NZ Manufacturer June 2016 by Media Hawkes Bay Limited

June 2016 Award winning supplier of SOLIDWORKS in Australia and New Zealand

www.nzmanufacturer.co.nz PROFILE 11 COMPANY Nautech becomes

28-29

more agile.

REGIONAL MANUFACTURING In Focus: Microbrewtech of Oamaru and Stabicraft of Invercargill.

VIEW 31 REAR The Budget – How good is it?

Make the World EMEX 2016 - Shows NZ Manufacturing Campaign – making is in High Growth Mode engineering cool Catherine Beard NZ is short of more than 500 engineers every year. If you’re a manufacturer, you may have felt this in your recruitment processes, especially when it comes to finding qualified graduates with a Diploma in Engineering (NZDE) or Bachelor of Engineering Technology (BEngTech). Part of the issue is that engineering is such a broad concept, not many people really understand what it’s all about. Often all the cool stuff being done by manufacturers is overlooked, and many young people don’t realise what interesting careers could be opened up to them through having a qualification in engineering.

“We had an example of a $1M machine selling prior to the show doors opening as a result of our pre show marketing.” Held every two years the nation’s largest event for the manufacturing and engineering industries, EMEX is a great litmus test of how the overall industry is faring. It’s safe to say from this year’s event that NZ manufacturing is in high growth mode. EMEX connects 1,000’s of trade visitors with the leading products, services, technology and education to help them innovate and grow. This year attracted

20 year record crowds, record exhibitor numbers and an overwhelmingly positive response from all those in attendance, according to EMEX’s Exhibition Sales Manager Aad van der Poel of XPO Exhibitions. “We’ve been inundated with emails, phone calls and survey responses saying this was the best EMEX in its proud history” says Aad who is indicating very strong demand for space at the next event in 2018. “In addition we think the success of this show fares very well for SouthMACH in Christchurch next year, and the manufacturing sector as a whole.” EMEX was held at the ASB Showgrounds in Auckland from 31 May – 2 June 2016 attracting

continued on page 16

However, Engineering E2E has just kicked off a public awareness campaign called Make the World, which is focusing on alternative pathways into engineering careers. The aim is to change perceptions about engineering, showing the general public what is actually involved and the career opportunities available. The campaign is also targeting groups which are currently under-represented in engineering; such as Maori, Pasifika, and women. Look out for the distinctive marketing which features different images with the strapline “Make the World…” followed by a single world to illustrate the variety of areas in which engineering can make a difference. For example, the shoes image has the words “Make the World BEAUTIFUL” and says “Design and Engineering. They go hand in hand.”

continued on page 12

Affordable 3D design Still the best value-for-money investment for designers. Not just for solid parts and assemblies. Powerful tools for sheet metal design and development.

Purchase annual maintenance to receive new versions and upgrades, access to user forum and support. Geomagic Design provides all the features and tools for mechanical and sheet metal design. Geomagic Design can be installed on as many computers, at any locaon that has internet access, as you want and you can acvate/de-acvate the installaons yourself as you move between locaons.

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FOOD GRADE COMPLIANCE IS EASY WITH CHEMZ

OUR NEW FOOD GRADE RANGE GIVES YOU PEACE OF MIND The Ministry for Primary Industries & AsureQuality are more stringently enforcing their guidelines with regard to Food Grade Lubricants and their use. As CHEMZ FOOD GRADE range is C15 & C26 approved it can be applied to machinery without removing product from the production line so there's no costly downtime and CHEMZ DNA (Directional Nozzle Applicator) System allows for safe, precise application with no waste. CHEMZ FOOD GRADE range is also NSF approved giving exporters and the Dairy Sector peace of mind too. Your company is reliant on effective food processing and production for both export and local markets and your machinery is vital to your success. CHEMZ understands this, hence the new range of Food Grade Aerosols. For more information visit CHEMZ.CO.NZ or call 0800 CHEMZ.

H1 APPROVED

(400ml) Part No. 7204 A dry, non-sticking lubricant that is an excellent release and parting agent for use on food handling and sorting lines. It lubricates and protects therefore eliminating sticking, binding and squealing on rubber, plastic and metal parts. Leaves a dry fogging film which resists dirt and dust build-up providing good water and chemical resistance.

FG44 LUBE 4 PENETRENE - MPI C15 H1 APPROVED

(400ml) Part No. 7244 - (5L) 7248 & (20L) 7249 A multi-tasking product that lubricates, penetrates and stops corrosion on food processing equipment and machinery. The low viscosity of Lube 4 stops noisy squeaking and squealing. Penetrates effectively breaking free corroded components. It leaves a thin non-drying colourless film which is safe on most surfaces including plastics and rubber.

FG24 BELT GRIP - MPI C26 H1 APPROVED

(400ml) Part No. 7224 Suitable for incidental food contact. A tacky formulation which adheres strongly to belts assisting transmission efficiency and drive. Suitable for both indoor and outdoor belt applications irrespective of humidity or temperature conditions. The formulation keeps belts flexible, pliable and resistant to cracking, ensuring and extending the life of old belts.

FG84 PTFE DRY LUBE - MPI C15 H1 APPROVED

(400ml) Part No. 7284 Suitable for incidental food contact. Contains PTFE (Polytetrafluorethylene) based dry film lubricant and can be used where ever oil or silicone free lubrication is required. A white, non-toxic odourless film that provides a lubricated medium with low frictional proper ties and is unaffected by water, steam and most chemicals.

FG74 FG SILICONE LUBE - MPI C26 H1 APPROVED

(400ml) Part No. 7274 Suitable for incidental food contact. Contains a high quality food grade approved silicone. Non-toxic, nonstaining, tasteless, odourless and contains no solvents. Prevents sticking and binding on all food equipment and machinery, slideways and stainless steel chutes.

THE FOOD GRADE RANGE AND ITS ATTRIBUTES

FG04 DRY FILM SILICONE - MPI C26

FG94 MEAT RAIL LUBRICANT - MPI C26 H1 APPROVED

(500ml) Part No. 7294 - (5L) 7298 & (20L) 7299 High performance Meat rail spray formulated as a friction modifier for conveyor rails and transport chains subject to high temperatures and loads in the food industry allowing easy transfer of carcass gambrel skids and trolleys. Suitable from low temperatures 0˚C up to 240˚C assisting in corrosion and rust prevention.

FG15 CRS (CONTAMINANT RELEASE SPRAY) H1 APPROVED

MPI C26 - (500ml) Part No. 7215 (5L) 7218 & (20L) 7219 High performance inert blend of chemicals formulated for the release of organic contaminants, dirt, grease,grime and oil from machinery and electrical equipment in the food industry.

FG54 HI TEMP CHAIN LUBE - MPI C15 H1 APPROVED

(500ml) Part No. 7254 High performance chain spray developed for the lubrication of Roller, Drive & Bi-planer conveyor chains subject to high temperatures & loads in the food industry; slaughterhouses, bakers, beverage & food manufacturing etc. Exceptional resistance to high temperatures +240˚C.

FG64 HI-LO DUAL TEMP GREASE H1 APPROVED

MPI C15 - (500ml) Part No. 7264 High performance extreme pressure food grade lubricant which is suitable for the lubrication of numerous applications in the food industry operating at both low or high temperatures -40˚C to +180˚C Freezers, chillers, ovens and sterilisers.

PROUDLY NEW ZEALAND OWNED & OPERATED

CONTENTS

The shortest way to do many things is to do only one thing at once. -Samuel Smiles

DEPARTMENTS

ADVISORS

5 EDITORIAL

EMEX a litmus test.

6 COMPANY PROFILE

Craig Carlyle

Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.

Leading the New Zealand high-tech industry.

7 MANUFACTURING TECHNOLOGY PartBuilder for additive manufacturing. The Interview: Nepean CEO Miles Fuller. How the AoT helps the IoT.

10 DEVELOPMENTS

Catherine Beard

Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, NewZealand’s largest business advocacy group, representing businesses of all sizes.

Transforming Businesses: CSP qualifications now available.

11 COMPANY PROFILE

Nautech, overcoming adversity through innovation.

12 DEVELOPMENTS

New feeder automation devices for smart grid enablement

Dieter Adam

Chief Executive, New Zealand Manufacturers and Exporters Association has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.

ANALYSIS

9 18

NZMEA perspective of EMEX 2016. Global steel industry outlook.

16 EMEX 2016 REVIEW -17 18 ANALYSIS

Lewis Woodward

Manufacturing in high growth mode.

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.

Competenz spreads the training word.

Telco model under threat.

19 SMART MANUFACTURING

Taking steps to protect connected industrial infrastructure. Working with ‘magnetic play-dough’. Smart devices rely on even smarter manufacturing.

Dr Wolfgang Scholz

Is HERA Director and a Fellow of the Institute of Professional Engineers NZ.

3D mapping more accurate.

24 FOOD MANUFACTURING Hard lessons to be heeded.

NZ should be ‘milking it’ in organic market.

26 WORKSHOP TOOLS

Garth Wyllie

Is EMA’s Executive Officer, Manufacturing & Industry Groups. He is a strong advocate for the manufacturing sector. In his 20-plus years with the organisation Garth has managed a range of sector groups, with manufacturing being a key focus.

Simple scissors lift actuators remove complexity and cost. Drives custom-engineered for aerator applications.

28– REGIONAL MANUFACTURING 29

Stabicraft, Invercargill: Boat manufacturing strategies for the future.

31 REAR VIEW

Dr. Wolfgang Scholz, HERA: Innovation and the Budget.

NZ Manufacturer June 2016

When the grade gets tough.

Microbrewtech, Oamaru: Bottling machines in demand.

www.nzmanufacturer.co.nz

EMEX a litmus test An indication of the state of New Zealand manufacturing was seen at the recently completed EMEX 2016. It seems that from this year’s trade show our manufacturing sector is going okay, especially when you consider the interest in the show which this year attracted 20-year record crowds, record exhibitor numbers and the positive response from those in attendance. Consider this: visitors to EMEX brought with them $422m of buying power. And apart from any sales that took place during the show, there was the example of a machine selling for $1m before the doors even opened. To make the 2018 even better XPO Exhibitions are taking the lead and getting together with exhibitors and key players to consider plans and the direction to take. Nautech (Page 11) last year transformed itself. It had to! It was a traditional manufacturer and is now a lean, agile, marketing lead solutions provider building electronic and electromechanical sub-assemblies for some of New Zealand’s leading technology based exporters.

sold around the world. In Smart Manufacturing there is a lot to read including Gavin Coulthard of Palo Alto Networks discussing the protection of industrial infrastructure (Page 20), how Canalis has given TE Connectivity based in Christchurch greater agility (Page 21) and how Dr. Jerome Leveneur of GNS Science has been awarded finance to further develop a new nano-scale magnetic material (Page 22). Regional Manufacturing is going gangbusters and in this issue we profile Microbrewtech, based in Oamaru (Page 28), who manufactures beer bottling machines for the craft beer market and Stabicraft of Invercargill, well known to you all. Paul Adams, managing director, discusses the company’s boat manufacturing strategies and where to the future (Page 29). Enjoy the read!

PUBLISHER

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

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

CONTRIBUTORS

Dieter Adam, Holly Green, Dr. Wolfgang Scholz, Catherine Beard, Dieter Adam, Miles Fuller, Alec Gardner, Gavin Coulthard, Peter Tomazic, Simon Ross, Paul Adams, Bill McMurray www.mscnewswire.co.nz

ADVERTISING

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

DESIGN & PRODUCTION Kim Alves, KA Design T: + 64 6 879 5815 E: kim.alves@xtra.co.nz

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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

Success Through Innovation

EDITORIAL

Vol.7 No.5 June 2016 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.

