NZ Manufacturer February 2011 by NZ Manufacturer

NZ 2011 Manufacturer February 2011 February

www.nzmanufacturer.co.nz

Focus Mid Canterbury

Page 6

Business in Ashburton

Analysis

Workshop with Norman Bodek in April

Page 18

Charging electric cars automatically

New Zealand company has launched the world’s first wireless technology which allows parked or moving electric cars to charge automatically. HaloIPT, a UK based company, is owned by Auckland UniServices Ltd and Ove Arup & Partners. The company is the first in the world to bring to market IPT (Inductive Power Transfer) technology which allows cars fitted with a receiver pad to charge automatically when parked over transmitter pads buried into the ground. IPT systems can also be configured to power all road-based vehicles from small city cars to heavy-goods vehicles and buses. Auckland UniServices Ltd chief executive Peter Lee said the wireless charging technology which is set to revolutionise the electric vehicle market has major benefits for New Zealand.

The power and magic of lean

Value adding to stay in the game

“The potential is huge. The delivery of this benefit will be global but the high technology end of the business will stay in New Zealand.” Dr Anthony Thomson, CEO of HaloIPT says the wireless charging pads are designed to function beneath asphalt, submerged in water or covered in ice and snow. In the future, the technology will be able to be embedded in roads so cars can be charged on the move. This will solve the range issues electric vehicles have and reduce battery size requirements, says Dr Thompson. The IPT technology was developed by The University of Auckland’s Power Electronics Group, who are world leaders in the field. Their pioneering technology uses magnetic fields to transfer power instead of cables or brushes. The group is led by electrical engineers Professor John Boys and Continues page 13

Page 21

Going against Manufacturing Heroes the flow Meet Bill Kearon

ith an ever increasing number of companies rushing their production to China to reduce manufacturing costs, Apex Valves is going against the flow by staying firmly anchored in New Zealand. Ask Apex Managing Director Bevan Gracie why and his response is firm and direct: “As long as I’m running this company our people and the security of their employment will come first. I believe that there are ways to counter the importation of cheap products and in our industry sector we’ve proven it can be done”. Bevan explains that in order to fight the importation of cheap valves that compete directly with the Apex product lines, the company adopted a simple but effective strategy: “In order to protect our market and Continues page 13

sales@plasticweldingtools.co.nz

Bevan Gracie

ill Kearon of Inovent Ltd in Balclutha made a good choice many years ago by listening to his father’s advice about the importance of having a trade behind you. He is a 55 years old panelbeater with eight children and his partner, Trina. Here is his story of his life in manufacturing. His story, rare to him, is similar to lots and lots of New Zealand manufacturers and shows the frustrations of gaining success in today’s business world. We want to hear your story too. Share it with the readers. Let’s find some answers! “I suppose my destiny was always going to be what it is todayinventor and designer of simple workshop equipment. “I have lived a somewhat charmed life, because most of my career I have sought for adventure and traveled the world , visited more than 30 countries from NZ to UK overland, learned to live on $2500.00 USA, including transport for a year , “This experience gave me an insight into how much I appreciate life and our good old Kiwi up bringing. Continues page 30

www.plasticweldingtools.co.nz www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

Kiwis are innovators and manufacture many fine products for local and overseas markets. It is vitally important for the future of the country that we continue to do so. To be the best and show the world that by focusing on what we do best Ðbe it dairy products, computer software, marine products or electrical equipment Ð we punch well above our weight and succeed! NZ MANUFACTURER believes in our manufacturers and the levels of excellence they achieve. But more can be done. The opportunities are out there; letÕs grab them with both hands for the future benefit of us all. www.nzmanufacturer.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

CONTENTS Advisors

www.nzmanufacturer.co.nz

DEPARTMENTS

FOCUS ON MID CANTERBURY

Professor Guy Littlefair MSc PhD CEng MRSNZ is passionate about

• Ashburton gears up for manufacturing growth. • Manufacturing and other initiatives plentiful.

manufacturing and is constantly striving to improve training methods for students. He is Head of the School of Engineering at Deakin University in Australia.

• Fast growing part of the country.

13 14

MANUFACTURING HEROES

ANALYSIS

• Additional sizes added to range.

• Blow moulder result of two systems.

Page 12 – CASE STUDY – Positive Results cast bright future for Supreme Steel.

• Value adding to stay in the game.

• Manufacturing Export Domination.

Bruce Goldsworthy ➡ An advocate for NZ manufacturing for 40

MANUFACTURING TECHNOLOGY • Technology companies offered a soft landing in Sydney.

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.

• Grey Market highlighted.

LEAN THINKING

The Power and Magic of Lean.

FOOD MANUFACTURING Waste expense into profits.

SUPPLY CHAIN

Page 24 – BUSINESS NEWS – New government growth initiative inspiring Waikato business.

BUSINESS NEWS

Businesses to benefit from new institute.

CASE STUDY

Vishnu Rayapeddi ➡

Forward thinking in Westland. • Metals Industry Conference coming soon. • Metals New Zealand formed.

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.

RFID – Watch this space.

BUSINESS NEWS

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.

Page 25 – SUPPLY CHAIN – Maersk’s focus firmly on sustainability. sustainable strategies.

Extraordinary measures for extraordinary times.

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 World-Class Operations. PSL offers Lean and Competitive Manufacturing programmes in association with NZTE, CMI Consortium and HERA.

➡

21 22 26 27 28 29

PRODUCT NEWS

➡

Going against the flow.

➡

Hans Frauenlob

Is New Zealand Trade and Enterprise’s Director – Specialised Manufacturing, with responsibility for NZTE’s Specialised Manufacturing team.

Page 27 – BUSINESS NEWS – Flooring Brands in Australia

Catherine Beard ➡ 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

NZ Manufacturer February 2011

EDITORIAL

“When you get to the end of your rope, tie a knot and hang on.”

- Franklin D. Roosevelt

Manufacturing Heroes

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

hey are everywhere, manufacturing heroes. And they have been for years. Think Bill Gallagher, Blair McPheat, Robert Darroch, Peter Rocque.

