March 2015
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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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Increased productivity requires a bigger plant. A bigger plant requires more energy. Or does it?
It’s no secret that to compete on the world stage, New Zealand businesses need to be more productive. Productivity is often linked to investment in new technology and a bigger plant, but increasingly New Zealand businesses are realising that it can also come from improved energy efficiency. Dominion Salt is one New Zealand company that is getting more out of what they put in, and energy efficiency has been key to their success. As a result of business growth and increased demand, the company looked to expand. They undertook a major plant upgrade of their Mt Maunganui site, increasing capacity at the plant by 63%. Instead of simply enlarging the facility and installing the extra heating required, Dominion Salt put energy efficiency at the heart of the solution. They commissioned engineers Aurecon to come up with an innovative way to recover waste heat and put it back into the production process.
EEC3394_NZM_1
The result was a multi-award-winning project which improved overall energy
efficiency by 48%, reduced natural gas consumption per tonne of salt by 33% and cut CO2 emissions by more than 3,000 tonnes per year. Energy savings started at $500,000 a year and are expected to grow to $900,000 a year once the site hits full capacity.
Fortunately, it is an issue that business leaders have on their radar. Productivity rates as the third highest priority for industrial and commercial businesses (after employee safety and longevity), according to EECA’s Business Research Monitor (June 2014).
Alongside the bottom-line benefit of lower energy bills, improved energy efficiency has also raised their profile – both of which are helping Dominion Salt to compete internationally, with growing demand from customers in 15 countries across Asia and South America.
If you are thinking about kick-starting your business’s performance and productivity, find out how energy efficiency can align with your business goals, and deliver much more than you expect.
Many other New Zealand businesses could be getting these results. It’s estimated that New Zealand firms could save a total of $1.6 billion in costs every year through energy efficiency, thanks to technology upgrades and processimprovement. Alongside those cost savings comes improved competitiveness, greater productivity, CO2 mitigation, and better health and safety. A recent Productivity Commission report found not only is our productivity low compared to our main trading partners, but productivity growth has been slow since 2000, compared to other OECD economies.
www.eecabusiness.govt.nz
BIG NUMBERS •
63% increase in plant capacity
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$500,000 in energy
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3,000 tonnes of CO2
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48% overall energy
savings a year and growing emissions eliminated
efficiency improvement
NZ Manufacturer March 2015
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CONTENTS DEPARTMENTS 5 BUSINESS NEWS
8
Larry Wiechern
Simplicity builds solid start for Cabjaks Manufacturing.
6-8 MANUFACTURING TECHNOLOGY
Robotics market set to grow at 12% annually over next two years. Delcam adds automatic collision avoidance to PowerINSPECT ConnectED 2015 turns vision into a reality. Disabled dogs back on their feet with 3D titanium implants. Exhibitors get right behind SouthMACH.
10 DEVELOPMENTS
Kiwi WorldSkills team gets set for their Olympics. New Zealand falling behind in sustainable business practices.
Is the Manager of the Maintenance and Reliability Centre, Manukau Institute of Technology.
9 Craig Carlyle
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Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, NewZealand’s largest business advocacy group, representing businesses of all sizes.
Stephen Snedden.
14-20 THE FUTURE OF MANUFACTURING
21-22 WORKSHOP TOOLS
Projecta streamlines solar charge controllers. Paint colour changes like a Chameleon. Gauge measures surface. Rotary burrs enhance Dormer Pramet program.
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
Catherine Beard
12 THE INTERVIEW UR3 robot to work alongside humans. Is the era of mass manufacturing coming to an end? TITAL = Increasing number of Ermaksan machines installed. The inventor who may kill the power cord. MecSoft restores the pride of the Royal Air Force. Three steps to manage risk a manufacturing transforms. Smart standard drives provide servo dynamics and precision.
ADVISORS
14 Brian Willoughby
Is Senior Vice President of the NZ Manufacturers and Exporters Association and Managing Director of Contex Engineers and Plinius Audio.
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24 FOOD MANUFACTURING
Lewis Woodward
Is Managing Director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
Sustainable salmon farming subject of $5.2 million research.
26-27 ENERGY REPORT
Orora targets 15% energy savings. Navigating the manufacturing energy question.
24 Dr Wolfgang Scholz
Is HERA Director and a Fellow of the Institute of Professional Engineers NZ.
28-29 DEVELOPMENTS
‘India week’ creates legacy of opportunities. Canadian marine company using HamiltonJet systems. OMAX to spotlight machining centre at AUSTECH 2015.
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BUSINESS NEWS Greater effort needed by NZ businesses to strengthen Asian ties. Importance of India highlighted.
31 REAR VIEW
SME growth coming off record highs.
27
Bruce Goldsworthy
An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.
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NZ Manufacturer March 2015
EDITORIAL PUBLISHER
Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.
MANAGING EDITOR Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz
CONTRIBUTORS
Holly Green, John Walley, Say Leong, Stephen Snedden
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MEDIA HAWKES BAY LTD T: +64 6 870 4506 F: +64 6 878 8150 E: mediahb@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992
Vol.6 No. 2 march 2015 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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Natural products sector strong contributor to the manufacturing effort Manufacturers are stepping up to the plate from all over the place. Do you know that the New Zealand natural products sector contributes an estimated $1.4 billion per annum to the economy? And it is predicted that future growth on local and overseas markets is imminent. As a recent survey showed 85% of respondents exported. That’s pretty impressive considering they brought in $285 million per annum to the economy. And as many other types of manufacturers indicate, the natural products sector would prefer to use more ‘home grown’ ingredients in their processes. Your company may have a story to share regarding sourcing ‘home grown’ and what that implie?. On another note, John Walley is retiring from his position of chief executive at New Zealand Manufacturers and Exporters Association (NZMEA). As NZMEA President Tom Thomson said, “For a CEO to be around for 16 years speaks for itself, our Board was pleased to make John an Honorary Life Member in recognition of efforts above and beyond what might be expected from a CEO. John leaves with our best wishes for the future and thanks for past efforts.”
We wish John all the best for the future. John has been a regular contributor to New Zealand Manufacturer as we welcomed the planning and direction of NZMEA and its members being read about through his words. We will continue to focus on NZMEA’ manufacturing members and their direction in the future with his successor. Anyway, back to this issue…there is a great Interview with Stephen Snedden, the inventor…Cabjaks Manufacturing, not long ago a new company now has an annual turnover of $2 million in their cabinet making business. There is a lot to catch up on in The Future of Manufacturing, especially if you are looking at making manufacturing better in your company and enhancing productivity. NZ Manufacturer is commencing its build up to SouthMACH 2015 which is being held in July in Christchurch. We have some great incentives for exhibitors who want to be included in our up-coming Feature issues for the show. Happy Reading.
Doug Green ASIA
MANUFACTURING NEWS
www.nzmanufacturer.co.nz
NZ Manufacturer March 2015
Be ready when opportunity comes...Luck is the time when preparation and opportunity meet. - Roy D. Chapin Jr.
In the short time since its establishment in May 2011, Cabjaks Manufacturing has quickly progressed from a “standing start”, as a brand new business with very little capital injection, to producing an annual turnover of more than $2 million.
Keep it simple. That’s the key to the business’s success, according to Steven. Streamlining both the manufacturing and front-end processes has allowed Cabjaks Manufacturing to keep their overhead costs as low as possible, ensuring these cost savings are passed on to the end buyer.
Cabjaks Manufacturing is a cabinet making business, specialising in supplying small simple kitchens, free-standing kitchenettes, laminate benchtops and wardrobe systems, at the lowest possible price. Husband and wife team Steven and Carolyn Phillips, who own and operate the business day-to-day, describe Cabjaks’ rapid growth as a very short, exciting, and unexpected experience.
In order to create simple processes, Cabjaks employs the basic principles of LEAN in all operations, as Steven learned about LEAN when he owned a previous business. Loosely defined, LEAN principles focus on ways of growing a business without increasing the costs.
It has not been completely without effort, as Steven acknowledges that their success is likely due to years of industry experience and expertise. “The experience and the knowledge you’ve got in the back of your head that you don’t even know you have, is where the ease comes from.”
Commercial & industrial growth
“We’ve made quite an investment in plant and automation. I bought all the machinery second-hand. Getting good quality plant at a much reduced price enabled us to get going.”
“What I’ve learned is just to keep simple, clean, processes. That’s what LEAN is to me. Every single day, I’m continuously doing something and then looking at it and saying we could do it better.” A major contributor to the LEAN processes is the fact that everything made by Cabjaks Manufacturing is created from just one product: 16mm white board. This not only keeps
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BUSINESS NEWS
supplier costs down, but also ensures minimal manufacturing and labour costs.
stunned by the growth of that from nothing in September/October last year to now,” says Steven.
“Every morning we cut all the board, edge it, machine it, put it away, and repeat that process the next day. The staff that do that process can then spend the afternoon doing their assembly and other work. We have four manufacturing staff. Which, for the turnover we’re doing, is not that many.”
Cabjaks has also introduced an element to their website which allows customers to customise all of their products. Once the customer is satisfied with their order, payment is taken online and an invoice, delivery dockets, and picking list of the parts required, are all generated automatically. This allows the manufacturing process to begin with very little human intervention, saving time and potential for human error. To create this process on the website has not been straight forward, but its completion allows Cabjaks to further succeed with their “keep it simple” ethos, with more streamlined processes, greater simplicity, and lower costs.
Keeping the process as simple as possible has helped create a natural niche for Cabjaks Manufacturing, amongst a saturated kitchen and cabinet making market. “We don’t get involved in design or installation, so our target market is the skilled handyman, and tradespeople. The niche we’ve carved out is people that want good quality but also a low-cost simple offer.” Cabjaks also recently found a successful niche selling separate components to build customised wardrobe systems. This was only introduced late last year, but has already seen exponential growth. “By only supplying components it’s more apt for the experienced DIY and tradespeople who are happy to do installation themselves. I’m just
Employment growth
“We don’t need a lot of people helping customers, it’s designed so they can do it themselves, to keep the costs down. It looks simple from the outside but behind the scenes, to create the simplicity, it’s actually quite complex. Our business has been profitable from day one, beyond my expectations. But, we’ve been very conscious about keeping our overheads as low as we can.”
Economic output
Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average. getba.org.nz
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Greater East Tamaki Business Association Inc.
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NZ Manufacturer March 2015
MANUFACTURING TECHNOLOGY
The secret to a rich life is to have more beginnings than endings. - Dave Weinbaum
Robotics market set to grow at 12% annually over next two years Say Leong, Assistant Vice President, Marketing at ABB and MTA2015 exhibitor shares his views on the rise of robotic automation in industrial manufacturing processes The International Federation of Robotics states that demand for industrial robots will continue at an average annual growth rate of 12 per cent between 2015 and 2017. In Asia/Australia, robot sales are expected to increase by around an average of 16 per cent per year. The automotive and electronics industries will continue to see increasing investment in robots. Mr. Lim Say Leong, Assistant Vice President, Marketing of ABB, thinks that in a new era of robotics, collaboration between humans and robots will become a reality. MTA2015 caught up with Mr. Lim to learn more about future trends in automation technologies and robotics for the Asian manufacturing sector. ABB, a global leader in power and automation technologies, will be showcasing its robotics solutions at MTA2015.
Robotics made simple Small parts assembly is leading the charge in human-robot collaboration, where humans and machines are starting to work right next to each other, with no need for cages and other protective equipment or barriers. Automation will become simpler and more user-friendly, such as modular plug-and-produce components that will enable people without extensive experience in robotics to programme and integrate a robot in the process. At ABB we believe very strongly in a “what you see is what you get” (WYSIWYG) programming interface, so it is possible - perhaps even expected - that visual apps as well as programming by teaching (rather than coding) will greatly enhance the ease of programming for the next generation. The tools that allow robots to interact with the world around them are also in development, such as advanced sensing and advanced gripping. In order to allow robots to do all the jobs that they are well suited for, they will need to develop more “human-like”
production of the same design. These pose great
abilities to find, identify and manipulate objects. When combined with powerful processing capability, tools like force control and advanced 2D and 3D vision systems will create a kind of robotic “independence” and allow the robot to make “decisions” about what to do when it encounters the inevitable hiccups that arise in everyday operation. Already ABB has developed a new generation of Integrated Force Control and Integrated Vision to help make these advanced technologies available to more and more end-users.
Opportunities in Southeast Asia
The benefits for Asian manufacturers
demand for more engaging and meaningful jobs
Singapore has always set the lead for countries in Asian markets; in the recent budget announcement it was disclosed that while our wages have caught up with developed countries, our productivity had been lagging in the last three years. This exposes a stark impediment in productivity growth especially when businesses have to compete internationally.
challenges for robots to be innovative, and yet robots can be productive to meet the desired return on investment.
The growing middle class in Southeast Asia and higher levels of education are producing new generations of youth who receive less job satisfaction with dirty, dangerous and dull tasks that are characteristic of some manufacturing processes. This creates a in the market, which could pose a challenge to manufacturers in the region who will need to revamp their organisation of human resources. In fact, some small medium enterprises have started employing robotic automation as a means to retain talent and even attract their next generation to inherit the business.