They lost a major contract and now show just how adaptable they can be. Today assemblies manufacturer by Nautech ca be found in OEM products

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MANUFACTURING NEWS

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NZ Manufacturer June 2016

COMPANY PROFILE

The chief cause of failure and unhappiness is trading what we want most for what we want in the moment - Bertrand Russell

Leading the New Zealand high-tech industry Fisher & Paykel is a name that requires no introduction. The business has been a staple of New Zealand industry for decades, and is well-known both for their domestic appliances and healthcare products manufactured in East Tamaki. Andrew Somervell, Vice President Products & Technology at Fisher & Paykel Healthcare, believes that, even though the Appliance and Healthcare businesses separated into two distinct companies years ago, they share the same passion for innovation. “Even if we don’t operate the same way, we’ve always shared this push to think differently, this push to find new ways to solve problems. Innovation is what makes us successful.” Fisher & Paykel entered the healthcare

sector in the late 1960’s, with the development of a unique respiratory humidifier system. At the time, medical ventilation was provided using cold, dry air, caused adverse outcomes for patients. “A doctor in Auckland, came up with the idea of humidifying gases to correct some of these problems, and came to Fisher & Paykel to see if we were interested in developing that technology. This is how Fisher & Paykel Healthcare was born.” Stemming from their core expertise in humidifying medical gases, F&P Healthcare developed into a billion-dollar world leading high-tech company which employs more than 3,500 people globally – including approximately 2,000 in East Tamaki. Their products are used in invasive ventilation (which provides breathing assistance through a tube down a patient’s throat) and non-invasive ventilation (which provides breathing assistance via a mask). “We are taking our core technology and

Commercial & industrial growth

developing into further areas of the healthcare system”, says Andrew. “Ten years ago, we would have been mainly in the ICU, but now you will find our products in wards, operating rooms – almost all areas of the hospital.” The company is also present in the home care sector with their range of sleep apnoea machines. Andrew believes the success of F&P Healthcare products is due to their deep understanding of the market: “Our engineers and clinical scientists spend a lot of time with people working in hospitals, and the result is a deep empathy and understanding for the problems they are facing. We are developing solutions that are targeting their real needs – sometimes it’s not even based exactly on what they tell us, but on what’s lying underneath.” This understanding has allowed the firm to develop products that help both patients and caregivers. The company has been recognised with many awards for their innovative design and technology. Their ground-breaking Optiflow™ + nasal cannula has recently received an Innovative Technology designation from the US company Novation, and the Optiflow™ Junior

Employment growth

system (designed specifically for infants) won a silver medal at the prestigious Medical Design Excellence Awards in 2013. The cannulas adapt to the shape of the patient’s face, and use soft anatomical nasal prongs to improve comfort. Making products look and feel more acceptable to patients is a part of Fisher & Paykel Healthcare’s values – for instance, their flagship sleep apnoea machine was fashioned to blend in easily in a home environment, with a design roughly the size and shape of an alarm clock. To develop their innovative products, F&P Healthcare allocates a large budget to research and development – R&D represents around 10% of the company’s total sales, and the department employs more than 450 staff in East Tamaki. 70% of Fisher & Paykel’s consumables are also manufactured on site. “When you’re dealing with innovation, development is not just about designing a product – it’s about developing a new manufacturing process”, explains Andrew. “When you first release a product into manufacturing, there’s a whole bunch of issues that you need to work through, which is why it’s a

continued on page 18

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

getba Greater East Tamaki Business Association Inc.

NZ Manufacturer June 2016

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Success seems to be largely a matter of hanging on after others have let go. - William Feather

MANUFACTURING TECHNOLOGY

PartBuilder software for additive manufacturing PartBuilder software provides quick and easy methods to prepare for production CAD files from both native and neutral PartBuilder covers four main steps in model preparation: 1. Checking the quality of the CAD model and repairing any problems it might have 2. Positioning the part in the optimum orientation for layer-by-layer manufacture 3. Addition of any fixtures, supports and other geometry that might be required to ensure reliable manufacture and easier post-processing 4. Exporting the complete data in a suitable file format for manufacture At the start of the process, PartBuilder undertakes an analysis of the imported CAD model to verify the quality of the incoming design and so give the best possible chance of successful manufacture. Common problems in either solid models or mesh files, such as gaps or overlaps in the data, can be identified and repaired to give a water-tight CAD file that will generate an accurate and successful part. The CAD model is then positioned within the machine envelope, either for manufacture as a single item or as part of a group of components that

will be built simultaneously. Orienting the model on the build platform must consider a number of factors, including production time and cost, fixturing quality, heat effects and any critical areas of the part. PartBuilder allows the user to accept the optimised suggestions made automatically by the software or to try a variety of manually selected orientations. Fixturing can then be created in PartBuilder that may be required for a number of reasons, the most important being the need to support the mass of the part during the build. Fixtures are also used to transfer heat away from the part so that thermal and mechanical stresses are minimised. PartBuilder is able to analyse the model to identify critical areas that need fixtures to ensure geometric stability during the build and adequate heat management, and to generate the geometry required. As with the part orientation, the user has the ability to edit the suggested results manually if required. The positioning of the fixtures also needs to take account of their removal after the build, both to ease their removal and to minimise any witness marks or scars that may be left on the

PartBuilder is able to analyse the model to identify critical areas that need fixtures to ensure geometric stability during the build.

part. In addition to fixtures, other geometry types may need to be added, such as spigots to grip the part during polishing and other finishing operations, or datum tabs to provide a known location for finish machining programs. The final stage is the export the complete model from PartBuilder in a suitable data file format for the 3D Printer or AM equipment. PartBuilder can output models in a growing range of manufacturersâ&#x20AC;&#x2122; proprietary file formats, including CLI data for EOS machines and MTT data for Renishaw equipment, as well as STL mesh data that can be processed directly by most additive machinesâ&#x20AC;&#x2122; own software. www.delcam.com

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NZ Manufacturer June 2016

MANUFACTURING TECHNOLOGY - THE INTERVIEW Nepean CEO Miles Fuller Manufacturing is a highly competitive sector, particularly in the Asian-Pacific region. What do you believe are some of the necessary ingredients for a company’s success?

projects in different industries that are located in various geographical regions and our experience has demonstrated time and again, that the ability to deliver solutions is what matters.

For a manufacturer to excel in today’s competitive environment, they need to have a genuine and thorough understanding of their customer’s needs. In essence, they need to be good listeners.

Therefore, it is important to remain close to your customers, genuinely understand their needs and have the skill sets to meet them within their timeframe. It is all about adding value for customers.

They also need to have the in-house talent and expertise to be able to meet their customer’s needs. The ability to adapt to change is also necessary. They have to be willing and able to adapt to change.

How important an issue is leadership for manufacturing firms today?

At Nepean, we started nurturing our in-house expertise long ago and we have always been customer centric. Our focus on adding value, and constantly improving our business processes have been critical to our success. Australian and New Zealand manufacturers are faced with challenging times ahead. What do you think are the key ones they will need to overcome? Change will remain constant and the ability to be agile and adapt will become increasingly important to success. Delivering solutions that are cost-effective and which solve real-world problems is also important. If you can solve real- world problems at a fair price, then you are well placed to compete, particularly in the Asian-Pacific region. Ensuring that you have the skills and processes necessary to succeed has always been vital, but as change gathers pace, having the right skills set will become more important. Australian and New Zealand manufacturers need to combat cheap labour costs. How do you overcome this? Manufacturers, regardless of whether they are small or large, need to remain focused on meeting customer needs. We work across a range of

Leadership is always important. However, perhaps because of the challenges that the manufacturing sector faces in a global environment, leadership is even more important. Having leaders with an eye on the future and who are innovative and forward thinking is a plus. But the reality is that you cannot predict the future. Perhaps it is more a case of remaining nimble and flexible enough so that you can leverage opportunities as they arise. Do you feel that customer needs have altered over the years? Customers still require solutions that solve problems. However, what has altered is the speed with which the solution is delivered. Thanks to vast improvements in technology and telecommunications, customers require things far quicker than they use to. Customers are also more demanding when it comes to quality. The ideal solution is a quality product at a cost-effective price. This is why at Nepean we have always remained flexible when it comes to sourcing. We source materials locally but we also source from a range of low cost countries and have our own sourcing team in China. Innovation is quite a popular buzzword at the moment. How important is it to invest in Research and Development? If you wish to differentiate yourself

from competitors and be the best you can be in your area of expertise, then investing in Research and Development is critical. Research and Development is all about new ideas and seismic shifts. At Nepean we are confident that we know enough about the industries that we serve to implement innovative ways of doing things.

However, this is not true for all firms simply because the knowledge or the capability is not there yet. The manufacturing industry as a whole in both Australia and New Zealand is moving towards sustainability, but it will take time before we can say with some confidence that all manufacturing firms are in that space.

Our view as owners is that sometimes, innovations make take years to yield a profit, but because we are here for the long term, we have learnt to be patient.

What will manufacturing look like in the future?

How important is sustainability in manufacturing today? Sustainability is likely to grow in importance in manufacturing. Some firms are already able to incorporate eco-efficient resources, technologies or processes because they are available for that particular manufacturing business.

Manufacturing in the future is likely to be leaner and companies that are resource-efficient, innovative, resilient and incubators of great talent will be able to respond far better to customer expectations and lead the way towards smarter, brighter solutions that change the way our industry’s operate for all stakeholders, consumers, shareholders, employees and make a positive social impact.

Are you a Kiwi manufacturer who is NOT appearing in NZ Manufacturer? Why Not? We offer: •Case Studies•Analysis•Interviews•Opinion Articles•New Products to the Market from our Innovators and Developers FOR New Zealand and overseas readers.

Is your company busy making fantastic products and we haven’t heard about you? Why Not? Contact us now to enhance your market share.

8 P 0064 6 870 9029 publisher@xtra.co.nz NZ Manufacturer June 2016 / www.nzmanufacturer.co.nz

Doug Green Publisher

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It’s not what you look at that matters, it’s what you see. -Henry David Thoreau

MANUFACTURING TECHNOLOGY

How the Analytics of Things will help unlock the value of the Internet of Things While the Internet of Things (IoT) offers awe-inspiring possibilities, companies must prepare to reap the full benefits by ensuring they have adequate analysis capabilities, according to Teradata. Alec Gardner, general manager, advanced analytics, ANZ, Teradata, said, “A comprehensive study in June 2015 by the McKinsey Global Institute concluded that IoT is one of those rare technology trends where the hype may actually understate the full potential. (1) “At the moment, companies are tapping into IoT to achieve greater reliability, resource efficiency, and cost reduction. The results are small, often benefiting a single person or process. But this will change when visionary organisations start to think more competitively and much bigger. This will lead to a new approach called the Analytics of Things.

“By adopting the Analytics of Things, companies will aggregate data, then use advanced analytics to give the data greater context, making it part of a richer picture. For example, monitoring a patient’s heart rate across a period of time will provide some insight into their heart health, letting doctors recommend appropriate treatments for that individual. Aggregating the same data from thousands of people instead of just one lets researchers get a fuller picture. They can use that ongoing body of insights to support better treatments and medicines, ultimately saving more lives.” Savvy organisations are already starting to use the Analytics of Things to make the IoT more powerful, creating new revenue streams. For example, Teradata customer Siemens uses it to move from reactive to predictive maintenance on trains, reducing failures. As a result, Siemens has changed its business model, moving from selling trains to

selling the performance of trains over a fixed period of time. The company does this by managing maintenance so customers don’t experience any appreciable unplanned downtime. Analysing data from train component sensors, the team identifies patterns and trends it can use to make smarter, proactive maintenance decisions, minimising unexpected failures. This demonstrates the power of the Analytics of Things. However, McKinsey’s June 2015 IoT report found that less than one percent of IoT data is currently used; and those uses tend to be straightforward things like alarm activation or real-time controls rather than advanced analytics that can help optimise business processes or make predictions (2). Alec said, “Companies must re-examine the concept of the IoT and consider how it can serve their business. The

Analytics of Things takes the IoT beyond today’s rudimentary use cases. It starts putting that data to work in ways that can add new revenue streams, creating a high-definition view of the world.” Reference: ( 1 ) h t t p : / / w w w. m c k i n s e y. com/business-functions/business-technology/our-insights/ the-internet-of-things-the-value-ofdigitizing-the-physical-world (2) Ibid.

Robot force sensors enable automation of difficult tasks Seiko Epson Corporation has developed its S250 series of high-precision force sensors. The S250 series, which were rolled out worldwide from June, will be available as an option for the company’s six-axis and SCARA robots.

piezoelectric quartz sensing technology, the new force sensors are durable and sensitive, allowing them to accurately and consistently sense minimal amounts of force in six directions1.

Employing

This will allow customers to automate

Epson’s

proprietary

complex manufacturing tasks and will improve productivity. Epson also provides robot operation commands with the sensor, allowing customers to easily introduce the system. Many manufacturers are turning to robots as labor shortages and falling birth rates and aging populations hit companies in the world’s leading economies, and the trend to reshoring continues worldwide. Epson’s innovative new force sensors answer these needs and are a significant step forward in achieving the company’s mission of using robots to improve the way products are manufactured. The S250 series enables robots to feel force as limited as 0.1 N, allowing the robots to automate complex tasks such as precisely assembling delicate components. The sensors can also be used on tasks that formerly relied on human sensory perception such as polishing and deburring, freeing people from repetitive manual work.

Division. “As a company dedicated to manufacturing innovation, the new sensors help to expand the applications for robots, and bring us a step further towards achieving our goal of creating a world in which robots support people in a wide variety of situations.” “There is strong demand for industrial robotics and their applications within the Southeast Asia region, with robotics spending looking to double in Asia Pacific by 2019, according to IDC2. The new force sensors will meet the demands of customers within Southeast Asia, to improve their productivity through automation of complex and intricate tasks. At Epson, we are committed to bringing new innovations to our customers to help them achieve their business goals,” said Ng Ngee Khiang, Regional General Manager, Epson Robotics Division. The robots with new force sensors will be available from June within Southeast Asia, in Indonesia, Malaysia, Philippines, Singapore and Thailand.

“The new force sensors are a significant development for Epson and for the manufacturing industry in general,” said Yoneharu Fukushima, COO of Epson’s Robotics Solutions Operations

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NZ Manufacturer June 2016

DEVELOPMENTS

The most unprofitable item ever manufactured is an excuse. –John Mason

Transforming Businesses: Competitive Systems and Practices qualifications now available Kiwi businesses committed to improving their performance will experience greater benefits since the introduction of the new Competitive Systems and Practices (CSP) qualifications. The new qualification provides a holistic approach to improving organisational efficiency through staff development, delivering a more competitive advantage and ensuring long term business sustainability.

provider of the new qualifications.

appreciate the technical skills required.

