• December 2010 / January 2011 December 2010NZ/ Manufacturer January 2011
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www.nzmanufacturer.co.nz
The Year That Was
2011 Rugby World Cup
Reflections from the year in business
The Cup is a chance to do international marketing
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Regional Focus: Hawke’s Bay A roundup of local manufacturing businesses and opportunities Page 13
We can catch Australia – by manufacturing our way to success here is only one way we will catch Australia in wage rates and standard of living, and that is by growing our manufacturing sector. Various reports have concluded productivity in New Zealand is low compared to other developed countries and while that is true as an average across the whole economy, it is not true in the manufacturing sector. Professor Paul Callaghan from Victoria University has calculated what we need to produce per employee to catch up with Australia and manufacturing is clearly miles ahead of any other sector. By his calculation we need to exceed $143,000 of revenue per employee.
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Manufacturing revenue per employee is $240,000 (total manufacturing) or $250,000 (manufactured exports). Fonterra comes in at $550,000 revenue per employee and Fisher and Paykel healthcare comes in at $400,000. This is clearly the way to go, we need more manufacturers with high productivity and we need them to grow their business.
Productivity, some economists say, is not everything, but is nearly everything.
While tourism is a high export earner for the country and is very important, its productivity per employee is relatively low. Tourism’s economic contribution divided by the number of full time employees is $77,814 revenue per employee, well below the $143,000 we need to catch Australia. It is well known that in order to have a better standard of living, the most important factor is our productivity. Productivity, some economists say, is not everything, but is nearly everything. Productivity does not mean working harder, it means working smarter. Making and exporting higher value, higher profit goods and services, per hour worked. I include services in the definition of manufacturing, because modern manufacturers are increasingly adding services into their business offering. Continues page 10
By Catherine Beard, Executive Director, Manufacturing, BusinessNZ
Embedded technology aids export business emprecord is an R&D-led technology business based in South Auckland. The New Zealand owned and operated company designs and manufactures temperature and humidity solutions for industries where product integrity is vital, including the food, freight and medical sectors. Temprecord is continually looking for ways to both enhance its existing product offering and develop innovative new solutions. “We’re currently directing our energies developing Generation 4 Data Logger technology, including real-time monitoring and recording
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instrumentation,” says Harish Kumar, Temprecord Technical Director. This new product would replace the inaccurate mechanical recorders, says Harish. This archaic approach to data recording requires replacing the paper media at regular intervals, extensive results analysis then manual entry of key events for record keeping. To realise the full potential of the real-time recording device, and add substantial value to its customers’ operations, Temprecord turned to Fero, its existing electronic components partner. Following Continues page 8
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NZ Manufacturer • December 2010 / January 2011
Wanted Manufacturers If your company is looking to expand your manfacturing business then opportunities are everwhere. You may find it difficult imagining your company doing business outside your region but there are plenty of opportunities, big or small, you just need to keep your ear to the ground. With the Christchurch earthquake deeply affecting so many people, there is an urgent need for assistance (rebuilding, roading, etc). This process will take some time and goodwill may also be a factor in business negotiations.
Success through innovation drives NZ Manufacturer as we look to present manufacturers’ stories in our pages to a captive audience – both online and in the printed version. Success for your company may not be that far away – give it a go!
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NZ Manufacturer • December 2010 / January 2011
CONTENTS Advisors
www.nzmanufacturer.co.nz
DEPARTMENTS
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THE YEAR THAT WAS
Dr Guy Littlefair ➡
Reflections from the year in business.
MSc PhD CEng MRSNZ is passionate about New Zealand manufacturing and is constantly striving to improve training methods for students at AUT. He is Head of Department of Mechanical and Manufacturing. Senior Research Lecturer.
THE RUGBY WORLD CUP The Rugby World Cup is a chance to do international marketing in your own back yard .
BUSINESS NEWS Industry leader on university council. New chair at Development West Coast.
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BOOKS
Page 11 – THE INTERVIEW – Bob Carter. What makes him tick?
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War at the Wall Street Journal.
REGIONAL FOCUS: HAWKE’S BAY
Bruce Goldsworthy
Stories that could see you relocate your business there.
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BUSINESS NEWS
26 27 29 30
MANUFACTURING TECHNOLOGY
BusinessNZ joins major economies business forum.
PRODUCT NEWS Lower energy consumption or money back. New hose collar range.
PROJECT MANAGEMENT Upping the game for better project management.
ANALYSIS
Vishnu Rayapeddi ➡
Exploring new pathways.
BUSINESS NEWS The Antarctic apprentice.
REAR VIEW
John Walley
Is the Chief Executive of the New Zealand Manufacturers and Exporters Association. John consults to a number of overseas companies and is a Chartered Engineer, a Fellow of the Institute of Professional Engineers NZ, a Fellow of the Institute of Management NZ and a Member of the Institute of Electrical Engineers UK.
Revolutionary method of building ensembles.
New president for BusinessNZ.
Page 27 – PROJECT MANAGEMENT – Reversing the project failure trend: A question of understanding and focus.
Vishnu is the founding director of Productivity Solutions Limited, a Lean and Supply Chain Management consulting company aimed at helping its clients create and sustain WorldClass Operations. PSL offers Lean and Competitive Manufacturing programmes in association with NZTE, CMI Consortium and HERA.
Not strategically (un)important.
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Page 22 – DEVELOPMENTS – Integrated reporting: Why tomorrow’s winners will demonstrate sustainable strategies.
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An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.
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Business in one of the prime regions of the country.
Chris Whittington
Technical Director with Camplex NZ Ltd. An experienced Graduate Mechanical Engineer with extensive experience in both Product Design and Manufacture. Considerable recent experience in both rapid prototyping and reverse engineering.
Secrets of the Money Lab.
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Hans Frauenlob
Is New Zealand Trade and Enterprise’s Director – Specialised Manufacturing, with responsibility for NZTE’s Specialised Manufacturing team.
Catherine Beard ➡ Page 28 – BUSINESS NEWS – Wellington woman wins Supreme Business Awards.
Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, New Zealand’s largest business advocacy group, representing businesses of all sizes.
Email: sales@sew-eurodrive.co.nz • Web: www.nz.sew-eurodrive.com www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
EDITORIAL
The herd instinct among forecasters makes sheep look like independent thinkers. - Edgar R. Fiedler
It’s been quite a year! ou can say that again, with Pike River, Christchurch Earthquake, the Te Aroha meatworks fire, financial companies collapsing and a lack of stimulus being injected into the economy. Without dwelling on tragedy it is of serious concern that New Zealand’s future direction is unclear. Two years into a National government we have not seen any injection of ideas and enthusiasm to grow the manufacturing base of the country. We hear about a trade agreement with Russia in a few years time and how we are getting on better with the Americans. We have plenty of industry specialists and business consultants who continually offer their words of wisdom on what we need to do next to get ahead. We have a government which thinks we can catch up with Australia without clearly showing us how this may be possible. So who is listening to whom? Are the words only posturing without action being seen? To be fair, at least Stephen Joyce recently talked about putting in place vastly improved broadband services. Are all the experts not experts after all, who tell us how it is, who don’t have the clout to make things happen? So what do we make of 2010? It was a year where our small businesses kept their fingers in the dyke, desperately seeking ways to get ahead and to stop any more financial leaks. It was a time of acknowledging that our key markets overseas are best serviced by our export companies themselves. No incentives please, we’re Kiwis! Going through the back issues of NZ Manufacturer for the year, I can read of some inspiring developments by some of our innovators. Very creative people who get through on the smell of an oily rag, make a lot of the running for success, who jump on large planes and go into even larger countries to find new markets. The eternal Kiwi spirit of entrepreneurship lives on. And it can go from strength to strength with a new breed of business leaders showing the way. Forget the consultants – roll your sleeves up and get stuck in! It really is time to start a new website called WikiManufacturing – everything else has been tried. Best wishes for a peaceful holiday period and a successful 2011. It will be a year to see if government really does have it in them to make business conditions possible. Remember it’s only one year ut from the next election so anything is possible.
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Doug Green
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: words@xtra.co.nz
CONTRIBUTORS Peter Isaac, Guy Littlefair, Nick Inskip, Kevin Kevany, Michael Henstock, Catherine Beard, Vishnu Rayapeddi
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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 Publishers of; NZ Manufacturer, Cape & Bay, The Mirror, Asia Manufacturing News. Plus contracted publishing services. ISSN 1179-4992
December 2010/January 2011 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.
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NZ Manufacturer • December 2010 / January 2011
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NZ Manufacturer • December 2010 / January 2011
In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later.
THE YEAR THAT WAS
- Harold Geneen
o better way to gauge the way business has been in 2010 than to go to Director Specialised the decisionmakers who want to share with you their observations on how business has been for them. Manufacturing, New Zealand Trade and Enterprise We asked people far and wide – in New Zealand, Australia and overseas “ he business year has finished better than it – and the way they ‘saw it’ may be how you did too and help kick start a started, but is still very mixed. Companies that successful 2011 for you and your company. started the year talking about survival are now -Doug Green talking again about growth. Companies relying on the New Zealand domestic market have had a really tough time. We’ve gotten more costTechspan Group competitive against Australia which has been 010 has been another successful year for “ helpful.” Techspan Group, but it’s a tougher market, and we’ve had to work much harder. It’s still a Hi-Q Electronics mixed bag out there. Some of our customers, mainly in food and medical industries, are growing, others The year has been very busy for us, with record sales. are not. We are selling to a wide range of industries and Overall the New Zealand market is still struggmanufacturers. As a result of maintaining our ling to recover from the global economic crisis. strong financial position, stock levels, and Those companies who are resilient, have good advertising during the recession period, our products, good business practices in place, will customers have been able to rely on us to maintain grow and prosper. Techspan Group has been supply and buffer them from longer lead times extremely busy. We have launched a number of new washed up earlier this year from our overseas products, and we have strong sales of plastic processing machinery, plastic suppliers as a result of the recession. welders, and industrial printing systems. Our export sales are growing. Our The strong demand we are experiencing, is an new e-commerce website (Version 4) went live several months ago and is indication that they are capitalising on this, to make very successful, allowing customers to access, order, and pay for our products the most of renewed activity and opportunities through the recovery. on-line 24/7. The key to success in this tough economic climate is simple: quality products, competitive prices, excellent customer service”.
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Hans Frauenlob,
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Dave Fastnedge,
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Richard Higham,
Paul Gestro Director East America & Consul General, ,
New Zealand Trade and Enterprise “
Brazil “
he latest reports predict the US economy is emerging slowly from a knee-buckling recession. There is little doubt however that it will be a long and slow climb out for the US. Even with this backdrop, New Zealand companies have identified new opportunities in the US market over the last year for their technologies - exploiting new post-recession industries and capitalising on the US Government fiscal stimulus programmes. We have seen increased interest from New Zealand companies in US public sector opportunities at federal, state and local levels, and a spike in awareness from the US integrators about New Zealand’s capabilities and technologies in security solutions and public safety products, as well as other breakthrough areas such as health, bio, clean tech and renewables. We see both the opportunities and New Zealand’s ability to access them growing considerably in 2011 supported by growing collaboration at a government level including the signing of a recent Science and Technology Agreement between the US Department of Homeland Security and the New Zealand Government.”
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Tim Green NZTE Director China, Shangha
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Jessica Acherboim, NZTE Regional Manager,
hina’s annual GDP growth topped eight percent. This was largely due to the Chinese government’s US$584 billion stimulus package. Despite a serious downturn in international trade activity, our bilateral trade levels have continued to grow. The Chinese market place is large and dynamic and while there are enormous opportunities in the market there are challenges and difficulties for individual companies in developing this market. Key New Zealand industries such as seafood, wine, other safe and high quality food types (esp. dairy, kiwifruit) and agricultural technology have good opportunities in China, as do niche areas within the high value manufacturing and service sectors (eg Aviation infrastructure and services, niche communications technology and services).”
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John Berry Chemz rugged year and irrespective of forward planning, each month played out differently than forecast. Manufacturers, distributors, and merchants found it difficult to assess trends with each sector experiencing their own monthly roller coaster effect which resulted in a few highs, but mostly lows. The last 24 months economic pressure has placed enormous stress on the majority of business’ in New Zealand.
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www.nzmanufacturer.co.nz
n 2010, Brazil continued to build momentum with impressive economic growth - solidifying its position as one of the strongest emerging markets globally and a market of significant opportunity for New Zealand companies in a range of sectors including agritech, infrastructure, and consumer goods. Major factors underpinning Brazil’s growth include strong public investment, public spending and domestic consumption. Two areas where we have been working with New Zealand companies include the consumer goods sector - Brazil’s growing middle and upper income population makes this a huge opportunity- and in the infrastructure sector where, according to Morgan Stanley, over 4 percent of GDP will be invested in infrastructure over the next five years in Brazil (NZ$420 billion). Forty five percent of this investment will come from the private sector and foreign investment in the lead-up to the 2014 World Cup and 2016 Olympic Games in Brazil.”
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Fiona Acheson, Trade Commissioner, Malaysia “
e’ve had more manufacturing companies visit Kuala Lumpur than usual this year. Part of the reason is the Malaysia-New Zealand Free Trade Agreement which clears tariffs on manufactured goods by 2016. We’ve helped a New Zealand firm research pros and cons of establishing manufacturing in Jakarta to be closer to a major customer. These developments make me think New Zealand manufacturing is in good heart.”
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Dr Wolfgang Scholz HERA Director A challenging economic outlook requires an active response from industry. First of all, in a constrained market we need to continue working on our competitiveness as a solutions provider and the current steel price is assisting us in this. We need to recognise that we need to seek work where the margins allow companies to invest in innovation to keep us competitive. We also have to look at our business mix and seriously investigate how we can remove the shackle of being the lowest bidder in an increasingly internationally contestable market.
NZ Manufacturer • December 2010 / January 2011
THE YEAR THAT WAS
What’s the subject of life - to get rich? All of those fellows out there getting rich could be dancing around the real subject of life. - Paul A. Volcker
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Justine Tate, NZTE National Manager Manufacturing, Australia
Roger Watson Cogita
he manufacturing sector in Australia continued to experience strong growth in the year to September 2010 at 5.1 percent, but commentators forecast this growth to drop back 0.5 percent p.a. in the five years to June 2015, well below the predicted annual GDP growth rate of 3.4 percent. As Australian manufacturers struggle with rising costs of production (not least due to a scarcity of skilled labour caused by attractive wages in the mining and other sectors), the removal of government-induced demand and a strong Australian dollar, opportunities exist for high quality manufactured products from New Zealand.”
f you export you are in the right market. A good gauge of how various industries are doing (and indeed industry generally) is whether they are investing in their infrastructure - especially Business Management (ERP) software and systems. 2010 has seen positive approach to investment in companies that export. Examples in 2010 include: Triodent - export 90% of production. Biggest market is the USA Washtech – Growth in export is essential as they have more than 90% of the New Zealand Market Vidak – has a very strong presence in New Zealand but the big growth is coming from export. C-Dax – An obvious presence in the NZ horticultural industry has struck gold with its new Pasture Metre where sales are almost entirely export driven Temperzone – 70% of production is exported. Expansion is such that a new ERP system is required to cater for the demands.
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John Walley, MEA 010 was a year of considerable frustration for manufacturers. Markets did not recover as predicted by many commentators, and as always the unpredictable NZ Dollar made export returns a lottery. Some firms managed to grow but overall conditions have been very difficult. We do not anticipate any significant improvement during 2011 without a number of fundamental policy changes.
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Shane Preston Solidtec Solutions CEO
Wayne Mikkelsen NZ Consul General and Trade Commissioner, Middle East “
hilst in 2010 the economy has been patchy at best, Solidtec New Zealand has gone from strength to strength, rapidly forging a reputation within the SolidWorks community as the supplier of choice. The experience of the Solidtec team has resulted in a rapidly expanding customer base which shows no sign of slowing in the new year.