Industries must act now to prepare themselves in integrated automation for when the economy recovers; where further automation will lead to a less labour intensive and more productive future, with less resources and time used to produce more goods at a high and consistent quality. For manufacturers, robots not only bring productivity, but also huge reductions in energy consumption and carbon dioxide emissions. Automation lines equipped with vision systems can also operate without the need for ambient factory lighting or air-conditioning (subject to the requirements of the manufactured product itself), allowing for the possibility of 24/7 operation with substantial energy savings.
Faced with an uncertain economic outlook, lower
Companies with a well-established manufacturing base can also leverage on systems that can collaborate and determine solutions that minimise the cost to the business. In Asia, companies manufacture items ranging from one-off design to large volume
different products and processes with robots, rather
oil prices and increased market volatility, businesses have to rethink ways to add value to their products and services. Cheaper Asian countries have the competitive advantage of high volume and low cost in their production chain; players that will stand out are those who provide customisation and cater to the individual needs of customers. For example, product cycles in the electronics industry are getting shorter, with new models and functions being introduced at a blistering pace. Fast deployment and incredible flexibility are key to meeting the demands of low volume but high mix products. In this regard, manufacturers can be flexible in switching between than needing large scale production with high product volume. By offering higher quality products coupled with fresh varieties, companies can bring a difference to the table and disrupt the market.
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Report predicts rosy future for natural products manufacturers She noted the report highlighted that international regulatory and compliance issues are seen as export barriers to destination markets so the industry was hopeful that the Natural Health and Supplementary Products Bill would soon pass into law.
www.nzmanufacturer.co.nz
“Doing this would support export growth into major markets by positioning New Zealand as having world-class regulatory, compliance and audit systems,” she says. At present NPNZ has 140 members. The report’s
findings are based on a combination of survey responses from 88 members, and extrapolated data and information from a further 100 members. The full report can be viewed at: naturalproductsnz.org/ news
NZ Manufacturer March 2015
The best way to finish an unpleasant task is to get started. - Anonymous
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MANUFACTURING TECHNOLOGY
Delcam adds automatic collision avoidance to PowerINSPECT inspection software Delcam has released the 2015 version of its PowerINSPECT inspection system, the world’s leading hardware-independent metrology software. The new version includes automatic collision avoidance, faster import of large CAD files, quicker preparation of longer inspection reports, and improved display of results from point-cloud data, plus many other customer-requested enhancements. of measurements is re-ordered, and when features are added or removed. As well as preventing collisions, automatic collision checking will save significant programming time, especially when inspecting more complex items. The user still has the option to override the path produced by the software. This might be required if any accessories not modelled in the CAD data are present, for example, any clamps or fixtures being used to hold the part. A number of improvements to PowerINSPECT 2015 have made both data import and report generation much faster. The differences will be particularly apparent when reading large CAD models, such as a complete car body, and when producing longer reports with more graphical images. Another improvement in reporting gives users much greater control over the Previous versions of PowerINSPECT would simply highlight collisions (top) but the contents of any report. 2015 release avoids the collision automatically (bottom) For example, it is easier to produce a summary of the For full details, including video With PowerINSPECT 2015, the complete set of results as demonstrations of the new options, software adjusts the probe path a management report. Similarly, a please go to www.delcam.tv/pi2015/ automatically if a direct move more concise report can be produced lz/en/index.asp between inspection features could when greater detail is not needed, produce a collision. The software for example, when all the results are PowerINSPECT has included collision will calculate a new motion path well within the expected tolerances. detection for many years to warn that avoids the obstacle, typically by the user when there was a possibility The 2015 release also offers moving up and over the obstruction of any collision between the probe improved display of results from or around it. and the item being inspected. Until point-cloud data, including a better now, the user then had to make the Collision avoidance is carried out shaded display of the ‘colour map’, required changes to the probe path when the initial probe path is complete with the coloured scale of to avoid the collision. generated, when the sequence the tolerances. As well as making
the results simpler to understand, the new format is more consistent with the reports produced by PowerINSPECT from data from other types of measurements. This makes it easier to compare the results from different devices or measurement methods. A number of other usability enhancements have been included. The representation of changes to the probe or to the probing parameters is now clearer and easier to understand. These improvements will be especially useful when creating longer inspection sequences for CNC coordinate-measuring machines and for on-machine verification. They will also make it easier for CMM operators to follow measurement sequences developed by another user, for example, when the inspection routine is created by the company’s metrology expert but then carried out by less experienced users. Another usability enhancement is the addition of scale-model inspection. In this mode, the measurements from a scale model, such as a half-scale car, are displayed as though they were the results from the full-size item. This makes the reports easier to understand at first view and makes it quicker to exchange digital measurements with the CAD system as there is no need to compensate for the scaling in the model. It has also been made easier to handle more complex CAD data structures, with data split over a series of levels. In particular, it is easier to match the CAD view to an item contained within a history tree. Finally, a new intersection item has been added to the range of geometry that can be measured with PowerINSPECT; the intersection between a sphere and either a cone or a cylinder. This option will be useful when measuring ducting and pipework.
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NZ Manufacturer March 2015
MANUFACTURING TECHNOLOGY
The whole world steps aside for the man who knows where he is going. ~
Unknown
ConnectED 2015 turns vision for a connected enterprise into a reality As technology continues to advance at a rapid rate, the line between information technology (IT) and operational technology (OT) is becoming less defined. Establishing an information-enabled Connected Enterprise can help manufacturers become more competitive, flexible and sustainable, which is of paramount importance in the current global market. To help customers address their business and technology challenges and reap the rewards the industrial Connected Enterprise delivers, Rockwell Automation brought ConnectED 2015 to Melbourne at the Melbourne Convention and Exhibition Centre. This new and exciting event was held in association with Cisco Live, Cisco’s premier education and technical updating destination or IT professionals. According to Matthew Treeby, commercial marketing manager at
Rockwell Automation, “In order to remain competitive, there is a growing need for our customers to merge their information technology and operational technology. This convergence improves connectivity across enterprise operations and provides the platform to integrate information across business systems and the plant floor.”
These two worlds are coming together to offer manufacturers’ agility. ConnectED 2015 in association with Cisco Live, let attendees see first-hand how these two worlds are coming together to offer manufacturers’ agility, lower cost of ownership and improved operations. An added advantage of having both these events under the one roof is that registration for either one, includes free admission
to the other. Participants experienced a world of solutions, combining seminars delivered by industry leading professionals, interactive ‘hands on’ displays, workshops and certified training courses. A key feature of the event will be the replication of a remote operating centre with live camera feeds for equipment residing within the display area. ConnectED 2015 helped improve collaboration between the OT and IT in business and provided the opportunity to learn about how other customers are managing convergence to gain productivity and reduce overlap. Attendees gained a better understanding of the tools, technologies and expertise available to assist bridge the gap, while those
from the IT world learnt more about the specific network and technology requirements for operations. Rockwell Automation together with its distributors and PartnerNetwork™l demonstrated how the recent acceleration of the Internet of Things enables new levels of connectivity for people, processes, data and things - ultimately providing greater productivity, better utilisation of assets, and improved decision-making to industrial companies.
Disabled dogs back on their feet with 3D printed titanium implants More than 1 0 , 0 0 0 disabled dogs are now able to run faster, jump higher and play harder thanks to 3D printed metal orthopedic knee implants that 3D Systems manufactured for Rita Leibinger Medical. Digitally designed and 3D fabricated titanium implants empower veterinarians to compress the treat-
ment-to-recovery cycle of a common, but difficult-to-solve problem in dogs’ legs, underscoring the power of 3D printing to improve the quality of life for all. The patent pending TTA Rapid™ (Tibial Tuberosity Advancement) implant effectively repairs damage to cruciate ligaments in dogs’ hind legs caused by trauma, degeneration or genetics. This revolutionary treatment begins with a 3D printed implant that is inserted into the dog’s lower leg, reorganizing the mechanical forces of the bones and creating dynamic knee stability without the need to repair the
damaged ligament. In success, dogs – from Jack Russells to Great Danes – are able to walk and run freely six weeks after surgery. The key to this ground breaking implant’s success is its complex, open structure that promotes rapid bone ingrowth, with less risk of infection. Rita Leibinger Medical teamed up with 3DS to manufacture these proprietary titanium implants in its state-of-the-art healthcare manufacturing facility in Leuven, Belgium, while the surgical technique was perfected in collaboration with Dr. Yves Samoy from Ghent University in Belgium.
A year after an initial European release and subsequent distribution in the U.S., the Rita Leibinger Medical TTA Rapid implant is poised for worldwide release, and the team is working on scaled down implants for smaller dogs and cats. From implants to prosthetics, 3DS’ personalised medical solutions are helping provide favourable outcomes and improving the quality of life for all – whether man or man’s best friend. Watch a recent video of how 3DS got Derby the Dog up and running for the first time on 3D printed custom prosthetics.
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NZ Manufacturer March 2015
9
SOUTHMACH
The future is purchased by the present - Samuel Johnson
Exhibitors get right behind SouthMACH The South Island’s premier engineering and manufacturing tech trade show has been reinvigorated for 2015. New owners XPO Exhibitions have been working hard to ensure that visitors and exhibitors get a great return on their investment. No stranger to trade exhibitions, XPO owns and organises NZ’s largest portfolio of national trade exhibitions, including a selection of events with a good industry synergy with SouthMACH. “XPO has been able to leverage on an excellent EMEX (held in Auckland last year) which saw a 25% rise in trade visitor numbers (audited by Audited Media Assoc of Australasia). Many new and old exhibitors to SouthMACH are trusting us as the show’s new owners to deliver a reinvigorated event in Addington, Christchurch this year.” “SouthMACH is now over 70% full and well ahead of schedule. There are a large number of 3D print technology companies, specialist welding suppliers and we’ve already confirmed CNC machinery exhibitors into the event”, says Aad van der Poel, SouthMACH’s show manager. “We’re committed to a strong media schedule to re-launch this event as the true heartland of NZ Manufacturing. “ David Green of Kemppi Australia says SouthMACH will be its first direct event engagement within New Zealand
for some time. “This exhibition will increase our exposure to the welding market in New Zealand in general, and to the welding contractor community focused upon the Christchurch rebuild in particular. “We’ll be showing how to achieve highest quality control through a number of welding solutions we call TOTAL WELDING X Management (TWXM). In short we offer increased productivity, reduced operating cost, reduced operational risk and compliance to welding quality management standards. “People who don’t visit SouthMACH and our stand will miss the opportunity to add significant value to their operation, as well as our dedicated industry seminar on ‘welding quality control management and documentation management systems’.” Local companies as just as positive about SouthMACH as the internationals. Brett Hawkes of Mainstream Engineering Ltd (MEL) says it’s a fantastic opportunity to help launch the company’s new Christchurch operation. “It’s targeted at improving our service to Canterbury (and the greater South Island) industry. Over a short two day period we will be able to reach a greater number of people and businesses in a direct one on one way, getting better
understanding of their needs and how the skill and experience of the MEL team can add value to their business. “To add a bit of interest over and above the standard information display, we plan to provide an interactive demonstration of one of the services we offer, and there might be something in it for the best performer on the day! Watch this space…” Another company with must-see technology is Baskiville. “DuraGlide is a dry-film PFTE based Kemppi to increase exposure to New Zealand welding market. lubricant developed to improve hi-tech medical devices, but Pacific, from Knipex Germany also useful in any hi-tech product where attending this event, along with our stacked tolerances accumulate to NZ Business Development Manager increase friction and reduce a product’s Bruce Clarke.” effectiveness due to manufacturing SouthMACH is at the Horncastle Arena tool wear and tear,” says Neil McArthur. Christchurch, 22 and 23 July 2015. It is Ed Higgins of Kiwi company Sulco says a trade-only event, with free entry to SouthMACH visitors can look forward those who preregister online at www. to displays and demonstrations of a southmach.co.nz range of Knipex Germany pliers and cutters. “This will include a number of new and innovative tools for many industry segments: electrical, plumbing, construction, electronics and more. We will have Daniel Hesmer, the International Sales Manager Asia
Horncastle Arena, Christchurch
SouthMACH is the South Island’s premier technology trade show celebrating the heartland of NZ Manufacturing.
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NZ Manufacturer March 2015
DEVELOPMENTS
Hope sees the invisible, feels the intangible and achieves the impossible. - Anonymous
Kiwi WorldSkills team gets set for the trade equivalent of the Olympics Twenty-six young Kiwi are preparing to compete against the best of the best competitors from Canada, India, Malaysia, China, Australia and Korea in the inaugural WorldSkills Oceania regional competitions to be held April 13-17 at Wintec in Hamilton. So far, 105 international competitors are registered to compete in a total of 30 different skill categories at the Oceania competitions. The NZ WorldSkills team will compete in 18 skill categories ranging from aircraft maintenance to the various auto and engineering trades, carpentry, joinery, plumbing and heating and go through to floristry, hairdressing, restaurant trades and web and graphic design. Competition will be intense for the under-23 year olds who are at the top of their respective trades for their age in the country. They will pit themselves against demanding international
standards to battle it out to win one of 18 spots in the final WorldSkills NZ Tool Blacks team that will go to Brazil in August to face off against competitors from 71 other countries. Each competitor has a personalised, hands-on mentoring programme to ensure they have the best shot at winning a medal. This includes “mental toughness” training developed exclusively for WorldSkills NZ competitors. Rural and provincial New Zealand is well represented in the 26-strong national team.