“It aligns improvement techniques between different departments, and provides a pipeline of learning so each function can better understand how other areas work. It will provide people with the skills, knowledge and tools they need to help transform their business.”

“We noticed a trend of many organisations, across multiple sectors, embarking on a Lean journey, and using Lean practices to improve their business’ efficiency,” says Mathew Vandy, Competenz Industry Manager for the manufacturing sector.

Strong industry representation has helped the Competenz team to

The qualifications were developed in partnership with the manufacturing industry and the industry training organisation Competenz. Members of the manufacturing industry played a leading role in ensuring the new qualifications are fit for purpose for all New Zealand businesses. “The qualifications open the door for all businesses, not just the manufacturing sector. Whether it’s a hospital or a catering firm, the skills learnt through these qualifications are applicable to all,” says John Stephens, Master Lean Six Sigma Black Belt - Principal Business Improvement at Pacific Aluminium and member of industry governance group working with Competenz to design the new qualifications. “Businesses can improve their bottom line from simple waste reduction activities. Employees have access to tools and processes that their businesses can prosper from.” Training in the new qualifications allows for a more efficient and streamlined process. “The new qualification extends across a broad range of competitive systems and practices, including strategic thinking, process development and technology implications,” says John Sullivan, INTENT Group Limited Trainer Assessor, Consultant and training

NZ Manufacturer June 2016

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“It’s a collective way in which businesses can analyse their systems, processes, and products by implementing

tools and a methodology to achieve efficiency, as well as sustain ongoing improvements. One of the greatest benefits from the new qualifications is how they improve the culture within a business,” Mathew says. The CSP qualifications continue to align to the Australian equivalents, and are recognised as part of a Trans-Tasman agreement between both Governments.

Leaders think and talk about the solutions. Followers think and talk about the problems. –Brian Tracy, author

COMPANY PROFILE

Nautech, overcoming adversity through innovation To be sustainable a business needs to be dynamic and continually evolve. It needs to innovate developing new product service offerings that can be taken to market. Long term contracts where a business relies on a small number of high value customers are fine. However, the impact of losing one or more of these key accounts is potentially catastrophic, particularly if the loss accounts for a significant proportion of a company’s revenue. Last year Nautech Electronics experienced such a scenario first hand. After 20 years of designing, developing and installing emergency lighting, power management and associated equipment in to New Zealand Police vehicles. The contract was lost and with it a substantial proportion of the company’s business. In many instances, such an event may have resulted in the loss of the entire business. However, after the dust settled it proved to be the point that Nautech Electronics transformed from being a product centric traditional manufacturing business into a lean, agile marketing led, Solutions provider building electronic and electromechanical sub-assemblies for some of New Zealand’s leading technology based exporters. Today assemblies manufactured by Nautech can be found in OEM products sold around the world. In business for over 25 years Nautech has always operated within a number of distinct market segments. Specialist vehicles, contract manufacturing and more recently race track control systems. With the loss of the police contract came the realisation that there was no other specialist vehicle fleet business anywhere else in NZ that came close in either fleet size or installation value. This meant that in order to survive and prosper the business needed to re-focus and change. Following a comprehensive review of the business and its market segments

a strategic decision was taken to focus on developing and expanding its contract manufacturing division. With small but established customer base. Contract manufacturing offered the biggest single opportunity for short to medium term growth. Market research indicated that with carefully targeted investment in advanced manufacturing technology and systems, combined with a small number of additional personnel. There was capacity and the opportunity to potentially double revenues from this sector. NZ has a buoyant and expanding niche hi tech scientific/engineering sector that values local manufacturing against outsourcing overseas. Issues of security, the protection of IP and supply chain management mean that the attraction of so called low cost manufacturing does not always deliver value in real terms. The key to Nautech achieving success was to gain a detailed understanding of the value proposition required by customers so that Nautech could develop and enhance its product service offering in order to differentiate the business from its competitors and gain market share. The themes of agility responsiveness lean principles and quality were all highly valued by customers in addition the ability to offer design, design for manufacture, software, firmware development and validation and mechanical assembly also rated highly. Armed with this information Nautech set about to re-engineer its business processes and manufacturing systems to become aligned with customer expectations. How could the themes above be captured and translated into a value

Two of the fully automated production lines.

proposition and incorporated into the product service offering? The pace of business today is frenetic, for the most part meeting customer expectations means producing goods quicker, to higher levels of quality and cheaper than at any time previously, by understanding this Nautech could see an opportunity to differentiate itself from competitors by endorsing these principles and developing a strategy to suite. New product development is about speed to market, getting there before your competitors and growing market share rapidly. From the very beginning it became apparent that the speed of developing prototypes was key to success. Nautech set up a dedicated prototype production line with a view to reducing lead time from weeks to in some cases a matter of a few days. Beyond this, many companies who develop product value highly a manufacturing partner with design capability and the ability to undertake design for manufacture (DFM). With an in-house team of design and production engineers Nautech are well placed to offer this service. Developing a lean agile and flexible manufacturing system whilst maintaining stringent levels of quality is more of a challenge. Nautech chose the route of advanced manufacturing technology and automation. Starting at the beginning of the process. Nautech invested in the very latest automated environmentally controlled materials inventory and handling system. Kitting jobs directly from the ERP system and delivering them to the shop floor.

The inner workings of the intelligent storage solutions system, each cabinet is capable of holding up to 1100 component reels.

The integrity of some sensitive electronic components can be adversely effected by changes in temperature

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and humidity. Over the past year Nautech have installed 4 such systems manufactured by Essegi Storage Solutions in Italy. Each ACS 1100 unit is capable of holding up to 1100 reels of surface mount components. Ensuring that levels of both inventory and component quality are maintained simultaneously right from the very start of the manufacturing process. This is critical when you are serving 3 production lines, with each one utilising multiple Juki “pick and place” machines each having the capacity to place up to 23,000 components per hour and controlled by the very latest Juki intelligent system software. As a result of this lead times for both prototypes and production have decreased, whilst simultaneously machine utilisation and productivity increased. To capitalise on this and further increase capacity additional investment was made in the form of the latest Juki KE 2080L pick and place machine and a EBSO selective soldering machine. With the additional capacity and increasing order book Nautech has recently pp commenced a second shift in order to continue reducing lead times and provide enhanced levels flexibility and responsiveness to accommodate customer’s requirements. If proof is required that adversity can be overcome through innovation, ingenuity and sheer determination. The experience of Nautech over the past year is a positive example. Less than 12 months ago the company had lost a substantial proportion of its business and was facing an uncertain future. Today the business is enjoying a resurgence and forecasting record revenues from an increasing customer base.

NZ Manufacturer June 2016

DEVELOPMENTS

If you are not taking care of your customer, your competitor will. –Bob Hooey

New feeder automation devices for smart grid enablement Schneider Electric has released Easergy T300 feeder automation devices, designed to deliver advanced monitoring, control, and automation functions in both overhead and underground electrical distribution networks. The new product range is powerful, flexible and future-ready, and can evolve as and when the smart grid comes online by managing bidirectional and intermittent power flow. The devices also offer increased power availability, with improved SAIDI and optimised functions for MV and LV networks. Threats of cyber attacks are taken into account, with the new devices featuring SCADA communication security, protection against malicious software and a role-based access control system to help protect your electrical infrastructure. “Electrical distribution networks must transition to next-generation technology in order to face the

challenges of the modern grid applications, such as growing energy demand, stricter CO2 emission limits, and tight constraints on operational expenditure (OpEx),” Steve Hodder from Schneider Electric said. “The new devices will also help to manage costs with reduced installation, operation and maintenance expenditures. Delivering efficiency, the devices help to optimise networks by managing growing consumption and monitoring transformers and substations to optimise asset management.” Easergy T300 device solutions come as ready-to-use and are available off-the-shelf for fast delivery and installation. The devices can also be delivered pre-installed in any Schneider Electric switchgear product.

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Make the World Campaign – making engineering cool

Then talks about how engineers are taking on the fashion industry – not an obvious connection to many people. Other connections made in these advertisements link Engineering with: Health (Make the world Healthier), Sports (Make the World Dynamic), Environments (Make the World Practical), Technology (Make the World Smarter), Movies (Make the World Imagine), Innovation (Make the World Efficient), Nature (Make the World Sustainable) and Heritage (Make the World Poipoi Te Whenua). These marketing messages are appearing in social media, on billboards, in video clips and in a magazine with real stories of engineering graduates. You can get a copy of the magazine at maketheworld.nz/requestmagazine.

One Wellington-based group of engineers (from Opus, Beca, MWH and AECOM ) has already responded, and are holding a Week of Engineering in August that will link to the Make the World campaign. The initiative – aimed at promoting engineering to secondary school students and the general public in Wellington’s CBD – will include activities for school students and a public open day. This is a great example of Kiwi collaboration. To find out more about the Make the World campaign or to get involved, you can contact engineeringe2e@tec. govt.nz.

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NZ Manufacturer June 2016

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The maketheworld.nz website also features stories from a variety of real people talking about their career path into engineering. For example: Tristan McCallum’s favourite movie as a kid was Alien. “I got to sit up with dad and watch that when I was about eight. And that was life changing, you know? It was like, ‘Wow, I want to make stuff like that!’”

NZ’S LARGEST FOOD MANUFACTURING AND PACKAGING TECHNOLOGY TRADE SHOW

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ANALYSIS

Motivation will almost always beat mere talent. –Norman Ralph Augustine

NZMEA perspective of EMEX 2016 EMEX 2016 was an exciting opportunity for manufacturers to see new technology and equipment that could improve productivity in their businesses, and to meet and network with other manufacturers and suppliers. On display were some of the latest in CNC machines, 3D printers, as well as welders, tools and products manufactured in New Zealand. The New Zealand Manufacturers and Exporters Association (NZMEA) took the opportunity to exhibit at EMEX 2016, showcasing some examples of the impressive and high value goods being made right here in New Zealand. We wanted to remind everyone attending how prominent manufacturing is in New Zealand today, and that despite operating in an industry of change and challenges, Kiwi’s continue to thrive and find niches and competitive edges, both locally and on the world stage. It was great to see so many New Zealand manufacturers visit our stand and share their stories. We were also encouraged to see and speak to students attending the show, showing

an interest in seeking further education and careers in manufacturing. As well as all the stands at EMEX, each day featured seminars, with expert speakers from a range of industry backgrounds, such as academics and companies developing new technologies or sharing their experience.

Kiwi’s continue to thrive and find niches and competitive edges, both locally and on the world stage. The NZMEA also presented in the seminar series, talking about why manufacturing matters to New Zealand, the value it brings to our economy, and why we should aim to grow our vibrant high value manufacturing industry further. Manufacturing provides much more to our economy than the impression you may get from media or politicians – making up 10% of our GDP, and supplying the jobs for 1 in 10 of people employed.

It allows us to pay our way in the world and improve living standards through exports, it pays higher than average wages and supports demand in many other industries. It is estimated every job in manufacturing supports 2 to 3 jobs elsewhere in the economy. The NZMEA is determined to continue to help decision makers better understand the role manufacturing plays and the potential it has to grow further. The second day of EMEX covered additive manufacturing, otherwise known as 3D printing, where speakers discussed how this technology is developing, and the many new ways it is being used in manufacturing businesses. Rapid prototyping remains as one of the most common uses, but additive manufacturing is increasingly being used to quickly create tooling and molds for short run injection molding products. 3D printing is also being extended to metal products, using metal powders with an increasing number of material options, even titanium thus far – this represents an opportunity and

potential challenge for New Zealand manufacturers who compete on quality and the ability to adapt quickly to customer needs. The other big change discussed in the future of manufacturing is networked manufacturing, otherwise called Industry 4.0, where production systems are connected, using automation and advanced computer processing to make production more efficient and far more customisable. To help manufacturers be learn more about the potential of these technologies, and what it might mean for New Zealand, the NZMEA, in association with Callaghan Innovation, is hosting events in Christchurch on 27 June and Auckland on 29 of June, featuring leading expert, Dr Frank Wagner, from the German Fraunhofer IAO and the Queensland University of Technology. Dr Wagner will talk about experiences of German and Australian manufacturers implementing networked manufacturing. If you are interested in attending, visit nzmea. org.nz/events for more information.

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NZ Manufacturer June 2016

ANALYSIS

It’s not about having the right opportunities. It’s about handling the opportunities right. –Mark Hunter

Global steel industry outlook The steel industry continues to face a challenging economic environment due to the economic slowdown in China, volatility in financial markets, sluggish growth in global trade, and low prices of oil and other commodities. In the first quarter of 2016, per the World Steel Association, global steel production decreased 3.6% to 386 metric tons (Mt) as production shrank across all regions. China, the world’s largest steel maker, again disappointed with a 3.2% decline. Economic slowdown in China has dealt a massive blow to the global steel industry. Overcapacity and lower steel prices are hurting margins of Chinese steel producers. To mitigate these factors, efforts have been undertaken to reduce overcapacity and upgrade production in China’s steel industry. According to the World Steel Association’s short range outlook published in April, steel usage in China is expected to fall 4% in 2016. The severe depression in construction activities is leading to a slowdown in the manufacturing sectors, especially

metal products, as well as to slower growth in the automotive sector. A recovery in the Chinese construction sector does not seem likely in the near future either. The NZ market continues to be threatened with cheap imports from overseas producers, especially from China. To top it all, the slump in oil has pulled down prices of steel as well.