Think the inventors at Rex Bionics, Ultrahelicopters, Metalform with their wheelchair and Inovent with the Rotacrane. And you, the reader, is probably thinking why isn’t my name on the list as well? These are a few examples of New Zealand companies who dare to dream and are going ahead in tough economic times. All over the country there are fantastic products being made. The dream became the reality and the markets are being found. I receive a lot of information from companies in the prototype stage, who need the capital to move on, to test the market, to be the next big thing. Then there are the companies who, for their own good reasons, want to be hush, hush and not let anybody know what they’re thinking, let alone making. They’ll come round, we’ll be writing about them and any others who want to share with the readers of NZ MANUFACTURER what they are making and how they got there. Manufacturing Heroes are whom we support and the more they are supported the better New Zealand’s economy will be. Send me your story to words@xtra.co.nz and prepare to be read about.

Doug Green

Peter Isaac, Guy Littlefair, Nick Inskip, Kevin Kevany, Michael Henstock, Catherine Beard, Vishnu Rayapeddi

SALES & MARKETING NZ ADVERTISING MANAGER

Max Farndale T: + 64 6 870 4506 E: max@nzmanufacturer.co.nz

Design & PRODUCTION

Karl Grant T: + 64 6 870 9028 E: daylightmarketing@xtra.co.nz

WEB MASTER

Dan Browne E: dan@membrana.co.nz

PUBLISHING SERVICES

On-Line Publisher Media Hawke’s Bay Ltd

SUBSCRIPTIONS

Media Hawke’s Bay Ltd T: + 64 6 870 4506 E: mediahb@xtra.co.nz 11 issues per year. New Zealand $55. Australia and Pacific $95. Rest of the World $132.

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

Vol. 2 No. 1 February 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.

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

www.konecranes.com.au www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

FOCUS MID-CANTERBURY Ashburton Gears Up For Manufacturing Growth

“The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind.” - William James

The manufacturing and industrial sector of the Ashburton District economy is expected to take a further leap as stage I of the new 85 hectare Ashburton Business Estate comes on stream. Developed as a state-of-the-art facility it offers fibre optic cabling to the boundary, high productivity roading with an on-site rail facility to be added in the near future. The estate has been developed by the Ashburton District Council, which has spent about $20 million completing the first stage, covering about 45ha. The development on the town’s northern fringe was originally farmland, enabling a true green-fields development. District Mayor, Angus McKay said Ashburton needed the growth capacity for its industrial sector. “Businesses servicing the local agricultural sector and adding value through processing farm products mean we are one of New Zealand’s fastest growing rural districts.” Already boasting two significant meat processors, a large vegetable processing facility and several significant other processors

and vegetable processing, seed cleaning and others. One of the things we are looking to see is firms coming to the district to add value to our dairy sector, both through added value processing and through specialised support services,” he said. Sites in the business park range in size from 1,200m2 to more than 5ha, so can be scaled to fit almost any activity. In the year ended 2010, GDP growth in the Ashburton district was almost twice the Canterbury and New Zealand average. Ashburton’s primary industry of

Ashburton District Mayor, Angus Mckay and councilor John Leadley inspect the final street layout at the Ashburton Business Centre. and specialised manufacturing operations, Ashburton looks set to continue its current growth path. Mr McKay pointed to the large scale conversion to dairy farming in the district as a likely catalyst for continued growth. “We add significant value locally to our traditional agri-products with meat

In the year ended 2010, GDP growth in the Ashburton district was almost twice the Canterbury and New Zealand average.

USA and Europe, and we have had a strong focus on keeping quality at the forefront of any business decision. There is always temptation to look at some of the low cost brands, however experience has shown that buying quality first time is usually the lowest cost of ownership. This is exactly what our customers demand and what we as a business strives for. “There are so many opportunities available if you have great brands and strong technical backup from overseas suppliers. “Our focus in electronics is proving a total factory or repair centre, equipment and consumable selection. Not only do we specialise in ESD static solutions and Pace soldering equipment, we now stock all of the items that a technician needs, from solder to hand tools, ESD bench matting, personal grounding, fume extraction to complete SMT lines.”

Baskiville’s represents some leading brands like 3M, Pace, Desco, and Microcare. The introduction of fibre optics into New Zealand has some exciting benefits for everyone and they are pleased to be associated with “Sticklers”, a USA company that specialises in the cleaning of the joint connectors. “We are looking forward to at positive 2011 and will be doing our part to support electronics manufacturing locally and nationally. We have a commitment to keep a good range of stock so that our customers are never left waiting for items to arrive in. I will be attending several overseas electronics shows throughout the year so that I can keep up with the latest products and trends, so as to offer our customers the best products available in the market place at the most competitive prices. nextSTEP Visit: www.baskiville..com

agriculture is the focus for much of the region’s businesses, followed by manufacturing. Almost 50% of New Zealand’s irrigated land is located in the Ashburton District, and with current innovation, this will increase significantly. In recent years dairying has increased rapidly in the district and is turbo-charging the local economy. Beef and sheep farming remain a staple of local production along with grain and vegetable production. Horticulture is a significant industry with the district accounting for 43% of New Zealand’s arable production and 60% of the country’s pasture seed production. The district features on a global stage, producing 50% of the world’s radish seeds, 35% of clover seeds, 33% of carrot seeds, and a major portion of the world’s bok choi seeds. Ashburton District mayor, Angus McKay, says the Ashburton Business Estate is designed to support the continued growth of the region, by making it easier for business owners to take advantage of everything the district has to offer.