One of the gifts of WorldSkills competitions is the confidence the kids gain in their own abilities. It’s helped by receiving the endorsement of a positive peer and skill group that’s with them every step of the way. How you can help support the Tool Blacks: • Come along and cheer the team on at Wintec in Hamilton,Thursday 16 April and on Friday 17 April from 9am –12noon. .
Managers to Brazil in August, email info@worldskills.org.nz. • ‘Like’ us on facebook WorldSkills New Zealand is an independent, non-profit charitable trust founded in 1986, dedicated to encouraging young people to excel in vocational skills. This is achieved through exposure to competitions at regional, national and international levels.
• If you are interested in fundraising or sponsoring or donating to help get the Tool Blacks and their Skill
New Zealand falling behind in sustainable business practices There is a growing demand by New Zealand businesses for a return to government intervention in sustainable development issues, said one of the keynote speakers at the recent Sustainability Symposium at the University of Waikato. monitored for compliance. We all benefit from New Zealand’s clean, green image, so we need to back it up with some overarching policy,” says Professor Roper. The sustainability symposium attracted about 50 researchers from across campus to examine sustainability from a wide range of economic, social, education, health and cultural perspectives. About half of the academics who presented papers at the symposium were from Waikato Management School, which was the first business school in New Zealand to place a strong focus on sustainability and corporate social responsibility.
Professor of Management Communication Juliet Roper says the New Zealand government has taken a hands-off approach to the environment and climate change, by claiming that too much regulation would economically disadvantage New Zealand businesses relative to international competitors. Yet despite initial relief from the business community, her research shows some businesses are now concerned about the repercussions for www.nzmanufacturer.co.nz
New Zealand’s ‘clean, green’ brand image. “New Zealand is falling behind the rest of the world in regulating for sustainable business practices, especially in comparison to European countries,” says Professor Roper. “We have been warned of the flow-on consequences of this for years by major UK retailers such as Sainsbury’s and Marks and Spencer.” “There needs to be more stringent legislation and that needs to be
There is a growing demand by New Zealand businesses for a return to government intervention in sustainable development issues, said one of the keynote speakers at the recent Sustainability Symposium at the University of Waikato. Professor of Management Communication Juliet Roper says the New Zealand government has taken a hands-off approach to the environment and climate change, by claiming that too much regulation would economically disadvantage New Zealand businesses relative to international competitors.
Yet despite initial relief from the business community, her research shows some businesses are now concerned about the repercussions for New Zealand’s ‘clean, green’ brand image. “New Zealand is falling behind the rest of the world in regulating for sustainable business practices, especially in comparison to European countries,” says Professor Roper. “We have been warned of the flow-on consequences of this for years by major UK retailers such as Sainsbury’s and Marks and Spencer.” “There needs to be more stringent legislation and that needs to be monitored for compliance. We all benefit from New Zealand’s clean, green image, so we need to back it up with some overarching policy,” says Professor Roper. The sustainability symposium attracted about 50 researchers from across campus to examine sustainability from a wide range of economic, social, education, health and cultural perspectives. About half of the academics who presented papers at the symposium were from Waikato Management School, which was the first business school in New Zealand to place a strong focus on sustainability and corporate social responsibility.
NZ Manufacturer March 2015
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NZ Food Manufacturer
Work spares us from three evils: boredom, vice, and need. – Voltaire
title text
N e w s – De v e l o p m e n t s – Op p o r t u n i t i es
the m o r F
e To t h
NZ Food Manufacturer brings you all the latest news and developments in food manufacturing For further information and to advertise visit
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NZ Manufacturer March 2015
THE INTERVIEW
One’s mind once stretched by a new idea, never regains its original dimensions. - Oliver Wendell Holmes
The Interview: Stephen Snedden New Zealand Manufacturer recently asked Stephen Snedden, the inventor, where he finds his inspiration and when it all began. NZM: When did you become an inventor?
make the market,
SS: As a young boy tinkering in my father’s shed with go carts and motor bikes and school projects. Dad was always working out solutions for problems as a self-employed electrician in his good old kiwi Shed.
SS: My family.
NZM: What was the first thing you made? SS: At high school doing workshop technology I was encouraged to do night school Jewellery class with Peter Hook. During the School C year we had to make a flint lock pistol, a knife, and pouch and brass cannon. It became a competition between all the class mates to do the best job. I managed to get top in my school for the School C year for workshop technology and technical drawing must say the ability to investment cast small parts helped a lot, NZM: What is your latest project? SS: My latest project is a rotational mould for a boat trailer body that can carry my boat but is also multi use as it can be used for a Jet Ski trailer or as a kids Slide on the water’s edge. It can float and be used as a floater to play with or for accessing boats on the water. It has 500 kg of flotation and can easily carry 3 paddlers, as a canoe. I have noticed after researching that no one’s supplying floating jet ski trailers worldwide so I’m going to see if I can
NZM: What are you passionate about? I’m passionate about being able to create what we can dream of, being able to vision a product and draw it and then simply apply this to make it a reality. It really gives me a kick to see things come to reality from the drawing board. A lot of the time one is working against the grain on any new project, especially when it’s your idea as it don’t pay at all until it’s successful
NZM: What inspires you? SS: My children and grandchildren, they motivate me and I’m inspired by the challenge of becoming successful and seeing people love and appreciating what I have created. I always get a buzz when people say great things about the product, trying new technologies moving into new fields that once I hadn’t dreamed of such as moulding large plastics products. It’s always a thrill and inspires me to reach even higher goals, NZM: Tell us about the Cubby Cabin? SS: So far with my Seahull boat I have kept things rather like pizza base as there is a lot of options and I had to settle somewhere; for example, mk1. Also, I didn’t want to spoil the image with some wacky looking cabin so for now I’m just keep it simple. We do however have plans to do a front wind
shield with cuddy cabin and a custom soft and hard top for the future, we have already done side and centre console open boat, NZM: How is interest in SeaHull going? SS: Seahull is going very well and has been making consistent sales in New Zealand We are becoming well known around the world through sites like LinkedIn and things have changed a lot since we are moulding the boats ourselves. People understand we have the knowhow and we have cut costs considerably to be able to compete and allow enough meet for dealers. We currently are discussing with some of the world’s largest rotational moulding companies to make and market the Seahull range of products under licence for their local areas This is very exciting as we always knew it was area franchisable. NZM: Who is your role model? SS: My father. I always admire him for his inventive mind and good character, he tells people he is proud of my success with the boats; even through the toughest of times he has always been a help. NZM: What is next on the drawing board? SS: I’m planning a range of new boat
moulds up to eight meters and possibly a portable bed room, one piece all six sides complete with insulation and inner and outer lining all done at once. NZM: How do you see the NZ business environment at present? SS: There seems to be a lot of help for mentoring and advice which is good for ideas but no good for help in the workshop. I like that we have the best technology, machinery and materials easily accessible. However, there doesn’t seem to be enough support for development of new ideas. Some university students get it on a plate but in the private sector you to pay full price for everything, especially as a small business. It seems out of line how the small guy has to pay more than corporations. In earlier days supporting companies were more likely to help- now they won’t unless there’s some serious money on the table. No support and all this does is push us to work out another way to do it ourselves to save $$ or look to head overseas. We pay too much for everything. The more we can team up and share workshops and tools and resources and support one another, the better. We could easily be one of the most innovative manufacturing bases in the world. If you want to do it on your own in NZ get use to the idea that everything you have got and make will be going into paying overheads which means less time and money for development of the ideas.
There doesn’t seem to be enough support for development of new ideas. www.nzmanufacturer.co.nz
NZ Manufacturer March 2015
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Work spares us from three evils: boredom, vice, and need. – Voltaire
title text
18 – 19 November 2015 Claudelands Event Centre
Hamilton Sponsor and Exhibitor Enquiries Welcome Expo Open Day 17 November More information:
www.nmec.co.nz
Lifting the Game of Maintenance Engineering www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
THE FUTURE OF MANUFACTURING
Never invest in anything that eats or needs repairing. -Billy Rose
UR3 –lightweight tabletop robot to work alongside humans Universal Robots a global developer and manufacturer of flexible and user-friendly industrial robots, has launched its new UR3 robot, the latest state-of-the-art offering from its market leading range of collaborative robots. The UR3, which went through a three-year development phase, is an affordable tabletop robot that has a payload of 3kg and weighs a mere 11kg. It allows for 360-degree rotation on all wrist joints and infinite rotation on the end joint. By combining UR’s industry leading easy programming technology with infinite rotation and improved force control, the UR3 has been designed to be an expert craftsman. From pick and place and assembly to polish, glue and screw applications, the robots enable manufacturers to maintain uniform product output. For example, the robot can pick up screws, mount and tighten them while applying the correct torque. Businesses in the APAC region determined to innovate their production lines looking for a nimble robot that has lower cost of ownership and quicker payback period now have one. Due to its compact form and easy programming, the UR3 is the ideal solution that can meet their agile manufacturing needs. Additionally, the UR3 can now be deployed in confined workspaces where the construction of large safety guarding is not feasible. Likewise, the robot can
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be tasked to operate in environments with toxic or hazardous materials. This will give workers peace of mind as well as improve job satisfaction and productivity levels at the same time.” Safety is a key feature of the UR3. The robot has 15 advanced, adjustable safety settings. One of these is the unique force-sensing feature that
enables the UR3 to limit the force on impact if the robot encounters an obstruction. As a default setting, the new robot is able to sense a force of 150 Newton but can be programmed to cease all movements if it encounters a force as low as 50 Newton along its path of motion. The UR3 features the same 0.1mm
repeatability as the UR5 and UR10 robots and can follow the outline of a surface – such as the aluminium edge around a smartphone – by “feel” rather than through the programming of precise movements and coordinates, which otherwise would require more than 100 data points programmed into the application.
NZ Manufacturer March 2015
When in doubt, route. - Malcolm S. Forbes quotes
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THE FUTURE OF MANUFACTURING
Is the era of mass manufacturing coming to an end? After two or three centuries during which manufacturing consolidated into larger and larger enterprises, technology is restoring opportunities for the lone craftsman making things at home, with extraordinary consequences for careers and lifestyles. The powerful trends towards making things oneself and to choosing freelance careers over full-time employment recreate some of the economic and social dynamics of Athens between 500 and 300 BC, and pose important challenges to businesses and to society. If we understand the forces behind the changes in industry structure since those times, we will have a better sense of how and why those dynamics are reversing and what that might mean for our daily lives.
a rich and varied life. Not having permanent commitments to an employer, they could respond instantly to a military call-up and were able to vote in the assembly and act as jurors when required. Some might choose to work very hard to improve their income but few saw that as a major objective. This varied freelance lifestyle underpinned the practice of democracy and Athens’ wonderful achievements in architecture, drama, art, and philosophy.
To build a large business, you have to win more volume than others in a competitive marketplace; this means having an advantage your competitors cannot match. For a competitive advantage to be of value, it must be manifested in one of the elements of return on capital: revenues, costs, or capital employed.
The Industrial Revolution changed the economics of manufacturing by creating new forms of advantage based upon operating costs and capital investment. Starting in the 18th century, the lower costs offered by mechanization, mass production, and shared information drove production into fewer and larger units and the amateur craftsman in the family workshop was squeezed almost out of existence.
In classical Athens, with no industrial machinery and much of the work done by slaves whose maintenance costs were identical and whose capital cost reflected their skills, it was not possible to get an advantage in costs or in capital utilisation. To compete successfully, you had to differentiate your product to make it worth more than your competitors’. A talented jewellery maker could differentiate his work, but would struggle to expand if customers associated the work with him as an individual. To form a large enterprise, it was necessary to have a product whose quality mattered but had to be made by a team of people.
From a social point of view, manufacturing had ceased to be an opportunity for modestly skilled craftsmen to supplement their living, mixing it with a range of other useful or interesting activities. By the 20th century, pretty much the only way to earn money manufacturing things was in full-time employment, and those involved had little time for anything else.
Now, though, the Information Revolution is reversing the consolidating effect of the Industrial Revolution. The internet eliminates many of the information advantages of colocation and cost sharing. There is less need for in-house knowledge or apprenticeships: online courses range from a few hours to many months in any handicraft you can name. Plenty of sites will help you keep up with fashions or innovations in your chosen craft. Raw materials, even specialised ones, can be sourced on the internet, and to any required degree of pre-processing. Makers’ Row, Etsy, Alibaba, and similar ventures enable makers to find customers without heavy advertising or distribution expenditure. Crowdfunding sites like Indiegogo and Kickstarter can help with finance. And the physical process itself is being simplified and transformed through programmable micro controllers, desktop CNC milling and routing, and 3D printing. It is now much easier and cheaper than ever to make high quality products to your own designs. The implications for the individual, for society and for manufacturing companies are significant. For the individual, the restoration of
competitive equality between the home craftsman and the large factory creates real opportunities for the freelance lifestyle our young people aspire to. For a long time now, most people in the developed world have been spending the prime of their life pursuing a specific full-time career. Now many of them plan to divide their time between various forms of income and leisure activities, as the mood and financial necessity take them. Can we use the opportunities this freedom brings to create a great society in the way the Athenians did, or will there be a lot of idle hands the devil can make work for? And what are the implications for health care, unemployment benefits, food stamps, pension plans, mortgages, military service…? Manufacturers should start by assessing the vulnerability of their output to substitution by the home craftsman. Analysing the nature of the items that were made in large enterprises before the Industrial Revolution will suggest what types of product line are most defensible. Relevant independent variables might include bulk, product complexity, the ability to personalise design or features, and the potential for display. Strategies for the most vulnerable products might need a complete rethink.