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hrough the uncertainty of a coalition government, a crippling budget deficit and aggressive public sector cuts, the United Kingdom has traded on this year. We are out of recession but there is a way to go yet. There is more scrutiny of spend in the public and private sectors, but this is opening doors as new supply options are evaluated and value for money (not just the cheapest option) is key.”
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Alasdair Thompson EMA he GFC is hanging on, thanks to some of our money lenders and European debt, but the evidence is growing rapidly we’re in for an up tempo 2011. Manufacturing exports are tracking up, and the worst of the retail slump appears over. Plus, there’s the RWC with its huge range of activities. Employment law has been liberalised, and the new Auckland supercity is coming together. W e’re on the improve.
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Ziena Jalil Trade Commissioner, Singapore “
s an export led economy Singapore felt the economic downturn, but it recovered fast with a growth rate of 18 percent for the first half of this year making it the fastest growing economy in the world. Many new initiatives and developments have been launched and these offer considerable opportunities to New Zealand businesses including the opening of two integrated resorts which between them serve more than 70,000 meals a day, the launch of a clean tech park and an aviation hub, and a renewed commitment to education with the 2010 Singapore budget allocation for the sector sitting at SG$9.7billion. Not surprising then that Singapore was New Zealand’s fastest growing export market this year.”
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iddle Eastern economies have generally maintained positive growth through 2010, with robust oil prices ensuring funding remains available for spending in key areas such as education, healthcare and defence. Dubai continues to play an important role as a trade and logistics hub, while Saudi Arabia, Qatar, Syria and markets across North Africa attract increased attention.”
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Bob Carter The Improve Group 011 will bring significant change to NZ industry with some major players introducing lean concepts to their industries, in some cases changing these industries forever. Opportunities for exporters should still be strong with the current exchange rates and astute organisations will take advantage of this.
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Sam Lewis Trade Commissioner, UK & Ireland “
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Graeme Solloway Trade Commissioner, South Korea “
outh Korea has steamed ahead in 2010, expecting over 6 percent annual growth on the back of expanding export demand for automotives, consumer electronics, industrial equipment and petrochemicals. W ith increasing regional integration, Korea’s growth is coupled with China’s expansion and less so with the depressed markets of North America and Europe.”
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Liam Corkery Director New Zealand Trade Development Centre, Taiwan “
aiwan was hit hard by the global economic crisis, but it has since bounced back strongly with real GDP growth of 9.8 percent in Quarter 3 2010. The Economic Co-operation Framework Agreement between Taiwan and Mainland China and the resumption of direct flights have had a positive impact on business sentiment and seem to have given Taiwanese companies confidence to accelerate their investments in China.”
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Brent Spillane, XPO Exhibitions In March and October of 2010 XPO Exhibitions organised NZ trade exhibitions EMEX (Engineering, Machinery and Electronics) and FoodTech Packtech (Food and Packaging Technologies) respectively. We can share a few survey results which stem from a pool of thousands of trade visitors who attended many of whom were responsible for millions of dollars in new capital equipment purchasing decisions made onsite at these events: • 65% of visitors held direct authority for purchasing products and services in their business. • More than 50% of visitors to the exhibition had never attended these exhibition before. • 73% of visitors were of the opinion that their business is growing. • 53% thought the economy would improve in 2011. Against a tide of relatively negative economic data, we take from our survey stats (and general feedback) that the New Zealand buyer of engineering and machinery (i.e its people) are changing, and that overall there remains some good positive signs in these industries. www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
DEVELOPMENTS Exporters upbeat for 2011 K
Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital - the world’s best talents and greatest ideas.
iwi exporters are upbeat and determined to increase their exports in the year ahead, according to Export New Zealand’s National Export Outlook Survey. The findings from the inaugural Export Outlook survey undertaken mid November are being released today. (Link here for the report) “Kiwi exporters are looking forward to 2011 with confidence borne of experience and self belief,” said Catherine Beard, Executive Director of Export New Zealand. “80 per cent of them expect to increase their orders across all their markets,” she said. “44 per cent of the sample, 251 mainly manufacturing exporters, plan to enter new market regions over the next 12 months. “Over half expect their profits to improve next year, with a further 32 per cent expecting their profit levels to hold steady. “Furthermore, about half of the firms plan to keep their staff at the same level, with 38 per cent of them saying they will employ more people in the next 12 From page 1
Fero’s collaborative design model, Fero and Temprecord worked together to develop an embedded solution. This product development conversation began earlier this year when Fero Account Manager Tasi Samu visited Harish at Temprecord to present Fero’s embedded technology offerings. The pair quickly realised its potential for realtime applications. From this initial meeting, Tasi left with Harish’s concept drawings. Six weeks later Tasi returned with a fully customised – and importantly, rugged – prototype for Temprecord’s current project. “Fero is a solutions provider; they sourced the right hardware for the job,” says Harish. “Temprecord’s speciality is making data loggers – we don’t want to design components like touch screens, panel PCs and bezels.” Fero sourced all of the hardware and electronic components before delivering a semi-complete unit to Temprecord. To protect its IP, Temprecord simply fitted its own product with embedded software into the unit to complete the picture. Today, Temprecord is trialling its new real-time monitoring solution with an offshore medical company.
www.nzmanufacturer.co.nz
Catherine Beard, executive director, Export New Zealand
months. 13 per cent expect to reduce their staff. “These results are extremely encouraging since we need our exporters to earn far more if the country is to recover income levels, and retain our standard of living. “New Zealand needs trade, since we can’t grow our economy on the back of our small domestic market, and this is why the TPP negotiations this week in Auckland are so important. “Both CER with Australia and the China FTA have delivered huge benefits to our economy and the TPP has even bigger potential due to the countries involved. “In fact for New Zealand to succeed, exporting must be made the focus of the whole economy. “The main barriers to export growth from the survey were reported to be exchange rate volatility, rather than the level of the NZ dollar, market conditions and demand offshore,
followed by the price competitiveness of NZ products and services, and a lack of funds to further develop export markets. “Other key findings were: * Once established, the big majority (83 per cent) of exporters keep on exporting. * Exporters say they could do with more information about what government assistance is on offer. * But 45 per cent of them said they don’t need government assistance, and those who do rated New Zealand Trade and Enterprise as ‘could do better/ must do better.’ * Assistance is needed, in order of importance, for export market development, market intelligence, R&D and venture capital. * Exporters in the survey earned an average of $13.46 million offshore in the past year representing 47.7 per cent of their output. “The move to enter new overseas
- Jack Welch
markets, some as a result of the financial crisis, is a positive for New Zealand insofar as it could help spread our future country risk,” Ms Beard said. “The regions where exporters have the biggest growth plans are South East Asia, Australia and Europe. “On the other hand, the lowest levels of export growth are expected in the Pacific Islands and North America. These rate lower than Latin America and Africa. “Overall exporters’ expectation for sales growth in various market regions is most encouraging. They are: • SE Asia (eg, Thailand, Indonesia, Malaysia, Vietnam, Philippines) 26.82% • Australia - 25.65% • Europe including UK - 24.35% • North Asia (Japan and Korea) 23.95% • China including Hong Kong - 22.03% • Middle East - 15.45% • Latin America - 15.15% • Africa - 13.37% • North America - 12.91% • Pacific Islands - 9.41%
Embedded technology aids export business The company stores products which are extremely sensitive to fluctuations in temperature, humidity and clean room pressure. “With Fero’s input with hardware solutions, Temprecord can provide a cost-effective, fully networked, realtime, data logging and monitoring system to replace existing expensive mechanical systems,” says Harish. “We like to build flexibility into our clients’ product development process,” says Tasi. “Fero prides itself on providing tailored solutions for SMEs, giving them a straightforward path to market rather than a long, drawn out development process.” One of Fero’s core strengths is its reach into Asia. “We take our customers’ wish lists and develop a solution,” says Tasi, “but to do this successfully it’s crucial that we remain up to speed with the latest components and hardware on offer in places like Taiwan and China.” Fero regularly visits Asia to maintain strong relationships with its suppliers, to stay abreast of new technologies and keep an eye on quality. Embedded technology is the way of the future, according to Tasi. “There are many more potential
applications for embedded technology solutions,” says Tasi. “The marine, dairy and avionics industries are just a few that stand to benefit from the technology.” Fero is a New Zealand-owned business operating two companies: TradeTech and Wire Solutions. The pair joined forces in 2010 to create the new brand, Fero. Together they can now offer manufacturing customers an integrated approach to electronic and wire technology. TradeTech is an importer and distributor of electronic parts and components to the manufacturing, audio video and service industries. T r adeTech has set the industry standard for service and quality, winning multiple industry awards. Wire Solutions is a manufacturer and importer of wire harnesses, control cabinet assembly and lowpressure moulding products. Customers come from right across the manufacturing sector, and include communications, automotive, industrial control and agricultural businesses. Temprecord International Ltd supplies temperature and humidity monitoring equipment to national blood services, pharmaceutical
companies, laboratories and hospitals, amongst a variety of industries worldwide. This is mainly due to the degree of accuracy, precision, reliability and warranty provided. Temprecord has been operating since 1993 and is accredited by IANZ to ISO/IEC 17025 Calibration Laboratory Standards as well as ISO 9001:2008 Quality Management Systems. Temprecord product ranges: ◆ Temperature and humidity Data Loggers ◆ Real Time Monitoring of temperature, humidity and clean room pressure ◆ Cold Chain Transport System Temprecord’s unique 3 point Calibration process creates a product that pro vides accuracy, precision and reliability. This combination contributes to its reputation for integrity of product. The result is an increasing demand for Temprecord product both locally and internationally, while providing customised solutions as required and cost savings for its clients. nextSTEP Contact:Tasi Samu, Fero Tel. 09 414 3886 Email. tasi@fero.co.nz
NZ Manufacturer • December 2010 / January 2011
There are no secrets to success. It is the result of preparation, hard work, and learning from failure. - Colin Powell
2011 RUGBY WORLD CUP
International marketing in your own back yard ugby is a different game outside of New Zealand. Of course the rules are the same but in other rugby loving nations not everyone has been a player, spectator or supporter. Offshore, those who are passionate about the game tend to be well educated, affluent and involved in the business world, which explains why over a third of the world’s 50 largest companies have sponsored or supported rugby. It’s also the reason hosting the next Rugby World Cup is such a fantastic opportunity for New Zealand’s manufacturing sector. You will have heard the figure of 85,000 people forecast to visit our shores during September and October 2011. Of course those people will be keen to watch great rugby and enjoy a holiday in the South Pacific, but many of them will also be looking to make connections that will translate into business opportunities on their return home. That premise is backed up by experts in the sports business industry such as Deloittes. Its research shows a clear link between major sporting events – and the Rugby World Cup ranks third behind only the Olympics and the Soccer World Cup – and business activity and potential inward investment. You may feel a little jaded by Rugby World Cup hype in New Zealand but don’t let that obscure the anticipation that is mounting internationally about the event. Not only does New Zealand play outstanding rugby, we are a sought after tourist destination and known as a nation of great hosts. The world is genuinely excited about coming to us in 2011. New Zealand Trade and Enterprise (NZTE) has been laying the foundations for Kiwi businesses to capitalise on the Cup. We’re working with NZ2011 to showcase New Zealand capability during the festival and a number of industries in the
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manufacturing sector are among those to be highlighted. Major national trade events, such as the Auckland International Boat Show, the Flair New Zealand Aviation Expose in the Waikato and ‘Winning with Wood’ in Rotorua are timed to coincide with the Rugby World Cup. Regionally, industry players are combining resources to show the breadth and depth of Kiwi capability. Open yard tours planned by the marine industry in Christchurch, New Plymouth, Tauranga, Hamilton and Auckland are an excellent example. Visitors will be able to join a tour and not only meet the boat builders, but also rub shoulders with suppliers of the various components that go into the finished product. There are also plenty of initiatives being planned by the aviation and agritech industries to add another dimension for international visitors following their team to the regions. Businesses can have a third bite at the cherry by inviting and organising activities for their own clients or potential clients. In many places, each team will be playing just one rugby game a week and supporters following them will have plenty of time for other things. We’re not suggesting you go in to hard sell mode and we don’t anticipate deals being made on the spot. But inviting visitors to dinner at a prime location or taking them for a round of golf or out on one of New Zealand’s beautiful harbours is a superb
The Rugby World Cup is a chance to do international marketing in your own back yard
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Contributors
PETER ISAAC Business Specialist
By Bruce Gadd Bruce Gadd is NZTE’s Project Director for Rugby World Cup 2011, responsible for leading NZTE’s work to leverage the Rugby World Cup 2011 for New Zealand export businesses. opportunity to tell them what you do and build relationships that will pay dividends down the track. The first step to getting on board with the campaign is joining the online NZ2011 Business Club, which will be connecting New Zealand business people with overseas counterparts coming to the tournament. It’s free and being a member means you have the opportunity to be matched with people in your field. Visit www.nz2011.govt.nz/cms/getinvolved/register-your-interest to sign on. To find out more about getting involved in the industry showcase programme, visit www.nzte.govt.nz The Rugby World Cup is a chance to do international marketing in your own back yard and show how unique, creative and innovative New Zealand business can be. Make the most of it.
STUART NASH is a List MP for Labour and is based in Napier.
KEVIN KEVANY Business Specialist
BUSINESS OPPORTUNITIES EXIST FOR NEW ZEALAND MANUFACTURERS! IN THE YEAR OF THE 2011 RUGBY WORLD CUPBEING HELD IN NEW ZEALAND THERE ARE MANY SECTORS BEING ASKED TO PROVIDE PRODUCTS For further information contact:
words@xtra.co.nz
NICK INSKIP is Heavy Engineering Research Association Industry Development Manager
www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
BUSINESS NEWS
To think that the new economy is over is like somebody in London in 1830 saying the entire me textile manufacturers in Manchester went broke.
New chair at Development West Coast ell known West Coast community leader John Sturgeon has been appointed chairman of Development West Coast. Mr Sturgeon was unanimously voted chair at the Trust’s meeting on Friday 3 December. He is the W est Coast Councils’ appointee on the Trust. Robert Buchanan was reappointed as deputy chair. Mr Buchanan is an independent trustee appointed by the New Zealand Law Society. He has been the deputy chairman since 2009 and was re-elected unopposed. A new Ngai Tahu trustee, Helen Rasmussen of Haast, was also welcomed. She er places retiring trustee Barry Wilson of Hokitika. This is the first time since the October election that the new Trustees have met as Mr Sturgeon has been overseas in his role as President of the NZ Rugby Union. Mr Sturgeon says he is “keen to get his teeth stuck into his new role” and has now met with the Trustees, Advisory Body and staff of Development West Coast. “I am committed to the Coast and will be working for the entire region as we move forward”, he says. He says the Trust faces a new challenge in the wake of the Pike River Mine disaster. Mr Sturgeon, along with Development West Coast CEO, Dr John Chang, and local mayors will soon meet with Minister of Energy and Resources, Gerry Brownlee, to discuss the economic impact of the disaster. “The disaster touches so many West Coasters - builders, engineers, retailers, as well as the hearts of the people involved directly in mining. Development West Coast needs to provide support to local businesses
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From page 1
Industry leader on university council
ichael Daniell, Managing Director and Chief Executive Officer of Fisher & Paykel Healthcare, has joined The University of Auckland Council. He has been appointed by the Minister for Tertiary Education for a period of four years. Fisher & Paykel Healthcare employs more than 2000 people world-wide, including many University of Auckland graduates, and is a leading designer, manufacturer and marketer of innovative medical devices. Its products and systems are sold in more than 120 countries, earning John Sturgeon revenue of around $500 million and to make sure people will stay on annually. Mr Daniell received his Bachelor the coast”, says Mr Sturgeon. Mr Sturgeon has a long association of Engineering degree in electrical with the Coast, he is a Runanga engineering with honours from the resident and retired coal miner. He is University in 1979. He joined Fisher & Paykel as a a trustee of the West Coast Community Trust, the Halberg Trust, and the Solid product design engineer. He served Energy Sports Trust. He was made an as technical manager and general MBE in 1991 for his services to sport manager before being appointed to and is due to step down as President his current position in 2001. of the NZRU in April 2011. In 2009 the New Zealand Herald
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Michael Daniell made him its New Zealander of the Year in Business. The University’s Chancellor, Roger France, said: “Mr Daniell’s background and experience as the Chief Executive Officer of one of the country’s great international high tech success stories, itself a major employer of graduates, will be enormously valuable to Council and the University.”
