March 2015
www.nzmanufacturer.co.nz
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MANUFACTURING TECHNOLOGY
Robotics market set to grow at 12% annually over next two years.
Technological disruption and the future of work - John Walley Technological progress leading to mechanical automation has already changed how people work around the world, but advances, particularly in software and computing power are opening up new possibilities of automation and disruption. This change was described recently by Xero Managing Director Chris Ridd, “anything that can be automated will be through software”. Workers, businesses and policy makers will all need to consider the ramifications of these deep changes into the future. Such automation, software solutions and communication technology will inevitably start to add global pressure on our service sector, which is often referred to as the non-traded sector, because they previously could not be traded across borders. This will mean over time service providers such as accountants, drivers, lawyers, and even doctors will increasingly find themselves competing on the world stage. Imagine, for example, what autonomous vehicles will mean for the transport / delivery service sector and the impacts on the use of transport infrastructure. These advancements will improve utilisation,
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THE INTERVIEW Stephen Snedden.
ENERGY REPORT Navigating the manufacturing energy equation.
Report predicts rosy future for natural products manufacturers A recently released report has found that New Zealand’s natural products sector contributes an estimated $1.4 billion per annum to the economy, which represents a 40 per cent increase over the past five years. The report also predicts strong ongoing growth in local and export markets. The sector comprises functional foods, complementary medicines, cosmeceuticals (cosmetic preparations with medicinal properties) and nutraceuticals (a food or food ingredient that has health-giving properties) manufacturers and suppliers. Alison Quesnel, Executive Director of industry body National Products NZ, says the survey found the sector to be highly export-sensitive with strong export and local market growth projected over the coming three years. Eighty five per cent of respondents export, with exports reported to be $285 million per annum. New Zealand, Australia , China and Hong Kong are key markets for all firms, with smaller businesses also anticipating growth in more traditional markets such as the US, UK and Europe. Larger companies are focusing on Australasian and Asian markets. The sector provides a wide range of products and services, with health foods, personal care, and health and botanical extracts being more prevalent. Ms Quesnel notes that many natural products manufacturers want to use more locally sourced ingredients in their products but are constrained by inconsistent or inadequate supply. The survey found that only one-third of respondents use more than 50% locally sourced ingredients in their products. “This presents opportunities for growers and other types of natural ingredient suppliers to meet this growing need.”
The survey also found that the natural products sector is quality rather than cost driven, and focuses on producing Alison Quesnel, Execu tive Director of indust reliable high ry body National Produ cts NZ. quality products that work. Innovation is important, with more than half of respondents having introduced new goods and services in the past year, which is well above the New Zealand average of 42%.
New Zealand’s natural products industry would benefit from more R&D and export market support. Ms Quesnel says the survey shows that the industry is vibrant, innovative and thriving: “New Zealand’s natural products industry is clearly in great shape but would benefit from more R&D and export market support so as to further access and grow our export markets.
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