Total electronics support centre

askiville’s is proud to support the South Island electronics manufacturing industry. A 35 year company that has evolved from the beginning of electronics assembly and repairs in New Zealand, they were previously based in the upper Wellington region, Baskiville moved south five years ago, when the previous owner retired. The move south has given the company the opportunity to invest heavily in new technology, with the implementation of a live company website, later business operating software and a linking CRM programme. Two years ago we shifted into a new larger warehouse building that was modified to suit the growing business, and from there we have been growing from strength to strength,” says Ian Fowler. “The reason for this is that we have world class brands from the

www.baskiville.com

www.nzmanufacturer.co.nz

Ian Fowler

NZ Manufacturer February 2011

“Action, even action that results in failure, takes us that much closer to success. But, paralyzed inaction takes us nowhere.” - Bill Mansell

FOCUS MID-CANTERBURY

Trust works well with community

he Ashburton Trust has been in existence for 60 years and is governed by the Sale of Liquor Act 1989. The Trust is owned by the community of Ashburton and is overseen by a Board of six Trustees elected by community under the Local Electoral Act 2001, to provide a governance role. The Ashburton Trust operates a number of businesses in the hospitality industry, including hotel, motel, restaurants, bars and retail liquor outlets to ensure it meets it’s mandate, to provide quality accommodation, food, beverage and entertainment facilities for the residents of, and visitors to, Ashburton. Through the success and profitability a share of the profits are returned to the community to ensure ongoing benefits for the people of Ashburton, culminating in over $13

million returned to the community since the Trust’s inception. The Trust’s mainstay is an Ashburton icon known to many locals as “Flash Ash” or, officially known as Hotel Ashburton & Conference Centre. The hotel celebrates her 40th birthday this year and it is fair to say she has hosted many conferences, weddings and events in her time. The TRUST initiated a significant refurbishment program in 2010 culminating in 10 new Corporate Superior rooms, a revamped pool area, upgraded corridors and reception. A full refurbishment program is to be implemented over the coming years which will continue to position the property as the premium conferencing venue in the district. Ashburton District’s most comprehensive conference venue

specialises in staging corporate meetings, exhibitions, product launches, seminars and weddings with a variety of excellent facilities including: * 280 free off-street car parks * 7 well-equipped function rooms * wireless internet * full room service to guests * Clearwater Garden Restaurant and Lounge Bar * swimming pool * bar facilities * Super Liquor bottle store Whether staying in Ashburton for business or pleasure the Trust have several venues to ensure every need is catered to. Just over the Ashburton River Bridge is the Tinwald Tavern Complex which boasts a new 12 room motel just 3km from the town centre. Within the complex is The Stables Family Restaurant and Bar, Tinwald Sports Bar and Tinwald

Liquorland, allowing the flexibility to enjoy a delicious meal and a fine wine, without leaving the motel complex! All Trust owned and operated establishments work closely together to ensure an extensive array of catering services can be offered with menus and concepts tailored to any event. From the “ultimate threesome” progressive dinner, utilising Somerset Grocer Cafe, Braided Rivers Restaurant & Bar and Speight’s Ale House, to themed dinners at the hotel’s Clearwater Restaurant, the TRUST can ensure something out of the ordinary and enjoyable. The Trust also work closely with the Ashburton Trust Event Centre to ensure any conference requiring an auditorium style venue, or simply an alternative to the Hotel, are catered for in a seamless manner utilising the many catering options available.

Manufacturing and other initiatives plentiful

shburton town is the third largest urban centre in Canter-bury and the wider Ashburton District – also known as Mid Canterbury - has a growing reputation for agriculture and its economy in general. • 11th fastest GDP growth last 5 years, (8th for the last 2 years). • 1.7 times faster than NZ and Canterbury last 3 years. • 6th largest employment growth last 5 years, the last 2 years ranked 3rd & last 3 years more than double NZ and Canterbury rate. • 2008 was ranked 4th most successful regional economy by BERL. N.Z’s 2nd largest city - Christchurch, and the country’s 2nd international airport is located 85km north of Ashburton and the district is located between 2 major seaports of; Port Lyttelton (Christchurch), 77km north, and Port Timaru 65km south. Ashburton District comprises an area of 6,175km2 of which approximately 500,000 ha is actively farmed, including high country. Farmland in the Ashburton District includes the largest area of flat land in any district of New Zealand – approximately 250,000ha of which approx 2/3rds is irrigated. Central to the successful development of agricultural land has been the 66km Rangitata Diversion Race, a water canal which runs from the upper reaches of the Rangitata River across the full width of the district to the Rakaia River. Irrigation schemes draw water from its entire length. The Rangitata Diversion Race is a major irrigation infrastructure project that was developed midway through the last century and which has been a key driver of economic development in the Ashburton District and greater Canterbury. It is the largest scheme of its kind in New Zealand. Mid Canterbury is the grain bowl of NZ. It accounts for over half of N.Z’s arable farming industry and is a major facilitator of N.Z.’s key export industries.

Mid Canterbury lead the world in the development of hybrid vegetable seeds which are becoming increasingly more important to Asian countries that are highly reliant on our seeds for their food crops. A few statistics – Mid Canterbury supplies • 50% of world requirements for radish seeds. • 35% of world requirements for white clover seeds. • 33% of world requirements for carrot seeds. • approx 30% of world requirements for Bok Choi seeds. • 25% of all NZ feed grains. • 60% of the seeds for growing pasture underpinning a $9bn export industry. Mid Canterbury is also the most productive area for dairy farming in N.Z. It benefits from some of the country’s leading dairy farmers, extensive irrigation and strong supporting industries. The NZ Dairy Industry Rankings show that although we only rank 13th for the number of dairy herds we now rank 4th in cow numbers, only ranking below such well known dairy farming areas as Waikato, Taranaki & Southland. Mid Canterbury has the 2nd largest average dairy herd size in the country and produce the most milk solids per hectare in the country. But it is not just agriculture they boast: • Medical technology manufacture • New generation diabetic and health socks manufacture, incorp-orating world leading research. • Major secondary share registry. • Leading national plastics engineer and manufacturer. • Ground breaking plant oil seed extraction. • World leading kite manufacturer – largest kites etc. • Internationally renowned Rolls Royce & Bentley service and restoration centre. • The country’s first commercial robotic dairy farm.