What’s in store for the industry? The World Steel Association expects global apparent steel use to dip 0.8% in 2016 to 1,488 Mt, after the decline in 2015. However, the U.S. Department of Commerce (DOC) has imposed a hefty final anti-dumping duty rate of 265.79% on imports of cold-rolled steel from China. The International Monetary Fund (IMF) projects China’s growth to slow down further to 6.2% in 2016. Moreover, currency devaluation would make Chinese exports competitive in the global markets. Thus, a further increase in Chinese steel exports this

year is likely, as the country seeks to increase overall exports to counter the domestic slowdown. Meanwhile, much hope is pinned on India, which is expected to act as the next growth engine, given its progressing construction and manufacturing sectors, rapid urbanisation and structural reforms. The European economy, on the other hand, is on a slow road to recovery.

Steel overcapacity: Is the end in sight? The dual impact of the global financial crisis and surging steel production in China has meant constrained markets and global rock bottom prices for steel. This has resulted in many steel producers closing plants and laying off workers with the latest prospective closure being Port Talbot Steel Works in Wales, owned by Tata Steel. There are many drivers of viability and in addition to price of steel there is are also issues around the efficiency of technologies used and energy prices.

While part of the problem with oversupply in the steel market is attributable to Chinese expansion of production over the last decade they recognise that this hasn’t been good for their steel producers either with many users of old technology operating at below the cost of production.

Overcapacity and under-priced Cheap steel caused by the global oversupply is both a positive and a negative for New Zealand industry. Positive because there is reduced material cost and negative because if the export price is low and producers, particularly in China are over-stocked. Chinese fabricators are buying at an even lower price which helps explain why sometimes imports of fabricated steelwork are almost the same price as the material cost alone. China recently committed to closing outdated steel mills and modernising the industry though they recognised this would take several years to achieve.

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14/04/16 NZ Manufacturer June 201610:22 AM

EMEX 2016 REVIEW

The shortest way to do many things is to do only one thing at once. -Samuel Smiles

continued from page 1

EMEX 2016 - Shows NZ Manufacturing is in High Growth Mode over 4,950 unique industry visitors; an impressive 15% increase in unique visitors over the prior EMEX in 2014. Over the three days of EMEX we certainly saw this year’s dual themes of Additive Manufacturing and Bringing Manufacturing Home, take a leading role. This was evidenced with three full days of industry lead seminars with presentations. Most were filled to capacity covering case studies of NZ Manufacturing prowess; everything from the growing export orders at Fraser Fire & Rescue - through to new innovative uses for 3D printing. Not to mention the 160 national and international exhibiting suppliers, special features and VIP networking evenings, all of which guaranteed to educate, delight and thrill all those who attended. Visitors to EMEX bring with them a staggering $422m* of buying power and feedback from exhibitors has been extremely positive with the vast majority confirming strong orders and hundreds of leads captured. “We had an example of a $1M machine selling prior to the show doors opening as a result of our pre show marketing, let alone the spend happening onsite. It’s fair to say NZ manufacturers are certainly investing in CAPEX for their growing businesses. That’s got to be a great sign for NZ Manufacturing. And it wasn’t just large CAPEX orders happening onsite. Many manufacturers were procuring technology, instrumentation and welding technology – we didn’t hear of any product category weaknesses in sales.” Part of the event’s success was XPO’s investment in the lead-up marketing campaign and a concerted effort to increase quality buyers to the show. The campaign included multiple insertions across regional daily newspapers and full page adverts and editorial in the NZ Herald’s business sections in the

NZ Manufacturer June 2016

lead up to the show. They also achieved data exchange with all of our show partners and sponsors to promote EMEX. The commitment and support from the key trade publications was unprecedented ensuring communications were concise, relevant and tightly targeted. “When it comes down to it I think we have a very collaborative set of industry partners and publications – everyone wants to see a buoyant exhibition for the good of the industry – and we’re certainly delivering that collaboratively” says Aad. “To continue that collaboration we’ll be organising an industry ‘get together’ within the next couple of weeks to engage with our exhibitors and to talk about ideas and plans they may have for 2018 and how we can make EMEX an even better platform for them going forward.” ATTENDANCE • 160 exhibitors. • 4,974 visitors. 15% increase on EMEX 2014. (Authenticated CAB results to be verified) VISITOR SURVEY KEY FINDINGS: • 83% were ‘satisfied’ to ‘very satisfied’ overall for EMEX (74% 2014) • 81% rated the variety of exhibitors as ‘Good’ to ‘Excellent’ (73% 2014) • 70% ‘Agree’ or ‘Strongly Agree’ EMEX is a must attend event (64% 2014) • 71% hold direct authority for, or influence, purchasing decisions (68% 2014 • 80% are ‘Likely’ to ‘Very likely’ make contact with an exhibitor after EMEX (80% 2014)

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EMEX 2018 Next Show dates 1-3 May 2018. Rebooking requests for EMEX 2018 have been very positive. Potential exhibitors should contact Aad as soon as possible to avoid disappointment. The full list of 2016 Exhibitors can be found at www.emex.co.nz/exhibitors SOUTHMACH 2017 After a successful SouthMACH in 2015 under XPO Exhibition’s new ownership, the organisers are excited to announce the launch of SouthMACH 2017. Held 24-25 May at Horncastle Arena, Christchurch. SouthMACH is the South Island’s premier technology trade show for the engineering. Manufacturing and electronics industries celebrating NZ’s ‘Heartland of Manufacturing.’ Spaces are limited so be sure to book space now. Once again XPO Exhibitions would like to thank all of the EMEX 2016 exhibitors, their show partners and show sponsors – as to the many thousands of manufacturers who took the time to visit. *Fresh Info Economic Evaluation Report 2016

ABOUT XPO EXHIBITIONS XPO Exhibitions Ltd (XPO) is an NZ family owned business. XPO purchased

the majority of its trade shows from DMG World Media NZ Ltd back in January 2010. In 2013 XPO acquired an additional portfolio of industry trade shows from Hayley Media. XPO now owns and organise 13 of NZ’s largest and longest running industry specific ‘business to business’ trade show exhibitions and events attracting more than 35,000 trade visitors each year in New Zealand. The attendance to each and every XPO event is independently audited by the Circulations Audit Board of Australasia. XPO prides itself on delivering world class events and memorable experiences for all visitors while offering Exhibitors a unique business environment in order to Showcase, Educate and Sell their products to targeted niche industry attendees. SOME OF THE NEW PRODUCTS FROM EXHIBITORS SEEN AT EMEX • Total CNC • PlazMax (NZ Made profile cutting technology) • Fuji Xerox

• DMG-MORI

• Omron

• IFM Electronic

• Tasman 3D printing • Eurotec

• AmProm

Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity. â&#x20AC;&#x201C;Karl Marx

EMEX 2016 REVIEW

A successful EMEX for Hi-Q Components Hi-Q Components displayed the Kukamet brand of toggle clamps at EMEX 2016. In late 2015 Kukamet clamps were added to the existing large range of plastic and electronic components they have been manufacturing, importing and distributing throughout New Zealand and overseas for more than 30 years. With one hundred and fifty clamps in the range, the pneumatic clamps proved to be the most popular, useful in a range of trades such as Metal fabrication/Engineering, Manufacturing, Mechanical Engineering/design.

creating lots of interest and new enquiries. Following a successful EMEX 2016, HI-Q Components will be increasing their stock range so more toggle clamps will be available from stock. Also popular this year was the new range of thermoplastic/Stainless Steel knobs, handles and adjustable feet. With Tecnodinâ&#x20AC;&#x2122;s customary high quality the new range features a sleek, modern design. Available in a range of colours and at no minimum quantity makes them even more attractive.

With features such as double acting, magnetic and cushioning cylinders and high quality galvanised steel, they were a hit with crowd goers,

Competenz spreads the training word EMEX 2016 at the ASB Showgrounds, Auckland was a chance for industry to learn about the latest trends, technology and equipment. The Competenz and ATNZ team were there spreading the word on apprenticeships in the engineering and manufacturing industries. They talked to a variety of employers, as well as potential learners who were interested in doing an apprenticeship, or completing qualifications in health and safety and team management.

Industry Engagement Manager, Bill Sole, presented a seminar on the aging workforce and how we bridge the skill gap, which was well received by EMEX attendees. Competenz would like to thank everyone who visited theirstand. If you would like more information on apprenticeships and how ATNZ apprenticeship model can help your business, visit the Competenz website: www.competenz.org.nz

3D Printing Systems happy We have been exhibiting at EMEX for the past five years, with good results. However this year we had an outstanding success with multiple large orders for our new UP BOX 3d printers. The UP BOX allows

customers to 3d print in a multitude of industry plastics, including wood! -Bruce Jackson, 3D Printing Systems https://www.youtube.com/ watch?v=dSV1mpVnSUw

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NZ Manufacturer June 2016

ANALYSIS

You can’t build a reputation on what you are going to do. –Henry Ford

Telco model under threat Ultra Fast Broadband (UFB) uptake among New Zealand businesses has reached a tipping point enabling a rapid transformation of the local telecommunications industry according to an industry expert. More than 184,000 customers within reach of UFB have opted to connect, with New Zealand having the fastest growth in fibre penetration in the OECD at 272 percent. Digital Island general manager Blair Stewart says that as the rate of UFB penetration among businesses grows, the market is seeing the introduction of more cloud technology. Stewart says the future business model for the telecommunications industry will be Over The Top (OTT) services where a telco delivers their services across all IP networks, as opposed to the carrier’s own access network.

As UFB penetration in businesses reaches a critical mass, it becomes it creates a stronger business case for cloud services to launch here. He says one effect of this industry change will be of particular benefit to local SME’s as the capital investment required to run a phone system is completely removed from the balance sheet by moving these services to the cloud.

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“In the same way we are seeing an almost overnight evolution in the media industry as a result of the introduction of Netflix, we are going to see UFB change the way telecommunication companies operate in this market. “In New Zealand, the larger Telcos have been historically reliant on legacy revenue from the copper infrastructure, however the growth of UFB brings a new level of reliability for alternatives to the traditional business phone systems. “While they will continue to provide internet and mobile, these services are becoming commoditised, so it’s the application industry which will see significant growth in the short term,” he says.

case for cloud services to launch here.” Stewart cites the example of one of the world’s largest telecommunications companies which saw New Zealand as a high priority market. “As a result over the past three years Digital Island has remodeled its business to be a cloud app provider and are now seeing cloud as our fastest growing product. On the back of this transformation we were able to secure a joint venture deal with Mitel to launch their new Telepo cloud technology here - making New Zealand the first market outside of Europe for this product to be released,” he says. Stewart says the new cloud based Telepo product replaces traditional phone lines and PBX hardware with an application.

The app which is deployed quickly and cost effectively to businesses over email and SMS, is designed to increase the portability of users by offering a seamless experience on any device, as well as a range of other unified communication features such single number, presence, intelligent call routing, cloud reporting and on-demand call recording. Stewart says the experience in Europe with their cloud hosted service shows around 80% of their users only use the mobile client - a trend New Zealand is expected to follow. “The ability to run your office phone system from your desk, computer or mobile phone provides built-in staff, location flexibility and disaster recovery so businesses can focus on doing business.”

Stewart says slower broadband services have held back VoIP products in particular, and as a result it has been the last segment of the telecommunications industry to evolve. “If we look at the OECD countries which have the highest proportions of fibre broadband connections; like Sweden (where 46% of broadband connections are fibre - compared to 7% for NZ), this country also has the highest per capita level of VoIP subscriptions in the region. “We’re expecting New Zealand to follow suit - as UFB penetration in businesses reaches a critical mass, it becomes it creates a stronger business

Leading the New Zealand high-tech industry

source of competitive advantage for us to have the R&D people working as close to the manufacturing process as possible.” And it’s not just research and manufacturing that are actively collaborating. All offices on the Highbrook site are open-plan, with managers and employees from all departments sharing a common work space. “We’ve structured the business in a way that all product groups are involved together”, says Andrew. “R&D, marketing, clinical, engineering – we’re all sitting side by side and working together. We think it is important to understand every aspect of what we’re trying to do, and that’s the best platform for innovation.” F&P Healthcare systems are sold in 123 countries, either through direct sales offices or via distributors. Their technology provides alternative, less invasive ventilation treatments for

Stewart says the introduction of this type of cloud based technology is a signal of the rapid change now underway in the industry.

NZ Manufacturer June 2016

patients in Intensive Care Units.

“All our R&D is in New Zealand at the moment, and there are no plans to change that. This is a really good place for developing new technology”. – Andrew Somervell, Vice President - Products & Technology at Fisher & Paykel Healthcare

“Treating somebody in an ICU with invasive ventilation is very costly, and there are a lot of risks for the patient”, explains Andrew. “We help patients step down from that by using high-flow therapy, which is lowering the overall cost of treatment and providing better outcomes for the patient by reducing the amount of care they need.” With net profit up 17% last year,

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and 65 million dollars spent on R&D in 2015, the future looks bright for Fisher & Paykel Healthcare: “We have a big pipeline of new projects coming through – it’s the biggest we’ve ever had”, says Andrew. “The work that we’re doing now is going to drive our growth in the next five years”.

their growth from their home base.