For a huge range of other products, which made up most of consumption, like everyday clothes, basic ceramics, simple metalwork, and carpentry, there was no basis for differentiation. Almost all Athenian citizen households would have made their own clothes. Some might make a surplus to sell, others would have to buy some clothing. Many households would have made simple wooden, ceramic or metal objects for their own use and sometimes to exchange with neighbours or sell in the marketplace. By reducing their expenditure and bringing in some income through making simple household products, Athenian citizens managed to enjoy www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
THE FUTURE OF MANUFACTURING
The great thing in the w stand, as in w
TITAL = Increasing Number Of Ermaksan Machines Installed An ever increasing number of Ermaksan cnc sheetmetal machine tools are being installed in New Zealand engineering workshops. Recently CNC Guillotines have become popular because of the ease of quickly setting the cutting parameters to produce a cut with the minimum of burr and twisting. The blade gap, blade rake, backstop, and cut length are set automatically from the information that was entered through the keypad or touchscreen into the controller. Compared to an NC guillotine the CNC system offers more graphical information and easier program creation, storage, and retrieval. Compared to nc systems, cnc controls also have better fault finding diagnosis information that is presented on the graphical display so servicing can be quicker and less costly for a trained maintenance engineer The Ermaksan cnc guillotines that are recently installed have been into jobbing sheetmetal workshops that need quick and accurate setup of their machines by any member of the staff. As the cnc interface is clear and easy to understand there is little training
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required for staff to produce the required accurate cutting results. CNC Pressbrakes have also been a popular Ermaksan machine tool in New Zealand as they are accurate, quick to setup, and repeatable. These features are critical to jobbing workshops who need to be able to rely on their staff to produce the required work correctly and with minimum involvement from the management. Ermaksan recently has moved all their Pressbrake production to cnc types so that the entire Pressbrake range has either Delem or Cybelec cnc controllers. The current popular Pressbrake cnc controller is the Delem DA66T with touch screen and continues a long history of reliable and accurate cnc controls from the Netherland cnc system manufacturer. CNC CAM Software for sheetmetal profiling, punching, and folding is promoted by Revolution Precision Machinery to increase the productivity available from the cnc machinetools they are selling. Productivity is increased by the software because job setup, progress, and information storage can be
determined offline before the work starts. Job costing and quoting are also done by the software from the information entered by the job programmer. Machine tool operation and job progress-pricing can be determined directly from drawing files that are commonly sent as part of the pricing and quoting process for a sheetmetal business. Revolution Precision Machinery engineers have the skills and experience to provide full technical support for the Ermaksan range of machine
tools. The technical support offered is backed up by the manufacturers own service centre that provides a quick and detailed fault fining information and spare parts. For more information on the Ermaksan range of CNC machine tools contact Phil Robinson or Quentin Rowe, sales engineers for Revolution Precision Machinery (RPMcnc) Email: sales@rpmcnc.co.nz Phone: CHCH 960 0892 AKL2650380 Web: www.rpmcnc.co.nz
NZ Manufacturer March 2015
world is not so much where we what direction we are moving. - Oliver Wendell Holmes
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THE FUTURE OF MANUFACTURING
The inventor who may kill the power cord Meredith Perry wants us all to commute in small blimps and communicate via holograms you can touch. Admittedly both ideas are a bit tricky to pull off, so she’s starting with what she considers a simpler project: charging electronic devices over thin air. Perry’s company is called uBeam, and if the 25-year-old New Jersey transplant has her way, that moniker soon will be as familiar as Wi-Fi. “The dream is to replace all electrical outlets with uBeam transmitters,” says Perry. “You’ll wake up and just go through your day with your device and it will be charging in your house, in your car, at your bus stop, at your gym, in your hotel. We want to be absolutely everywhere. And wires won’t be anywhere.” Here’s how it works. uBeam’s transmitter is a wafer-thin square the size of a salad plate that punches out ultrasonic frequencies much like a speaker creates sound. The receiver, currently in the form of a smartphone case, resonates at the same high frequency and turns that imperceptible movement into energy, charging the phone. uBeam’s transmitter doesn’t go through walls, so a square tile is required for each room. Although uBeam is still a few years from being consumer-ready, Perry is convinced her “competitively priced” creation will find its way into our homes and any commercial space where devices are used. “What I’ve seen over the years is people making tiny improvements in existing technology as opposed to saying, ‘Let’s throw this all out and do something new,’” she says. “I know the odds are so against me. But I wouldn’t start a company and bust my (rear) for years unless we were working on something orders of magnitude better than anything else out there.” Such bravado aside, some have a feeling Perry’s Jobsian manner may hint at great things.
“The dream is to replace all electrical outlets with uBeam transmitters,” says Meredith Perry. “You’ll wake up and just go through your day with your device and it will be charging in your house, in your car, at your bus stop, at your gym, in your hotel. We want to be absolutely everywhere. And wires won’t be anywhere.” (Photo: Robert Hanashiro, USA TODAY) The list starts with tech columnist Walt Mossberg, who after hearing about Perry winning an invention competition her senior year at the University of Pennsylvania, challenged her to make a working prototype to present at a tech conference in 2011. That successful appearance — her clunky prototype now sits on a small coffee table in her office here a few blocks from the beach — led to $750,000 in seed money from Mark Cuban, Marissa Mayer and Peter Thiel’s Founder’s Fund. Perry then scrambled around for a few years raising a bit more money and using it to pay contractors to help her shrink her power-transmission device. She checked that box last fall, and nabbed a $10 million Series A round led by Upfront Ventures. What Perry and her team of a few dozen hardware engineers are competing
against is the current standard for wireless charging. Called magnetic inductive technology, this option requires a device, whether it be a cellphone or electric toothbrush, to be touching a base or pad. The prototype of a uBeam wireless charging transmitter, on the wall, and its hand-held receiver. (Photo: uBeam) Some Starbucks and McDonald’s stores in England are offering consumers such charging options. The 2015 Toyota Camry features a Qi-spec wireless charging pad, which will power up smartphones with built-in Qi receivers such as those from Google and Nokia. Qi (pronounced chee) is a wireless powering standard set by the Wireless Power Consortium. So the question is simply whether what Perry and her team are cooking up can replace induction as the dominant option. “True wireless charging such as uBeam, which we call far-field charging, is the farthest away from happening and the youngest in terms of development, but it’s on people’s radar,” says David Green, London-based research manager for IHS who focuses on wireless power technologies.
$213 million market in the U.S., but that will grow 40 times within five years to around $10 billion. “I would think the key for uBeam will be to first prove they’re a viable solution, and then tie in with one of the big guys” such as Apple or Google, says Green. Upfront partner Mark Suster, who led the uBeam financing round, is blunt: “There is not a major player out there (in the tech space) that hasn’t spent time trying to see how they can partner with us.” Suster says that what convinced his firm to invest heavily in Perry despite her youth and lack of engineering skills was her bullish tenacity and ability to inspire a competent team. He’s also convinced this atypical venture bet (“Most VCs are focused on breakout applications such as Facebook and Twitter”) could pay off in a company valued in the billions.
Green says wireless charging is still in its innovation phase, but notes that it is expected to mushroom as consumers add devices to their lives and grow increasingly frustrated with the chore of keeping them powered up. In 2013, pad-based wireless charging was a www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
THE FUTURE OF MANUFACTURING
If at first you don’t succeed, try management.
-
- Anon
MecSoft restores the pride of the Royal Air Force Through the efforts of several passionate individuals and skilled companies Auckland in New Zealand has become the world centre of Mosquito WW2 aircraft restoration and reconstruction. In 2013 the first of these planes flew again and has since been seen at airshows in New Zealand and North America. The next one is close to completion, along with wing assemblies and fuselages under construction for more planes for US clientele. Central to the cooperative operation has been the use of Solidworks CAD models recreated from the original blueprints by woodworker and restorer Corin McCrae so that he could use a CNC router for manufacture of consistent and accurate components. Over several years of work he has fully CAD modelled most of the plane off original blueprints, ensuring that assemblies go together as planned. The router is used for cutting, profiling and shaping wing components and for shaping scarf joints, and has also proven useful for setting out large-scale jigs and templates with a pen tool and for locating positioning pins. Many more uses for the technology became apparent as its use progressed, and the accuracy and symmetry provided by the CAD and CAM system made assembly much more straightforward than any other traditional method.
This coincided with a move to separate and specialised premises for Corin and the establishment of his company Aerowood in a former joinery workshop in Pukekohe, where he gained his first experience in woodworking as a teenager. He is now contracted by Avspecs and other warbird restoration enthusiasts to provide complete wing and airframe assemblies built from new wood materials but incorporating the metal fittings and mechanical parts from original aircraft. The passage of time took a heavy toll on the glues and plywoods used in the original aircraft to the point where there were no original planes left still capable of flight, so these rebuilt examples have caused great excitement in the aviation scene. The throaty roar of two Rolls Royce Merlin engines is guaranteed to raise the blood pressure of any keen observer. The biggest benefit to Aerowood has been that the deep thinking and planning is done well in advance of the involvement of the hands-on employees, and before any 2-part glues are mixed putting the assembly under time pressure. The accuracy and symmetry of the machined parts is guaranteed and makes the assembly much more straightforward. Repeatability is achieved easily and consistently.
The first router used was a 1.5 x 3.6 metre Techno supplied by Waka NZ Ltd, along with Mecsoft VisualCAM for Solidworks machining software. The need to process larger parts and assemblies prompted the acquisition in 2013 of a 1.8 x 5.4 metre PreciseCam custom-built machine with a useful 400mm of gantry clearance.
freely and readily available from Mecsofts reseller – James Dowle of Waka NZ Ltd. The Knowledgebase function makes it very easy to apply a proven toolpath strategy to a new project with the machine-code output available within seconds. The Engraving toolpath method follows the centreline of the tool along the surface of the model, so this enables a specially made weighted pen tool mounted in the spindle to be used to scribe drawing lines on both flat surfaces and 3D shaped and constructed parts facilitating easy and rapid assembly. All layouts are drawn onto jigs and fixtures including centrelines to enable alignment of large assemblies. The integration of the CAM within Solidworks is also very important as any changes to the model can be immediately updated without the need for Export and Import. This is a unique approach in aircraft restoration – CAD and CNC is commonplace in modern aviation manufacture, but not so in the restoration of vintage aircraft. You can be sure that if this technology had been available to the old-timers they would have used it.
As a result the company has work ahead of it for many months, mostly for international clientele. Corin McCrae is very impressed with the power of Mecsoft VisualCAM, using the advanced features of the Professional level to good effect. Corin McCrae uses VisualCAM for Solidworks
Support and advice for the efficient utilisation of the CNC machinery and CAM software has always been
CNC Routers, Lasers and accessories, Mecsoft CAM Software
Mecsoft Oceania Your CAM Partner Powerful | Easy To Learn | Easy To Use | Value Priced
sales@waka.co.nz www.waka.co.nz www.mecsoft.co.nz
Ph +64-7-8460229, Mobile +64-21-364825 92 Hall Road, RD2, Hamilton 3282, Waikato www.nzmanufacturer.co.nz
Visual3DPRINT VisualCAD/CAM & TURN Rhino3DPRINT RhinoCAM 2015 VisualCAM for Geomagic VisualCAM for Solidworks www.mecsoft.com
NZ Manufacturer March 2015
Beware of any enterprise requiring new clothes. - Henry Thoreau
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THE FUTURE OF MANUFACTURING
Three steps to manage risk as manufacturing transforms - Simon van Wyk
Managing risk in a rapidly changing market can seem like a daunting challenge. But, if done correctly, the opportunity is the successful transition to a future of meeting consumers’ needs and expectations reliably and promptly.
Apply risk mapping and profiling Manufacturers’ production and distribution networks are changing. A structural shift from mass production to mass customisation, driven by increased customer choices, product customization, rapid technological improvements, global competition increased customer choices, product customization, rapid technological improvements, global competition increased customer choices, product customization, rapid technological improvements, global competitionincreased consumer choices, rapid technological improvements and global competition are all contributing to this change. Mass customisation means more bespoke products and services that inherently challenge the adaptability and responsiveness of manufacturers’ supply and production systems. The supply side of the equation must become even more responsive to a characteristically volatile demand. Solving this equation will be the secret to success.
There are risks and costs to action. But they are far less than the long range risks of comfortable inaction. John F. Kennedy manufacturing industry, and particularly process driven entities, can benefit from considering the multi-dimensional operational optimisation approach illustrated in figure 1.
Managing supply to demand is not new. And, whilst we may view this challenge as Economics 101, the difficulty lies in meeting consumers’ needs and expectations on time and with a high level of certainty. In parallel with a transition towards a technologically rich environment — characterised by greater automation of production processes reliant on robotics, computer based decision making and predicative analytics — manufacturers need to maintain a focus on cost reduction, quality control and meeting consumer expectations with increasing dependability. This dynamic will require substantial investment in order maximise the opportunity to successfully evolve from current practices to the high-tech manufacturing environment of the future. Any transition that incurs investment will typically involve a degree of risk. The big question is, ‘how do you make this transition, and how do you undertake this investment in a risk free, or at least minimum risk way?’ Because the solution to managing this risk relies on sophisticated risk management techniques, the method has to be integral to the transformation process. Manufacturers who are successfully responding to the dual challenges of meeting consumers’ needs, whilst achieving high reliability performance in a challenging, dynamic and competitive market, are doing so through the application of risk management mapping and profiling.