• Niche market grain fed beef producer selling to the high end Asian market. The district has a strong engineering and trades sector. For example the engineering firms are 1.5 times the size of typical N Z engineering businesses and can make anything from agricultural equipment to ski lifts, automatic barges and hydraulic stages. N.Z. faces its greatest opportunities in agriculture since the 2nd world war. With world population set to increase from 6bn to 9bn. Theses 3bn people have to be fed. And what’s more a growing middle class in Asia AND India can afford to pay for our quality food products. Mid Canterbury is uniquely well placed to capitalise on these opportunities.

www.ashburtontrust.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

FOCUS MID-CANTERBURY

“Don’t wait for extraordinary opportunities. Seize common occasions and make them great.”

- Orison Marden

Ashburton Business Estate - Opus Involvement

shburton District Council approached Opus in 2005 to help develop a concept for a business estate in Ashburton. Opus is an international infrastructure development and management company with 32 offices in New Zealand including Christchurch and Timaru. Ashburton District Council commissioned Opus initially to: • Confirm concepts of an industrial estate • Carry out preliminary estimates, and • Identify critical risks to the project such as planning and property issues. After receiving Council approval, Opus was asked to carry out the necessary Resource Management Act planning and obtain consents for the subdivision. To complete the project, Opus formed a multi-disciplinary team consisting of Civil Engineers, Surveyors, Environmental Engineers, Planners and Landscape Architects. Together, the team completed the initial design of the Business Estate so the Structural Plan, subdivision and stormwater consents could be obtained. High priority was given to

Early days at Ashburton Business Estate incorporating the consent conditions into the final design of services to minimise the visual impact on neighbouring properties. Opus completed the procurement of a contractor including tender documents and evaluation, and final recommendations to Council.

The construction work was awarded to HEB Construction Ltd in September 2010 with construction completed in early February 2011. Opus’ role during construction included monitoring of finances, programme and providing technical advice to supervising Council staff.

www.opus.co.nz www.nzmanufacturer.co.nz

Opus’ ability to provide specialist advice across a wide range of service sectors greatly assisted in overcoming the many hurdles for this project and ensured the completion of a successful industrial subdivision that will greatly encourage the economic development of the Ashburton district.

NZ Manufacturer February 2011

FOCUS MID-CANTERBURY Company culture one of its strengths

“Either I will find a way, or I will make one.” -Sir P. Sidney

merican philosopher Ralph Waldo Emerson characterised periods of revolution as some of the most interesting times to experience. “The old and the new stand side by side, when the historic glories of the old can be compensated by the rich possibilities of the new.” Transformations which proliferate the printing industry make it an exciting industry to be involved in by its very nature. The strong growth, diversification and innovation which characterises Guardian Print, allow the company to provide its services nationwid. Guardian Print, a subsidiary of the Ashburton Guardian newspaper, is one of only three independently owned daily newspapers in New Zealand. Owned by the Bell family for more than 100 years, the company is well aware of the importance of constant reinvigoration. Guardian Group general manager Ross Mains says. “Technology is about continual improvement in quality and Guardian Print continues to research and put equipment in place that constantly lifts the quality of our printing for our customers.” It’s been hard work for Guardian Print getting established in the glossy heatset printing market. But it’s been well worth it, with the company now servicing printing needs nationwide. Traditionally servicing the coldset market, Guardian Print purchased a new Dauphan Graphics DGM 430 heatset press from America four years ago, embarking on a new direction in print. The new heatset printing machinery takes the company’s commitment to excellence a step further, offering cost-effective, quality heatset printing for those requiring tight turn arounds. Guardian Print’s business was built around coldset printing, which involves printing on news print type paper. They print three daily

newspapers for Ashburton, Timaru and Oamaru, and a multitude of other tabloid papers all over the country. Mains says, “We’ve been operating within that market for about 15 years, and have secured a large proportion of that market. We’re the largest independent printer of such publications in the South Island and one of the largest in New Zealand.” However, the company identified an opportunity to print on glossy paper and expand its offering to customers. “We recognised that heatset printing would give our existing clients the ability to further enhance their publications by putting glossy covers and sections in their publications,” Mains says. “It would also give us an opportunity to grow into other markets, including fully glossy tabloids or magazines, brochures and marketing material.” The diversification into the heatset market has extended the company’s commercial stretch. “Today we enjoy a nationwide market, with a large proportion of

our heatset printing in the North Island.” It’s made possible by the strong freight connections Guardian Print has established. “We have developed strong relationships with several freight companies so we can still offer overnight or 36 hour delivery turnaround.” A strong leader But nothing ensures success so much as a strong leader at the helm. To coincide with the market diversification, Guardian Print appointed a new general manager, Steve Gallop. With 35 years of experience in the printing industry, predominantly in the heatset arena, Gallop had the strength and experience to bring the company into the new era. He has worked for the two main heatset companies in the country and most recently worked as an independent business consultant. “He’s bringing more knowledge about heatset printing and developing that side of our market further,” Mains says. “We’ve got a good foothold

in that market and it’s growing,” Gallop says. “Heatset printing is my area of expertise and I’ve brought in both a skillset and knowledge to make that happen, and we’re well down that track. The culture of the company is one of its strengths, he adds. “It’s an easy ship to steer and hierarchy isn’t a big thing in the business. Everyone plays a hands-on role and passion is a critical part.” Gallop says Guardian Print already has a good name in the coldset print market and is working hard to grow its heatset business. “That’s where bringing myself and other key positions has helped.” One of those key acquisitions has been Karl Stanbra. The Auckland sales representative has a wealth of knowledge in the heatset market, strong relationships in the industry in the North Island and outstanding customer service, Mains says. “Our biggest asset has always been our team. We have a fantastic team of people who are committed to making us successful.” nextSTEP Contact: ross.m@theguardian.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

FOCUS MID-CANTERBURY Fast growing part of the country M

“The successful man is the one who had the chance and took it.”