The site in Highbrook has room to accommodate at least another two buildings, and Fisher & Paykel Healthcare is planning to continue

“We certainly don’t like doing things the same as everybody else – and if we did, I don’t think we’d be doing our job.”

“All our R&D is in New Zealand at the moment, and there are no plans to change that. This is a really good place for developing new technology”, says Andrew. Ultimately, developing new technology is what Fisher & Paykel Healthcare is all about.

ADVISORS Mike Shatford is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.

Katalin Csikasz

Katalin is a highly knowledgeable engineer with strong capabilities in; industrial design, quality assurance, product compliance, technical expert support, troubleshooting and process improvement.

Chris Whittington

Senior Lecturer at AUT, Chris Whittington is a versatile Engineer, Educator and Researcher. Chris has had many years experience in senior engineering and product management. Chris has a strong background in computational modelling, 3-D scanning and printing, and a strong interest in engineering education.

Sandra Lukey

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

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NZ Manufacturer June 2016

It is not necessary to do extraordinary things to get extraordinary results. –Warren Buffett

Drive smart enough to fix itself Siemens has integrated a web server into its Sinamics S120 drive system to facilitate more efficient diagnostic and maintenance functionality. With the connectivity of this drive, a user is able to access the Sinamics S120 from any PC with a browser capable of Internet connectivity through a standard Ethernet interface. Once connected, the user can execute a variety of functions. If a wireless LAN (WLAN) router is networked, web pages can be viewed using other web-capable devices such as tablets and smartphones. One of the bigger trends in drives is a need for easy serviceability. Since plant operators don’t always have the expertise, we’re focusing on the ease of service. You can communicate with smartphones, so you don’t always need laptops. The connectivity works using near-field communication with cell phones or built-in communication.

EuroBlech in October More than 1,400 exhibitors from 40 countries have secured their stand space at this year’s EuroBlech, the 24th International Sheet Metal Working Technology Exhibition, whose theme “The New Generation of Sheet Metal Working” is said to reflect that industry’s shift toward digitalization and smart manufacturing.

Taking steps to protect connected industrial infrastructure By: Gavin Coulthard, Systems Engineering Manager for Australia and New Zealand, Palo Alto Networks Networked devices and computer-controlled machines are nothing new in the manufacturing industry, but the rise of the Internet of Things (IoT) is seeing an unprecedented number of devices connected to the internet for monitoring and control purposes. There are applications for IoT devices in almost every industry, and the manufacturing sector has much to gain from this technology. In many ways, the industrial control and automation systems commonly used in manufacturing processes have, for a long time, acted as precursors to the connected devices that are now available to consumers. However, today’s development of IoT technology delivers new capabilities for businesses as well as individuals. These connected devices and systems can offer better management of industrial control systems (ICS). IoT technology supports a granular quality of control and monitoring data, which can benefit supervisory control and data acquisition (SCADA) systems or distributed control systems and, in fact, any industrial automation system. We’re talking about large volumes of sometimes very complex data. When used well, IoT technology provides an extremely useful tool. While these new capabilities can lend enormous value to manufacturers, they also come with new problems. First among these is the issue of information security.

Covering a net exhibition space of 89,000 square meters across eight halls at the Hanover Exhibition Grounds, the show has increased its net floor space by 3 percent.

Mixing operational technology systems and information technology systems by way of IoT devices increases an organisation’s threat surface and opens up new ways for hackers to breach sensitive organisational networks.

The show is scheduled to occur October 25-29, 2016 in Hanover, Germany.

In some organisations, this can result in data and financial losses. But for manufacturers, it can lead to infrastructure and reputational damage, and even open up the possibility of personal harm to workers.

New ruggedised data acquisition systems Pacific Instruments is offering two new data acquisition systems (DAS) that broaden the instruments product line of the Micro-Measurements brand. The PI 7200 and PI 7300 DAS bring new capabilities and levels of performance to transducer data acquisition in rugged applications such as wind tunnels, engine test stands, or wherever the DAS needs to be located on or near the test article.

In 2010, for example, centrifuges at Iran’s Natanz nuclear facility failed due to malware called Stuxnet. Now considered a cyber weapon, Stuxnet has since been followed by other classes of malware and attack methodologies specifically design to disrupt physical industrial infrastructure. Today, industrial control systems are a growing target for cyberattack and, as the threat landscape becomes more aggressive, more industrial systems are being networked. This means manufacturers are more open than ever to potential threats. However, there are things manufacturers can do to minimise their risks. Here are five key steps to protecting industrial IoT infrastructure: 1. Implement Layer 7 inspection technologies for improved visibility Granular visibility of ICS protocols is a helpful step to increasing intelligence regarding data traffic. Linking this visibility to users and inspecting file-bearing applications is an essential part of this process. Next-generation firewalls employing advanced deep-packet inspection technology can help to deliver this capability.

NZ Manufacturer June 2016

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2. Apply zero-trust network segmentation It is important to apply zero-trust rules with access allowed on a ‘least privilege’ basis, where users are given access only to the systems they need to carry out their duties. This approach can result in a marked reduction in the number of vectors that can be used by an attacker, while also providing better correlation between user and application. 3. Use modern tools for preventing zero-day attacks So-called zero-day attacks exploit previously unknown vulnerabilities in computer code to breach systems. Tools that can detect and prevent such threats at both the network and the endpoint levels are now essential for protection. A combination of malware ‘sandboxing’ solutions and advanced endpoint protection technology can help reduce the success of such attacks. 4. Secure mobile and virtual environments Mobile devices should be checked for proper configuration before being allowed to access the network and, once on the network, applications should be limited to reduce the potential attack vectors. For virtual environments, virtualised firewall technology should be used to provide better visibility to data traffic. 5. Use a cohesive security platform Many legacy ICS environments don’t have adequate security, and those that do often use security systems with point solution architecture. This can hamper performance, incident response, and administration. Next-generation firewall architecture, on the other hand, along with new models of centrally-connected endpoint security measures, support optimal operation and threat detection.

When used well, IoT technology provides an extremely useful tool.

The successful warrior is the average man, with laser-like focus.” –Bruce Lee

Easy flexibility with Canalis

Augmented reality

Schneider Electric’s innovative Canalis busbar system has given a new Christchurch manufacturing plant exceptional agility for adapting its shop floor to rapidly-changing production runs. TE Connectivity, a Switzerland-based electronics conglomerate, built the new multimillion-dollar facility as part of an extensive upgrade to its New Zealand operation. It manufactures equipment such as cable and harness components as well as circuit boards for irrigation systems, fire alarm panels and roadside telecommunications cabinets. The challenge A key requirement for the new plant was the ability to change the configuration of its machinery layout quickly and easily. “We do contract manufacturing and the work is very much project-based,” says plant manager Roland Sommer. “It involves a wide range of products and manufacturing runs typically only last for a few days at a time. “This means the volume, work load and range of machinery changes from one job to the next. More importantly, the configuration of the production lines and placement of the machinery often needs to change to handle the work as efficiently as possible. We were looking for an electrical cabling solution to meet this flexibility.” Canalis system Roland and his team were invited to visit Schneider Electric’s Christchurch’s manufacturing plant to experience a working example of the Canalis system and assess its benefits.

“Our shop floor,” says Roland, “is 39 metres across and there are ten Canalis busbars running across its ceiling – four metres apart. No work area is more than two metres from power. Cost-effective solution “A significant advantage of the Canalis busbar system is its functionality. A TOU, for example, can be anything from a conventional 10-amp, three-pin plug, through to a 160-amp, three-phase connection. To replicate that kind of variation in a conventional cabling scenario would involve an enormous amount of cabling, time and labour – and it wouldn’t be anywhere near as cost-effective. Flexible and safe “But for me the key advantage of Canalis is that we can make the changes ourselves – we don’t need to call in an electrician to reconfigure the power layout. Busbars and TOUs are fully insulated so there is no danger of a short-circuit or electrical shock. Anyone can make the change – all we need is a step-ladder to unclip a TOU and reattach it in a different place.” Roland says Canalis is also an aesthetically pleasing solution with subtle but real benefits that lift staff engagement.

Unlike conventional installations which require the routing of multiple cables, Canalis is a solid busbar running along the ceiling of a building. Because it’s made up of pre-manufactured, two-metre sections that simply clip together, it’s easy and quick to install.

“It’s a very neat, unobtrusive system, and it helps to give the facility a crisp, high-tech feel – something that is more akin to a medical environment than an industrial one. That flows on to the staff – it reinforces the sense that a clean environment results in superior product quality. There is no place for dust in an electronic manufacturing facility.”

To deliver power to the shop floor below, installers clip any number of “tap-off-units” (TOUs) on to the overhead busbar. The TOUs can be fitted to the busbar at 500mm intervals. This not only makes it easy to deliver power to a specific layout of equipment below, but crucially, it’s also easy to modify as required.

He also points out that the electrical solution has, in effect, helped to future proof the facility. “We have a 10-year lease on this building – and because of Canalis’ flexibility there won’t be any need to upgrade the facility. We will simply rearrange it to our changing needs.”

Smart glasses from XMReality enable hands-free operation during interaction. The software can be used with just an ordinary smartphone. The service expert sees on his screen what the operator sees through the lens. The software transfers video and audio streams between the service expert and the operator with perfect synchronisation, even when the bandwidth is low. Gestures, drawings or instructions can be overlaid by the instructor on the live image. The XMReality software is compatible with Windows and Android operating systems. The smart glasses are powered by the tablet or laptop computer and battery life is usually around two hours, depending on battery size.

China moves to standardise Smart Manufacturing The Chinese government, recognises the need to drive transformation faster to maintain and improve global manufacturing competitiveness and sustain economic growth. The ambitious “Made in China 2025” initiative spelled out in China’s 13th Five-Year Plan (2016-2020) places a priority on smart manufacturing. The goal is to strengthen and grow the country’s manufacturing sector. While many resources are being allocated for the initiative, these efforts could be constrained by a lack of new technology standards and proven-in-use practices. Suppliers and industry organisations will need to develop and deliver more standardized, smart manufacturing solutions and services, and quickly. Clearly, this will require new approaches to develop these standards within the required timeframe.

Disrupting with drones The drone revolution is disrupting industries ranging from agriculture to filmmaking. According to a new study by PwC on the commercial applications of drone technology, the emerging global market for business services using drones is valued at over $127 bn. With drones poised to have an impact on business operations of companies in a broad range of industry sectors, PwC has also established in Poland a global centre of excellence that uses drones and data analytics to help clients solve their business challenges. The application of drone technologies in existing business processes is allowing companies from those industries to create new business and operating models. Each industry has diverse needs, and as a consequence requires different types of drone-powered solutions and various drone functionalities. Some of them value flight speed and payload capacity, while others wish to concentrate on solutions delivering high-quality, real-time data in a cost-effective way.

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NZ Manufacturer June 2016

Expect the best. Prepare for the worst. Capitalize on what comes. –Zig Ziglar

Nano-scale material like ‘magnetic play-dough’ Dr Jérôme Leveneur, a researcher in the Environment and Materials division of GNS Science’s National Isotope Centre, has been awarded $20,000 from the KiwiNet Emerging Innovator Fund to further develop a new nano-scale magnetic material. Dr Leveneur’s magnetic material made of nanostructures is 1000 times thinner than a human hair. The material’s small scale gives it enhanced properties over conventional magnetic materials which can be used to improve energy efficiency of transformers and inductors. Dr Leveneur says, “The material is highly flexible and can be manufactured in a range of different shapes, like ‘magnetic play-dough’, to make any size and shape, which is not

the case with existing materials. “The ability to mould the material to any shape can be used to improve the designs and energy efficiency of inductors and transformers, for example, as we can ensure that the magnetic field goes exactly where it’s needed which is more efficient.” Dr Leveneur believes the new high performance material has the potential to benefit a wide range of industries and lead to a radical advancement in electro-magnet technologies used in areas such as inductive power transfer, radio communication and electric motors. “When you switch regular electromagnets off they hold a fraction of their magnetism and it costs

additional energy to switch them on in another direction. With nanomaterials the magnetism can be switched on and off at no additional energy cost, increasing efficiency,” he says. The Emerging Innovator Fund was launched by KiwiNet with the generous philanthropic support of the Norman F. B. Barry Foundation to help early career researchers take their ground-breaking science to market. It is open to scientists from universities and Crown Research Institutes who demonstrate a clever new idea and a willingness to work closely with industry as they develop a prototype. Chris Kroger, Research Manager & Deputy GM Research, GNS Science says, “Jérôme’s research is potentially a game changer in the field of magnetic materials. It focusses on new types of solid nanostructured magnetic materials that can be moulded into any size or shape and previously only very particular shapes and sizes could be made. “Jérôme is a very worthy Emerging Innovator Fund recipient as throughout his scientific career he has been heavily involved in industry-led research. His discoveries in new functional surfaces and materials, and their application in sensor systems and manufacturing processes hold great promise to impact industry in a powerful way.” Leveneur will use the Emerging Innovator funding to work closely

with New Zealand manufacturers of transformers and inductors who could benefit from his innovative research. His goal is to demonstrate how his material can outperform current materials or investigate completely new designs that are currently unachievable through conventional methods. Dr Bram Smith, General Manager of KiwiNet is excited about the opportunities the Emerging Innovator Fund opens to early career researchers. “The fund aims to spur on some of New Zealand’s most talented early career scientists. It’s a collaborative effort with the Norman F. B. Barry Foundation providing the funding, MinterEllisonRuddWatts providing in-kind expert legal support, Baldwins offering IP advice and KiwiNet recruiting a commercial mentor to support Jérôme. KiwiNet is growing this initiative over the next year to give our next generation of innovators a real boost in their ground breaking work.” John Smith, Chairman of the Norman F B Barry Foundation sees the Emerging Innovator Fund as an ideal way to leverage combined resources and connections. Smith says, “Both KiwiNet and the Foundation share the common goal to inspire young people to pursue science careers and seek out opportunities to apply their knowledge to benefit the community and the economy.”