Currency management and rebalancing n a world of currency manipulation in other countries, the argument that we can do nothing with our currency is disingenuous at best, say the New Zealand Manufacturers and Exporters Association (NZMEA). The simple fact is our politicians and Reserve Bank officials are choosing to do nothing. That choice threatens our very future which is built around export success.
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NZMEA Chief Executive John Walley says, “A distinction must be made between currency intervention at the top and bottom of the exchange rate cycle. Bill English has commented that New Zealand would need $200 billion US ‘in the bank’ to effectively manage the exchange rate; extensive currency reserves are only really needed to hold up the value of a currency.” “The fact is there is no limit to the
intervention possible if it is aimed at devaluing the currency. Selling New Zealand dollars to foreigners expands our foreign currency reserves and we should make money if successful. Intervention aimed at holding up the value of the currency is limited by foreign currency holdings; that should not be used as a justification for not intervening to devalue.” “We can do nothing about gravity; monetary and fiscal policy is not an
We can catch Australia – by manufacturing our way to success
Take Tait Electronics as an example. They don’t just manufacture and sell hand held communication devices for police and other emergency services; they also provide all the necessary installation, training and back up support for the equipment. Manufacturing is increasingly highly skilled and more highly paid as a result. Modern manufacturers employ people with PHD’s, product and package design skills, information communication and technology skills, engineering skills, marketing skills, intellectual property skills, database skills and the list goes on. When I travel the country, manufacturers tell me one of the biggest constraints to their growth is being able to find and employ enough skilled people. This message is echoed in a recently released report by Deloitte, Global Manufacturing Competitiveness Index 2010. CEO’s of manufacturing companies from around the world www.nzmanufacturer.co.nz
– Alvin Toffler
were surveyed on what were the most important contributors to their manufacturing competitiveness and top of the list overall was “talent driven innovation”. In other words, no matter what country you are manufacturing in talent was seen as a key competitive advantage, unless you were in South America where it ranked second behind “quality of physical infrastructure” which is clearly a weakness for that part of the world. The Deloitte report points out that the competitiveness of a country’s manufacturing sector is critical to its long term economic prosperity and growth, and indeed if you look around the world, there is no country that has a high standard of living that does not have a strong and competitive manufacturing capability. The Deloitte report notes that a globally competitive manufacturing sector creates a sustainable economic ecosystem,
encourages domestic and foreign investment and improves a country’s balance of payments. It creates good jobs, not just within the sector, but spilling over into areas such as financial services, infrastructure development and maintenance, customer support, logistics, information systems, healthcare, education and training and real estate. A strong manufacturing sector boosts a country’s intellectual capital and innovativeness, underwriting research and development, pushing the technological envelope and driving growth in demand for highly skilled workers and scientists. There have been many high profile leaders in New Zealand in past years predict that manufacturing is a sunset industry, that we can’t compete with China and that the new economy will be a weightless services economy. They were wrong thankfully, since as the Deloitte report points out, economies built primarily on services
will be second tier. Manufacturing is the biggest employer in the Auckland region and the second largest employer in the country, and contributes to around 50% of our exports. It is time we all got behind manufacturing and celebrated it for the success story it is and put some thought into how we get this sector to double in size? The Deloitte report points out manufacturers cannot go it alone and governments must play their part by developing policy and national manufacturing strategies that are collaborative, integrated, focused and effective. Public policy that has had a positive impact on other countries manufacturing competitiveness has included a focus on science, technology and innovation, technology transfer and adoption, intellectual property protection, having a skilled well educated workforce and a cohesive national policy on manufacturing competitiveness.
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NZ Manufacturer • December 2010 / January 2011
INTERVIEW
A leader is someone who steps back from the entire system and tries to build a more collaborative, more innovative system that will work over the long term. - Robert Reich
Too many leaks
I LOVE CHALLENGES What made you take on the role you are currently doing? A passion for the manufacturing industry and a realization that we have to be better than we are to succeed in business. I love challenges and seeing others grow as a result. If you hadn’t taken this career path what would you like to be doing? A high performance sports coach and motivational speaker. What would you say has been your finest hour – career wise or personally? Seeing the cultures of companies change as a result of our programs – Frucor, Westland Dairy, NDA Engineering, Silverfern Farms and more. Helping Honeywell win the Australian Quality Award.
What would you like to achieve now? We’re currently working on a series of Virtual Factory and Supply Chain simulations for industry using 3D simulation software, I looking forward to seeing this being taken up by industry as an alternative to traditional training, and also being used as a business simulation model for developing manufacturing and production managers capabilities worldwide. What is your greatest quality? Entrepreneurial flair – it’s also my greatest challenge! How do you relax? I don’t know how to, as my passion is also my work – I completed a speed reading course many years ago and
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immutable, it is a matter of choice. Singapore has recognised it is an export dependent economy and has strategically aligned its policy and institutions behind that export dependence; New Zealand policy makers have chosen to bias the economy towards consumption and debt.” “The argument that we can do nothing makes a mockery of the talk around economic rebalancing, job expansion and an export led recovery.”
IRL will offer annual remuneration up to $200,000 to successful candidates, and $2.5 million in operating funds for investment over a five year period. The Fellows will have the opportunity to draw widely on IRL staff and expertise and will be expected to foster enduring partnerships with firms and R&D personnel in the private sector. “These are exciting and challenging roles aimed at encouraging a new mindset – one in which speed of industry uptake of new knowledge is pre-eminent but also emphasises science quality. “As industry and IRL get closer, the importance of high quality R&D as a means to improve productivity and profitability will become better understood. These roles will not be easy but they’ll be well rewarded and rewarding!” says Shaun Coffey. He says IRL will continue its search as long as it takes to find appropriate candidates and interest
he world has had its fair share of drama in the past few years. Tsunamis’, flooding in Pakistan, Iraq and Afghanistan wars, 9/11 and the financial crashes of 1987 and 2008. They’re enough to make any peace-minded person want to change planets and live a little more peacefully. And just when we didn’t know what to expect next comes – you’ve guessed it! –WikiLeaks. I thought it might have been the infiltration of the World Wide Web so that a financial and social catastrophe on a worldwide scale took us back to square one and allowed us to tidy up our act and put more care into looking after the planet. What do we make of WikiLeaks? Well, its leader, Julian Assange is possibly both a hero and a villain. He and his followers have orchestrated a deliberate campaign to expose to the world the fallacies of our leaders and our systems. Is he a kind of Robin Hood, finding ways to rid the world of the evil doers; by exposing them they are forced to clean up their act? But this still isn’t the real story. WikiLeaks is going to be like Osama Bin Laden. Mention the name WikiLeaks and for years to come it will remind people of the scandalous behavior of Assange and his buddies. WikiLeaks will keep people on edge and make us all more cautious as to what we release on the web. It is behavior which is both noble and irresponsible. For example, I don’t want to see the military in Afghanistan put into positions of more danger. But I am interested in what he has – what he is going to release on the Bank of America early in 2011. The release of hundreds of thousands of classified documents on the web by WikiLeaks may well be saying “we say too much in emails, we need to consider what we say, we need to be more responsible. And Julian Assange? He is forever lodged in folklore. He may be assassinated, he may be locked up for 20 years, he may be set free. And because of WikiLeaks life will never be the same again.
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Bob Carter, managing director of The Improve Group have had to learn to slow down again to enjoy the odd novel! Occasionally I fill in at the local Hockey club if they are short – it’s great to be able to play sport and legally carry a weapon at the same time.
IRL invests $19 million in research leaders I
RL is investing $19 million to foster New Zealand’s science and engineering talent. Initially IRL will offer five Industry Research and Outreach Fellowships for talented scientists and engineers to work with industry to conduct research and technology transfer activities. Chief Executive Shaun Coffey said that linking world-class science and engineering with the needs of New Zealand firms is the hallmark of the initiative.
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is already being expressed from within IRL, New Zealand industry and from overseas. Expressions of interest are being called for in the following areas of opportunity for New Zealand economic and social growth: • Technologies for green growth • Maori economic and industrial development • Materials for a low carbon future •
Re-design environment
of
the
built
• Nano-enabled biomaterials • Next generation manufacturing processes • Transformational energy, power systems and grids • Digital futures for industrial processes. IRL expects to begin assessing expressions of interest in late November, 2010, and is already well advanced in discussions with some candidates.
-Doug Green
www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
BOOKS
Global capital markets pose the same kinds of problems that jet planes do. They are faster, more comfortable, and they get you where you are going better. But the crashes are much more spectacular. - Larry Summers
Secrets of the MoneyLab: How Understanding People Will Increase Your Profits
War at the Wall Street Journal: Inside the Struggle To Control an American Business Empire
or Rupert Murdoch, buying the Wall Street Journal wasn’t just business; it was personal. That’s because with the Journal under his control, Murdoch could finally realize his dream of destroying the New York Times. Murdoch, who By Chen Kay-Yut & started his multibillion-dollar Krakovsky Marina media empire with a couple of Australian papers, has long fought Penguin Books against what he’s pegged as the RRP $42.00 monolithic media establishment—a self-important, liberal elite, bred in the Ivy League and at top journalism schools on the coasts. And believing that inherited wealth can lead to complacency in business and in the newsroom, Murdoch has always been wary of those who have inherited their fortunes (i.e. New York Times scion Arthur Sulzberger, Jr.). So the swashbuckling septuagenarian finally got his chance to chip away at the Times on its home turf, by staffing up and pumping millions into a New York edition of the Journal, which he hopes will soon be Manhattan’s first read and the nation’s paper of record. On the evening of the new section’s launch, Murdoch boasted about the paper ’s increased depth ensational books like at a party filled with local power Freakonomics have shown players, such as mayor Michael how human behaviour Bloomberg and financier Henry follows predictable patterns. Kravis. The Journal, Murdoch said, But how do you take these radical will be “New Yorkers’ essential ideas and apply them to your source of news and information.” business? How do you make money Even Murdoch’s detractors— perhaps nostalgic for a Citizen from them? Secrets of the Moneylab sets out Kane-style street fight for readers— what business can learn from the praise his passion for print in the findings of the new economics and digital age. Who else would launch an oldsocial psychology. It shows how you can shape desires, use incentives and fashioned newspaper war in 2010? Former Journal reporter Sarah reduce risks to consistently improve Ellison’s War at the Wall Street the bottom line. Journal—a detailed and fastIn his experimental lab at HewlettPackard, chief economist Kay-Yut moving account of Murdoch’s 2007 Chen is running groundbreaking deal to acquire Journal-parent research into human behaviour. He company Dow Jones—couldn’t packs Moneylab with insights into have come at a better time, just as the invisible forces controlling the Murdoch begins his battle with the Times. world of business. While there was plenty of These findings, which defy conventional wisdom and traditional contemporaneous reporting, along economic theory, will help you with Michael Wolff’s probing 2008 book on Murdoch, The Man Who engineer your business for success. ‘What can playing games in a lab Owns the News, and a lengthy GQ tell us about risk management or post-mortem, Ellison’s book compensation plans? A lot, as it turns provides not just a deeply investigated back-story of the deal, out. Using science, field experiments, but also an insider ’s perspective. When reports of rifts within the and examples from well-known companies, Chen and Krakovsky Bancroft family (the paper’s longreveal the secrets of how to apply the time stewards) appeared in the scientific method to your business Jourrnal’s pages, it was often under Ellison’s byline. practices.
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www.nzmanufacturer.co.nz
By Sarah Ellison
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Covering one’s employer is never easy: reporters need to avoid looking like they’re carrying water for the company brass or being a newsroom snitch. During the summer of 2007, Ellison walked that line deftly, breaking plenty of news as the deal unfolded day by day. In her new volume, she’s mined her contacts for great fly-on-the-wall quotes
Who else would launch an old-fashioned newspaper war in 2010?
from inside the paper, like Murdoch bellowing: “We’re going to build a fucking great paper and I do not give a fuck what New York or the media has to say about it! We’ll build the world’s best paper!” Unlike Wolff, who spent an unprecedented fifty hours with Murdoch, Ellison doesn’t try to get into the mogul’s head. Instead, she details precisely how he plotted the Dow deal years before dropping an unsolicited five-billion dollar bid on the Bancrofts—many of whom were horrified at the idea of Murdoch getting his hands on the paper. The newsroom’s fear of Murdoch’s meddling led to an “editorial independence” agreement, which anyone who has followed Murdoch’s career doesn’t put much stock in. Not surprisingly, Journal managing editor Marcus Brauchli was squeezed out about four months after the deal closed, with Murdoch favorite Robert Thomson taking the top newsroom job. Still, from a business standpoint, purchasing Dow Jones may have been a mistake. Indeed, Murdoch’s News Corporation took a three-billiondollar write-down on the paper, leading one current senior executive to tell New York magazine that it “was the worst deal [Murdoch] ever did.” Of course, it’s unlikely that anyone could have stopped Murdoch, who explained his ambition to Brauchli: “The New York Times sets the national agenda, and we should.” It remains to be seen whether Murdoch will succeed, but either way, the Journal–Times battle should provide Ellison with plenty of material for an intriguing sequel.