- Roger Babson

id Canterbury, the focus of this issue, punches above its weight. Lots of good things are happening there; for example, a resilient and strong (local) economy which is a major food producing part of the country, a new industrial park, growth in business, agribusiness engineering, lifestyle and tourism. The Mid Canterbury region, like others, has a need for skilled people and Grow Mid Canterbury, the economic arm suggests that if a change is what you want then consider Mid Canterbury. Living outside the big cities really does have its advantages. “The success of our lifestyle here is balance. We live in a location that affords us many of the good things in life at less cost than in other places. For example for those who live in larger cities, getting up for work and not having to drive or commute for an hour or more and not being regularly stressed in traffic can be quite a foreign concept,” says Rob Brawley, Grow Mid Canterbury CEO. A few statistics Mid Canterbury, the grain bowl of New Zealand, supplies: • 50% of world requirements for radish seeds • 35% of world requirements for white clover seeds • 33% of world requirements for carrot seeds • approx 30% of world requirements for Bok Choi seeds • ¼ of all NZ feed grains • 60% of the seeds for growing pasture - underpinning a $9bn export industry And Mid Canterbury is arguably the most productive dairy farming region in N.Z. It benefits from some of the country’s leading dairy farmers, extensive irrigation and strong supporting industries.

Recent economic data confirms that the Mid Canterbury economy performed better than much of New Zealand during the recent economic downturn. The district’s economy has been showing positive growth for some time, albeit at lower levels than during the mid-2000 peak. Data from Infometrics confirms that the rate of economic growth in the Ashburton District – Mid Canterbury, has outperformed both the national and Canterbury economies for the past 10 years. This continued in the year to March 2010 and through to the September quarter (which is the period for which the most recent data is available).

Over the past 5 years, Mid Canterbury’s economy has been the 11th fastest growing in New Zealand (out of 72 TLA’s) and the 2nd fastest in Canterbury. Grow Mid Canterbury has identified the district’s key sectors as: 1. Meat & Fibre Sector (incl. value add processing) 2. Arable & Cropping Sector (incl. value add processing) 3. Dairy Farming 4. Engineering & Agricultural Services Sector 5. Tourism Sector 6. Intellectual Property Sector (a broad category incorporating highly skilled occupations) Together they account for just under 50% of the district’s GDP.

Meat & Fibre Sector

Tourism

The Meat & Fibre sector contributed 16.8% to the district’s GDP in 2010 (down from 17.5% 10 years ago). Output declined 2.8% in 2010 versus a national decline for the sector of 1.5%. In Mid Canterbury the sector employed 2,360 persons in 2010, down from 2,462 in 2009.

Tourism contributed 3.6% to the district’s GDP in 2010 (down from 3.8% 10 years ago). Output declined by 1.4% in 2010 versus a national decrease for the sector of 1.9%. In Mid Canterbury the sector employed 871 persons in 2010, down from 880 in 2009.

This sector contributed 9.3% to the district’s GDP in 2010 (up from 8.9% 10 years ago). Output grew by 16.8% in 2010 versus a national decrease for the sector of 1.9%. In Mid Canterbury the sector employed 1,449 persons in 2010, up from 1,271 in 2009.

This sector contributed 3.5% to the district’s GDP in 2010 (up from 2.7% 10 years ago). Output grew by 9.3% in 2010 versus a national increase for the sector of 6.6%. In Mid Canterbury the sector employed 932 persons in 2010, down from 929 in 2009.

The Dairy Sector contributed 8.5% to the district’s GDP in 2010 (up from 3.9% 10 years ago). Output grew by 1.2% in 2010 versus a national increase for the sector of 1.8%. In Mid Canterbury the sector employed 1,402 persons in 2010, down from 1,436 in 2009. Engineering & Agricultural Servicing This sector contributed 8% to the district’s GDP in 2010 (up from 7% 10 years ago). Output declined by 2.8% in 2010 versus a national decrease for the sector of 8.7%. In Mid Canterbury the sector employed 1,493 persons in 2010, down from 1,550 in 2009.

Total employment in Mid Canterbury remained static for the year to March 2010 at 16,536 versus 16,539 in 2009. This was a better result than wider Canterbury and New Zealand where total employment declined 2.5% in both cases. Mid Canterbury had the 17th highest rate of growth in employment in New Zealand in 2010 and the 2nd fastest rate of growth in Canterbury. Dairy Farming was the single largest employing industry in the district in 2010. The Services to Agriculture industry created the most jobs during the year.

Arable & Crop Sector

Dairy Sector

The top 10 employing industries were:

Intellectual Property Industries

Employment

• A great location for agri-business. • A high growth region which has proven to be strong and resilient. • International food producing region with value-added opportunities. • Business-friendly region with state-of-the-art technology. • Engineering and agri-business hub.

office@growmc.co.nz www.nzmanufacturer.co.nz

www.growmidcanterbury.co.nz

NZ Manufacturer February 2011

“We must all suffer one of two things: the pain of discipline or the pain of regret or disappointment.” -Jim Rohn

FOCUS MID-CANTERBURY

Ashburton offers plenty for investors and residents

ooking for a million dollar life-style without breaking the bank? Ashburton could be the place for you. With population growth amongst the highest in the country’s rural areas the word is getting out that Ashburton offers life-style opportunities that are hard to match. For many years Ashburton District has been the engine-room of New Zealand’s agricultural wealth generation but it is as much the sunny climate, natural beauty and pleasant smaller-town life-style that is attracting large numbers of new migrants and New Zealanders alike to this best-kept secret of Godzone. Ashburton District Council chief executive, Brian Lester says an increasing number of people are moving to the district for life-style reasons. “Where else could you be within half an hour of a world class ski-field (Mt Hutt), a spectacular lake-side residential development (Lake Hood) and in the middle of the best rural and mountain scenery in New Zealand,” says Lester, an unashamedly passionate advocate for Ashburton District. Lester points to the district’s old-fashioned “can do” attitude to explain much of the success of Ashburton. “The district has grown from a dusty backwater when Canterbury was first settled to be the most productive region in the country.” And it is not just traditional agriculture that drives the economy now. The region is attracting a growing number of innovative business owners who have established a diverse range of businesses, including engineering, handicrafts, viticulture, print and apparel manufacturing. Mr Lester says Ashburton is probably a little unusual for a predominantly rural economy where manufacturing remains a key component in the local economy and is growing strongly each year. The conversion of large areas of the district to dairy farming has seen a remarkable transformation in the rural communities of Ashburton District. Where once there was one family working a sheep or grain farm there are now two or three families on a dairy operation. This change has had significant positive spin-offs