How new technology is changing market research -Bill McMurray, Managing Director, Asia Pacific and Japan, Qualtrics The rapid evolution of technologies such as mobility, data analytics, and cloud computing, is changing the way organisations gain insight into their markets. This technology is making it easier for manufacturers to accelerate business decisions through insight gained from market research platforms. Of all the new technology making market research faster and more effective, mobility is one of the most important. Thanks to mobility, manufacturers researching their markets and products now have easier access to more detailed market feedback. With more than half of the New Zealand public now claiming access to the internet via smartphones, according to Nielsen’s 2015 New Zealand Multi-Screen report, mobile technology can give manufacturers a broad scope for connecting with consumers. The saturation of mobile devices also provides a useful mechanism to collect

NZ Manufacturer June 2016

data in real-time with visual images and other multi-media content. This lets manufacturers monitor behaviour as it occurs, providing the opportunity to test or adapt products and services, marketing, and strategies instantly. Mobility, social media, and website intercepts provide increasingly-flexible platforms to find the right engagement methodology. Qualtrics recommends manufacturers consider six key elements of effective market research: 1. Defined objectives Defining objectives is the first step to determining what the business wants to get out of the research, which questions to ask, and who should be involved in the process. If businesses don’t take time to work out their objectives, they may waste valuable resources without gaining any improvements. 2. Include necessary definitions Not everybody understands certain titles and terms in the same way. To ensure all customers are on the same

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page and the results are accurate, businesses should include definitions at the beginning of the research survey, or attached to individual questions, depending on the layout of the survey. 3. Make surveys easily accessible Feedback needs to be easy for respondents to provide, or else people will simply not participate, and the program will lose valuable insight. It is critical to ensure surveys are mobile device-responsive so respondents can easily complete them on their mobile devices. 4. Engage with respondents when they are engaging with you Respondents are increasingly performing critical online research about brands before they interact with them, even in B2B research journeys. Manufacturers must take this into account and ensure they are interacting with respondents when they are engaging with their websites. Manufacturers can use website intercept technologies to proactively assist respondents find what they

are looking for and help provide a frictionless website experience. 5. Be relevant to your respondent As people increasingly prefer to respond to surveys on mobile devices, manufacturers should be decreasing the length of the surveys to be in short bursts. Don’t ask things which are not relevant to your respondent. Manufacturers should be building profiles of their respondents so they can use embedded data fields to shorten surveys. 6. Translation Manufacturers should have a research platform, which easily allows them to have the respondent choose the language easiest for them. This will help to increase manufacturer’s reach to respondents and increase responses.

Develop skills and tool sets that make you better than the best and faster than the rest. –Gerhard Gschwandtner

Smart devices rely on even smarter engineering As industrial machines become more sophisticated and connected, the need for ‘smart engineering’ and detailed application knowledge continues to grow to increase productivity and safety, lower risk and reduce costs of compliance. Peter Tomazic, senior solution consultant with the Global Solutions team at Rockwell Automation has more than 25 years experience in ‘thinking outside the square’ to successfully solve customers’ unique challenges, whether it involves engineering for cranes, pulp and paper machinery, process lines, mining applications , printing presses and the list goes on. He explains that while providing the hardware is only 30-40 percent of the solution, it is the domain knowledge on the application and how to apply the engineering that really makes the difference. “Anyone can go and buy hardware and try to put it together but it is the application knowledge of how to engineer the hardware that really adds value to our customers operations.” “As part of the Global Solutions team at Rockwell Automation, we leverage our in depth technical knowledge and work with customers to understand their unique challenges and goals. We can then design, manufacture and commission a solution to meet their production and business objectives,” said Tomazic. Driving innovation Advances in technologies such as the Industrial Internet of Things, are enabling machines to get smarter and meet endusers networking, integration, diagnostics and intelligence demands. Motors and drives are gaining improved integration and connectivity, resulting in increased productivity, safety and asset management. “Ethernet communications is now an important part of any application that involves drives because it provides full access to all the diagnostics within the drives, including drive parameters, status and additional features such as Automatic Device Configuration,” explained Tomazic. Automatic Device Configuration is a feature that increases uptime by allowing the Logix controller to automatically detect a replaced drive and download all configuration parameters, eliminating the need for manual reconfiguration. While supplying the drives is the easy part, applying the correct engineering is critical for the system to run safely and effectively. For example, if a drive on a crane has not been selected or

engineered correctly the crane could drop its load resulting in safety and productivity risks. Similarly, if a drive on a process line is not sized or engineered appropriately, the process will not run effectively. Tomazic and his team at Rockwell Automation leverage many years of experience to apply this type of smart engineering and help customers improve system performance, reduce risk and gain operation efficiencies. Complying with safety Complying with safety standards plays an important role in reducing the risk of injuries and improving productivity. Implementing the most appropriate standards and technologies also provide major improvements in manufacturing productivity, efficiency and the morale of personnel. However, understanding the current risk level of one machine or an entire plant floor is a challenging task. “Safeguarding a machine or entire plant requires a detailed safety assessment to be undertaken. Following the findings of the safety assessment we can then design a solution that meets the operational requirements of the plant or machine and also address any safety risks,” said Tomazic. Once the assessment is complete and the safety solution is designed and validated, the solution can then be integrated and commissioned to enhance productivity and workplace safety. The Global Solutions team at Rockwell Automation provide end-to-end safety solutions and can help at any stage of safeguarding a project- from training and standards through to validation and startup. Information and integration The Industrial Internet of Things continues to bridge the gap between the physical and virtual worlds; generating data that provides visibility into operational issues to help improve profitability and reliability. Connected, smart machinery can enable secure, remote access services that reduce operational costs throughout the lifecycle of machinery. “Our solutions are always capable of being connected into any enterprise system. We recently integrated a historian system into a large crane at a power station. This system provides information about how many times the hoist has worked and its maximum load which can be used to calculate end of lifecycle parameters. For example, if the crane is 25 years old but only works two percent of the time then it still has more life in it,” explained Tomazic. These smart solutions provide more

information and transparency to improve the lifespan of equipment and drive productivity throughout the enterprise. Smart engineering combined with detailed application knowledge can help increase machine speed for increased production or improve machine control to optimise quality as well as quantity. Local engineering experience and manufacture The Rockwell Automation facilities in Lane Cove, Sydney and Bayswater, Melbourne, provide the capabilities for design, engineering, manufacturing and commissioning. By having local service and support the turnaround time for engineering design, supply and manufacture is reduced and it removes the difficulties involved with working with different countries and time zones.

According to Tomazic, “We are often awarded contracts that require our engineers to ‘scratch their heads’ a little bit to come up with the best solution. Our local engineering team manages many upgrade projects to help reduce the customer’s risk, delivering projects on time and within budget. Supplying the smart devices and equipment is the easy part, but the application knowledge required to engineer them correctly to improve productivity, profitability and safety is where the real smarts come into play.”

3D mapping more accurate A new 3D mapping model integrates multi-platform satellite/aerial imagery and laser scanning data to achieve a higher accuracy in mapping products by 26-66% to centimetre level compared to the conventional mapping technologies. The two major traditional 3D mapping techniques are photogrammetry using satellite/aerial imagery and laser scanning. The former offers higher accuracy in the horizontal direction while the latter shows higher accuracy in vertical direction. They may produce errors at different levels and there are usually inconsistences between the mapping products derived from them. To eliminate data errors and integrate the advantages of the existing technologies, Prof. Wu Bo at The Hong Kong Polytechnic University (PolyU)’s Department of Land Surveying and Geo-Informatics developed a “Novel

Integrated 3D Mapping Model”. Integrating multi-platform satellite/ aerial imagery and laser scanning data, the technology greatly improved the accuracy in mapping products by 26-66% to centimetre level. The cost of the mapping products produced by this model is more or less the same as the satellite imagery. This new technology allows monthly updates and handling of massive data and can cater for the needs in the big data era. It can be used in topographic mapping and 3D modelling of cities for smart city development. For example, it is particularly useful in analysing ventilation, visibility and sunlight distribution between buildings. The invention won a Gold Medal and Special Merit Award from the Nizhny Novgorod State Technical University, Russia, at the 44th International Exhibition of Inventions of Geneva.

This new technology allows monthly updates and handling of massive data and can cater for the needs in the big data era. It can be used in topographic mapping and 3D modelling of cities for smart city development.

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NZ Manufacturer June 2016

FOOD MANUFACTURING

Selling to people who actually want to hear from you is more effective than interrupting strangers who don’t. – Seth Godin

Hard lessons to be heeded Owl Farm’s fourth and final Farm Focus Day for the 2016/17 season at the end of May was an opportunity to review the season, and for others in the dairy industry to benefit from the hard lessons learned on farm.

journey. We are now in a much better place regard our operating knowledge of the farm. Although we have learned the hard way, we will now be able to plan to ensure we manage these issues and others as best as possible.”

Demonstration Manager Doug Dibley says financially it’s been a difficult year with production and payout down. Underweight heifers, staffing changes through the middle of the season, poor performing pastures and eczema are just some of the major challenges faced by Owl Farm.

Owl Farm also want share their investment strategy in preparation for the season ahead. Doug acknowledges that some areas of the farm’s cost structure were unsustainable. “All of our investments now are in areas where a solid return has been identified and where it supports our strategic direction.”

“We’ll look in detail at where we ended up, how and why. Looking towards the future, we’ll share our focus and targets for next year, including the significantly lower cost structure that we need to achieve to ensure financial survival in what all are anticipating to be another tough season.” Owl Farm has shifted its attention to the five P’s – planning and preparation to prevent poor performance. “Last season we didn’t have an entirely effective plan and weren’t prepared for what was to come. This season’s approach is to plan for the worst and hope for the best.”

Owl Farm gives the farming community access to world class resources, information and on-farm practices. Farm focus days are for farm owners, farm workers and rural professionals to meet, network and share ideas. Join Doug and industry members on 25 May to find out more about lessons learned

Doug says that although these may sound negative, he is optimistic about the future. “These are the lessons which all farmers learn early in their

from last season, planning ahead, and what investments Owl Farm has made to improve its financial performance.

Owl Farm has

shifted its attention to the five P’s – planning and preparation to prevent poor performance.

Owl Farm Focus day attendees.

Bio polymer ‘mix’ bottle is a European first RPC Promens Consumer Nordics has developed a one litre milk bottle made entirely from a non-oil based bio polymer produced from sugar cane.

In its first commercial application, the new Modul bottle has been selected by dairy company Skånemejerier for its range of non-homogenised milk.

Uniquely, an additional feature will see the polymer mixed with a special mineral filler. This reduces the amount of polymer required for each bottle without impacting on its strength and performance, which will further enhance its positive environmental profile.

“Sustainability is a vital consideration throughout all our operations including our packaging, where we always seek to choose a solution with minimal impact on the environment,” comments Armina Nilsson, sustainability manager at Skånemejerier.

“The new bottle from is ideal for our milk,” confirms Thore Bengtsson, the company’s strategic purchaser. “We have an excellent working relationship with the company and their ability to handle the tight deadlines for this project was particularly beneficial.” RPC Promens says that as consumers have taken a greater interest in the types of foods they are buying, their focus has started to switch to the packaging as well. “According to Euromonitor one of the top ten global trends in 2016 is greener food,” explains senior sales manager Jan Weier. “Certainly there has been strong growth in organic food products in recent years and this has now led to more attention being paid to how they are packed. By using this new material, we can offer our customers a renewable and sustainable solution.” The 1 litre white blow moulded Modul bottle is available with a choice of closures and features a four-sided label.