Figure 1: Multi-dimensional operational optimisation Operational optimisation, as shown in the centre of figure 1, purports the need for risk management at three distinct and equally important dimensions: Risk profiling, asymptomatic risk optimisation and risk trending analysis. 1. Risk profiling
Assess the risk
This dimension enables manufacturers to monitor the receiving environment in which the manufacturing occurs. Risk profiling provides a framework of macro-environmental factors (political, economic, social, technological, environmental and legal) impacting the operating environment.
Manufacturing is largely a volume business. Increased production volumes drive market and price competitiveness. The pace of manufacturing, therefore, creates a constant tension between market demand and the economic volume needed to meet consumer appetite and affordability. The complexities compound exponentially for organisations with a global production footprint and a network of manufacturing sub suppliers as part of their production chain.
Risk mapping is largely an output of a risk analysis process. This could be at a qualitative and/or quantitative level across multiple risk categories: assessing the level of potential risk (uncertainty) of financial, brand and reputation, health and safety, as well as statutory and regulatory receptors. This phase provides a level of granularity in terms of understanding potential challenges needing proactive management to ensure operational optimisation.
To help alleviate the market demand/economic volume tension, some sectors within the manufacturing industry have chosen to outsource particular components of their process. However, if not planned and managed in a risk assessed way, diversifying manufacturing processes through collaboration and outsourcing of the supply chain has potential for outcome failure.
2. Asymptomatic risk optimisation
The Boeing 787 Dreamliner is a case in point. Production of parts needed to construct the airliner occurred at multiple localities around the world, with centralisation of assembly taking place at the Boeing Factory in Everett, Washington, USA. Supply chain complexities and logistical hurdles resulted in significant delays in production and greatly delayed delivery to clients.
Actively manage the risk When considering the challenges faced in the manufacturing industry, cognisance of active risk management has received global acceptance. Embedding active risk management into their existing business processes will set manufacturers on a path to thinking about risk in a new way. The outcome of this different thinking will be a sense of opportunity and achieving outcomes with greater confidence. Risk Management, as a discipline, casts a wide spectrum; however, the
Based on the philosophy ‘treatment is better than cure’, asymptomatic risk optimisation seeks to determine indicators of potential risk, dubbed ‘symptoms of risk’. They include, a process risk audit, coupled with management engagement around operational choices (e.g. technological options, resourcing and efficiency appetite). For example, stressed equipment that generates heat — such as worn bearings on conveyor systems or loss of energy from dated motors and pumps. The list is endless and specific to each manufacturer. Once the symptoms are determined, treatment options are considered. Note, as treatment options range in effectiveness to the impact on performance ratio, a calculation is required to determine the return on investment ratio. This is a tricky assessment; risk is integral to all business operations and treatment options need to be practicable within the manufacturers risk appetite. 3. Risk trending analysis Risk trending analysis is a forward thinking concept, since traditionally trending analysis implies tracking historical performance. That said, determining trends is the objective of this dimension. Two parameters steer the course for manufacturers, namely fully understanding and satisfying consumer expectations, www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
THE FUTURE OF MANUFACTURING whilst grappling with market demands. Here the value of the GeoRisk, RiskMap and RiskLit come into play, as the context is largely defined through credible and robust risk management processes. GeoRisk spans a review of the geographic, political, economic, social, technological, environmental and legal macro operating environment. RiskMap entails formulating a risk profile based on information and data gained and cross-referenced against regulatory and compliance regimes. RiskLit provides a gauge in terms of the level of risk and uncertainty. This offers manufacturers a contextual view in which to make business decisions. Decision making becomes simpler as understanding of the context grows; proactive management of operational regimes begins, equipping manufacturers to supply against predicted demands, within the desired expectations of the consumer. Each dimension occurs in an unpredictable sequence. Thus, risk management should be undertaken simultaneously. This procedure will reduce the level of uncertainty in which manufacturers operate. The inevitability of a technologically rich manufacturing industry brings with it a new set of risks manufacturers need to consider and manage to ensure operational optimisation. Such risks may include technology costs, maintenance, labour unrest and trend forecasting variances. A thorough application of risk management tools and techniques is essential to predict the risks inherent in this transition and to plan accordingly. Risk management will provide a view on the level of uncertainty through probabilistic assessment techniques, coupled with softer risk management issues: geographical challenges and risk, and will, through risk profiling, inform sound decision making. At a state enterprise risk management round table in March 2005, when predicting future trends, GM stated the following, “Industry moves past lean and Just-In-Time manufacturing to risk-informed operations
If at first you don’t succeed, take the tax loss. - Kirk Kirkpatrick
management”[1]. This approach, GM submitted ensured the key attributes of: supply chain redesign to achieve resiliency and robustness; product design issues – modularity; dynamic pricing and revenue management to respond to risks. At a micro level, asymptomatic risk optimisation will focus on the process(s) that ensures production attains and sustains high levels of reliability by voiding symptoms of risk before they manifest causing production destruction.
Conclusion Improved risk management will provide the intelligence to help manufactures predict and plan rather than react. It will create the foundations for a smooth transition to a technologically and knowledge rich environment. And, it will help manufacturers create an effective balance between operational goals and delivering the quality of products/services and consumer services expected of their brands.
About Simon Simon van Wyk is an associate with Aurecon, with a focus on risk management. He has extensive expertise in Hazard Identification and Risk Assessment (HIRA) methodologies, which include operational risk, strategic risk and risk scenario assessments in accordance with the risk management principles as outlined in ISO 31000. [1] Managing manufacturing & supply chain risks in global automotive operations. Presented at N.C. State Enterprise Risk Management Roundtable. March 18, 2005
Smart standard drives provide servo dynamics and precision Teamed with advanced inverter electronics for smart control functionality, standard asynchronous motors providing IE2 or IE3 efficiency and permanent-magnet IE4 synchronous motors can deliver servo-level dynamics and agility. Based on state-of-the-art frequency inverters for motor-mounting, wall-mounting, or cabinet installation, Nord Drive Systems implement highly precise positioning tasks, safety applications, and sophisticated functions such as synchronisation, coordinated multi-axis operation, winding control, and flying shear. These systems are significantly more economic than conventional servo technology solutions since the purchase costs are much lower and since there is a much larger variety of available system components, including a very versatile gear program that allows for a wide range of custom-specific configurations.
Furthermore, the drives provide high starting torques and speed feedback can also be implemented. The top-of-the-range frequency inverter SK 540E from the control cabinet line integrates a universal encoder interface for SSI, BISS, EnDat profile 2.1, and Hiperface. Nord´s line-up of distributed inverter technology covers the performance range up to 22 kW, while cabinet devices range up to 160 kW. The German drive expert provides full-scale mechatronic drives, manufacturing geared motors and electronics units and programming logic functions in-house.
The frequency inverters feature a real-time microprocessor (cycle time 10 ms) and support free programming of drive-related functions according to IEC 61131 to relieve the workload of external PLCs. 200% overload reserve capacity ensures high operating safety, for instance in crane and hoist systems. Employing field-oriented control technology, these controllers achieve excellent consistency under flexible loads and from near standstill up to the motor´s rated speed, even without an encoder.
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Highly dynamic, coordinated drives with built-in intelligence manage complex handling assignments.
NZ Manufacturer March 2015
Success means only doing what you do well, letting someone else do the rest. - Goldstein S. Truism
Projecta streamlines solar charge controllers While solar panels can provide free power it’s necessary to have good quality charge controllers to maintain the performance of the storage batteries. The solar charge controller regulates the power collected by the panels to avoid damage to the battery through excessive charge or discharge at night. The best solar charge controllers can add as much as 30% to the life of a battery if they perform their job well. Leading battery accessory company, Projecta, has been at the forefront of this technology in New Zealand and Australia and it has now upgraded its range so they look as good as they perform. The new Projecta 20-Amp and 30-Amp solar charge controllers have been re-designed in a new all-white casing that blends into any caravan, motor home or boat interior. And, now included as part of the range is a remote control that allows the user to monitor and control their solar power system away from the controller. Ideal for automotive and deep cycle batteries, the streamlined Projecta solar controllers continue to feature 3-stage charging, which maximises battery life and performance. The in-built temperature sensor adjusts the output, guaranteeing a thorough charge in all conditions, preventing
over-charge or discharge, thus ensuring the battery is always ready for use. The controllers are designed to be left connected to the battery indefinitely to keep them fully charged, monitoring its condition and performing a process called ‘float’ charge to maintain the battery in optimum condition. The convenient ‘low voltage disconnect’ function will disconnect the DC load before the battery voltage falls too low, preventing damage resulting from over-discharge. Once the battery is recharged, the DC load will automatically reconnect. Featuring ‘load control’ users can switch the DC load on/off without having to physically disconnect the load or appliance. When switched to ‘off’, the DC load is isolated from the battery which ensures maximum power conservation. The circuit board within each unit has a special coating to protect against dust and moisture, as well as featuring short circuit, over current reverse polarity and high voltage protection, for improved performance and reliability. The new white Projecta solar charge controller range is available from leading automotive retail outlets throughout New Zealand. For more information, visit www.projecta.co.nz.
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WORKSHOP TOOLS Paint colour changes like a Chameleon Want to add more interest and pizzazz to ordinary household items, hobby projects or even car wheels and accessories? Now there’s a new paint finish that mimics a real life chameleon – it changes colour when viewed from different angles or in a different light. The new Chameleon finishes are part of the Plasti Dip Enhancers range of easy-to-use paints that can transform household and workplace items and give them a new lease of life. Plasti Dip is not just any paint. It’s an ingenious way to cover almost any surface with a synthetic rubber coating that protects, insulates and revitalises. The multi-purpose air-dry, coating can easily be applied by spraying, brushing or dipping and, because it remains flexible and stretchy, it doesn’t become brittle or crack. And Yes its removable just like the rest of the Plasti Dip range. The Enhancers range was introduced to New Zealand last year with a series of bright Metaliser colours designed to go over the top of a Plasti Dip base coat to provide a coloured, shimmering, metallic finish that can differ depending on the number of coats applied and also the colour of the base.
The new Chameleon colours can be created in the same way, but instead of delivering a single colour, special pigments in the top coat change the hue, depending on the light and the angle it is viewed from. Different effects are available, according to the Chameleon choice, which includes; Turquoise Silver Chameleon and Green Blue Chameleon. In addition to the Chameleon finishes, four all-new flat colours have been introduced to the already broad Plasti Dip range; Tangerine, Flex Blue, Black Cherry and Black & Blue. Like the rest of the Plasti Dip range, these new products are very easy to apply and can be used on a variety of substrates/surfaces to create a protective coating that is easy to grip and non-slip. Plasti Dip adheres to most hard surfaces, including metal, wood, glass, masonry and other plastics, making is extremely versatile. The Americans refer to it as ‘like duct tape in a can’ because of the myriad of uses.
A new range of Plasti Dip finishes includes two that change colour like a Chameleon, as seen on this cycle helmet.
SCREW
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W www.screwproductions.co.nz E info@screwprodutions.co.nz Postal & Factory - 12 Davies St, Rotorua www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
WORKSHOP TOOLS Thickness gauge has many features The RFG-1000 Ultrasonic Thickness Gauge is packed with features including a large backlit LCD display, auto linear compensation and sound velocity measurement. The full kit includes an aluminium carry case with foam insert, stainless steel calibration block and 10mm 5MHZ transducer with couplant. This item which will serve basic thickness gauging applications very well.
Rotary burrs enhance Dormer Pramet program
It is the first time that burrs will be available under the Dormer product brand, with a comprehensive assortment of designs and shapes to choose from, including ball nosed cylinder, pointed tree, oval, flame, 60° and 90° countersinks, cones and inverted cones varieties. The introduction of the burrs is part of a wider product launch by Dormer Pramet on 1 April 2015 – the first combined unveiling since Dormer and Pramet merged last year. Dormer’s wide selection of burrs provides numerous options to machine a range of materials, including hardened steel, non-ferrous materials and plastics. Its combination of carbide head and steel shank (above 6mm) provides an ideal mix of rigidity and strength. This feature reduces vibrations,
- Benjamin Franklin
805 FC Vibration Meter really does deliver The Fluke® 805 FC Vibration Meter is a portable multi-function vibration screening tool that provides quantifiable information on the bearing and overall health of motors and other rotating equipment, and shares that data in real time via Fluke Connect™. The Fluke 805 FC is ideal for frontline mechanical troubleshooting teams that need reliable and repeatable measurements of rotating equipment to make imperative go/ no-go maintenance decisions.
Thickness gauge has many features
Dormer Pramet has added a range of carbide rotary burrs to enhance its support tools program for general machining processes.
If you would like to know the value of money, try to borrow some.
resulting in a consistent and secure performance, as well as an improved tool life. A double cut design on Dormer’s burrs improves ease of control, increases metal removal rate and breaks swarf into manageable pieces. Also, the ball end geometry incorporates skip flute grinding which improves cutting action closer to the centre, reducing the chance of swarf congestion and increases strength. Alternatively, the aluminium cut option makes it the first choice for non-ferrous materials and plastics. The high helix and rake angle offers large flute volume for rapid material removal rates. Dormer’s burrs are available with TiAlN coating to increase tool life in difficult conditions and help to resist ‘built-up edge,’ which is common for cutting tools with small flute volumes.