Thank you!

would like to take this opportunity to thank you for the great reading in your NZ manufacturer magazine this is the first time i have read it.

for rural schools and communities. A growing population and high workplace participation rates feed through to vibrant retail and financial services sectors. It is this overall combination that is setting Ashburton District apart as a growth centre in rural New Zealand. Ashburton District Mayor, Angus

McKay, says population growth is enabling Ashburton District to invest in facilities it could only have dreamed of twenty years ago. “We have a spectacular man-made lake facility offering water skiing, rowing, fishing and other water sports at Lake Hood. Stage II of the lake has recently started which

Ashburtondc.govt.nz GrowMidCanterbury.co.nz E: office@growmc.co.nz W: www.GrowMidCanterbury.co.nz

will see the lake double in size and provide further water sport facilities and residential development.” “The Council is developing a $30 million aquatic centre and indoor stadium and is investing over $35 million in a new business park to cater for business growth in the town.”

AshburtonDistrict.co.nz AshburtonBusinessEstate.co.nz E: admin@ashburtondistrict.co.nz W: www.AshburtonDistrict.co.nz

-Bill Kearon,

Inovent Ltd, Balclutha

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

CASE STUDY

“The secret of success is learning how to use pain and pleasure instead of having pain and pleasure use you. If you do that, you are in control of your life. If you don’t, life controls you.”

- Anthony Robbins

Positive results cast bright future for Supreme Steel

ounded in 1984, Supreme Steel Products Ltd is one of the foremost investment casters in Australasia. Investment casting or lost wax casting is a near net shape manufacturing process. This means that the as-cast components can have a high degree of detail, precision and accuracy, dramatically reducing the need for costly operations such as machining, welding and fabrication. The process consists of the production of detailed expendable patterns (usually in wax), the building of a refractory mould around the pattern using a ceramic slurry, removal of the pattern (usually by the application of heat), firing of the mould to develop a maximum ceramic bond, casting of molten metal into the mould, removal of the refractory and finishing of the cast product. It is a multibillion-dollar industry with around 500 investment casters in the United States alone. Producing approximately 30 tonnes of precision castings per month Supreme Steel are based in a 2300m2 factory in Auckland, New Zealand. With international competition, Supreme Steel’s CEO, Robert Peter, wanted to improve their competitive advantage not only through people and products, but also through processes.

Solution Shopping

Knowing from past experience that ERP is a strategic tool in improving the competitiveness of a company, Supreme Steel decided to go to market looking at mid tier ERP software to meet their needs. As part of their search, they looked at many dedicated production planning and information management software packages for the cast metal manufacturing industry that incorporate aspects of ERP and MRP. A key consideration in the final choice of ERP system was the relationship with the software vendor.

Brian Winthrop, Commercial Manager for Supreme Steel said, “Supreme Steel felt that COGITA would be there to support us for the long haul and had the ability to do so. This was an important consideration in our final decision. Supreme Steel has been very happy they chose COGITA and Epicor ERP manufacturing software.” One of the key drivers for the ERP implementation and an important KPI of its success was that there should be full visibility of job costs and Supreme should be able to instigate and maintain standard costing. This has not only been achieved but is now a process of continuing improvement. “The challenge with implementing an ERP system is to get all the disparate systems incorporated in Epicor ERP. We wanted Epicor ERP with COGITA for its one stop shop, making sure that we have continuity of systems and information. We want to use Epicor ERP to its full capability and maintain this going forward with regular training and upgrading the system as the company grows.” When asked about the process of taking a customer order and producing the required product, Brian Winthrop, added: “It is very important to get order details 100% correct. The flow of information between the customer and Supreme Steel from quotation to order must be managed very quickly, smoothly and efficiently. This is what our customers want.”

The Process

Customer specifications are evaluated very carefully at Supreme Steel. A lot of technical information with dimensions, tolerances and specification and certifications of metals form part of a future order. All of this information is captured within the system and needs to be available at any time during production and when the product goes out into the field.

www.cogita.com www.nzmanufacturer.co.nz

During the quotation process Supreme Steel often suggest changes to the overall design that can improve quality, manufacture and performance. This not only adds value to the customer’s product but also makes it easy for the customer to deal with Supreme. “We aim to exceed our customer’s expectations and we have the experienced staff and systems to provide us that competitive edge,” said Brian.

The Result

Supreme Steel experienced a number of changes following their implementation of Epicor ERP. Brian commented, “With the introduction of Epicor ERP there has been a positive impact on the top and bottom lines”. Quoting is more accurate and completed with more confidence. There is better analysis of the customer base, order performance, and profitability. If you have better costing, you have better quoting. The three key areas to improving performance at Supreme Steel are – • quoting, • costing and • shop floor job management. With Epicor ERP, there is the seamless integration with Finance – for Supreme, an added benefit that is not fully realised with some other systems they considered. All these areas have been improved considerably and Supreme now has

much better visibility. “When we quote a price we know it is based on good information. We have the knowledge that all the absolute required costs are in the quote. When in a competitive situation we have the confidence that when we accept an order we will realise the expected profitability from this work whether it is for prototype design or a large volume production run. You have to be confident in your system to be able to do that. Our processes, our people and Epicor ERP enable us to do that,” said Brian.

Looking Forward

Supreme Steel is committed to achieving excellence in all areas of business. Not ones to sit on their laurels, they are always looking for ways to provide their customers with better service and products. “We are currently stepping up our use of CRM in Epicor ERP, and we are looking to provide customers with better service as a result. We are considering an upgrade to Epicor 9 to provide additional benefits so we can continue to provide superior service and products,” added Brian When asked for a closing remark that would sum up the impact of Epicor ERP, Brian Winthrop had this to say. “It is being able to quote confidently, knowing that Epicor ERP has got it right”.