NZ Manufacturer June 2016

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Primary ITO and DairyNZ support dairy farmers through tough times Primary ITO, the industry training organisation for the dairy sector, and industry good body, DairyNZ, have partnered up to fund a Study Grant to help retain dairy employees in training during the challenging times. “In a prolonged downturn such as we’re experiencing now, the temptation might be to abandon what some might see as non-essential costs, like training,” explains DairyNZ Strategy and Investment Leader for People and Business, Dr Mark Paine. “However, to do that would not only lose you the investment that you’ve put in, but also the full benefits of the training, which will only become apparent when the training is completed.” The Study Grant will cover the full amount of training fee paid by trainees, and is available on a first in, first served basis until December 2016 or until the fund is exhausted. “Primary ITO is committed to supporting talented people who are dedicated to a career in dairy farming,” says Primary ITO Chief Executive, Mark Jeffries. “We believe the Study Grant is an invaluable way to support them in the current dairy climate.” “We don’t want farmers to discontinue training due to hardship. The initiative is a way that we can all work jointly to make sure we help farmers stay the course and take a long term view of the business, which is critical to ultimate success,” concludes Dr Mark Paine. To qualify for a Study Grant you must meet some criteria. To see if you’re eligible, visit www. dairytogether.co.nz. Study grant applications must be made through your Primary ITO Training Adviser. All applications are considered and reviewed on their merits, and a decision will be made within two weeks. All applications must be received by the 30th of November 2016.

FOOD MANUFACTURING

Instead of trying to sound interesting to others, be interested in them. – Brian Carroll

NZ should be milking it in organic market Consistent growth in the demand for organic produce over the last four decades is a missed opportunity New Zealand dairy farmers can’t afford to ignore any longer, says organics stalwart Bob Crowder. His comments are a response to a payout forecast of $9.20 for organic milk solids, more than double the price of conventional milk, which he believes has the potential to take New Zealand back to being a world leader in organics. He laments New Zealand letting its status as a frontrunner in organics slide. “At one time we were one of the top certified organic nations in the world. Now we’re almost insignificant in the global picture,” says Mr Crowder.

After Mr Crowder’s retirement at the end of the 1990s, and a brief hiatus in which the future of the BHU was uncertain, it was re-launched in 2001 as the BHU Organics Trust, a joint venture between Lincoln University and the New Zealand Organic Movement, dedicated to providing education, training and research in organic, ecological, permanent and related agricultures and horticultures. Mr Crowder still teaches at the BHU, mainly on its history, and is active as a mentor for organic growers.

The BHU has community gardens to encourage members of the community to grow their own organic food on a certified organic farm in a supportive environment of like-minded gardeners. Mr Crowder says he is impressed with the number of communal gardening schemes that have taken off in Christchurch since the earthquakes, but worries that they are fragmented. “People here have become aware of food security issues and more are growing their own produce. Opportunities in the central city

Introducing

A point of difference in today’s busy FMCG market.

He puts this down to a cheap food mentality with no thought for quality or origin, which means organics have not advanced as far as he thought they would when, as a Senior Horticulture Lecturer at Lincoln University (then College), he established the Biological Husbandry Unit (BHU) in 1976. Although Mr Crowder was looking for `another way of doing things’ he says much of the impetus came from students who wanted a more practical degree with a focus on sustainability and organics. The so-called ‘Sandwich Degree’ introduced to Lincoln in 1978 for horticulture students were critical to the success of the BHU as it allowed students to work on the site as part of their studies. “Students in the 1970’s were very radical. They weren’t forced to be organic. What we were doing had to be integrated into the general teaching. The BHU was for the teaching and demonstration of holistic environmental aspects. It was based on good scientific principles, not muck and mystery.”

are unparalleled elsewhere in New Zealand. But there are lots of individual schemes. People need to pool their resources. The key is to have paid people who organise things and keep the enthusiasm going.”

Developed by AsureQuality, inSight™ provides shoppers with independently verified information about the products they are about to buy. After a successful application process, producers can place the inSight™ logo and a QR code on their product packaging.

When shoppers scan the QR code at the point of sale they can access information about the product, including: • • • • •

Environmental sustainability Social and ethical concerns Nutritional information Safety and quality Origin

The BHU is celebrating 40 years of organic status this year. It has grown from an area for teaching and demonstration based on a holistic organic philosophy and historic research, to a charitable trust which now incorporates a Training College, the Future Farming Centre and the BHU Farm Mr Crowder acknowledges the hard work put in by volunteers and students, some through the WWOOF scheme (Willing Workers on Organic Farms), saying the BHU would not exist without their contribution. “Our research and the students we taught were the foundation for the future of organics in New Zealand. We produced some really excellent students of organic philosophy who are today leading the organic movement. ”

Why the Need for inSight™? inSight™ takes product assurances into the 21st century inSight™ is a new brand developed by New Zealand Government owned AsureQuality, global experts in food safety and quality. We know how important food safety and quality is to you. We wanted a way that you could get independently verified information about a product, that would give you confidence in it before paying for it. inSight™ makes sense because: • You want to know more about the food you are eating

A new innovation taking product assurances into the 21st Century

Freephone 0508 00 11 22 | www.aqinsight.com

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NZ Manufacturer June 2016

WORKSHOP TOOLS

Read, read, and read some more. Knowledge and information solve almost every problem. -Jim Keenan

Simple scissor lift actuators remove complexity and cost Soft touch inflating pickers and grippers.

enhance plant efficiencies.

load-friendly smooth performance).

Some of the simplest solutions to material handling lifting, shifting and production automation tasks are also the easiest to overlook among the plethora of sophisticated options available to manufacturers and processors.

Air-actuated scissor lifts offer a durable, low precision, low cost and portable lifting solution which can be readily customised to fit specific material handling application requirements, including conveyors and lift tables in production and packaging applications ranging from delicate and clean food processing to heavy and dirty minerals and powder processing tasks.

Lack of noise and breakdowns is a major safety benefit.

A case in point is air-actuated scissor lifts, which provide durable, hygienic and safe lifting solutions for applications which require pneumatic operation rather than hydraulic, such as explosion-proof or environmentally sensitive locations and some aggressive environments where dust and grit are an issue. Scissor lift and tilt tables can be cost-efficiently actuated by compact heavy-duty air bag actuators which are connected to a plant’s standard 7 bar (100 psi) shop air system. Such air bag (or air springs) scissor tables are used in a wide variety of applications globally to improve worker ergonomics and

The attributes that make these airbag actuators and isolators attractive to each industry – including simplicity, durability and no guides or seals to wear and break under the impact of grime or corrosives – means they often excel when the going gets tough and the environment gets aggressive and dirty. They are also easy to wash down and don’t attract dirt to oily surfaces, because they don’t have any to disrupt hygiene. In capacities from a few dozen kilograms to more than 40 tons per unit, they’re clean, quiet and extremely tough (after all, these are typically the same airbags that big trucks and trains ride upon, replacing metal springs because of their comfort, durability and

Compact The largest triple convoluted Airstroke actuator is 37 inches [940 mm] in diameter and will collapse to a very compact 5.5 inches [140 mm]. The smallest Airstroke actuator is 2.3 inches [58 mm] in diameter and collapses to just 1.2 inches [31 mm] in height. Firestone’s even smaller but robust Airomatic™ pneumatic actuators stand just 11mm (.45in) high deflated for ultra-compact installation in light load applications demanding high reliability, rapid cycling and metal-free hygiene. An air actuator is two end plates connected by a bladder, and as they’re pressurised, force pushes the plates away from each other. In most cases, the minimum (or deflated) height is considerably less than the available stroke. As a result, air springs can be put in a very compact space and extended to more than twice their starting height. This is a tremendous benefit in floor-mounted lifting devices, such as scissor lifts. Both convoluted and rolling sleeve types of air spring operate in the same simple way: compressed air (and sometimes liquids) is directed into the air springs, expanding their fabric-reinforced rubber bladders to expand in a linear fashion from their compact collapsed state to become

force-developing actuators. The available stroke of an Airstroke air spring is limited by the length of the side wall. This length is determined by stability factors (length-to-diameter considerations). These design needs can frequently be met by specifying either single, double or triple-convoluted air springs. Their lack of seals also means lack of friction. In many cases, a constant force needs to be applied to a moving object. With traditional cylinders, the sliding seals can stick, providing a jerky motion that can damage equipment. The type of actuation engineers design into their materials handling technology depends very much on the task involved. For some slower, precision and less repetitive applications, hydraulics can be the way to go. For faster, high-repetition applications, pneumatics such as air springs are the ideal solution. No one type of actuation is ideal for every task.

Infrared measurement sensor for film, sheet and coating applications

NDC Technologies, a leading global provider of precision measurement and control solutions, announces FilmPro, its new, modular high-performance infrared thickness sensor. FilmPro is a universal single-sensor solution for film, sheet and coating measurement applications including thin film to thick sheet products with multi-layer discrimination. FilmPro’s new optical engine has been enhanced to improve signal-to-noise, accuracy, web flutter and the effect of optical interference. FilmPro

NDC’s

most

versatile

NZ Manufacturer June 2016

infrared gauge to date, measuring clear, pigmented, voided / pearlised products, plus tints in total or as stripes.

optical engine that is unaffected by film thickness changes and scanner misalignment or run-out.

It measures true thickness and weight of voided, microporous or breathable films and derived density. It can measure costly barrier materials, such as Nylon, EVOH or PVDC simultaneously with other polymers such as PE, PP or Ionomer.

For biaxially orientated films, FilmPro provides unique direct thickness measurement of clear, filled or voided / pearlescent films. It addresses the issue of measuring the thickness of voided films and materials that exhibit density variation with its patented optical design, selection of discrete near infrared wavelengths and powerful sensor algorithms that combine to directly measure the true thickness and mass of these films.

An issue confronting the accurate infrared measurement of thin films is called Optical Interference (OI). This can negatively affect the accuracy of infrared film measurement due to reflected light within thin film structures. FilmPro’s new innovative design has an optional Fringe Suppression Optics (FSO) module with a more efficient

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For blown film applications, FilmPro can measure up to six individual product components using a single gauge. These include total film thickness measurement of coextruded products including PET, PP/PE, PS, PVC,

EVOH, PMMA, PA and Ionomer. FilmPro can also measure other high-value blown films such as laminating grades, protective films, and agriculture films. For cast film applications, FilmPro provides superior measurement performance for CPE, CPP, cast stretch film, embossed cast films, barrier films, PVB Windshield / window films, and breathable films. With embossed films, FilmPro can handle most colors except very dark / opaque films, while cast stretch film measurements include clear, tinted colors and black tinted products. Finally, FilmPro can measure organic or water-based coatings on film by simultaneously measuring the substrate thickness and the coating thickness.

People don’t ask for facts in making up their minds. They would rather have one good, soul-satisfying emotion than a dozen facts. –Robert Keith Leavit

When the grade gets tough Pramet has launched a new milling grade and also expanded its face milling range for stainless steels. The M6330 grade has been developed specifically to achieve longer cutting edge durability and reliability in a range of difficult-to-machine materials with and without coolant. Particularly suited to adverse cutting conditions, including interrupted cutting, the grade is now available with many of Pramet’s most popular inserts, including the ADMX, HNGX, LNGX, LNMU, OEHT and numerous other ranges. It promotes greater operational reliability and tool life, with a high resistance to heat-related cracks. This is due to improved abrasion resistance from a new substrate and PVD coating. The new grade is the latest of many new products recently launched by Pramet for machining stainless steels. Meanwhile, Pramet has also added to its face milling range for stainless steel with new, larger diameter cutters and inserts for greater depths of cut and more powerful machines.

steels up to depths of 5mm. The versatile tool can be used for both roughing and finishing operations, providing increased tooling economy and significant savings on machine time. In a recent product test, machining a piece of steel (3900mm x 3200mm) with coolant, the OEHT performed the roughing and finishing operation in 52 minutes. A competitor tool performed the same task in the same conditions in 252 minutes with roughing and finishing operations done separately. A new range of round inserts, REHT 24, for face and copy milling and the XEHT 09 wiper inserts add to the options available. All can be clamped into the same milling cutter, further increasing versatility and cost efficiency. A wide assortment of new milling cutters, ranging from 80 - 315mm diameter, is also available. Internal coolant delivery is supported by each cutter, including for large diameters.

These latest tools include the octagonal OEHT 09 inserts, suitable for unstable conditions and machining fragile components in stainless steels and soft

WORKSHOP TOOLS

Drives custom-engineered for aerator and liquid mixer applications Advanced technology heavy drives are being custom-engineered by Bonfiglioli in Australasia to achieve optimum cost-efficiency and reliability with clean and robust service to aerate or mix liquids. Bonfiglioli’s HDP parallel shaft helical gear drives are an outstanding new generation of large industrial gearbox assembled in Australasia to produce exceptional reliability and torque densities to record values. The drives feature excellent torque distribution across their entire ratio range, with gear ratios laid out in close progression and the drives having a rugged capacity to cope with the shock and impact of intermittent loads. The full range of Bonfiglioli large parallel shaft gearboxes has been extended for the Australian marketplace, with output torque ranging from 4720Nm to 215480Nm. Bonfiglioli’s HDP range features a housing made from spheroidal cast iron; monobloc from HDP60 to HDP120 and horizontally split HDP130 to HDP160. Reliability in service is enhanced by the HDP drives’ Finite Element Analysis and Multi Body Simulations conducted extensively to identify the stress pattern

on each of the main components and to optimize the design for: • System structural stiffness • Gear geometry • Shaft deflection • Extended gear and bearing lifetime An Australasian example of the drives locally engineered for a waste water application cost-effectively integrated 55kW six-pole motors with HDP helical parallel series drive featuring output shaft dry well and a mechanically driven OP2 lubrication pump. The drives – specified for 55kW power and 10 kNm output torque – incorporated an integral mechanically driven OP2 lubrication pump to ensure optimum bearing performance in vertical motor mounting arrangements. They were also epoxy coated for optimum corrosion protection, cleanliness and durability. The drives incorporated an output shaft dry well feature to safeguard against oil leaks into process liquids as seals age and wear.

