone from FFP was doing the building warrant at my former workplace. I had no experience in fire protection but simply approached FFP – the first female to do so!

The rest is history.”

While at FFP, Jodie was given the opportunity to upskill and study towards formal qualifications while at work. The ‘earn and learn’ model was ideal for her family situation. With two young children, Jodie felt the only way she could get a qualification would be to do an apprenticeship.

Balancing a family with study commitments and a 40-hour-a-week job was challenging, but she was determined to succeed. She’d print assignments at work and do one or two questions each evening.

“While it was full on and there wasn’t much time for rest, I found a way to do it all. You do it for your

family.”

Shortly Jodie will finish her remaining units in Systems Technologies Inspections (Level 4) and is looking at what’s next for her in terms of study with Training Advisor John’s help.

“Five other women have been inspired and hired by FFP. We’re slowly taking over!”

Fabrum acquires Alec Farrar Engineering to support scale-up New Zealand company Fabrum, a world leader in zero-emission transition technologies to enable a lower-carbon economy, has completed the acquisition of Alec Farrar Engineering Limited, a Christchurch-based engineering manufacturing company and foundry.

The acquisition will extend Fabrum’s manufacturing

other world-leading technologies. Through this

industry.

capability to support its rapid growth, driven by

acquisition, we’re building our talented team

growing demand for its end-to-end hydrogen

and adding a strategically important part of our

“Fabrum was created 18 years ago to leverage

systems and other technologies for aerospace,

cryocooler supply chain to Fabrum.

heavy transport and heavy industries. Details of the

We plan to invest further in Alec Farrar to expand

Engineering School, so we are pleased to continue

its offering to include heat treatment and other

to deliver on this vision.”

cash-only purchase were not disclosed.

history and Canterbury University’s very talented

Alec Farrar Engineering will continue to serve the

services, which the wider engineering industry in

New Zealand engineering industry, which it has

New Zealand can also benefit from.”

served for 92 years, with its existing team as a wholly

Robyn Farrar, Managing Director, Alec Farrar

owned entity within Fabrum.

Christchurch’s strong technology manufacturing

Engineering, says, “Joining Fabrum is an opportunity

Alec Farrar provides a range of services, including

to take the legacy of the company founded by

casting, machining, and general engineering, and

Alec Farrar in 1931 into the future. We’ve worked

its machine shop can produce or repair an extensive

with the Fabrum team for many years to assist with

range of parts for customers in large or small

manufacturing parts, so we’re well-known to each

quantities.

other, which will make for a seamless transition.”

Alec Farrar and its team have manufactured castings

Christopher

for Fabrum’s flagship cryocooler technology used

says, “Fabrum has earned a global reputation as

with electrolysers for its hydrogen production

an innovator for its core competencies in green

systems and in traditional cryogenic markets of

hydrogen production, storage, dispensing, and

liquid nitrogen, liquid oxygen, liquid natural gas,

system integration for heavy transport, mining and

and liquid air.

aviation markets.

Dr Ojas Mahapatra, CEO of Fabrum, says: “We’re

“This acquisition is another important milestone

delighted to welcome the Alec Farrar team to

on our journey. It grows engineering capability in

Fabrum. Fabrum is growing its base to meet the

Christchurch and keeps essential skills here for both

growing demand for our hydrogen systems and

Fabrum’s benefit and New Zealand’s engineering

Boyle,

Fabrum’s

Executive

Chair,

(Left to right): Fabrum founders Hugh Reynolds (Technical Director) and Christopher Boyle (Chairman) with Dr Ojas Mahapatra (CEO)

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NZ Manufacturer November 2023

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LAST WORD

Decarbonising our cities How to account for embodied carbon emissions

University of Melbourne.

Operational emissions – for example from the electricity it takes to heat or cool buildings – account for some built environment emissions.

But embodied carbon emissions also contribute a significant proportion. They are carbon emissions caused by construction as well as the extraction, manufacture and transportation of construction materials.

Replacing an energy-inefficient old building could reduce operational emissions but add to embodied carbon emissions.

And balancing that equation can be challenging, as calculating embodied carbon emissions involves uncertainties. Different databases give different values for embodied carbon coefficients, which represent the amount of carbon emitted per unit of material. But experts can help navigate this uncertainty.

“We all have to commit to transparency in our approaches to embodied carbon calculations. We need to share data sources, and methodologies and assumptions used in our calculations. And only then can we foster trust and comparability so that we can ultimately reduce embodied carbon,” said Dr James Helal, Lecturer in Sustainable Structural Design and Assistant Dean (Sustainability) at the University of Melbourne.

Designing new buildings to minimise carbon emissions “To reach our net zero emission goals, we must reshape the way we think about buildings. They’re not just shelters. They’re living, breathing entities that should be designed and operated with a clear understanding of their impact on our ecosystem,” said Dr Behzad Rismanchi, Senior Lecturer in the Department of Infrastructure Engineering at the

Specifying carbon targets, including embodied carbon, and engaging with engineers or sustainability consultants early is crucial.

“Optimisation [of building designs] can only take us so far,” said Environmental Designer Lucy Marsland from Atelier Ten. Applying circular economy principles to building design will inherently achieve decarbonisation.

“Circular economy at its heart aims to keep materials in use. This is done through a combination of measures focusing on resource efficiency, designing out waste and extending the life cycle of materials when they’re in use,” said Ian Dixon, National Lead for Building and Property Sustainability at GHD. To encourage low-carbon solutions even when there’s no immediate payback, Marsland said we must challenge the way we view the built environment – which is as business assets first and foremost.

“Maybe we need to think rather about investment in the community,” she said. Bringing in experts from social sciences, economics and community organisations can help quantify benefits in a more holistic way.

The role of existing buildings in reducing carbon emissions Retrofitting old buildings rather than building new is an option for some projects and clients, but not all buildings are suitable.

“We’re currently involved in a project to develop guidelines on ‘rebuild vs reuse’ decision-making that happens quite early on in these projects. It is quite complex, though. There’s the ‘triple bottom line’ of the social, financial and environmental [considerations]. On top of that you’ve got risk,” said Dr Helal.

Sustainability also means using resources more efficiently. One building’s waste heat could be

another building’s heat source. But in cities, these buildings likely have different owners – which means stronger governance is needed.

“From a technical perspective there are so many opportunities at the city level in terms of sharing resources and sharing energy and so on. But the complexity to be resolved here is the governance and the ownership and the responsibility around that,” said Johanna Trickett. She leads ARUP’s education business.

How universities model sustainable cities In Australia and New Zealand, 60 universities occupy three times the space of Melbourne’s CBD. Like cities, Trickett said, their buildings include diverse typologies from high-tech laboratories to car parks.

And they tend to have aging buildings that are usually fully occupied and thus difficult to retrofit.

“I think a lot of cities and other sectors can learn from the education sector and the universities – like the University of Melbourne – pushing the boundaries on sustainability matters,” said Trickett.

Many universities have set ambitious emission targets. The University of Melbourne has pledged as part of their Sustainability Framework to become carbon neutral by 2025 and climate positive by 2030.

“Universities tend to be the most courageous clients,” Trickett said.

The built environment accounts for 39 per cent of gross annual carbon emissions worldwide.

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