FEBRUARY 2011 ISSUE FEATURES • Manufacturing Technology • Food Processing • Business Services
Editorial & Advertising Deadline 25TH January 2011
For further information contact:
Managing Editor: Doug Green P: 06 870 9029 E: words@xtra.co.nz
Sales Manager: Max Farndale P: 06 870 4506 E: mediahb@xtra.co.nz
NZ Manufacturer • December 2010 / January 2011
The incestuous relationship between government and big business thrives in the dark. - Jack Anderson
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REGIONAL FOCUS: HAWKE’S BAY
Manufacturing in Hawke’s Bay he manufacturing sector in Hawke’s Bay is defined by Statistics NZ to include the following different broad categories of industrial activity in New Zealand: ◆ The processing of food and beverage related products ◆ The processing of textile related products ◆ The processing of wood related products ◆ The printing industry ◆ The manufacturing of petrol and coal products ◆ Chemical related industries ◆ The manufacturing of rubber products ◆ Non-metallic mineral products ◆ Metal product manufacturing ◆ Fabricated metal products ◆ Manufacturing of transport equipment ◆ Machinery and equipment manufacturing ◆ Furniture and other manufacturing The main indicators of the overall economic size and contribution of the Hawkes Bay manufacturing sector are as follows: ◆ Total annual GDP (Gross Domestic Product) of some $1311 million in current dollar terms, accounting for 22% of total HB allsector GDP and 6% of total New Zealand manufacturing sector GDP ◆ Total manufacturing enterprise numbers of 859, representing 5% of the Hawkes Bay all-enterprise total and 4% of the New Zealand manufacturing sector total
Sean Bevin, Economic Solutions Ltd, Napier
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Founder of spectacularly successful Future Products Group, Robert Darroch. ◆ Total sector employment of 10,200, accounting for 14% of total Hawkes Bay industry employment and 5% of the national manufacturing employment total In February 2010, total enterprise numbers and employment for the above listed manufacturing industries in Hawkes Bay were as follows: ◆ Food & Beverage processing ................................. 184 and 5820 ◆ Textile processing ..... 70 and 890 ◆ Wood processing .... 89 and 1060 ◆ Printing ...................... 30 and 150 ◆ Petroleum and coal manufacturing ................ 1 and 0 ◆ Chemical manufacturing ..................................... 14 and 150 ◆ Rubber products ....... 22 and 140 ◆ Non metallic mineral products . ..................................... 30 and 160
◆ Metal product manufacturing ......................................... 6 and 12 ◆ Fabricated metal products ................................... 136 and 640 ◆ Transport equipment manufacturing .......... 37 and 150 ◆ Machinery and equipment manufacturing ........ 156 and 680 ◆ Furniture and other manufacturing .......... 84 and 330 Therefore the largest manufacturing industries in Hawkes Bay in enterprise number terms are, in order, food and beverage processing, machinery and equipment manufacturing, fabricated metal products and wood manufacturing. The largest in terms of employment numbers are food and beverage processing (five times employment in the next largest industry-wood processing), wood, textiles, machin-
ery/equipment and fabricated metal products. Across all the various manufacturing enterprises in Hawkes Bay, the largest in terms of individual business numbers are, in order, machinery and equipment manufacturing, wine processing, fabricated metal product manufacturing, wooden furniture manufacturing, wooden component manufacturing and the making of bakery products. The largest in employment terms are meat processing, fruit and vegetable processing, wine making, leather tanning, pulp and paper production, bakeries, wood products, structural steel products and sawmilling. The processing part of the Hawkes Bay manufacturing sector accounts for 40% of all manufacturing enterprises in the region and for 8250 or 81% of total manufacturing employment in the region. The HB processing sector accounts for 7% of all processing employment in New Zealand and 8% of all food processing employment in the country. The region also accounts for 10% of all meat processing in New Zealand, 38% of all fruit and vegetable processing in the country, 17% of all wine-making employment nationally, 32% of national leather tanning employment and 18% of pulp and paper manufacturing employment in New Zealand. Continues page 14
Innovative working environment important for manufacturing sector C
reating an innovative and rewarding working environment is key to expanding our business expertise for the manufacturing sector in Hawke’s Bay. Employers in this region are looking for opportunities that provide ongoing research, development, and challenges that continue to see their businesses grow. The global reach of NZ Manufacturer provides an ideal platform to reach and create interest in what the region has to offer. Especially for those contemplating moving to Hawke’s Bay. Forming industry sector clusters is a way of gaining opportunities to successfully tender for projects that will benefit all parties. Using a specific industry skill base to combine their expertise, enables both SME’s and large corporates in Hawke’s Bay to tender for contracts that may have been out of their reach if they attempted it alone. Part of this process is the recruitment of effective staff who will add value to the company. Using today’s technology very sophisticated interviewing is possible without having to do a face to face interview initially. Technical questioning can be asked and drawings
provided to provide the employer with the reassurance that this is the person they want who can provide the solutions needed to grow their business. However, less than a third of jobs are advertised as managers often use their own networks or agencies to headhunt the best people available. Immigration processes can also be effective and timely as long as appropriate documentation is submitted to the appropriate Government authorities. Staff from overseas provide vitality to a workplace and in many cases their own global contacts bring benefits and provide efficiencies that may not have previously been possible. nextSTEP Contact: Lynne Gibson, Managing Director, Dynamics3 Recruitment, Vero House, 70 Tennyson Street, P.O. Box 971, Napier, New Zealand T: 64 6 8343533 M: 021 596 637 E: lynne@dynamics3.co.nz www.dynamics3.co.nz
www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
REGIONAL FOCUS: HAWKE’S BAY
The secret of business is to know something that nobody else knows. - Aristotle Onassis
From page 13
Manufacturing in Hawke’s Bay The average employment size of all processing industries in Hawkes Bay is 24. The average size of all processing and manufacturing industries together in the region is 12. Over the past decade, the following HB processing/manufacturing sector trends have occurred: ◆ The total number of sector enterprises has increased overall by 16%, compared to the -0.3% fall nationally ◆ Since 2008 though and the start of the latest major economic downturn, the number of manufacturing businesses in the region has fallen by -4.1%, compared to -4.6% nationally ◆ Total HB employment in the sector has fallen overall by -2.1% since Year 2000 and by -2100 or 17.1% since 2005. Nationally, sector employment has fallen overall by -8.8% since Year 2000 and by -15.4% since 2005 ◆ Food and beverage processing employment in the region has fallen by -3% over the past decade with, however, wine processing
employment increasing by 310 or 111% ◆ Textile manufacturing employment in the region has fallen by 20% since Year 2000, whilst wood manufacturing employment has risen by 14% ◆ Employment in fabricated metal product, machinery/equipment and furniture/other manufacturing has increased overall since Year 2000 and remained stable in transport equipment manufacturing ◆ Employment in the printing, chemical and non-metallic mineral product manufacturing industries has fallen since has over the past decade. The NZ Institute of Economic Research is forecasting annual average growth over the next five years of 0.9% for the food processing industry nationally, -0.9% for textiles, 1.5% for wood processing, -1% for printing, 0.2% for chemicals, 0.9% for non-metallic mineral products, 3.6% for machinery and equipment manufacturing and -0.6% for furniture manufacturing.
Rethink the economy to improve prospects BusinessNZ he deterioration in the Government’s accounts because of low economic growth and some oneoff problems is not surprising, says BusinessNZ. Chief Executive Phil O’Reilly says it increases the urgency for actions that will create a more dynamic economy. “Government spending should be aimed at getting the right funding in the right places and better using all potential sources of equity. “For example, the economy would benefit from greater use of the value held in Crown-held assets, by allowing mum and dad investors to play a part. “Viewing SOEs as ‘sources of equity’ could unlock much economic growth.”
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Mr. O’Reilly said a fresh look at nogo areas in the economy would also help boost the economy. “BusinessNZ and other organisations have stressed the importance of taking action to constrain costs and get more dynamism in the economy, including increasing the entitlement age for superannuation, reducing the cost of KiwiSaver and making changes to interest-free student loans. “The Government also needs to move on introducing a Regulatory Responsibility Act to help improve the quality of regulation and constrain wasteful spending. “A fresh look at assets and spending could help achieve a more dynamic economy,” Mr. O’Reilly said.
Chris Tremain (left) with fellow National MP Craig Foss
Growing the Bay conomic growth, within the constraints of our environment, must be the focus for the Hawke’s Bay economy. A higher standard of living, more jobs, and higher incomes will result from such growth. Modern infrastructure for our region is a key driver of economic growth. The Airport extension, the Southern Expressway extension, the bridge at the Matahoura Gorge and the roll out of fibre around our region are all excellent examples of current investments into the Bay. The key sector drivers of growth in the Bay will be primary production, tourism, and niche manufacturing. There are huge opportunities for better yields from our land if we are able to manage our resources more intensively, recognising our different soil types and need for water storage. Excess water takes have influenced water flows in the Tuki Tuki and other rivers which has had an impact on biodiversity and other amenity values. The efforts of the Hawke’s Bay Regional Council to develop water storage facilities are to be applauded and will make many of our land based businesses more attractive to further investment. Tourism will continue to grow in our region with a combination of more focussed marketing, increased Cruise Ship visits and increased events/attractions. For example, just a few weeks ago the new ‘City Showcase” brought 40
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By Chris Tremain, National MP Napier bands to Napier City for the weekend. The opportunities to fill the tourism calendar with events such as this are huge. The roll out and completion of the National Cycleway project, together with a bid for the Cycle Velodrome, will increase the reasons to visit our wonderful province. Manufacturing is the real opportunity for the Bay. Both in added value of our primary produce and in niche light manufacturing. Companies such as Heinz/Watties and McCains have employed large numbers over many years. New entrants such as Kaweka Foods are really making their mark. In the light manufacturing area companies such as Future Products and Furnware are experiencing export growth in very competitive markets. Central Government plays a key part in setting the over aching policy directions to allow growth across the country and in our region. To this end there have been significant changes to tax rates and other business drivers in the last year. In addition to wider macro policy there are opportunities for businesses that aren’t already working intensively with New Zealand Trade and Enterprise (NZTE) through the Regional Business Partner Programme.
NZ Manufacturer • December 2010 / January 2011
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The way to get things done is not to mind who gets the credit for doing them.
REGIONAL FOCUS: HAWKE’S BAY World Travellers co-op going places
- Benjamin Jowett
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• • • •
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have well-established profitable businesses with high levels of repeat customers (80-90%). All profits are returned to co-op member stores. Total transparency and memberdriven strategy and business plans. Very lean overheads. Extensive use of cloud-based IT solutions delivering connectivity between co-op members and suppliers. Trade supply services contracted out to like-minded partners who deliver ‘freemium’ services.
Bill Sheppard was one of the originators of the World Travellers Cooperative concept back in late 2009
Picture courtesy of Hawke’s Bay Today
ravel agencies, like businesses in most sectors, have had a few challenges to contend with over recent times with the airlines actively trying to cut travel agents from their distribution channels and the internet spawning massive B2C connections. It meant that some innovative planning, that drew on sound business practices, was required; enter the World Travellers travel agency cooperative. Bill Sheppard, owner of award winning Best Travel in Hastings, was one of the originators of the World Travellers Cooperative concept back in late 2009. Starting with just two outlets, Hastings and Rotorua, there are now 14 outlets throughout the country. Financially, the co-op management services unit has already achieved break even at the same time delivering $70,000 to $150,000 a year extra profit to each new retail shop. The World Travellers cooperative model is – • Aimed at high-end, experienced travel store owner-operators who
Christine Sheppard, Bill Sheppard and Frazer Best At the core of their activities is the individual World Traveller consultant; they have considerable knowledge, combined with a skill base that is continually being built on, providing customers with a number
of benefits that will see them extract the maximum benefit from their business trips. -NZ Coop Association newsletter and to Graeme Moore MD, World Travellers supplied the information.
www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
REGIONAL FOCUS: HAWKE’S BAY
You never pull the trigger until you know you can win. - Roger Ailes
A great place to do business awke’s Bay with its Mediterranean style climate and relaxed pace of life is coming onto the radar not just for new settlers but as a great place to do business. The region, which is strategically located on the east coast of the North Island, has a thriving port and a great established base of local businesses. Simon Dunn, a Commercial and Industrial expert from Morice property valuers in Napier explains:” The benefits of Hawke’s Bay were recognised by national furniture retailer Big Save who have their head office in Napier. This is also their national distribution centre, having relocated from Wellington a few years ago. They have cut their operational overheads significantly by relocating. “The Bay has good infrastructure and industrial rents of between $65 per square metre to $140 per square metre, depending on the quality and location of the property.”
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Investors are also considering Hawke’s Bay property, attracted by the stable returns on offer. Morice recently hosted a group of 15 property professionals from Denver, USA who spent the day looking at the property markets of Napier and Hastings. They were looking at new opportunities and diversification away from the United States due to the low returns there. Mr. Dunn said that the commercial and industrial property markets in Hawke’s Bay do not have as a high a volatility in returns as the property markets in the larger cities such as Auckland. In fact, the shift in the Morice all property prime yield indicator, which
The property markets here are not as volatile.
is produced six monthly, shows only a marginal easing during the recent difficult economic times. The total return for commercial and industrial property in Napier and Hastings has been positive over a one, three and five year time horizons. Rental growth, as in any market currently is negative, with a decline of -3.7% for the year to June 2010 in Napier. However, well managed properties are able to retain their
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FOR A 6 BOTTLE CARTON
You choose your mix from – CHARDONNAY MERLOT
Only available from the vineyard at: 1024 Pakowhai Road, HASTINGS E: estate@hettinga.co.nz P: 06 876 4863 www.nzmanufacturer.co.nz
tenants, who are customers, and landlords who are treating tenants as such are doing well. The group from Denver left Hawke’s Bay impressed by the opportunities for business growth and investment potential. Others are also likely to shortly discover the great opportunities that Hawke’s Bay offers. nextSTEP Visit: www.morice.co.nz
NZ Manufacturer • December 2010 / January 2011
An expert knows all the answers - if you ask the right questions. - Levi Strauss
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Indelible making their mark ndelible is a high-quality creative film and video production company located in Hawke’s Bay. Originating from the UK, Indelible produce television commercials, corporate video, and online advertising, as well as designing and constructing websites. Their full production facilities in Onekawa, Napier, include a green screen studio, high-definition cameras, lights, a track & dolly system and steadicam. They also have editing and postproduction facilities including 2&3d animation plus full audio post production. Every element of the company’s work, from concept to finalising post-production, audio and graphics is done in-house. Indelible recently produced a 30second television commercial for Hukarere Girls’ College. The concept for the advertisement centred around the school’s ability to prepare young women for the future. The advertisement originally aired on Maori TV, and within just four weeks of its initial airing the school had confirmed the enrolment of 14 students, resulting in a 600% return on their investment. Due to its success, the school made the decision to move it to mainstream television in the North Island
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Indelible filming at Napier’s Aquarium (TVNZ), which the school feels confident will result in even more enrollments. Another recent project was the television commercial for The National Aquarium of New Zealand in Napier. In the past the aquarium would have had to have turned to a film
Hawke’s Bay becomes a regional business partner enture Hawke’s Bay and Hawke’s Bay Chamber of Commerce have been jointly-appointed as one of 14 Regional Business Partners, under a new business investment scheme by New Zealand Trade and Enterprise (NZTE) and the Foundation for Research, Science and Technology (FRST). NZTE and the Foundation’s business investment programme TechNZ will work through this local partnership to support business growth and innovation. The regional Partners will be the first point of contact for businesses seeking advice, funding and expertise to grow their businesses, and to undertake research and development activities. Hamish Campbell, the Foundation’s Manager of Investment Services said of the scheme, “Our Partners have helped companies around New Zealand undertake
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company in Auckland or Wellington to get the quality of advertisement they desired. With a quality film production company just around the corner, they turned to Indelible. The end result is available for viewing at indelible.co.nz (as well as currently airing on television) and displays the high production values, top storytelling and beautiful visuals that characterise Indelible’s work. Film can be used in a multitude of ways. A video about your business or product can be put on your website and on YouTube, thus optimising your web presence and potentially increasing your web and search engine profile. Indelible can
also create a DVD for clients or reedit it to become a television commercial. Using a video to convey your message brings with it personality text and images can only show a limited amount of emotion, putting video up sooner rather than later will put you a step ahead of your competitors. Internationally experienced, the team at Indelible includes Director of Photography Dan Browne, Writer/ Editor Kelli Greene Caldwell, and Director of Moving Image, Mark Radley. They are dedicated to staying relaxed, having fun and be approachable while creating work that caters to client’s specific needs. They look forward to working with more businesses. Traditionally, a facility such as this would only be found in Wellington or Auckland so they are proud to be a supplying high-quality creative work in Hawke’s Bay. nextSTEP Visit: www. indelible.co.nz,
innovative projects to develop new products, employ undergraduate and Master ’s students, and engage experts to assess their R&D strategy and provide advice.” NZTE Acting Director of Performance Improvement Euan Purdie added, “It provides an excellent opportunity for the key entities in each region to work together to determine their economic strategies and help them identify businesses in their region that will deliver on those.” Sam Wood of ATI Engineering Ltd recently accessed TechNZ funding for some of their research and development projects, and said, “It really was invaluable having someone on our doorstep to talk us through the funding available and to help us with the application process. I was amazed at how straightforward and quick the whole process actually was; painless really.” www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
REGIONAL FOCUS: HAWKE’S BAY
I hire people brighter than me and then I get out of their way. - Lee Iacocca
Solid after tax profit for Port Port of Napier of Napier he Port of Napier Ltd has reported a solid after tax profit of $7.047million and that it had handled a record tonnage in the financial year of 2010. Port chairman Jim Scotland said the company’s strong performance was a reflection of the effort and commitment from staff, continued support from shipping lines and cargo owners and an aggressive growth strategy which had resulted in new business gains. Port throughput increased by 18 per cent with combined cargo tonnage lifting to a new record of 3.416 million tonnes. This was led by a strong export rebound which helped eclipse the previous record of 3.200 million tonnes set in 2003. “We can look back at the year just completed with a good deal of satisfaction and confidence. Combined activity exceeded budget and that of the prior period, setting new records in the process. It has been a high impact year for all concerned,” Mr. Scotland said. Mr. Scotland signaled that as Napier positions itself as one of New Zealand’s top tier ports it will need to grow to prosper. To achieve this aim, new investment will be necessary. Change is a constant and limited new dredging, reconfiguration of plant and further reclamation may be needed. Exports improved overall to 2.618 million tonnes, an increase of 370,000 tonnes over 2009.