Hubtex fourway sideloader with all-round Visibility The first vehicle of the new generation is the DQ 45 X. The highly ergonomic cabin, a new steering system and various driving modes make for maximum user friendliness and energy efficiency with a load capacity of up to 4.5 t. All new developments have concentrated on the driver; the new cabin and mast design are among the highlights of the new series. The ergonomic cabin provides improved leg room and the greatest all-round visibility of his class during transport and loading. The visibility is enhanced essentially by the newly developed clear-view lifting mast and the compact fork lift. The new arrangement of windscreens with reduced reflection also helps achieve optimum visibility. The driver is not distracted by reflections in the windscreen and can concentrate fully on the job.

More effective handling thanks to new steering system In addition a highly interesting feature of the Hubtex fourway sideloader is its newly designed steering system. Hubtex had already introduced this at the end of last year in the preceding series and has now incorporated it in the new vehicle. The company has increased the steering lock by 20°. This means that the DQX can travel in a substantially tighter turning circle. In addition the switching times from longitudinal to transverse travel and vice versa have been considerably shortened. During normal driving mode the time for a change in direction is cut by as much as 40 percent. The optimisations enable the user to achieve a substantially faster goods handling and gives him greater manoeuvrability.

Energy-efficient and quiet Users of the new fourway sideloader can choose between different driving modes depending on the job at hand. The new eco-mode makes for particularly energy-saving operation.

Loader drivers work with greater energy efficiency, more quietly and highly ergonomically when using the new DQX.

Due to an intelligent vehicle control system, the pumps are provided with only that quantity of energy for cooling that is needed for the fulfilment of work. This saves fuel and also the noise level of the vehicle is clearly reduced. The new engine is an exhaust-reduced and noise-optimised turbo engine which meets the criteria of the emissions standard Tier 4 final / EURO Stage III B. Compared to the previous engine the emissions are down by 30 percent. In addition the diesel-powered DQX – just like the Hubtex electric loader – has driver assistance systems which enhance safety: for instance it automatically travels more slowly around bends or with elevated load.

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NZ Manufacturer June 2016

REGIONAL MANUFACTURING

Whenever an individual or a business decides that success has been attained, progress stops. –Thomas J. Watson Jr

Microbrewtech Simon Ross of Microbrewtech, based in Oamaru, shares with NZ Manufacturer his company’s role in manufacturing beer bottling machines for the craft beer market. Describe your company’s main areas of activity. Microbrewtech manufactures beer bottling machines designed specifically for the craft beer market. A significant gap was identified and we developed a machine to fill the gap. Breweries with capacity up to around 1800 litre batches are considered to be the target market. Microbrewtech has so far only sold into Australia and New Zealand because we are a small company, however there is a large international market and plenty of interest from further afield, even with though our advertising strategy is deliberately being limited trans-tasman. Microbrewtech has limited heavy manufacturing capability and most of

our components etc. are outsourced from New Zealand and as far away as Germany. Final assembly, wiring, programming and testing is performed in house. What area(s) of the business are currently being developed? Documentation is constantly improving, as well as programming, streamlining assembly techniques etc. Each time a small issue is encountered an effort is made to improve the design, or process. An Australian dealer has been engaged to allow an increase in manufacturing capacity and sales. Does the company place much emphasis/outlay on R & D? Yes. This company is based on R&D, and is now growing manufacturing, distribution and sales roles. R&D

outlay is difficult to quantify, as it began far before the company was formed. For example, I left my former job working for a company designing / manufacturing microlight aircraft and worked for 10 months with no income before selling the first unit and forming the company. Prior to that there had been a couple of prototypes as well. New product development has been put on the back burner at this stage in order to get the company into the black! Where do you export to and where are future opportunities? As stated above at this stage only to Australia. I have been in negotiation for a sale into Thailand, because it’s owned by Australians. The step

towards having an Australian dealer is the first step toward further international expansion. The UK is the next target market. They have over 400 microbreweries being installed each year. How do you find current business conditions? The business is too young to gauge this- I don’t have any yearly trends or overall feel for macro business conditions in general, but there’s a lot of interest in this product, craft beer is growing like crazy at the moment. It has hit 20% of the market in the USA, in New Zealand and Australia craft beer accounts for only around 4% of the market, Australasian craft beer is said to be around 10 years behind the US, so I believe it’s going to grow a lot. My partner Jess is a brewer, and we thought we had a good handle on Australian craft beer, we can’t believe how many breweries enquire about the machine that I have never heard of! What assistance would be beneficial to your company’s growth? As stated, my past career has been mainly in design and development, so the business, sales side of the business is evolving, and could use some input toward growing the business. Staff. Is it challenging getting the right staff? Mostly this is a one-man band at the moment, I have had some help assembling, and help from friends and family along the way. Increasing sales and markets would allow some staff to be added to the business, growth is probably the most challenging part of the business. The future. What is the 5-year plan for the company? Where to from here? At this stage the plan is to expand into the UK and eventually the States. There’s no way I could produce enough machines to cater for those markets right now, while keeping customer service at a high level. So I guess it’s all business development!

Simon Ross teaching the guys from Bad Shepherd and Wolf of the Willows breweries how to use the machine.

NZ Manufacturer June 2016

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Someone told me that each equation I included in the book would halve the sales. –Stephen Hawking

REGIONAL MANUFACTURING

Stabicraft Paul Adams, Managing Director of Stabicraft based at Invercargill discusses the company’s boat manufacturing strategies and where to the future. Describe your company’s main areas of activity The design, manufacture and export of recreational and commercial trailerable aluminium boats What area(s) of the business are currently being developed? We have 3 key areas being reviewed; 1. Internal Capability – is one of our key areas working on sound lean initiatives with a view of the continued removal of waste in our processes, upskilling of leaders and managers to better adapt to growing market demands. 2. Innovation through “Design Thinking” – Working on creation and recreation of a consolidated range of craft throughout the current recreational areas we sell and market in. 3. Sales & Marketing – being close to all the latest marketing trends to best connect with our wide and varied customers. Does the company place much emphasis/outlay on R & D? R & D has been the core on our innovation journey. Our design team of 5 is planned to grow by 50% over the next 3 years. Stabicraft has been

part of the Government’s “Better by Design” program since 2007, this program is to help companies embrace “Design Thinking” throughout the organisation. “Design Thinking” is about putting the customers’ needs first and this is not only the end user but also the internal customers within the business. Where do you export to and where are future opportunities? 3 Key export markets are Australia, USA and the Pacific Islands. However we do also export to other counties around the globe, Australia is by far our easiest market being close and having similar needs and wants. While USA (having almost 12 million registered vessels) holds some real growth opportunities. Boating and fishing styles in the US are quite unique and different from that of New Zealand and Australia thus understanding the customer is key. Our furthest dealer is in Zambia providing boats for fishermen and lodge owners on the Zambezi River. How do you find current business conditions? Positive and challenging with some of the new products we have and plan to launch. We have very exciting

times ahead especially in a market where many brands have similarities. The challenging part is being able to differentiate and disrupt – which I might add we at Stabicraft have been doing since inception. What assistance would be beneficial to your company’s growth? Most notably a consistent stable $NZ. Export fluctuations can provide huge pricing challenges for exporters, these can be the difference between making and breaking a market. Access to latest trends in technology and being ahead of the curve for example; having the best 3D Cad software and being aware of the emerging technologies like robotics and where they may fit. Staff. Is it challenging getting the right staff? Access to recruiting key staff at growth stages can be challenging. We currently have three excellent internal apprentice training programs and are working with the Southern Institute of Technology in post grad intern placement and usage of International Students. Southland is known for its simple can do “Innovating” and as Southlanders we are working extremely hard to encourage people to experience the

buzz that is happening here. Our Southland Regional Development Strategy is focused on having more people settle in the south and enjoy the attributes of this unique region. The future. What is the 5 year plan for the company? Where to from here? In this world of disruption even large companies can start and fail within 5 years. Key for Stabicraft is understanding customers unmet and unique needs to continue creating innovation and people wanting what Stabicraft has to offer. We keep our strategic plan simple so our team can focus on their part to play with goals and measures to align with the strategy. Rest assured, we see many opportunities ahead and creation of time and space to achieve is the key.

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9 – 10 November 2016 Claudelands Event Centre

Hamilton Sponsor and Exhibitor Enquiries Welcome Expo Open Day 8 November More information:

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Lifting the Game of Maintenance Engineering Speaker Sponsor

NZ Manufacturer June 2016

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REAR VIEW

Innovation distinguishes between a leader and a follower. –Steve Jobs

Budget 2016 - How does it affect innovation in our businesses? - by HERA Director Dr Wolfgang Scholz Everyone has their views when it comes to the 2016 Budget: “Funding lift a thrill for scientists” ~ NZ Herald “Top-ups for research bodies part of (business) growth agenda” ~ Minister Steven Joyce “It’s likely that business will be feeling more rather than less confident” ~ BusinessNZ CEO Kirk Hope “Budget 2016 held few surprises for business and sent a strong signal that the New Zealand economy is in good health” ~ EMA’s CEO Kim Campbell While the responses certainly give us hope, but what does it really mean for our largely SME-type manufacturing businesses? NZ Manufacturers and Exporters Association (NZMEA) CEO Dieter Adam was less enthusiastic, saying that Budget 2016 was fiddling at the edges, saying “There was an opportunity given the really good fiscal position, to pump more money into infrastructure development, and that’s obviously not going to happen.” “Tax credits for research and development would have really helped exporters who were against overseas competitors that received substantial subsidies for R&D,” he said. So what does this all mean for HERA which performs industry research on your behalf? With our focus on ‘driving industry innovation’ for our members, it was obvious that the science and innovation budget was the first place

Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Machine Tools Business Opportunities Commentary As I See It Business News Appointments Around New Zealand Australian Report New to the Market Lean Manufacturing Equipment for Sale Recruitment Environmental Technology Manufacturing Processes

we wanted to delve into – and overall, the outlook is good. It’s reported this area will receive an additional $410.5m over four years, boosting annual science investment to $1.6b by 2020. The main beneficiary of this all goes to the MBIE Contestable Science Fund (since renamed Endeavour Fund to commemorate Captain Cook’s 250th anniversary of his scientific voyage to New Zealand).

Tax credits for research and development would have really helped exporters who were against overseas competitors that received substantial subsidies for R&D. As a mission-led fund, we’ve successfully secured its financial support for our steel construction and AGGAT research programmes in the past, so there’s certainly no reason to think that we couldn’t do it again. Now receiving $113.8m additional funding over the next four years and bringing total investment to $200m by 2019/20. It signals a 10% increase over four years with the 2016/17 round receiving an additional $10.9m (6%) on top of the existing $172.3m (see diagram below) – ringing true the statement of being a ‘thrill to scientists’.

However if you know how oversubscribed this fund is, then you’re aware that a large number of excellent, future-focused program applications will not be funded – competition is stiff. It’s good to see the fundamental research-oriented Marsden Fund has also grown by $66m over four years, providing a real boost to more blue sky oriented research landscape which I believe New Zealand needs to make a contribution to, so all thumbs up here to the Government! The new Regional Research Institutes (RRI) programme, which has the potential to be of significant interest to our members and could have a real effect on the high tech development of our regions is also getting a funding boost of $40m over four years with an extra $10m being available in the 2017/18 year subject to special cabinet approval. And while we were part of an unsuccessful JV-based application in the $5m 2016/17 round, it’s still good news for science innovation as a whole. With our industry members’ hat on, I was very much looking forward to finding information on an increase in the Callaghan Innovation (CI) R&D Grant Scheme. Last year, it had quite a boost and ended up sitting at $161m per year, however this time around it stayed unchanged for the next four years. In the absence of a simple to administer R&D tax credit scheme, this scheme plays a key role in getting member companies into transformational long term R&D commitments, and although

some of our members were successful in accessing this fund - generally their feedback has been negative when it comes to readily accessing the funding pool. Frustratingly as we’ve reported before, as an industry levy-funded research provider, we’re specifically excluded from accessing this fund even if it’s been confirmed by the Minister as “an anomaly as there’s simply not enough funds around”, and something we will continue to advocate for. So with no real change in this area of the industry R&D Grant Scheme, I agree with Dieter Adam that an opportunity was missed to effectively invest in the transformation of already established companies. In saying all of this, we can’t say that Vote Science & Innovation hasn’t received a positive funding boost overall – it certainly has. What needs to be the overarching message from our industry is that investing in the development of a productive high wages paying manufacturing sector with export focus needs to become a much higher priority if the Minister’s National Statement of Science Investment 2015-2025 high level goal to: “Encourage New Zealand’s business sector to double its expenditure in R&D to 1% of GDP” is to be achieved.

NZ MANUFACTURER • JULY 2016 Issue • Features

FoodTech PackTech 2016 Preview Smart Manufacturing Regional Manufacturing Developments

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