Vibration screening is a critical part of motor maintenance and trending measurement data over time provides invaluable insight into long-term motor health. The 805 FC automatically saves vibration data wirelessly to Fluke Connect cloud storage so authorised team members can view all of the measurement data for each asset with the Fluke Connect app on their mobile devices before they leave the inspection site. With EquipmentLog™ technicians and managers can get all of their measurement data in one place to get the complete asset story. EquipmentLog history lets technicians assign measurements to specific equipment, creating a cloud-based history of all test measurement data (e.g. vibration, electrical, infrared images) for easy access during both troubleshooting and reliability maintenance. Technicians can also share measurements with other team members in real time with ShareLive™ video calls to get approvals for repairs or get questions answered without leaving the field. The handheld Fluke 805 FC measures overall vibration from 10 to 1,000 Hz
and provides a four-level severity assessment for overall vibration and bearing condition. It detects peaks in the vibration signal readings of roller bearings from 4,000 Hz to 20,000 Hz, and uses a proprietary algorithm to interpret severity to determine if the bearing is going bad. It features an infrared sensor that automatically measures surface temperature and displays it along with the vibration reading for a broader understanding of machine health. The 805 FC has a unique sensor tip design that minimises measurement variations caused by device angle or contact pressure. This reduces operator error and improves the accuracy and repeatability of quick vibration screening. The meter also provides a severity scale for both overall vibration and bearing condition readings, delivering more information than typical vibration pens. Fluke Connect System The 805 FC, along with more than 20 other Fluke tools, are part of the Fluke Connect system — the world’s largest portfolio of connected tools. It lets technicians to make better and faster decisions by having access to maintenance records wherever they are working. The Fluke Connect app can be downloaded for free from the Apple App Store and the Google Play Store.
Gauge measures surface The gauge is well-known for its accuracy, ease of use and modular design, making it the go-to tool for manual pit inspections. It has 4 extension arms for maximum flexibility. The Jireh Pit Gauge kit is of high build quality and includes 0” – 0.5” digital indicator; 3” base; Blind side base (indicator can be transferred from 3” base); 4 x 6” extension arms; Extra contact point and a rugged plastic carrying case.
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NZ Manufacturer March 2015
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Work spares us from three evils: boredom, vice, and need. – Voltaire
title text
A&G PRICE LTD
Standing the test of Time for 147 years There’s not many companies in New Zealand that have been around as long as A & G Price and even fewer companies with the experience and knowledge that covers all facets of heavy engineering. Whether it’s a one off custom made item or a mass produced product, an old machine reconditioned back to new or just something you’ve always wanted. You name it and chances are we have probably made it sometime over the last 147 years. Not many things surprise us these days with enquiries from steam powered cars, radiant sausage grills and underwater buildings to every day engineering components for heavy industry through to the other end of the spectrum of one off sculptures and hi tech military and aviation components. A & G Price is one of very few companies left in Australasia that has in house capabilities that includes pattern making, full ferrous and nonferrous foundry, fabrication, heavy fitting, machining and painting facilities. These facilities are complemented with a highly experienced engineering team undertaking full design projects through to 3D models and manufacturing drawings. The Foundry is supported by a fully equipped metallurgical laboratory with hardness testing equipment, a comprehensive reference and standard specifications library and an "ARL" Optical Emission Spectrometer, which is used to ensure metal composition is exact to specification prior to casting. The heat treatment facility is equipped with computer controlled high temperature heat treatment ovens with capacities up to 5800 long x 3300 wide x 1200 high with polymer, oil, water and forced air quenching. The fully mobile Non Destructive Testing department (NDT) has qualified technicians who are experienced in the inspection of castings, fabrications and machined components using dye penetrant, magnetic particle, and ultrasonic inspection methods. If you’re in the market for castings in irons up to 10,000kg, steel to 6,000kg stainless steel to 2,000kg and nonferrous to 1,300kg, machining capacity up to 6150mm diameter to 40 tonnes and heavy fabrication and fitting then it is still available here, in New Zealand, all at our Thames based engineering works. Come and talk with us over a coffee and we’ll discuss how we can solve your heavy engineering problems. Alternatively you can visit our website at www.agprice.co.nz, or contact us by email: sales@agprice.co.nz or ring us on +64 7 8686060 where a person, and not a machine, will answer your call. www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
FOOD MANUFACTURING
Victory goes to the player who makes the next-to-last mistake. -Savielly Grigorievitch Tartakower
Sustainable salmon farming subject of $5.2 million research New Zealand government, research and commercial groups are aligning with international salmon experts to make salmon farming here even more sustainable. The $5.2 million project is spearheaded by Nelson-based New Zealand King Salmon and aims to fully understand the specific dietary requirements of King salmon. To conduct the programme, New Zealand King Salmon has brought together a research group comprising Seafood Innovations Ltd (SIL), Nelson’s Cawthron Institute, the Nelson Marlborough Institute of Technology (NMIT) and Danish feed producer BioMar. The nutritional requirements of the rare King Salmon species - farmed predominantly in New Zealand differ considerably from the common Atlantic salmon, trout and other salmon species farmed elsewhere in the world. Currently global suppliers produce feed based on environmental and economic considerations for the latter species.
New Zealand King Salmon chief operating officer Rubén Álvarez says the company is committed to best practice and the highest quality product and that drives the need to fully understand the species’ dietary requirements. “I came to New Zealand with a background in farming other salmon and trout species around the world and was prepared to apply that knowledge to growing salmon here. “However I immediately realised we were lacking detailed dietary information on King salmon. Although the unique qualities of the King salmon are an advantage for us in our sales and marketing activity, it also means that information based on the nutritional needs of the more common species is not always applicable and R&D for King salmon is not a broader industry priority. “It was obvious that if we didn’t drive this research, it would not happen,” Mr Álvarez says. The aim of the world-first study is to develop a high-quality, species-specific feed that improves vastly on the generic products currently available. Commercial interests are providing half the funding for the four-year project with SIL, a research partnership supported by the Ministry of Business, Innovation and Employment providing the balance. SIL general manager Mike Mandeno says the project is predicted to deliver
an important range of key benefits.
finest salmon to the world.
“While New Zealand salmon farming is already widely acknowledged as the world’s most sustainable[1], we would expect the research to deliver even greater advantages in this area. A King salmon-specific feed would also have commercial benefits for New Zealand producers in terms of exports, job creation and ultimately the profitability of the industry,” Mr Mandeno says.
“We produce 55 per cent of New Zealand’s salmon and supply around 40 per cent of the world’s King salmon which is renowned for its high levels of healthy Omega-3s and superior culinary attributes.
Cawthron Institute is a private research organisation and chief executive Professor Charles Eason says the project represents a robust commercial/ research partnership. “We have put together a strong team including international experts from Europe and South America. Their skills combined with our own knowledge in fish nutrition, fish health and the development of specialist feeds will bring together the best scientific team to work alongside New Zealand King Salmon for the benefit of New Zealand,” Professor Eason says.
“With our premium Ōra King brand in demand world-wide and Regal leading the category in New Zealand, we need to ensure we can build on our already strong sustainability credentials. This is increasingly important as consumers and chefs focus on the provenance of food.” The project is expected to generate at least one new science position at Cawthron in Nelson and several positions for PhD or tertiary level students which aligns well with NMIT’s aquaculture diploma. Danish company BioMar is a leading supplier of high performance fish feed to the aquaculture industry supplying products to around 60 countries and for more than 30 different fish species.
“It’s a fine example of how an independent research organisation can bring together the best scientific team to work alongside industry for the benefit of New Zealand,” Professor Eason says.
Currently, global suppliers produce feed based on environmental and economic considerations for Atlantic salmon but in the wild, King salmon have a different habitat, diet and nutritional requirements.
NZ King Salmon is the world’s biggest producer of farmed King salmon. General manager of marketing Jemma McCowan says the project supports the company’s focus on supplying the
The research project sets out to define what those differences are so as to enhance aquaculture feed for the fish while at the same time reducing its environmental footprint.
Biopure celebrates hard-won China infant formula Auckland exporter Biopure Health is welcoming in the Chinese New Year by securing what has proved impossible for other small players in China’s tough new infant formula market.
been able to secure contracts with CNCA approved factories and have either gone out of business or had their plans to launch in China put on hold indefinitely,” said Page.
The company has gained registration for its Infapure formula brand under strict new Chinese regulations that require infant formula manufacturers and brands to gain approval from China’s National Certification Authority (CNCA) in order to export.
“Instead, to start the year we have placed an order for nine containers of Infapure for shipment in April and we expect to be placing further orders before the end of the year,” he said.
These new regulations have seen more than 400 hundreds of brands of New Zealand origin disappear from the Chinese market, with a large number of manufacturers still awaiting approval. Biopure managing director Simon Page says that gaining registration is a “game changer” and puts his company in the box seat for dramatic expansion. “It was touch and go for a while there - a large majority of companies haven’t www.nzmanufacturer.co.nz
A key to the company’s success is its business model. Biopure sells its products through a boutique chain of imported milk stores in China called ‘The New Zealand Milk Bar’ founded by Page and wife Jane, a Chengdu native, in 2012. The pair have rapidly established 25 New Zealand Milk Bars in 23 cities across six provinces in China from their head office in Chengdu where they employ eight staff. The couple’s China company acts as importer and exclusive
distributor to the stores which Page says enables greater control and allows more value to be captured across the entire supply chain. The model has already caught the attention of larger operators, including Fonterra, that have struggled to make headway in the Chinese marketplace and have been impressed by The New Zealand Milk Bar’s stunning growth. “We met Fonterra China President Kelvin Wickham in Shanghai in June last year to discuss the model and from the beginning he floated cooperation as opposed to just arms-length supply.” Page says expansion will be achieved by working with large partners to tap traditional channels by rolling out a ‘store-in-store’ strategy with supermarkets and baby focused retail chains.“We’re looking at 1,000 New Zealand Milk Bar outlets by the end of 2017 and as dramatic as this sounds,
that will barely touch the potential market for infant formula in China,” Page said. “It was always our plan to work with well-resourced partners at the right time but you can’t rush into a hyper-competitive market like China without proving your point of difference first. “It’s taken two years of fine tuning our model and navigating regulations but we now have six major partners on board ready to take it national into thousands of locations. “It’s hugely satisfying to see it all coming together,” he said. “I hope the New Zealand Milk Bar retail platform can forge a path to help other New Zealand-owned value-added companies gain exposure in China,” said Page.
Introducing
Work spares us from three evils: boredom, vice, and need. – Voltaire
title text
NZ Manufacturer March 2015
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A point of difference in today’s busy FMCG market.
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www.nzmanufacturer.co.nz A new innovation taking product assurances into the 21st Century
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NZ Manufacturer March 2015
The worst part of success is to try to find someone who is happy for you.
ENERGY REPORT
-Bette Midler
Orora targets 15% energy savings One of New Zealand’s leading manufacturers, Orora, aims to save up to 15% of its energy as part of an ambitious 3 year plan developed with the support of the Energy Efficiency and Conservation Authority (EECA). Orora manufactures packaging for a large number of New Zealand’s favourite consumer food and beverage brands. The initiative, announced by Orora Managing Director and CEO Nigel Garrard and EECA Chief Executive Mike Underhill, will target annual energy savings of 11.8 GWh – the equivalent annual energy use of about 1,130 households. “We have already invested heavily in energy efficiency improvements in our Australian operations, and benchmarking our New Zealand operations against these have shown that there is potential to make significant energy savings in New Zealand too,” Nigel Garrard says. Nigel Garrard says energy efficiency is a fundamental part of running a sustainable business. The initiative is expected to reduce the New Zealand arm of a global packaging company’s annual carbon dioxide reductions by 1,600 tonnes, comparable to the annual carbon emissions of about 580 typical NZ cars. “At Orora, we challenge ourselves to do things differently and seek out
innovation, sustainability and energy efficiency is an example of that approach,” Nigel Garrard says. “Our recent experience implementing energy efficiency programs in Australia has demonstrated that in addition to saving on energy costs, other benefits such as increasing output, improving working environments and greater engagement with staff can also be realised.” Orora will invest approximately $2 million towards optimising energy used for compressed air, warehouse lighting, and motorised systems, as well as reducing energy used in process and space heating. EECA Chief Executive Mike Underhill says a group-wide energy management agreement can help organisations to establish a comprehensive energy management plan that makes energy work harder and smarter for their business. “Orora will be one of a growing number of New Zealand large
companies signed up to group-wide energy management agreement with EECA, and are achieving excellent savings across their operations. “New Zealand companies are realising that good energy management is part of a smart and sustainable business approach. Many of these savings are easy to achieve, but you have to go after them in a structured way. Businesses are often surprised at opportunities to save money and improve operations that have been sitting under their noses.” It is estimated New Zealand firms could collectively save the country $1.6 billion in costs every year through technology upgrades and process-improvement. Orora has committed to an investment program to support energy efficiency projects that will run over the next three years. Its energy efficiency team is conducting energy audits of each New Zealand manufacturing plant to identify energy saving opportunities, both operational and technical.