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The Port of Napier has facilities for both container ships as well as modern day cruise ships. Log exports were up 21.8 percent to 889,000 tonnes while wine, timber, woodchips and dairy all experienced large gains. Imports grew 23.3 percent as a consequence of improving fertilizer activity and a leap in containerised consumer goods. Port of Napier chief executive Garth Cowie said the long term growth trend in containers continued, resulting in annualised container throughput increasing by 8.3 percent to 180,871 TEUs (Twenty Foot Equivalent Units). There was a slight increase in overall ship calls, up from 567 last year to 580, which impacted on profitability, resulting in a final net profit after tax of $7.047 million.
Prowler series needs investor
he Prowler HDX 700 series is now available in New Zealand from Hawke’s Bay company Agre. As seen by the picture the Prowler HDX 700 series is made very efficient by their trays which can be removed and provide double carrying capacity. It also has a three passenger seat with
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plenty of room to keep people comfortable and happy. Other features include: adjustable Fox Float coil over rear shocks, a large rear cargo box, power steering with tilt steering wheel and dashboard shift. There are also slide storage compartments, aluminium wheels, front and rear 2” receiver, engine 700 HI EFI and aluminium rims. A lot of interest is being shown in the Prowler series and Agre is also looking for investment to further grow the Prowler range in New Zealand. nextSTEP Contact: Graham Houghton on 06 974 8152 06 974 8152 or 021 246 5773 or email agri@airnet.net.nz
Lack of vision disappointing hile compiling the information for this look at manufacturing in Hawke’s Bay it was disappointing to find that key business sectors that are integral to manufacturing success in the region were not represented. Regions have their factions, their groups who protect their own interests (and those of their members) and in this case some Hawke’s Bay industry sector leaders shone like a beacon through their absence. Unfortunately, this particular attitude resonates through manufacturing in New Zealand – from government down who still have not painted the picture clearly of where they see the manufacturing
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sector going for the good of New Zealand. So, in this instance, I say shame on those key people in the Hawke’s Bay region who did not have the vision to share the future picture of manufacturing for the good of their members.
-Doug Green
Email: enquiries@baycad.biz
NZ Manufacturer • December 2010 / January 2011
You must constantly change and adapt to a new environment. - Jong-yong Yun
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REGIONAL FOCUS: HAWKE’S BAY
Creating a platform for competition and growth he extension of the runway at Hawke’s Bay Airport currently underway has had a long gestation. It has long been recognised that the runway at 1310 metres was too short and while adequate for the current Air New Zealand turbo prop fleet, the length or lack of it was seen as an inhibiting factor for competition and growth. Hawke’s Bay Airport Limited was incorporated in July 2009. Prior to that the business operated as an unincorporated joint venture between the Crown and the Hastings and Napier City Councils. This was an unsatisfactory and cumbersome structure for decision making and not conducive to taking on major development projects. The current corporate structure has a fifty percent Crown shareholding with the balance of shares held by the Hastings District Council and the Napier City Council. Importantly, it has an independent board not constrained in taking on major developments – business case justified – and not constrained from raising capital. The development philosophy
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adopted by the board has a building blocks approach; that is, any developments are effectively future proofed. In the case of the runway, the extension to 1750 metres will make the airport domestically jet capable, able to handle any of the jet aircraft currently operating domestic routes in New Zealand and Australia. If an extension to international length can be justified in the future, the airport now has control of sufficient land by way of a perpetual lease from Landcorp Holdings Ltd to enable such a development to proceed without delay. The major driver here is competition. While Air NZ provides an excellent service, customer surveys clearly identify cost of fares as a barrier to travel. The introduction of an additional carrier would provide much needed competition and accordingly considerable economic benefit to the region. Current passenger movements are below the 2008 peak of 450,000 but recovering strongly from the recessionary lows and back up to around 410,000. The company will be pursuing
John Palairet, Chairman, Hawke’s Bay Airport Ltd
Runway extension will create opportunities for bigger aircraft for the region opportunities for a second carrier. The ability to handle jet aircraft with the extension creates an opportunity for competition in both air fares and freight charges and significant benefits to airport users. Hawke’s Bay Airport is not limiting its development plans to the runway. Plans are being finalised for further infrastructure development with internal roading and release of
leasehold sections for businesses to relocate to the airport and over time the development of a fully serviced business park. Discussions are underway with a number of interested parties. The Airport is committed to providing Hawke’s Bay businesses appropriate infrastructure and a competitive environment economic growth.
Finance available for company development It’s all Black & White C
ommercial Finance Solutions (HB) Ltd, located in Onekawa, Napier, has been in the New Zealand commercial finance market for over 10 years with over 25 years experience in the financing of motor vehicles, light and heavy commercials, plant, equipment, machinery, and the property market. Nigel Watkin, director of Commercial Finance Solutions (HB) Ltd, has spent the majority of his career working in the finance industry and has previously worked for two of the biggest finance companies in NZ. He has worked in most areas of the business including, credit, collections and sales in these companies so has the knowledge to not only provide you with the right solution for you, but also knows how to present it to the finance company. Motor Vehicle, Plant, Equipment and Business Finance for businesses is available to: • purchase new motor vehicles, plant or equipment. • expand. • buy out or merge with another business. • refinance or consolidate debt. • raise money against existing assets. • purchase a commercial property. • free up cash flow and working capital.
Nigel Watkin
• factoring. • invoice Purchasing. We can help with all of these. We have arranged loans in many industries, including contracting, agriculture, forestry, transport, engineering, manufacturing, printing, waste recovery and
recycling, aviation and tourism. Whatever the size of your business, Commercial Finance Solutions can tailor a loan to suit your needs. They finance a range of asset purchases, and offer refinancing on existing assets. They have sound local knowledge and years of experience in dealing with many different business types. You can be confident we’ll understand what you need. Our aim is to be a long-term partner in your success and growth. The most common finance options offered are: • term loan – the ability to raise additional funds against existing business assets • finance lease – on balance sheet funding for the purchase of additional assets • operating lease – off balance sheet funding of assets, which provides certain tax advantages • security agreement - for the purchase of assets • rental and leasing of office equipment, computers, phone systems You will get the best possible service and tailor a finance solution to meet your needs. nextSTEP Visit: www.cfshb.co.nz
ocal Hawke’s Bay accountants Dave Cheetham, Simon Hankins and Kirsten Wise are the people behind newlyformed accounting firm, Black & White. The dynamic trio bring a refreshingly relaxed and pragmaticyet-professional attitude to accountancy. Having come from established backgrounds in the field, they not only bring a wealth of combined experience, but also a very real sense of understanding of what the people and businesses of Hawke’s Bay need from their accountants. As existing practitioners, they bring with them a sizeable client base of individual and business clients which, in Dave’s words, “Remains our single largest priority”, adding, “Significant emphasis went into ensuring that the transition was seamless, with all client files now moved over to the new business”. Continues page 21
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NZ Manufacturer • December 2010 / January 2011
REGIONAL FOCUS: HAWKE’S BAY The Bay has it all for business success
I cannot sing, dance or act; what else would I be but a talk show host. - David Letterman
What would your vision be for economic growth in the region? region that understands its competitive advantage and constantly communicates this to the wider business and manufacturing sector across New Zealand (and, when the opportunities arise, globally), in an ongoing drive to attract high value companies to Hawkes Bay. We have the infrastructure in a great port, an improving roading network, an hour ’s flight from Auckland and 40 minutes from Wellington, a fantastic educational facility in EIT, some of the country’s top secondary schools, a ready and willing work force and, of course, the wonderful lifestyle. What is the role you see manufacturing playing in the region’s future? If we want unemployment to drop and the region’s economic wealth to increase, then a robust manufacturing sector is vital to the region’s economic
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and social health and well-being. As mentioned, we have it all except for some reason we are not communicating this in a way that is attracting businesses into the region. What are the incentives and programs that Government has to assist Hawke’s Bay manufacturers develop overseas markets? I believe that central government already has some good programmes in place to help companies internationalise, and the government-run New Zealand Trade and Enterprise (NZTE) does have some innovative and interesting initiatives. If companies are interested in exporting they should, in the first instance, give NZTE a call to determine what is available for their particular circumstances. However, I believe that local government has a more important role to play in attracting businesses to the region. There are many innovative schemes the territorial authorities could be using to attract high quality manufacturers to Hawkes Bay. For example, how about a two year rates holiday for any manufacturer
relocating to Hawkes Bay who employs 10 or more people? What are the ways these companies can be financially assisted to display their goods at trade fairs around the world? Again, it is best to talk to NZTE to determine the level of funding and assistance available for the particular circumstance regarding attendance at trade shows, as well as for international market development. In my personal opinion as someone who was involved in international business for eight years, New Zealand Trade and Enterprise does need to reprioritise its focus and activities. As it stands in its current form, NZTE does some great work around tradeshows etc, but it needs to become much more focused on helping NZ companies understand and, if appropriate, manage the supply chain from point of origin through to final market. NZTE also needs to be much more active in identifying global market opportunities and then helping New Zealand companies realise their international potential through a range of different alliances and partnerships.
Stuart Nash MP Labour List, based in Napier What are your observations of innovative Hawke’s Bay manufacturers making their mark? Location is no barrier to success; in fact it can help. Understand competitive advantage and concentrate on being the best in the world. Treat workers well and they will reward you with hard work and success. Leadership is important but buy-in from all staff is vital. As someone said, if God gives you a lemon, make lemonade.
When opportunity knocks – grab it! arcus Berry started Pacific Aerosol eighteen months ago. After gaining a science degree, Marcus spent seven years through the multi-national corporate culture, negotiating the supply and production of chemicals to a wide range of national companies, establishing and maintaining longterm partnerships with customers and suppliers alike. Marcus had been considering starting his own aerosol manufacturing business for some time when he discovered a stateof-the-art indexing plant when he was on holiday in the UK which he took ownership of and shipped back to New Zealand. The company is based at Awatoto near Napier which is an ideal location for the freighting of their products through the Port of Napier providing ideal services for national and international delivery. The ease of setting up the business at Awatoto was a ‘no brainer’ because of the support from Napier Council especially with resource consent. Pacific Aerosol specialises in filling aerosol cans and repackaging from bulk. They also provide product and label design, storage and delivery. Low number runs are a specialty starting from 1000 units. Pacific Aerosol believes in working closely with clients, forming a partnership and actively listening to the need and understanding the business to determine what is required. All on a one to one basis. The entire process of advising, assisting and proactively being involved ensures the client receives the product they want delivered on time. Pacific Aerosol specialises in the production phase with customers selecting the services they require to lead them to production and then from the range of logistical services. Key to their strengths are Planning, Pre-Planning, Production and Logistics.
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Highly efficient processes result in quality products.
Pacific Aerosol has a team of consultants and recognised leaders in their field to work with customers in designing and formulating. Aerosol label design is a specialist field, both in terms of visual impact and meeting the various labeling information requirements relevant to various product categories. Contract aerosol filling is the company’s core business. The KP Aerofil filling line is designed for industrial household and personal care products. The line has an extremely high production capacity and the capability of utilising ozone friendly hydrocarbon CO2 and Dimethyl/Ether as propellant options giving total flexibility. nextSTEP Email: marcus.berry@pacificaerosol.co.nz or T: 06 833 6373
NZ Manufacturer • November 2010
There are two kinds of companies, those that work to try to charge more and those that work to charge less. We will be the second. - Jeff Bezos
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BUSINESS NEWS
Goughs searches New Zealand for diesel mechanics uch is the Gough Group’s need for staff, especially heavy diesel mechanics and technicians, it has run a series of seven job seminars throughout the country to try and fill the large number of vacancies it has on its books. In November it successfully held seminars in Auckland, Hamilton, Rotorua, Christchurch, Nelson, Palmerston North and Dunedin but is still struggling to keep up with the
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demands that the booming mining and forestry sectors are having on the business. Karl Smith, Chief Executive of the Gough Group, said that the company had 20 vacancies for heavy-duty mechanics and technicians, slightly down on its peak of 22 before the seminars. In total, the Group has 40 vacancies. “The Goughs Group is well aware of this skill shortage and is doing
It’s all Black & White
Black & White is the result of a combined desire to better meet the changing needs of their clients. Kirsten explained, “The rate of industry, regulatory and technology change requires accountants to offer a level of client connectedness that we’ve never had before. Black & White looks forward to being more responsive and keeping our clients at the forefront of technology and best practice accounting”. The three company directors, supported by an accomplished staff accounting team, bring with them a breadth of experience that covers all facets of accounting for an array of
industries. When asked where the name came from, Simon was quick to point out the relationship with our provincial rugby team, the Magpies. On a more serious note, Simon went on to say, “Black & White is representative of our quest as a company to remove the shades of grey and provide clarity to our clients – it’s black and white”. Black & White operate from newlyrenovated premises on Carlyle Street in Napier. nextSTEP Contact: Black and White Telephone 06 834 0771 www.bwaccounting.co.nz
Kirsten Wise, Simon Hankin, Dave Cheetham
The Goughs yard at Sockburn, Christchurch, is full of heavy Caterpillar equipment being prepared for the Stockton Alliance coal mine on the West Coast. There are mechanics working on this equipment. everything to both attract and train staff to look after our present needs, and also in anticipation of future growth. This is a New Zealand-wide skills issue, and we need to be on the front foot to ensure we have the appropriate number of qualified staff and apprentices,” he said. Earlier this year, the Gough Group had the two biggest sales in its 81-year history, with the contract to supply 95 pieces of Caterpillar machinery, worth $120 million, to Solid Energy’s Stockton opencast coking coal mine north of Westport. Ben Gough, General Manager, Strategic Development, for the Gough Group, said that on top of the job vacancies, the company was also taking 20 apprentices into its Gough Institute of Training early next year. “We are the largest employers of heavy diesel apprentices in New Zealand. We took on 13 last year and have a total of 32 in our present fouryear course. We have several adult apprentices in training and we are also upgrading a group of petrol mechanics to become heavy-duty diesel mechanics, an 18-month process. “A Caterpillar certified diesel mechanic has a passport to the world, and not just to work on Cat heavy
equipment but also generators and diesel engines for the likes of super yachts. Our mechanics winter over at McMurdo and the South Pole,” he said. Gough said that one of the advantages of working for Goughs was the career and development opportunities, the culture around family and safety and the ability for mechanics to keep up with world leading technology. “While we do lose qualified mechanics to Australia and other countries, it is surprising the number that come back to New Zealand, for whatever reason, after a period overseas. That is why we endeavour to always keep in touch with our former staff,” he said. Footnote Goughs is a diverse group made up of five trading subsidiaries incorporating 10 distinct businesses driving strategic dealerships such as Caterpillar and Hyster equipment; Wabco Braking Systems, SAFHolland axles and running gear and Palfinger truck and marine cranes, plus aftermarket parts and services and finance. It employs approximately 780 staff in Australia and New Zealand.