NZ Manufacturer February 2011

“If what you did yesterday seems big, you haven’t done anything today.” -Lou Holtz

MANUFACTURING HEROES

Continuous production of foam insulated pipe proves a winner

UR insulated pipe is an innovative technology which can be used for diverse applications such as air-conditioning lines, supply lines for geothermal plants and hot water pipes. The most recent sale has been made to a plastic pipe producer who manufactures a wide range of pipe products. The new line will produce pipe for district heating systems by encasing media pipes, made of cross-linked polyethylene, with polyurethane foam insulation and a PE outer sheath. Pipe made of PE-HD, PE-X, PE-RT or PB is produced on a conventional pipe

From page 1 team of dedicated employees, we adopted a three pronged strategy. We improved our product design and protected our innovations so we couldn’t be copied. We raised our quality standards to a level that product from China, or anywhere else simply couldn’t match. And we invested heavily in new machining technology to increase production and hold costs”. A tour of the Apex plant in the Auckland suburb of Avondale brings this strategy sharply into focus. In a country where research and development is not encouraged the way it is in other developed countries, Apex Valves has built up their R&D department to ensure that their product design leads the world. The string of patent protected innovations demonstrates the success of this commitment. In order to raise the bar on quality to a level where Apex can’t be competed with, every valve is individually tested. The test equipment has been designed and manufactured in-house to ensure that this potentially labour intensive procedure can be performed thoroughly and efficiently. But it’s the investment in new machinery technology that most clearly demonstrates that Apex is ready to fight any threat to the company’s domestic and international markets. When most business are delaying decisions to invest in capital equipment, Apex has spent millions of dollars. The

extrusion line, where a barrier layer can also be applied. Currently the largest version of the system can be used to produce pipe with an outer diameter of 180mm and a media pipe diameter of 110mm. The continuous production process involves the media pipe coming off a conventional pipe line, which is then wound onto large steel drums ready for transfer to an unwinder, centered, passed through a retarder, and then fed into the continuous foam contouring unit together with the application of a PE outer sheath. Advantages of the foam insulated pipe include:• Faster and easier laying of pipes, as

there are minimal risks of thermal bridges and leaks. This is the result of the longer lengths and a reduced number of connections. • An insulation layer with a very low thermal conductivity – between 0.02 and 0.03 W/m*K, which makes for highly efficient insulated pipes, ideal when a significant temperature differential must be maintained between the medium flowing through the pipes and the ambient

temperature. • No length limits on the pipes being produced, which is possible due to the unique PU mixing head, which eliminates stoppages for cleaning and changing the mixing head. • Significant energy savings due to the superior insulation properties of the continuous uniform insul-ation encased in a protective outer sheath. nextSTEP Contact: wayne@hbm.co.nz

From page 1

Charging electric cars automatically

Associate Professor Grant Covic from the Faculty of Engineering at the University. Dr Boys says it was an exciting development and pleasing to see research originally developed in the basement of the Engineering Faculty at the University of Auckland more than 20 years ago (1989) now making it on to the international stage. HaloIPT is a start-up technology development company specialising in public and private transportation. The company was founded in 2010 by the New Zealand-based research

and development commercialisation company UniServices, Trans Tasman Commercialisation Fund (TTCF) and by the global design consultancy firm Arup. Auckland UniServices Limited, owned by The University of Auckland, is the largest research and development company of its kind in Australasia. UniServices manages The University’s intellectual property and is responsible for all research-based consultancy partnerships, contract education and commercialisation.

Going against the flow

new Gnutti Rotary Transfer CNC Machining Centre holds pride of place on the factory floor. Bevan talks passionately about its capabilities. “Machining operations that we used to time in minutes and had to be performed in separate stages can now be performed by this single unit in seconds. And the quality and consistency is incredible. With the increased capacity and reduced operation times this machine offers, every other down-stream assembly and testing procedure has to be made more efficient and a lot faster in order to reap the benefits of the investment”. The ripple effect of faster production extends beyond the factory walls. Apex has worked closely with key suppliers to ensure that their production capacity can meet the new supply demands placed upon them, without compromising quality control procedures. With increased output the obvious question is; Is there a corresponding increase in demand for the Apex valve range given the current state of the housing and rural sectors in New Zealand? Bevan’s answer is interesting. “We currently export around 35% of our production to Australia, South Africa, the United States, South America and United Kingdom. Our product innovations are continuing to open up new markets and we are forecasting healthy export growth. In New Zealand we are receiving

tremendous support for our decision to keep our manufacturing here and that’s having a positive influence on sales. I believe that there is a growing backlash against cheap imported products that don’t perform the job. We’ve noticed that customers are buying on quality not price. One of the biggest advantages of manufacturing here is that we know we can control the quality. Besides the extremely important issue of protecting jobs and retaining skills, there are sound reasons to fight and keep manufacturing in this country. If you look at the larger economic picture, New Zealand needs to expand its export base and that can happen if local businesses

offer truly innovative, world leading products. The other side of the export coin is import substitution. Every valve that we make and sell in New Zealand stops the sale of an imported valve and as the importation of valves slows, it helps our balance of payments position. So I see a double benefit in fighting to keep manufacturing here”. Proof of the support Apex is receiving for its bold decision to go against the flow, is the acceptances being received from around New Zealand to the invitation to attend the function at Apex to celebrate the arrival and full commissioning of the Gnutti Rotary Transfer CNC Machining Centre – the only one of its kind in New Zealand.

www.hydroflow.co.nz

www.apexvalves.co.nz www.theplumbersclub.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

PRODUCT NEWS

“Self discipline provides power and protection . . . the person who controls himself through self discipline can never be controlled by others.”