Mike Underhill, Chief Executive of EECA (left) and Richard Hosking, Director of Orora Packaging NZ. www.nzmanufacturer.co.nz
With over 700 employees spread across six sites across the North and South Islands, the company will introduce a training program to improve energy efficiency procedures and awareness amongst staff. The outcomes of the initiative are also expected to provide a more productive working environment for its staff. Nigel Garrard says taking an innovative approach to better energy management will unlock potential improvements in output and productivity. “We know that our customers are looking for suppliers that take sustainability seriously. Improving our energy efficiency is a key area where we can make an impact. This is part of our commitment to being a customer-led packaging company.” Mike Underhill says energy efficiency makes good business sense because it will reduce costs, improve productivity, lower carbon emissions and ultimately boost the bottom line.
NZ Manufacturer March 2015
Success is relative. It is what we can make of the mess we have made of things. - TS Eliot
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ENERGY REPORT
Navigating the manufacturing energy equation As manufacturing transitions to a high-tech, low-labour environment, managing energy costs will be fundamental for achieving strong financial returns. - John Szmalko Energy has traditionally been one of the smaller components of the total cost in manufacturing – compared to the cost of labour, raw materials or distribution of product. While not the case in all sectors of manufacturing – it is true that some can be particularly energy intensive.
changing human behaviour, increased environmental awareness and energy policy settings.
In the face of increasing competiveness from low cost centres, exchange rate volatility and declining overall economic performance, no area of a manufacturing business is beyond performance scrutiny.
The first step toward answering these questions is to understand the macro issues that are occurring in the energy industry, followed by how these issues superimpose on the specific business and energy profile of the manufacturer.
Furthermore, heightened environmental awareness means that an innovative approach to energy and utilities not only makes commercial sense, it also resonates with corporate sustainability agendas. The dynamics of the cost make up for many manufacturers are changing. As manufacturers gravitate toward higher levels of automation, digital manufacturing and robotics, the cost proportion of labour will continue to decrease and that of energy will increase. This relative cost shift presents increasing opportunity to review energy demand and intensity in all parts of the manufacturing process. Simultaneously, the energy landscape is changing rapidly, driven by
Australian businesses have experienced an almost 80% increase in energy prices since 2009[1]. They are rightly asking where this is going and what they can do to rein in rampant escalating costs.
Continuing with Australia as an example, there has been a shift in the energy landscape in recent years through the impact of increasingly competitive decentralised generation forms like solar energy. Load growth at a network level is currently flat or declining in some locations. There is also very limited growth forecast in generation demand. Despite this stagnation in growth, prices continue to increase. The move by electricity distribution companies’ to recover margins in an environment where volumes are static or falling is likely to drive further increases. Additionally, the predictions are that gas pricing will continue to increase to
compete with international demand pricing. Meanwhile, there is a new player in the market - decentralised generation, especially rooftop solar. One industry expert recently referred to rooftop solar as a “new electricity market entrant” with growth figures reported to be in the 10s of megawatts of new generation being installed per month. This underscores changes in the energy landscape, where users at all scales, including the manufacturing sector, are looking at decentralised generation to respond to widespread cost efficiency programmes. Upward pressure on pricing is being relieved by decreasing technology costs for decentralised generation, particularly solar. In the right places, solar now competes and beats many traditional forms of electricity procurement on a long run marginal cost basis, even without subsidies. Many manufacturers are looking at ways to offset energy costs by producing their own, or capitalising a valuable waste stream into energy. The energy sector is complicated. Changing policies at a governmental level, deregulation, moving goal posts with respect to carbon pricing and new technologies all conspire to blur the
solution. Manufacturers are typically able to deal well with issues that are within their control. But where there are such a myriad of macro issues at hand, working out an optimum best value solution can be difficult. Non-energy sector clients risk approaching generation uninformed with unrealistic expectations, making a decision to purchase an OEM line unsuited to their needs. A productive navigation path to effectively manage energy costs for any manufacturer, regardless of industry, would involve joining all the dots: looking at the process in detail; identifying when and where energy is used in a smart energy sense; finding alternate energy storage solutions; looking at possible energy reductions through more efficient control or equipment; and identifying the full spectrum of available energy generation solutions. The transition to a high-tech future will depend upon the willingness of manufacturers to adapt their commercial strategies to the new environment. Successfully navigating the energy equation will be essential in any adaptation strategy. [1] The Australian, 19 February 2014
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NZ Manufacturer March 2015
DEVELOPMENTS
Never interrupt your enemy when he is making a mistake. - Napoleon Bonaparte
continued from page 1
‘India week’ creates legacy of opportunities Exciting business links with one of the world’s most powerful emerging economies are the legacy of Auckland’s week of meetings with more than 40 influential Indian business figures which coincided with India’s ICC Cricket World Cup 2015 match at Eden Park. Auckland Tourism, Events and Economic Development’s (ATEED) strategy to develop business connections created by major events culminated in leveraging opportunities centred on the India New Zealand Business Council’s (INZBC) two-day summit in Auckland. The business meetings were held in partnership with INZBC and specialists at New Zealand Trade and Enterprise and Sport New Zealand. The delegations of Indian company executives were led by the Confederation of Indian Industries, ETI Dynamics, and JCurve. Many of the delegates are involved in Auckland’s key growth sectors including information and communications technology, screen and digital, international education, food and beverage and high-tech manufacturing. ATEED chief executive Brett O’Riley was part of the Auckland team which met the delegates, and says numerous examples have already emerged of connections which should lead to a long-lasting economic legacy for the region. “Auckland’s enviable combination of a growing high-tech economy and amazing lifestyle really impressed our Indian guests. ICC Cricket World Cup created a gilt-edged opportunity to introduce Auckland to wealthy Indian tech entrepreneurs, investors and companies – some of whom previously knew little about us. “Auckland is now very much on their radar. One magnate who was shown around Takapuna is keen to explore developing a mixed-use precinct amid the growing ‘Techapuna’ ICT cluster. It would be for early stage Auckland tech companies alongside Indian companies, combined with education and apartment living,” says Brett
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O’Riley. World-leading Indian animation company Toonz presented at the summit and has agreed to establish its Australasian innovation division in Auckland. Details of other leads are commercially confidential at the moment, but they include promising connections for an Auckland digital platform company which wants to enter the Indian market. Many of the Indian business people came to Auckland and the summit as a result of a trade mission to India late last year led by Honourable Nathan Guy, Minister of Primary Industries and former Black Cap captain Stephen Fleming, which ATEED took part in. The summit, timed for matches involving the Indian cricket team, was an obvious fulcrum for the week’s business connection building, says Brett O’Riley: “ATEED supports the India-New Zealand Business Summit and the INZBC’s great work. I’d like to congratulate them on a highly successful, carefully tailored event.” Brett O’Riley says to have such high calibre keynote speakers in Auckland as Nandan Nilekani – the billionaire co-founder of multi-national Infosys Technologies, the fifth largest publicly traded company in India – and Dr Reuben Abraham, the chief executive of the Infrastructure Development Finance Company Institute – a think tank founded by the largest infrastructure funding company in India, was gold for Auckland. ATEED facilitated an opportunity for five emerging innovative Auckland companies – Revolution Fibres (nanofibers), CleanPaleo (health food), Petromac (oil exploration), TigerTurf (synthetic turf) and Medicine Mondiale (LifePod infant incubators) – to showcase their products to summit delegates. India is Auckland’s fourth fastest growing visitor market. ATEED is working with Tourism New Zealand and airlines to increase the availability of more direct and indirect flights between Auckland to India.
Technological disruption and the future of work -John Walley
greatly increasing the productivity of many services. The sector has generally lagged behind in productivity improvements because of much lower competition, causing rising costs well above the average rate of inflation. However the potential loss of jobs in many sectors will need to be a key policy consideration in future. These advances, particularly in internet speeds, communication technology and algorithms that can cope with uncertainty will also add competitive pressure in areas such as education. Skilled educators can now reach much further than just a physical classroom or lecture theatre, due to Massive Open Online Courses (MOOC), many offered free by universities around the world (www.coursera.org is one example). Such technology and wide reach lowers the cost of the courses to near zero, and with the current trend of rising education costs around the developed world, it is feasible to see such online courses playing a bigger part of our education picture in future. This however will be disruptive for many educators and institutions which are already feeling pressure; yet more work for policy makers. While this is a challenge and great opportunity for the education sector, the availability of these online courses may greatly improve the ability of businesses everywhere to train their staff and improve skills and knowledge, and give many people access to education which has previously been out of reach, thereby further increasing competition. The manufacturing sector has long felt global competitive pressures, either as exporters, or by competing with imports in the New Zealand market. This pushes our manufacturers to stay on the cutting edge and innovating to take advantage of new technologies to stay competitive against firms located in countries with different competitive advantages, such as low cost labour, policy support and even their monetary policy depressing their currency’s value. While this pressure inevitably leads to the end of some firms that are unable to adapt, there is equally a huge amount of successful and innovative manufacturing companies that remain and start up in this competitive global environment. The potential disruptions in the service sector in the future are yet another reason to have a policy focus which aims to promote the manufacturing and exporting sectors, to support a solid economic base that can thrive through future disruptions. Firstly, manufacturing activity helps to raise our overall economic complexity, which helps create the knowledge, skills and technology to continue to innovate, grow, and stay competitive in the future. This is why supporting and promoting activities like Research and Development (R&D) is so important, as the spill-over benefits in terms of economic growth, complexity and job creation can far outweigh the costs – R&D is vital to staying competitive. A focus on fostering the skills needed in the sector is equally important. For most manufacturing firms, finding the highly skilled workers they need is not always an easy task. To this end, promoting understanding between the manufacturing sector and educators is important to ensure the training matches the needs, MOOC will intensify competition between educators and also between those who consume and apply the education. The Manufacturing Inquiry completed in 2013 remains a great starting point for policy makers to consider when trying support the sector, by being informed directly by manufacturers. And while future disruptions are hard to predict, some change is inevitable – but a strong and resilient manufacturing sector can go a long way to making sure our country and people can thrive.
NZ Manufacturer March 2015
Be ready when opportunity comes...Luck is the time when preparation and opportunity meet. - Roy D. Chapin Jr.
Canadian marine company using HamiltonJet systems Tymac Launch Services Ltd., a Canadian marine transportation company servicing the shipping industry in the Port of Vancouver, recently deployed two pilot and passenger vessels outfitted with New Zealand HamiltonJet water propulsion systems.
The ‘Tymac Wave’ in action.
The two 37’ aluminium vessels were built in Campbell River, BC by Daigle Welding & Marine using twin HJ 322 water jet propulsion systems. The HJ Series comprises a range of highly efficient inducer style waterjets suitable for propelling crafts at speeds ranging from zero to 50 knots. The HJ322 provides unparalleled towing power, cavitation resistance and high-speed performance, and is fast becoming the propulsion of choice for the wave of 9-10m RIBs joining Coast Guard and rescue organisations around the world. To celebrate and showcase the excellent craftsmanship and manoeuvrability of the new vessels, NZTE Vancouver and HamiltonJet Americas organised and hosted a launch event and sea trial demonstration for over 70 guests in the Canadian Marine industry. Among the attendees: the Canadian Coast Guard, Vancouver Island Search & Rescue, BC Port Authorities and Harbour Masters, police, marine passenger/water tax, adventure tourism operators, ocean science and forestry companies.
The event successfully demonstrated both HamiltonJet and the New Zealand Marine industry’s capability. Guests were taken out in small groups on both vessels for on-water demonstrations, during which one onlooker commented that the manoeuvrability of the jets made the performance look like “marine ballet,” and another that “the boats will be the envy of the harbour when they’re put into service on the West Coast of B.C.”. Waterjets like HamiltonJet are ideally suited for use in many marine applications: they are not only more efficient with greater manoeuvrability (the various jet models enable operators to move the boat completely sideways, both port and starboard), but they’re also eco-friendly and require less maintenance. The British Columbia and greater Canadian marine industry can hugely benefit from New Zealand’s expertise, especially as the BC marine industry is experiencing significant growth with its coastal communities depending on aquaculture, fishing, mining, forestry, eco-tourism, offshore wind, and the shipping of oil, gas, LNG and minerals. Following the Tymac project and subsequent launch event, a representative from Daigle Welding & Marine said, “Having been building boats for 36 years now, with almost 900 hulls, this project is probably the best performing boats we’ve ever done.” The event received positive coverage from local TV and print media, including CTV News, BC Shipping News, McColl Magazine and Western Mariner Magazine. -NZTE
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DEVELOPMENTS
World safety leaders converge for conference The Safety First Conference & Expo will present world-leading safety experts in high level Premium Forums running throughout its four days - May 26 - 29 - in Melbourne this year. More than a dozen speakers, including Griffith University’s Professor Sidney Dekker and DuPont Sustainable Solutions’ Dr Rod Gutierrez have confirmed they are bringing new research, strategies and real-world advice to share with safety professionals via the Premium Forum events. Alternating with free, open briefings taking place throughout the Safety First Conference, the three Premium Forums are intimate sessions on core themes: Safety Leaders Skills, Human Factors for Safety Leaders and Psychological Injury. Key to the Premium Forums will be the opportunity to ask questions of each speaker. Anthony Reed, Event Director for Safety First comments, “One of the real benefits of the Premium Forums is the opportunity to benchmark your practices against best practices and achievements in the industry. Each of the sessions has been designed to give you high level ideas and strategies - and because they’re taking place behind closed doors, you will have a rare opportunity to quiz industry leaders about what they - and you can - do differently to influence safety outcomes.” The Premium Forums include: Premium Forum A - Safety Leaders Skills Pro Tuesday 26 May 1.30pm – 4.00pm Participants will discuss advanced skills including: • Exploring behaviours that can unintentionally boost risk in the workplace • Communicating in ways that help
create a culture of safety • Measuring your success as a safety leader A highlight at this event will be speaker Dr Angelica Vecchio-Sadus, HSE Manager, CSIRO Manufacturing Flagship is one of Australia’s top women in health and safety. Her presentation will cover different indicators of success you can use at various stages of the journey - such as measuring lead indicators of change before overt statistics become evident - to track progress towards your workplace safety goals. Premium Forum B – Human Factors for Safety Leaders Wednesday 27 May 2.00pm – 4.30pm Participants will gain a greater understanding of social influences, including: • Is the human factor a problem to control or a resource to harness? • A case study revealing the key factors that played a serious role in major incidents These sessions will begin with a keynote by Prof Sidney Dekker, Griffith University, and the Safety Science Innovation Lab. Prof Dekker is renowned globally as an exciting, and challenging thinker who will pose the question of what set of circumstances in your workplace puts people in a position where they end up doing things that go wrong? Premium Forum C – OHS Safety Leaders – Psychological Injury Thursday 28 May 3.00pm – 5.30pm This forum aims to enhance your capacity to positively influence workers’ thinking, emotional state and behaviour, through: • Looking at personal resilience and the building blocks for a resilient workforce.