www.camplex.co.nz www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
DEVELOPMENTS
There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. - Sam Walton
Integrated Reporting: Why tomorrow’s winners will demonstrate sustainable strategies t’s long been said that in business “you do well by being good”. While many would agree with this, can you also flourish if you have been not been good? With the exponential growth of today’s social media channels like YouTube, Facebook and blogging, it’s increasingly difficult for companies to hide their dirty linen. Bad deeds will get found out. Welcome to the world of integrated reporting. Integrated reporting is an idea whose time has come. New media, the near collapse of global financial systems, and a host of other social forces make it critical that companies account for not only their financial performance, but also their environmental, social and governance performance. A couple of principles are at work here. One is that when there were only a limited number of media channels, companies could control the “conversation” about them to a
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large extent. Those days are gone, as BP will only too sadly attest. No amount of PR spin can save you from the conversation that takes place on the multiple channels over which you have no control. The second principle is that traditional stakeholders – that is, owners, shareholders and investors – are no longer the only stakeholders. Stakeholders now include the shrimp boat owners whose livelihood is affected by the amount of oil you have spilt in their fishing grounds, and the community who judges how quickly and effectively you put things right when you’ve messed up – and makes its purchasing decisions based on that judgement. That principle has brought about a critical need for companies to be more transparent. That is, to tell the truth about how they’re performing against the strategies they have chosen to pursue (financial, social, environmental) – whether the news is good or bad. In their 2010 book One Report:
sales@hiq.co.nz www.hiq.co.nz
Integrated Reporting for a Sustainable Strategy, Robert Eccles and Grant Thornton Partner Michael Krzus, call this “undressing for success”. Simply publishing Corporate Social Responsibility documents that focus on the “good news” stories will no longer be enough, they argue. Companies who are interested in running a sustainable business must integrate sustainable practices into the heart of their business processes. When that happens, “then what is the logic for producing separate financial and non-financial reports?” they ask. Stakeholders are wanting both hence the need for integrated reporting. In responding to this need, an increasing number of major businesses around the world are responding to the challenge of reporting on how well they are delivering their strategies. Some of the movers and shared are Southwest Airlines, United Technologies, and American Electric Power from the US, the Dutch healthcare and lighting company Philips, Danish pharmaceutical company Novo Nordisk, and the Brazilian cosmetics and fragrances company Natura. One of those leading the charge in New Zealand is the Auckland Council owned Watercare Services Limited, which published its first integrated report in 2001. Watercare’s Chief Financial Officer, Gary Swift, says the benefits of accounting for all activities are real and measurable. “When we apply for resource consents – which we do often – we’re seen as an organisation
“You do well by being good”.
Mark Hucklesby that cares about the environment and sustainability. It also helps us attract quality graduate employees. It provides them with another factor to take into account when considering competitive job offers.” One of the less obvious benefits is the competitive element that it introduces into what is essentially a monopoly business. “It’s hard for us to benchmark ourselves against other organisations,” he says. “Integrated reporting allows us to do that, and that helps keep us on our toes.” Finally, he says, with the current move to creating the Super City – and the many concerns that Auckland residents have about whether they’ll come out better or worse off as a result – acting transparently makes for a far easier relationship with stakeholders than Watercare might otherwise have. In South Africa, companies are being forced to get the message: As of June 2010, all 450 companies listed on the Johannesburg Stock Exchange will be required to publish an “integrated report” or explain why they are not doing so. The push for change is coming from many directions. In August this year, the International Integrated Reporting Committee (IIRC) was established by
www.baskiville.com
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NZ Manufacturer • December 2010 / January 2011
BUSINESS NEWS
At Microsoft there are lots of brilliant ideas but the image is that they all come from the top - I’m afraid that’s not quite right. - Bill Gates
BusinessNZ joins major economies business forum B usinessNZ has joined the Major Economies Forum on Energy Security and Climate Change (BizMEF), a partnership of business organisations in leading economies that work to promote energy security and cooperative action on climate change. BizMEF was formed a year ago at the Copenhagen meeting on climate change and BusinessNZ joined the partnership following this year ’s meeting in Cancun, Mexico. BizMEF organisations represent more than 25 million businesses worldwide.
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Prince Charles’s Accounting for Sustainability Project (A4S) and the Global Reporting Initiative (GRI). On the committee and its 20-strong supporting working group are now three New Zealanders: Alan Teixeira, Director of Technical Activities, International Accounting Standards Board, Ian Ball, Chief Executive of the International Federation of Accountants (which represents the interests of more than two million accountants around the world) and Jane Diplock, Chair of the New Zealand Securities Commission and the Executive Committee of IOSCO – the International Organisation of Securities Commissions. One of the main aims of the IIRC is to develop “an integrated reporting framework setting out the scope of integrated reporting and its key components” – in other words, establishing some workable, agreed on standards that will enable comparability. The careful reader will have noted a lack of hard and fast rules and statements in this article, defining
BizMEF’s role is to provide responsible business views as input to the international climate change discussions, given that business and industry will provide most of the investment, technology, and innovation needed to implement new international agreements and domestic responses to climate risks. Stephen Eule, Vice President Climate & Technology, US Chamber of Commerce, welcomed BusinessNZ’s participation. exactly what integrated reporting is, and the precise reasons for adopting it (or the potential risks of not doing so). That is deliberate. Integrated reporting is new territory. While there is wide (if not unanimous) agreement that it’s time has come, there is far less agreement about exactly what it is and what it looks like! That picture will emerge over time. In the meantime, however, there are two things that can be said with great confidence. The first is this: Integrated reporting is not telling a bunch of good news stories of the “we recycled xx tons of paper last year” variety. It is measuring the company’s performance against its own goals. In other words: we were committed to recycling 90% of our paper waste last year, but the actual figure was 65%. We are taking the following steps to bridge that gap this year… Second, although it is difficult to define precisely what integrated reporting looks like, that does not mean businesses can safely ignore it until a clearer picture emerges. That would be like not earthquake-
“The invitation to join this high level group is in recognition of New Zealand’s outstanding work promoting the role of markets in addressing climate change, and BusinessNZ’s track history in contributing to global discussion on how business and governments can work together to achieve the transition to a lower carbon intensive future,” Mr Eule said. Other BizMEF partners are the business associations of Australia, Brazil, Canada, China, the EU, Denmark, France, Germany, India, Italy, Japan, Kenya, Mexico, the UK and USA. nextSTEP Visit: www.bizmef.com proofing your home because you can’t predict how big the next earthquake will be or what the landscape will look like after it’s occurred. The time to get to grips with integrated reporting is now. Doing so will enable your company to engage powerfully with its shareholders, staff, customers, media commentators, detractors, and the wider community – all of whom have a say in how well your business will fare in the future. Tomorrow’s successful companies, be they large or small, will be those with robust business models who can also demonstrate their commitment to making a meaningful contribution towards a sustainable society. The key word is “tomorrow”. It’s just around the corner. nextSTEP Contact:Mark Hucklesby, Grant Thornton National Technical Director, Audit T +64 09 308 2534 E mark.hucklesby@nz.gt.com
NZ MANUFACTURER • February Issue 2011 • Features Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News 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
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New apprenticeship programme designed lev8, a new approach to apprenticeship training for the mechanical engineering sector, is designed to focus on lifting the quality of apprentices and helping them to complete their training on time. Industry Training Organisation for the Engineering and Manufacturing industries Competenz, is introducing the new programme to provide increased support and mentoring for apprentices, increased value for money for employers and more consistency in the quality of the assessment process in an effort to lift trade skills nationwide. Competenz has taken a hard look at the way apprenticeship training was packaged after researching the structure of its current apprenticeship programmes. The er sults of five separate focus group meetings with employers showed the changes were welcome, especially the increased focus on nurturing to completion. The research also showed that much of what Competenz develops and delivers is not known and there is confusion within the industry. The ITO develops the standards and qualifications for the industry as well as the manuals and resources. It subsidises the cost of block courses and night classes, and pays for account managers to visit workplaces, and also moderates for consistent training. Competenz also pays NZQA for credit registrations and certificates.
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Manufacturing Technology Food Processing Business Services
Advertising Booking Deadline Wednesday 25 January 2011 Advertising Copy Deadline Wednesday 25 January 2011 Editorial Copy Deadline Wednesday 25 January 2011 Advertising material is to be sent to: Max Farndale, P O Box 1109, Hastings 4156, Hawke’s Bay Email: mediahb@xtra.co.nz Tel: 06 870 4506 / Mobile 027 628 2033
Editorial material to be sent to : Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: words@xtra.co.nz Tel: 06 870 9029 Fax: 06 878 8150
At NZ MANUFACTURER our aim is to keep our readers up to date with the latest industry news and manufacturing advances in a tasty paper morsel, ensuring they do not get left behind in the highly competitive and rapidly evolving manufacturing world.
www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
PRODUCT NEWS
Apple’s market share is bigger than BMW’s or Mercedes’s or Porsche’s in the automotive market. What’s wrong with being BMW or Mercedes? - Steve Jobs
Lower energy consumption or money back ccording to the motto “Facts not promises” Engel has invited customers to participate in a spectacular energy bet with a “money back guarantee”. Each customer who purchases a suitable energy package with a tiebar- less Engel victory or Engel duo large-scale machine receives a guarantee that energy consumption will be lower than for a comparable hydraulic machine from the competition. Proof will be provided by way of energy measurement. In the event that the measurements at the customer’s premises show a higher energy consumption for the Engel machine with energy package than for the competitor ’s machine, Engel will refund the costs of the energy package. The promotion is scheduled to run from the K 2010 fair until 31 December 2010. There is hardly an issue that is more emotionally rated and yet somehow evades objective criteria than energy consumption. EuroMap 60 provides a fair, drive-independent method of comparing the energy consumption of injection moulding machines from different suppliers. Until now these figures were only
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published by Engel and displayed on fair exhibits. Many injection moulding machine manufacturers promote would-be energy-saving solutions with strong advertising claims which they often fail to bear upon objective examination – for example energy measurements. Energy package: ecodrive, injection cylinder insulation and ecograph Engel is countering this with a strong argument according to the motto “Facts not promises”. With every purchase of a machine together with a suitable energy package, Engel guarantees that the customer’s energy consumption will be reduced. The energy package consists of the servohydraulic ecodrive, an injection cylinder insulation and ecograph – the analysis tool on the Engel control unit which enables the user to always keep track of current energy consumption. The promotion applies to the Engel victory and Engel duo machines from the start of the K Fair until 31 December 2010. One in three Engel hydraulic machines is already equipped with the energy-saving servo-hydraulic Engel ecodrive. nextSTEP Visit : www.techspanonline.com
ZE pumps stay cool in action
Say goodbye to production bottlenecks.
he ZE series of 700 bar electric pumps is engineered to save power and increase reliability by reducing the number of moving parts it incorporates, enhancing flow characteristics and reducing friction. Introduction of the ZE series for industrial applications followed the global success of the ZU series electric pumps for the construction market. The high-efficiency design of the ZE series electric pump has higher oil flow and by-pass pressure, runs cooler and requires 18 per cent less current draw than comparable pumps, says Enerpac. The totally enclosed, fan-cooled electric motor supplies extended life and stands up to harsh industrial environments encountered in Australia and New Zealand, including mining, oil and gas, energy, manufacturing and metal fabrication applications. In the Z-Class range of electric pumps, Enerpac has used the latest metallurgical, bearing and seal technologies to produce pumps whose features and benefits far surpass conventional electric pumps. By reducing the number of moving parts, improving flow dynamics and
T You need nitrogen on demand to deliver a hygienic and attractive product. Unfortunately, high-pressure cylinders are clumsy and diffi cult to manage. Every time the gas runs low, you have to halt what you’re doing and deal with the stoppage. Now there’s an alternative that delivers the nitrogen you need at the touch of a button. It’s the new NG range of nitrogen generators from Atlas Copco. With Atlas Copco expertise in compressed air and purifi cation technology, you can generate your own nitrogen from 97% to 99.999% purity. Operating expenses are low, because there are no ongoing costs such as refi lls to add to your overheads. Atlas Copco will provide you with a total solution, from design to maintenance, so you have the assurance of dependable supply at a very attractive price.
To get rid of nitrogen bottlenecks,give Chris Hepworth a call on 09 571 4536 or email chris.hepworth@nz.atlascopco.com www.nzmanufacturer.co.nz
decreasing friction, Z-Class pumps will stay on the job longer, require less energy to operate and when needed, have lower service costs. Different valve and reservoir configurations enhance the pumps’ versatility, providing applicationspecific models to best match particular industrial applications. The optional LCD readout provides a number of diagnostic and readout capabilities never before offered on an industrial pump. The ZE pumps are available in four flow ranges and single and two-stage models, to provide the optimum cylinder and tool performance for different industrial applications. Available in four oil flow groups of 0,55 – 0,82 – 1,64 and 2,73 l/min at 700 bar. Motor sizes include 0,75 – 1,12 - 2,24 and 5,60 kW models. An extensive list of accessories is available, including heat exchanger, roll bars, pressure transducer and level and temperature switches to allow complete pump control over a wide range of industrial applications. nextSTEP Contact: Neville Stuart on 0800 ENERPAC (363-772) or email neville@enerpac.co.nz
NZ Manufacturer • December 2010 / January 2011
I want to work for a company that contributes to and is part of the community. I want something not just to invest in. I want something to believe in. - Anita Roddick
Rapid colour changeover gives fast pay back
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PRODUCT NEWS
NARVA targets road safety with new light range ew Zealand motorists can increase their visibility on the road - thereby boosting safety – by fitting special daytime running lights. A new daytime light range just introduced by Australasian automotive lighting specialist NARVA is designed to be retro-fitted to any vehicle and because they use L.E.D technology, they also consume very little power. Available in four styles that are designed to complement modern vehicle styling, the new NARVA daytime running lights utilise highpowered 1-Watt L.E.D bulbs with multi-voltage circuitry, offering long life expectancy and low current draw over the extended periods they are likely to be in operation, thus providing significant advantages over Halogen equivalents. Three models in the range automatically turn on with the ignition and off with the park lights, whilst the fourth model incorporates a park lamp function that automatically turns on with the ignition and switches to park function with the park lamps.
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range of Accumulator Die Heads allow for rapid colour and material changes which results in substantial cost savings for manufacturers. Reconfiguring machines with Graham heads can offer a very fast payback on the investment as they can save resin, which is the largest manufacturing cost component of the process. Hundreds of dollars can be wasted while a machine is purged for hours to change colours and materials. With a GEC head, the change process takes only 30 – 60 minutes, compared to other products that take up to 12 hours to purge from one colour to another. GEC heads require no regular purging due to the rheologically efficient head design. The heads are available in a range of shot sizes from 2kg to 30kg, to fit a wide variety of applications. They can also be retrofitted to existing
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Rapid colour and material changes.
machines from other suppliers. The heads are suitable for use whether running olefin resins such as HDPE, HLMIPLE, PP or LDPE or engineering resins such as Noryl ABS, PC/ABS polyurethanes or acrylics. They can even run glass or talc filled resins. Graham heads utilise a rheologically efficient diverter which provide wear resistance, through hardened D2 diverters with highly polished flow surfaces utilising a ‘first in, first out’ flow design. With a spiral channels directing overlapping flow, the result is a uniform parison with no knit line. The heads are designed to allow operators to complete a manual cleanout in less than one hour with simple hand tools, whereas traditional heads require a day or two to be disassembled and cleaned. After removing lock-down bolts, the hydraulic cylinders on the head are used to lift the diverter and plunger out of the head body for ease of access and cleaning. nextSTEP Visit: www.hbm.com.au
Lights are designed to be retro-fitted to any vehicle.
A new range of daytime running lights, featuring L.E.D. technology has just been released by NARVA All lamps are supplied complete with a wiring loom and an adjustable mounting bracket with Lamp No. 71940 designed to be built into the bodywork of the vehicle. Increasingly popular with vehicle manufacturers in Europe, many luxury vehicles, coaches and trucks are rolling off the assembly lines with daytime running lights fitted as original equipment. Such lights are now compulsory in some Scandinavian countries and although they are not mandatory in New Zealand, their usefulness has been recognised by inclusion in the latest vehicle design rules under ADR 76/ 00. All four kits introduced in the NARVA range are ‘E’ marked and ADR approved. The new NARVA L.E.D daytime running lights are available from leading automotive outlets in New Zealand. nextSTEP Contact: Bruce Walker, NARVA New Zealand Tel 0) 525 4575.
New hose collar range for hydraulic hose-tails dding to its growing product offering for the hydraulics market, Stockcap has released a new range of Hose Collars to suit hose-tail sizes ?”, 5/16”, 3/8”, ?”, 5/8” & ?” in the push lock tail range. Manufactured from LDPE and available from stock in red, Stockcap Hose Collars come in convenient packs of 100, 500 & 1,000. Stockcap Hose Collars are designed to finish off the hose end and fitting providing a professional finish as well as
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offering protection from dust & moisture. nextSTEP Contact: Richard Higham, Hi-Q Electronics Ltd Tel: 0800 800 963 www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
MANUFACTURING TECHNOLOGY
Effective communication is 20% what you know and 80% how you feel about what you know. - Jim Rohn
TestStand 2010 enhances software development tools I TestStand helps test engineers build a powerful software framework for accelerating the development of test sequences and minimises the total cost of ownership of maintaining test executive software deployed across many test stations. The latest version adds many new team-based development features including a Sequence Analyser, a three-way file diff-and-merge utility, support for new PC technologies and enhanced integration with NI LabVIEW graphical system design software. NI TestStand 2010 is ideal for a variety of automated test applications within telecommunications, consumer electronics, automotive, aerospace/ defense and other industries. With the NI TestStand 2010 Sequence Analyser, teams can more efficiently collaborate on sequence development without spending time performing manual error checking. For example, after engineers create a test sequence, the Sequence Analyser checks the code against standard rules to ensure error-free code. It includes numerous rules for
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common errors and also helps engineers create their own custom rules within the analyzer utility. A new three-way diff-and-merge utility complements the Sequence Analyser and provides teams with improved functionality for comparing and easily merging different files. This is especially useful for teams using source-code control software to manage the revision control of their test software development. NI TestStand 2010 also supports the latest PC technologies with features including a redesigned .NET Adapter that takes advantage of chained calls with dot notation and many other .NET Framework improvements. Additionally, it supports 64-bit integers and pointers, which simplifies migration to 64-bit code modules so engineers can develop more memory-intensive applications. With these enhancements, engineers can implement the most advanced technology in their test system designs. NI TestStand 2010 is optimised for use with LabVIEW. It takes advantage of LabVIEW 2010 packed
project libraries so engineers can create more modular test architectures. It also integrates with LabVIEW projects and classes to help teams implement object-oriented programming and combat obsolescence by using hardware abstraction layer architectures.
As an added benefit, engineers using NI TestStand 2010 gain enhanced support for symmetric multiprocessing to simplify access to LabVIEW multithreading for improved performance on multicore processors. nextSTEP Visit: www.ni.com/teststand.
Revolutionary method of building ensembles in London 1Ants Analytics has introduced automated ensemble building, a new feature in 11Ants Model Builder – a powerful data mining and predictive analytics tool. The new feature allows users to quickly build and evaluate thousands of ensemble permutations. Ensembles are recognized to increase the predictive power of models, and are a valuable tool in any data mining expert’s arsenal. The announcement was made at its U.K launch at Predictive Analytics World conference in London. “The challenge has been that construction of the best performing ensembles has required a good working knowledge and been an extremely time consuming task – with the final result usually representing a compromise between time available and predictive accuracy achieved,” says Tom Fuyala, Director, Business Development, 11Ants Analytics. “With the automated ensemble building feature in 11Ants Model Builder this problem has been eliminated.” Through its revolutionary approach, 11Ants Model Builder enables anyone who can use Excel to mine their own data and build powerful predictive models; with the power and automation to benefit the most advanced analytic researchers and practitioners. This
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The new feature allows users to quickly build and evaluate thousands of ensemble permutations.
assists in providing more accurate insights to business, government and science challenges from recommendation systems to fault diagnosis, and scientific research to fraud detection. “Users are impressed by the approaches 11Ants Model Builder offers, not least the ease of use. Users particularly like that they can build models quickly within Excel, without the set up involved in previous generation tools,” says Mr. Fuyala. “The addition of this feature makes ensembles accessible to people who don’t even know exactly what an ensemble is, let alone understand the inner workings of one. The true value is that users are empowered to increase predictive accuracy without having to be schooled on the details of the latest research – this is what is important.” 11Ants Model Builder opens whole new possibilities for even the first time data miner to unlock useful information from data. The software’s benefits are not limited to non-technical users; experienced data miners are freed up from traditionally time consuming and repetitive tasks with features such as automated algorithm selection, automated tuning parameter optimization, automated variable selection, automated model evaluation and now automated
ensemble building. 11Ants Model Builder simplicity is due to its embedded HyperLearn technology, which does the complex work for the user, and is based on a library of 11 machine learning algorithms including decision tree (similar to CART), Gaussian processes, logistic regression, logit boost, model tree, naive Bayes, nearest neighbour, partial least squares (PLS), random forest, Ridge regression, and support vector machine. The company joined a global gathering of top predictive analytics experts, practitioners, authors and business thought leaders at Predictive Analytics World, 15-16 November in London. Key speakers included John F. Elder, CEO and Founder, Elder Research Inc., Usama Fayyad, CEO, Open Insights, Former Chief Data Officer, Yahoo!, and Eric Siegel, Conference Chair. Conference sessions cover business applications of predictive analytics including risk management, uplift modeling, open source analytics, crowdsourcing data mining, campaign targeting, churn modeling, next-best-offer, selecting marketing channels, global analytics deployment, email marketing, and HR candidate search. nextSTEP Visit: www.11antsanalytics.com
NZ Manufacturer • December 2010 / January 2011
The results of quality work last longer than the shock of high prices. - Author Unknown
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PROJECT MANAGEMENT
Reversing the Project Failure Trend: A Question of Understanding and Focus he first CHAOS Report was published in 1994 and continues to be published every 2 years. The first issue stated that the project failure rate was 31%, with 53% of projects challenged and estimated that US IT projects alone had wasted US$140 billion against US$250 billion in project spending. While the current success rate of 32% is a significant improvement on the shockingly low 16% rate of 1994, it remains troublesome especially as IT initiatives become more complex in nature, increased pressures on timelines and less tolerance for risky ventures. The positive impact of the project management profession on projects over the past 15 years and perhaps technology innovation has reduced financial waste and improved the requirements development processes. So why are we not seeing continued improvement in success rates? Clearly, the current global economy is impacting progress, but it’s not the only barrier. It is possible that project scope complexity and business challenges being faced today are beyond the skills and experience capability of those managing or leading the projects? In a recent CIO Update entitled “Project Management Training Benefits Everyone in IT,” Sue
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Bergamo suggests that organisations falling victim to high failure rates in project delivery should review how the organisation is being trained and how resources are utilising a standard project methodology. She notes that relying on existing project managers to train other project managers is typically not adequate in relaying valuable information regarding the use of a methodology. And she challenges her CIO counterparts to take a look at how many people within their organisations are functioning as project managers without the requisite skill sets – cautioning that that they should not assume everyone within a given initiative has a full understanding of project management methodology and how to use it. We’re operating in a depressed market following the global financial meltdown, yet research points to a greater volume of project activity, greater complexity and higher budgets. This leads to higher risk of failure on the organisation. At this point, even the most experienced programme and project managers faces significant obstacles leading to issues that can de-rail project-based activity, including; • Misaligned expectations on outputs and outcomes.
• Lack of executive support (governance) • Insufficient resources • Inability to properly identify and communicate with stakeholders • Failure to assess and/or mitigate risks • Lack of standardised processes • Believing a project schedule is a solid project management plan • Absence of strong project leadership among all involved parties. There’s a very simple truth to consider here: Project teams that speak the same language and follow common processes are more likely to overcome communications and process related challenges for better performance and higher success rates. Across sectors, organisations that are consistently delivering projects on time, in scope and within budget share common practices – namely an organisation-wide commitment to using a formal project management methodology that suits their specific need. By establishing a common approach an organisation sets the stage for effective communication and project execution. Our observations suggest that this, while well understood, is not actually done. Rather decision makers may actually be confused by the rhetoric from some commentators within the project management profession that advocate for all manner of approaches
Ian Fraser, Project Plus and methods. In our view this simply confuses those organisational decision makers and detracts from gaining standardisation and downstream consistency across all project activity. Incrementally gaining depth through training in areas like leadership, change, cost and risk, planning ability, emotional intelligence and negotiation ensures continuous improvement. Project managers are able to develop the soft skills needed to motivate and engage their teams, and to effectively promote their projects and programmes. Over time, processes are streamlined, communications improve, and with more skilled resources at work, performance raises giving better results. The return on investment is gained through better quality, more efficient execution and increased project success rates. Continues page 31
Upping your game for better project management ew Zealand’s first major nationwide survey into Project Management has found that in the past 12 months, 70 percent of New Zealand companies had experienced at least one major project failure, says KPMG. This reflects organisations’ inability to translate significant investments in projects, into real business value. According to the KPMG New Zealand Project Management Survey while 44 percent of survey participants spent more than $ 15 million on their projects in the past year, most organisations were far from being business-like in the way they conduct projects and for many, embarking on a project appears to be a ‘leap of faith’, in the hope, rather than the expectation, of delivering on time, on budget. Perry Woolley, a KPMG Director who specialises in Project Management says, “The productivity
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and profits of New Zealand companies are being impacted by their inability to consistently deliver projects that fulfil the expected objectives. “In the current economic environment, value for money is a priority. While many have cut back discretionary spend in recent times, we see that many businesses can no longer hold off essential projects. Companies must be inventive and competitive to survive, while at the same time avoiding investments that don’t pay off. Effective project management practices help control the added risks that project activity introduces to normal business practice.” The survey also shows that only 13 percent of respondents always analyse the risks involved in project investments. Gina Barlow, KPMG New Zealand’s Director of Project Advisory Services, and one of the authors of the report says, “The lack
of benefits management is particularly concerning – if organisations do not measure the benefits of their projects, they cannot understand if the investment was worthwhile”. The survey finds that nearly 60 percent of New Zealand companies failed to consistently align their projects with corporate strategy. “Organisations need to realise that doing the right project is just as important as doing the project right,” says Gina. Furthermore, 50 percent of survey participants observed that their projects do not consistently achieve what they set out to achieve, and many projects performed poorly in at least one of the following areas – lack of timely delivery, cost (project runs over budget), or inability to achieve the stated deliverables. However, the findings are not all gloomy. The KPMG survey also reveals some high-performing
organisations, whose projects share a number of characteristics. High performers may come from both the public and private sectors, cover the full range of organisational sizes, and spend varying amounts of money; however their projects share some of the following attributes. Their projects: • are aligned with corporate strategy and have a high-quality business case • use resources with a high level of project management capability • use programme or portfoliomanagement disciplines • are co-ordinated by a Project Management Office (PMO) • have an effective sponsor who provides clear direction for the project • manage risks actively • have timely, accurate and up-todate reporting • report variations and implement recovery actions in a timely manner • have project managers that adopt a formal methodology. www.nzmanufacturer.co.nz
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NZ Manufacturer • December 2010 / January 2011
BUSINESS NEWS
The thing that we are trying to do at facebook, is just help people connect and communicate more efficiently. - Mark Zuckerberg
Wellington woman wins Supreme Business Award amilla Welch, owner and General Manager of Petonebased label making and printing business “Label and Litho” has earned the Supreme Business Award at the Her Regional Wellington Businesswoman of the Year Awards, which were announced on Friday 3 December during a ceremony at the Intercontinental Hotel. Label and Litho is a 50 year old business with 41 staff. It specialises in manufacturing self-adhesive labels for a number of domestic and overseas firms. Label and Litho increased sales and revenue during the economic downturn, which Ms Welch is tremendously proud of in light of the negative environment surrounding most businesses in Wellington and New Zealand. The competition judges were Karen Fifield, CEO Wellington Zoo Trust, Adam Cunningham, Management Director, Village Group and Lynell Tuffery Huria, Senior Associate, AJ Park. They said that Ms Welch is worthy of the Supreme Award because of the commitment to service excellence she and her team deliver at Label and Litho. “Camilla was selected by the judges for her personal drive and overall business sense. I know a lot of Kiwi businesswomen and men could learn from Camilla’s professionalism and staff appreciation,” said Sally Connell, Franchise Owner/Director of HER Business Group Ltd, which includes the Wellington Her Businesswoman Network. Judge Lynell Tuffrey Huria added that Ms Welch’s focus on her people was a key component of her business’s success, which has enabled the organisation to stand above the rest in a highly competitive market. Proving that business excellence and environmental friendliness can be mutually rewarding, Ms Welch also received the Sustainability
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Award in recognition of Label and Litho achieving an EnviroMark Gold certification in 2008. She had previously been a finalist in the sustainability category at this year’s Westpac Hutt Valley Chamber of Commerce Business Awards. She also took home on the night the Her Businesswoman award for Best Small and Medium sized Enterprise. Ms Welch’s future plans for Label and Litho are to implement ‘lean manufacturing’ and improve cash flow. Her long-term objective is to become the best label printing company in New Zealand. The Her Regional Awards celebrate the success of businesswomen by recognising those who have excelled in business practice. The winners from the regions will now go forward to compete in the national Her Businesswoman Awards later next year.
Lynne Le Gros, Head of Business Marketing and Communications at Telecom Retail, Camilla Welch, Label and Litho- Supreme Award winner, Blair Norris- Mini Mobile Agent, Mini Garage NZ and Tony Hope- Stretton Publishing.
TRADE SHOWS January 2011 Everything about Water, 6-8 January 2011, Bombay Exhibition Centre, NSE Complex PIMEX- Phuket International Boat Show, 6-9 January, Royal Phuket Marina Exhibition and Conference Centre Termotec – International Exhibition of Heating,Refrigeration and Air Conditioning Equipment and Installations, Isfahan,6-10 January, Messegelände, Iran Iran, International Tunnel and Underground Spaces Exhibition,8-11 January, Tehran Permanent Fairgrounds.
February 2011 Australasian Oil and Gas Exhibition,23-25 February Perth Convention Exhibition Centre, Perth, Australia
March 2011 Asia Pacific Sourcing 9-11 March, Koelnmesse Cologne Central Districts Field Days 11-19 March, Manfeild Park, Feilding, Wanganui interzum guangzhou 2011 27-30 March, China Import and Export Fair Pazhou Complex, Guangzhou Macao Int’l Environmental Co-operation Forum & Exhibition 2011, 31 March, The Venetian Macao-Resort-Hotel
April 2011 Macao Int’l Environmental Co-operation Forum & Exhibition 2011, 1-2 April,The Venetian®Macao-Resort-Hotel 5th Metals Industry Conference, 14th-15th April 2011, Wellington
May 2011 SouthMach 11-12 May CBS Canterbury Arena, Christchurch (NZ Manufacturer will be previewing SouthMach in April issue) Australian International Engineering Exhibition (AIEE) 24-27 May, Melbourne Convention and Exhibition Centre.