OMAX to spotlight versatile machining centre at AUSTECH 2015 At AUSTECH 2015 in stand 608 at the Melbourne Convention & Exhibition Centre on May 26-29, OMAX Corporation and Headland Machinery Pty. Ltd., the company’s exclusive distribution partner for Australia, will showcase the versatility and high-speed cutting precision capabilities of the Maxiem 1530 Jet Machining Centre. The all-new 1530 represents the company’s next generation line of Maxiem machines. Building on the cost-effective, yet high-performance technology of its predecessors, the newly redesigned 1530 offers enhanced durability,
improved performance, and faster production times for an overall increase in productivity and profitability. At AUSTECH, the company is pairing the 1530 with a reliable 40-hp direct-drive pump to demonstrate how easy it is to cut virtually any material quickly and efficiently. Building on the company’s 20 years of direct-drive pump design experience, the latest machine comes with a 50,000-psi pump that features Variable Frequency Drive technology for precise cutting pressure control. The pump delivers more cutting power per kilowatt than intensifier-type pumps.
The machine’s Windows 8 controller comes pre-loaded with OMAX’s latest version of the powerful Intelli-MAX Software Suite. Intelli-MAX 21 – with a new fourth generation cutting model – builds upon years of real-world abrasive waterjet data accumulated through prior generations of OMAX’s equation-based cutting models to optimise tool paths automatically and gives users precise predictability as to cutting speeds, taper, jet lag and other abrasivejet factors. The result has taken abrasive waterjet cutting to the industry’s highest levels of speed and performance.
The 1530 also features updated digital linear encoders, an innovative Z-axis core with optional multi-axis cutting heads and the lowest ceiling height in the industry. Additional enhancements to the machine include streamlined abrasive hopper designs and self-levelling base legs. www.nzmanufacturer.co.nz
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NZ Manufacturer March 2015
It is better to spend money like
BUSINESS NEWS Greater effort needed by NZ businesses to strengthen Asian ties New Zealand businesses still have a lot to learn if they want to succeed in lucrative Asian markets, according to Crowe Horwarth Managing Principal and current President of the Hong Kong New Zealand Business Association Andrew Sayers. Sayers, who leads the firm’s Asia Business team in New Zealand, said New Zealand companies have made big strides in recent years, however, there was a lot of room for improvement. “The Asian region is playing an increasingly important role in our economy, accounting for six of our current top 10 trading partners,” he said. “There are still significant trade and investment opportunities that have yet to be explored but New Zealand businesses need to put greater effort into understanding and engaging with their Asian counterparts. “Cultural and values differences continue to present challenges for doing business in Asia, and can often be the tipping point when it comes to getting something off the ground locally or offshore. If done well, the benefits of improving business relationships between New Zealand and Asia are numerous, from job creation to joint ventures.” Sayers said with the surge in business opportunities between the Asia Pacific regions, Crowe Horwath had moved to
bolster its Asia Business team. Recent local appointments to the global accounting and business advisory firm have included high powered Asian business experts Kenneth Leong and Yan Zhang. Zhang has over 20 years experience in international trade and investment, while Leong has a long track record of facilitating business across cultures, from deal origination to execution. “In essence, they will act as ‘relationship brokers’ between Asian investors and Asian business owners, and New Zealand businesses. I have no doubt that our clients will benefit from the wealth of experience and extensive Asian networks that both Zhang and Leong bring to the business.” Sayers said the expanded Asia team will further cement the company’s strong existing connections in the ASEAN. Aside from the firm’s current Asian markets expertise across the New Zealand and Australian teams, Crowe Horwath has offices in Hong Kong, Singapore, Malaysia and across the ASEAN region. It also employs more than 10,000 staff in China.
so called ‘experts’ who say that they know everything and everyone but are as clueless as you about what locals are talking about. Adopt a proactive rather Kenneth Leong, Yan Zhang & Andrew Sayers than reactive approach to doing you work out who the real boss is business in Asia and on the fifth visit and quite often he you are sure to meet with success. or she won’t be the one dressed in 3. When it comes to business, kiwis a suit with two assistants at their can often be transparent revealing side. too much upfront. As the saying goes: ‘Play your cards close to 7. Ask for introductions. Remember that access to senior business your chest’ and don’t giveaway people is 10 times harder to achieve everything at once. in Asia than it is in New Zealand. 4. Asian business people will generally look to bargain with you. This 8. Focus on building deep connections with a small circle of contacts, approach is not a typical part of the rather than getting to know a kiwi culture. Most New Zealanders large group of business people. will usually put their best deal on the table straight away which will 9. Be adaptable and open to often work against them. changing your plans. Business in
1. Always partner with locals, don’t try to do everything yourself.
5. Keep communicating via emails, telephone calls, WeChat and face-to-face meetings. Most Asian investors will have forgotten you a year later after meeting but if general communication is consistently maintained you will become a familiar contact.
2. Get good advice from people who have done it before. Beware of
6. Do not expect to sign deals during the first visit. You’ve done well if
10 Tips from Crowe Horwath on Doing Business in Asia
Asia is extremely fluid and very frustrating, as things will often not go your way. Keep in mind that the only constant is change. If you don’t like surprises, Asia may not be the business ground for you. 10. Go hard or go home! Asian workers typically don’t go to bed at 10 p.m. and neither should you, if you want to do business with them.
Importance of India highlighted On the back of a further round of trade talks between New Zealand and India that were concluded, soaring Indian business confidence levels continue to underpin the importance of the world’s second biggest country to New Zealand. It is predicted that by 2025 India will be the third largest economy in the world and New Zealand is well on the way to tapping into that potential. The 10th round of negotiations to create a free trade agreement (FTA) between the two countries was attended by five negotiators from the Ministry of Foreign Affairs and Trade, supported by the High Commission in India. Greg Thompson, National Director, Tax at Grant Thornton New Zealand, said that a recent International Business Review (IBR) survey of 35 countries www.nzmanufacturer.co.nz
showed India had the highest business confidence at 98% with New Zealand second equal with Ireland at 82%.
just NZ$366 million five years earlier, reflecting India’s emerging economic power.
“India’s business confidence levels have been high for some time and this buoyancy can only flow through to the rest of the economy and a continuation of the growth in trade between India and New Zealand,” he said.
“India is also a key services market and has quickly become New Zealand’s second-largest source of international students. There were 11,652 international fee-paying students from India in New Zealand in 2013, nearly double the number in 2008.
According to Ministry of Foreign Affairs and Trade, India is New Zealand’s 15th-largest bilateral trading partner. For the year ended June 2013, overall goods trade between the two countries was over NZ$ 1.1 billion. Of that total, $725.912 million was New Zealand exports going to India, making India our 12th-largest export destination. “Even this figure understates the importance of the Indian market, with exports having increased rapidly from
“Over 29,000 Indians visited New Zealand in 2012, preferring to come during their summer (April to June) making them a valuable source of visitors for New Zealand’s autumn shoulder season.” In recognition of these trade trends, as well as its political influence on the world stage, India is a priority relationship for New Zealand and is our most developed relationship in South Asia.
The New Zealand Government is implementing an interagency strategy that is working towards India being a core trade, economic and political partner for New Zealand by this year. The NZ Inc India Strategy, launched by Prime Minister John Key in October 2011, has several broad economic goals that a Free Trade Agreement (FTA) will help achieve. These are: * Grow merchandise exports to at least NZ$2 billion per year by the end of this year; * Grow services trade with India by an average of 20 percent a year; * Improve the bilateral investment framework and facilitate growth in the investment relationship * Attract and retain skilled migrants from India who are able to make an effective contribution to New Zealand’s economic base.
NZ Manufacturer March 2015
there’s no tomorrow than to spend tonight like there’s no money.
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REAR VIEW
- PJ O’Rourke
SME growth coming off record highs Growth among New Zealand’s small businesses has levelled off in the last six months with the economy entering a more stable phase, according to a nationwide survey of small business operators. Thirty-two per cent of SMEs saw revenue increase in the 12 months to February – down from a five-year high of 39 per cent in September – according to the latest MYOB Business Monitor. More SME operators are reporting stable revenue, however, up from 38 per cent to 44 per cent in the latest survey of over 1,000 business owners and operators from around the country, conducted by Colmar Brunton. MYOB New Zealand General Manager James Scollay says the latest survey shows that the SME economy has reached a point of more manageable growth. “While we’ve come off the highs reached through mid-2014, the level of stability we are seeing off the back of that period is encouraging,” says Mr Scollay. “Rather than the brakes going on, the SME economy looks to be settling into a period of sustained growth – especially when you take into account businesses’ projections for growth this year as well as the work they have on in this quarter.” According to the March MYOB Business Monitor, 40 per cent of SME operators expect their revenues to increase in the next 12 months, while a further 43 per cent are projecting stable revenues. Just 11 per cent are expecting revenues to fall in 2015. In the current quarter, 37 per cent of SMEs are reporting more work or sales in the pipeline, while 13 per cent are seeing less. Regions settling back While the widespread effects of the rebuild continue to push Christchurch SMEs to the top of the growth table, revenue increases in the city have fallen off somewhat in the last 6 months. Forty-six per cent of SME operators in Christchurch report growing revenue in the last 12 months, down from 51 per cent in the September Monitor. Auckland businesses are only slightly off the pace they set last year, down from 38 per cent to 36 per cent in the current survey, while the proportion seeing revenue falling has dropped from 24 per cent to 20 per cent. Wellington remains below the national average, with just 23 per cent of SME operators reporting increasing revenue, and 20 per cent seeing revenue fall. Throughout the regions, growth has also settled back from the highs achieved last year. Areas like Northland, however, are reporting high levels of stability – with 70 per cent of business operators in the region saying their revenue performance is the same as last year. Centre/Region Year to February 15 Year to February 15 - revenue up -revenue down Northland 13% 17% Auckland 36% 20% Waikato 28% 18% Bay of Plenty 37% 24% Hawkes Bay 26% 31% Manawatu/Wanganui 24% 11% Wellington 23% 20% Christchurch 46% 21% Otago/Southland 31% 24%
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Farming taking a hit, manufacturing slowing The twin effects of falling commodity prices and drought conditions through a large part of the country are weighing on local farmers, with a larger proportion of SME operators in the primary sector seeing revenue fall (31 per cent) than gain (26 per cent). Manufacturing is also slowing, with 28 per cent of local operators showing an improved revenue performance in the year to February, compared to 43 per cent in September. More goods are moving, though, with the logistics sector reporting a large jump from 24 per cent reporting an annual revenue increase last year, to 33% in the latest survey. The construction sector has also maintained its level of growth, at 35 per cent. Fuel off the pressure list For the first time in five years, the rising cost of fuel is no longer a key concern of local SMEs. The plunge of global fuel prices has seen fuel slip from the leading concern in the previous Monitor, at 26 per cent, to now sit at just 12 per cent. The pressures forecast for the coming year are more related to managing growth in an increasingly competitive environment. Pressures on SMEs in next 12 months 1. Cash flow - 23% 2. Margins and profitability - 22% 3. Competition / attracting new customers - 21% SMEs still hiring – and paying more In a sign of continued confidence, over a fifth (21 per cent) of SME operators will look to increase the amount they pay their staff in the next year, while 7 per cent will take on more full time employees and 11 per cent will increase their part-time roster. “This is the continuation of a golden run for New Zealand’s SME community,” says James Scollay. “Kiwi business owners can be pretty proud of what they have achieved over the last couple of years – especially as the global economy has shown continued uncertainty and the local environment has not been without its pressures.” “But while enjoying stability, local SMEs are concerned about key growth pressures, like cash flow and profitability. The key to managing these is robust management information and expert advice – so we encourage SMEs to invest in good business systems and build a strong relationship with their accountant.”
NZ MANUFACTURER • APRIL 2015 Issue • Features
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NZ Manufacturer March 2015
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