Camilla Welch, owner and General Manager of Petone-based Label and Litho, a 50 year old business with 41 staff, wins Supreme Business Award. www.nzmanufacturer.co.nz
CHINAPLAS 2011 – The 25th International Exhibition on Plastics and Rubber Industries 17-20 May, China Import & Export Fair Pazhou Complex (Area A & Area B), Guangzhou, PR China
June 2011 BuildNZ 26-28 June ASB Showgrounds, Auckland Designex-Auckland 26-28 June, ASB Showgrounds, Auckland. July 2011
July 2011 Speedshow 23-24 July, ASB Showgrounds, Auckland
September 2011 Rugby World Cup, New Zealand
NZ Manufacturer • December 2010 / January 2011
It is unfortunate we can’t buy many business executives for what they are worth and sell them for what they think they are worth. - Malcolm Forbes
Exploring new pathways to economic growth hree events triggered this comment and they all revolve around a common theme of supporting arguments for growing the economic success of New Zealand industry. First, I listened to a paper given at the Bio Energy Association NZ (BANZ) seminar entitled “Moving Bioenergy Technologies Through to Market Maturity”. The seminar had been built around the visit of Rory Gilsenan from Canada. Rory is with the Canadian Governments’ Natural Resources Canada, where his current work includes the development of a government decision-making framework for moving bioenergy technologies through to market maturity. For me, the interesting point was that in bioenergy - as with all emerging clean energy technologies – there are many technology options and pathways to commercial success. The dilemma for any investor, and this includes innovation-supporting governments, is that they have to make decisions on which technologies to support to maximise common benefits. In the Canadian study, new and old technologies were investigated in detailed case studies – 20 or so of them – and were rated in terms of their potential Return on Capital (ROC) and also in terms of employment generation. Various combinations of benefits were found, including new technologies with high ROC and little employment generation and new and old technologies with high ROC and high employment opportunity. If you were part of a New Zealand Government willing to pick winners in a phase of high unemployment in lower skilled jobs – what technology options would you support?
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The second event on the same day was a presentation given by Dr Rick Boven of the New Zealand Institute at the recent Labour Party Congress to party members and invited industry representatives. His talk was entitled “Opportunities for Prosperity” which was largely based on his recent publication “A Goal is Not a Strategy”. The HERA Executive is currently considering the adoption of the report as a HERA policy document. You can view the report on www.nzinstitute. org/index.php/nzeconomy/paper/a_ goal_is_not_a_strategy_focusing_efforts _to_improve_nzs_prosperity/ and I welcome the industry’s opinions and feedback. Essentially, Boven is suggesting that we should look at an alternative to the existing policy of ‘economic liberalisation’. He suggests that a ‘diagnostic approach’ is indicated. This approach involves identifying the binding constraints to growth and establishing policies to overcome those constraints. Some countries of comparative size and economic base to New Zealand show a higher wealth and GDP, mainly because of the products they export. Says Rick Boven: “Denmark’s food and agriculture exports per capita are similar to New Zealand’s and Denmark’s agricultural productivity performance is similarly low. But Denmark’s differentiated goods and services exports are much higher and that difference explains Denmark’s high prosperity. There are many opportunities in agriculture, natural resources, and tourism, and these should be pursued where competitive advantage and high value jobs are available. But information, communications and technology (ICT), and niche
manufacturing, along with valueadded and differentiated goods and services based on primary production, are where New Zealand should invest most aggressively.” In the ensuing debate, it was clear that somehow for New Zealand to really move up the GDP scale, it has to make some decision on what technologies are to be supported, and it appeared that the Labour Party politicians are ready to drive a more interventionist approach. The third event was the University Commercialisation Offices of New Zealand (UCONZ) presentation on “Energy, Infrastructure and Water Innovations”. The seven New Zealand universities presented their research and researchers impressively. I used the opportunity to explore what was happening at the different universities to discover an immense depth of specialist expertise. It was encouraging to see that some of the research was part of a national co-operative and obviously strategic research. However, I also discovered in conversations around display stands that there was often little connectivity between players in similar technology areas. It was obvious that these efforts were independent of a larger NZ Inc approach to high-value niche markets.
High-skilled, high-value metals engineering sector under the right leadership and guidance would benefit from this re-focus
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ANALYSIS
Commentary by Heavy Engineering Research Association Director Dr Wolfgang Scholz I left with the strong impression that there is great potential for additional efficiencies should those Universities and their researchers work exclusively with industry and other research providers in nationally co-ordinated approaches to produce those high value-added and differentiated goods and services that would make such a difference to our economy. For HERA and its membership, the conclusion has to be that we need to advocate and support the findings of Rick Boven’s ‘A Goal is Not a Strategy’ document, which concludes that “New Zealand needs to focus on the internationalisation of high-value, differentiated export sectors, prioritise labour productivity improvement efforts on these sectors, and re-allocate resources from low- to highproductivity sectors”. In my view, our high-skilled, highvalue metals engineering sector under the right leadership and guidance would benefit from this re-focus and would make a very strong contribution to increased prosperity.
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NZ Manufacturer • December 2010 / January 2011
BUSINESS NEWS
Always read something that will make you look good if you die in the middle of it. - P. J. O’Rourke
Opus gets Canadian consultancy ‘The Antarctic Apprentice’ debuts on Facebook! O
pus International Consultants is to acquire the Canadian based engineering consultancy, Dayton & Knight Ltd. The acquisition will add 90 staff and four offices to Opus’ operation in Canada, bringing the total number of Opus offices in North America to ten (one being in Detroit, USA) with a total staff number of 150. Opus now employees over 2,300 people worldwide. In announcing the acquisition, Opus Chief Executive and Managing Director Dr David Prentice says that acquiring Dayton & Knight Ltd is strategically important for the development of Opus’ business in Canada, and the further development of Opus as a global consultancy business operating in Australia, New Zealand and the UK. “Dayton & Knight Ltd is well known for its specialist water and wastewater design capability, its control and instrumentation consultancy, and electrical design businesses in the BC market,” said Dr Prentice.
“The company’s business has grown substantially over the last nine years, both in terms of revenue and profit margins and this has largely been the result of increased productivity and efficient management. The company was incorporated in 1965 and has achieved niche market status. Like Opus, Dayton & Knight has a reputation for working closely with its clients and has a thorough understanding of their needs. Dayton & Knight Ltd has its head office in Vancouver and three local offices, these being in the town of Smithers and the cities of Prince George and Abbotsford, and works primarily for municipal, provincial, and federal governments. The merged company will trade as Opus DaytonKnight Ltd and will work alongside the other existing Opus offices in Vancouver, Victoria, Kelowna, Calgary, Fredericton and Detroit (USA). The Canadian operation will continue to be led in Canada by Opus’ President, Chris Harrison, who is based in Vancouver.
New President for BusinessNZ
ight now you can follow the adventures of 20 year-old Joel McGregor of Oamaru, who is undertaking one of the most extreme general engineering apprenticeship opportunities in the world – living and working on Scott Base in Antarctica. The position calls for an apprentice to work as a ‘Summer Engineer’ at Scott Base, to become an integral part of the engineering group supporting New Zealand’s activities in Antarctica. The role includes general fabrication, machining and mechanical fitting work as an integral member of the maintenance crew onsite at the base, but also requires creativity to design and build ad-hoc items required by the team. Joel won the role after being put forward by his Competenz-ATNZ account manager, Murray Welsh, and he passed with ‘flying colours’ after extensive interviews and testing with ATNZ and his seconding employers, Antarctica New Zealand.
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“I spent three weeks training in Christchurch, and then my first week down here on the ice to prepare for the conditions,” says Joel. He admits his first impressions of Antarctica had him totally ‘gobsmacked’. “I’ve never seen so much snow in my life, you think you’re in a dream because it’s unlike anywhere else in the world – it’s like I’m on another planet!” Joel has learnt to brave the -24 degree weather and is starting to get into a good working and learning routine with his fellow engineers. “A normal day’s work for me starts at 8.00am with a workshop meeting to plan the day’s activities, and then we head off to do our tasks and checks, and fabricate objects anyone may want or need.” nextSTEP Visit: Facebook, log in and search for ‘The Antarctic Apprentice’ fan page –click the ‘Like’ button to become a fan, and follow Joel’s experience today!
unedin businessman Philip Broughton has been elected President of BusinessNZ. A partner in the Christchurch and Dunedin based business advisory and accounting firm Polson Higgs, Mr Broughton is also President of the OtagoSouthland Employers Association. He replaces outgoing BusinessNZ President Trevor Goodwin. New Vice-Presidents are Graham Mountford of the Employers & Manufacturers Association (EMA) and Peter McKee of the Employers’ Chamber of Commerce Central (ECCC).
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Regional business partners being found ZTE and TechNZ (the Foundation for Research, Science and Technology’s business investment programme) have appointed the first organisations to the new joint net-work of 14 Regional Business Partners and are close to finalising the entire network of ‘NZTE-TechNZ Regional Business Partners’ who will become a natural first point of contact for businesses around New Zealand seeking government assistance. The development expands on TechNZ’s previous network of nine Regional Partners who worked with emerging technology businesses to support them to undertake research and development projects. The new Regional Business Partners, based on regional council boundaries, will be
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funded by NZTE and TechNZ to employ staff with business development skills and research and development (R&D) expertise. They will work with local businesses and provide a range of advice and access to funding and support focused on assisting them to grow their business. Support available includes: • An assessment of business needs, which will help Regional Business Partners point businesses to appropriate information, advice, and support. • NZTE Capability Development Vouchers, which the managers of eligible small businesses will be able to use as partial payment for the cost of management capability building services.
• R&D funding via the Foundation’s TechNZ programme of funds and services. Hamish Campbell, the Foundation’s Manager of Investment Services, said TechNZ had invested $7.1 million in hundreds of companies nationwide during the past two years and the success of its network had contributed to the idea to form a joint network of Regional Business Partners with NZTE. “The Regional Business Partner model is one that small and mediumsized businesses have responded to. Our partners have helped companies around New Zealand undertake innovative projects to develop new products, employ undergraduate and masters students, and engage experts to assess their R&D strategy and
provide advice. “The new network builds on what we’ve learned, and the expertise we’ve gained, from the TechNZ network of Regional Business Partners,” Mr Campbell said. NZTE Acting Director of Performance Improvement Euan Purdie said setting up the new network had been a complex process but he was impressed that business organisations had collectively applied to become the Regional Business Partner in many regions. “They’ve recognised the opportunity this represents in terms of offering local businesses a single point of contact for business development support. It provides an excellent opportunity for the key entities in each region to work
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REAR VIEW
I had a TV set and a typewriter and that made me think a computer should be laid out like a typewriter with a video screen. - Steve Wozniak
Not Strategically (Un)Important any countries, and states within countries, consider maintaining certain key industrial capabilities as strategically important to them. The ability to quickly repair a power station or other power infrastructure, keep transport infrastructure, as well as water and wastewater treatment and reticulation operating can be crucial to maintaining energy security and meeting the needs of business and the community. Most people would consider that such measures are prudent and would quite rightly expect that their governments would likewise treat them as prudent. A prime example of a government taking a strategic view of industrial capability and the flow-on effect on jobs is our near neighbor, the Australian state of Victoria. The Victorian Minister for Public Transport, Martin Pakula, and Industry and Trade Minister, Jacinta Allan, recently announced that “Government procurement contracts for Melbourne’s A$4.3 billion Regional Rail Link project will require an overall 80 percent minimum local content provision, boosting local jobs.” The project has been declared a ‘Strategic Project’ under Victorian Industry Participation Policy. “This decision underlines our Government’s commitment to protecting jobs by maximising opportunities for local companies to participate in major infrastructure projects,” Ms Allan said. The project, which is jointly funded by the Australian Commonwealth and Victorian Governments, joins 3,313 other projects worth A$39.4 billion which have been declared Strategic Projects since 2001 when Industry Participation Plans were brought in.
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Over that period more than 32000 jobs were created and many times more were secured by requiring local content. Clearly, this attention by government, to securing what is strategically important to them, has contributed to the strong growth in GDP noted in Australia. While other countries seem to have little difficulty identifying what industries and infrastructure are strategically important enough to maintain, New Zealand seems to lack such a focus. The recent rail upgrades in Auckland and Wellington made extensive use of imported content. They were not declared ‘strategically important’ and in fact New Zealand has no mechanism to make such a declaration. When we consider that we not only bring in content from foreign sources for our projects but we even send equipment offshore for refurbishment rather than utilising and building our own capability, we should all begin to worry. An example of sending equipment offshore is the research vessel Tangaroa, belonging to State Owned Enterprise, NIWA which was recently
Something is seriously lacking in that we consider so much of our industrial capability to be so strategically unimportant.
sent to Singapore for a refit, despite the fact that it is usually competently maintained here by the same company that maintains our naval capability. It is hard to imagine that many New Zealander’s would think that maintaining a ship repair capability was not strategically important. It is not difficult to conclude that something is seriously lacking in that we consider so much of our industrial capability to be so strategically unimportant. Perhaps that’s why our GDP performance has been so poor. The leadership and foresight shown by governments like that in Victoria provide a ready template for what New Zealand needs to do. We just need to find the nerve to
Commentary by HERA Industry Development Manager Nick Inskip stand up and say that some capabilities are strategically important enough to maintain; it’s only prudent.
Russian FTA to further strengthen NZ economic growth xportNZ welcomes the news that negotiations on a free trade agreement between New Zealand and Russia, Belarus and Kazakhstan will start early next year. Catherine Beard, executive director at ExportNZ, says that if signed, this next agreement due to join New Zealand’s suite of FTAs is significant for a number of reasons. “Russia is one of the world’s emerging powerhouses, offering opportunities for developing New Zealand’s newer international trades such as agri-tech and specialised manufacturing. “As far as New Zealand’s more traditional exports go, as the world’s
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fifth-largest food importer, Russia is a great fit for New Zealand. For example, Russia is the world’s largest importer of butter and cheese, and last year we provided over 50% of its imported butter. “Russia is the 12th largest economy in the world, and a rapidly growing market. “New Zealand looks set to be the first country in the world to have an FTA with Russia. Having first mover advantage is an opportunity not to be squandered. “I’d urge all Kiwi companies to investigate the potential business they can gain from this latest development – FTAs are only worth something if they are used.”
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together to determine the best way forward in terms of their economic strategies and help them identify businesses in their region that will deliver on those. “I’m sure our Regional Business Partners will have the local influence to encourage businesses to develop their management capability, to use information services, and to undertake research and development – all of which is critical to both their development and to the growth of our economy,” Mr Purdie said. NZTE-TechNZ Regional Business Partners are able to speak the language of business. They are responsible for the delivery of specialist services, support and funding to enhance business capability and grow business investment in research and development, on behalf of New Zealand Trade and Enterprise (NZTE) and the Foundation for Research, Science and Technology.
Reversing the Project Failure Trend: A Question of Understanding and Focus However, the focus should not solely be on the Project Manager and the methodology. Organisations also need to consider doing the right projects. If training and formal methodology result in doing projects well portfolio management results in doing the right projects. Portfolio management is described as “the selection and management of an organisations projects, programmes and business-as-usual activity (BAU) taking into account resource constraints, prioritisation and strategic objectives”. Linking projects to strategic objectives ensures that the right projects are being done. Prioritisation ensures that an organisation’s limited resources are primarily focussing on high value initiatives which will
alleviate the common problem of an organisation having too many projects and too few resources to deliver. Larger organisations are implementing programme and project management offices (PMOs) in growing numbers for stronger governance of programmes and projects across their enterprises. In some organisations PMOs are also responsible for portfolio management i.e. the inclusion of parcels of business-as-usual work along with project-based activity. Consider the Standish Group’s findings on the top influencers on project success which could certainly be considered as 7 Tips for Project Success in Your Organisation: • Executive management support • Clear business objectives
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Optimising scope Project management expertise Skilled resources Formal methodology Standard tools and infrastructure Organisations wishing to gain real advantage from the use of projectbased management should set about making sure the above pointers are well established, integrated and working. It is crucial that planned programmes and projects align with the organisations strategic and operational goals and objectives. PMO’s can be the vehicle or mechanism that can add value by shifting and lifting their game to focus more on alignment and the use of portfolio as well as programme and project techniques. nextStep www.projectplusgroup.com www.nzmanufacturer.co.nz
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