- Tom Hopkins

PVC welding – A major challenge

aizhou, a small town near Qingdao – the city where the sailing competitions were held during the 2008 Summer Olympics – is currently undergoing an economic boom. This may be attributed in part to its favourable transport connections and to the unique media attention which it attracted in connection with the Games. Xin Li Composite Materials Co. Ltd has been among those companies to benefit from this unparalleled opportunity and has greatly extended its product range and sales area. It has transformed itself from a simple supplier of corrosion-resistant containers to a complete provider of waste water treatment plants for the chemical, medical and metal industries. Xin Li now maintains a network of branches covering western China, including the far north. PE and PVC are used in almost all products made by Xin Li. Some of the prefabricated products are manufactured using extrusion processing or injection moulding. However, these processes are

only suitable for relatively small components and for a limited range of shapes. There has been steadily increasing demand for large containers and pipes with complex forms in the Chinese market. Extrusion welding is the method of choice to join these parts. At Xin Li, PVC pipes are welded with the WELDPLAST S2 PVC hand extruder from Leister. Its display shows both the temperature in the weld zone and for the pre-heat hot air. PVC is very sensitive to fluctuations in temperature during welding; improper temperature control can lead to weak weld joints or overheating. That’s why the WELDPLAST S2 PVC is equipped with an electronic temperature control. No manufacturer can afford to have welding quality issues when producing large containers or largediameter continuous piping. This is why Xin Li has chosen to use Leister PVC hand extruders – in fact, it had been waiting for the launch of the product since autumn 2008. Major projects are often executed in very tight timeframes, which

puts those working on material processing under a great deal of pressure. Liu Maokai, Vice President of Xin Li, recalls that prior to using Leister PVC hand extruders, each seam had to be welded several times. Xin Li’s president and technical director visited the trade fair stand of official Leister distributors Digital Steel Company at Chinaplas 2009. There they saw the WELDPLAST S2 PVC hand extruder in action, and were able to test it themselves straightaway. They were so impressed by the quality of the welding seam and the efficiency of the machine that they ordered two machines the very next day. Shortly afterwards they sent another order, bringing the total of these machines at Xin Li to five. The performance and reliability of the WELDPLAST S2 PVC deliver a serious competitive advantage for Xin Li. The company can now tender competitively for even the most technically demanding projects. As a general rule, pipes with a diameter of less than one metre are assembled at the factory. Larger elements are welded directly at the construction site. With the

WELDPLAST S2 PVC, elbow fittings and T-fittings can be welded very easily. The finished welding seam is then polished to achieve a good surface quality. Xin Li also has a FUSION 2 hand extruder, which was in use before the WELDPLAST S2 PVC for the welding of HDPE pipes. Both hand extruders enable the relevant welding parameters (temperature and output), to be quickly adjusted according to the material used, resulting in consistent, reproducible welding results. Despite a slowing economy, Xin Li is receiving more orders than ever before. Liu Maokai attributes these increased orders to the considerable investments made by the Chinese government and to his Leister equipment, which, thanks to its top performance and reliability, is highly economical to operate. Furthermore, the production of pipes for waste water treatment plants is the result of a growing tendency to invest in protecting the environment Leister’s hand extruders help Xin Li to keep pace with this trend. nextSTEP Visit: www.carrgroup.co.nz

MARCH 2011 ISSUE FEATURES • • • •

Manufacturing Technology Manufacturing Heroes Supply Chain Sustainable Production

For further information contact:

Managing Editor: Doug Green P: 06 870 9029 E: words@xtra.co.nz www.nzmanufacturer.co.nz

Advertising Booking & Copy Deadline – Last business day of the month prior

Sales Manager: Max Farndale P: 06 870 4506 E: mediahb@xtra.co.nz

NZ Manufacturer February 2011

“Advantage comes not from the spectacular or the technical. Advantage comes from a persistent seeking of the mundane edge.” - Tom Peters

PRODUCT NEWS

Mercedes suspended from Sky Tower using towbar

echnology taken from the design and construction of towbars was used to safely secure a Mercedes-Benz car to the side of Auckland’s 328-metre high Sky Tower. The task of sticking a car on the side of the country’s tallest building over several weeks for a Christmas promotion for the Sky City casino did not faze towbar manufacturer Best Bars Limited, which created the cradle to hold the vehicle. After all, the company had done it before, when another promotion ten years ago saw a 4WD vehicle appear to climb the Sky Tower. According to Best Bars CEO Stephen de Kriek, the secret is down to how his company makes everyday towbars. “The same engineering processes and technology employed in the manufacture of towbars applies in creating a frame to hold the weight of a vehicle,” he says. “In fact, we used a towbar as a starting point to create the rear part of the frame and then worked forward, using the same steel tube and welding techniques.” The main difference was in designing the frame which pick-up

Car and cradle are craned up to be fixed on the side of the Sky Tower.

points to secure to the rest of the vehicle’s chassis....and the timeframe in which the project was completed. Normally it takes several months from original design to production phase when a new towbar is created, but for the Sky Tower cradle, Best Bars took just three weeks. That tight timeframe included sending riggers up the side of the tower to devise a jig to precisely fit the four stainless steel bolts fixed into the structure of the tower – enabling Best Bars to make the final frame within a tight 3mm tolerance. During the manufacturing process it went through the same quality checks, corrosion proofing and then final load tests that towbars are subjected to. So when the time came for the Mercedes-Benz to be craned into position, the Best Bars team was in no doubt it would hold the weight and stand up to all weather and high winds. The cradle is designed with a safety factor of five times the overall weight, including the car. One of the challenges was to be able to fix a frame to the Sky Tower exterior wall without causing any damage and Best Bars came up with special nylon feet that act as a cushion.

Shredder for thick wall plastic pipe

he HZR 1300/4 Pipe Shredder for the plastics industry is specifically designed for the effective precutting of thick-walled, high impact pipe to a maximum of 1200mm diameter and 6M in length as well as for start up line scrap. Depending on the impact resistance and the wall thickness of the pipes, the machine has a maximum capacity of 3,000 Kg per

hour. The pipes are laterally feed via a feed trough which is positioned in front of the shredder and the pipe is automatically pushed towards the shredder shafts with a ‘load control’ system (a ram driven by a geared motor via a steel cable). Solid welded annealed steel construction with all bearings, gears drives and motors externally

mounted for ease of maintenance and incorporating a Siemans Simatic S7 touch screen HMI. The HZR 1300/4 shredder has 4 shredder shafts driven by 30kW motors using reversible blades supported on a V shaped profile on the rotor shafts. These features combined with a toothed stator blade ensure a consistent low impact cutting action.

The shredder is generally followed by a granulator for final size reduction of the material to a free flowing regrind. The main advantage of combining the shredder and regrinder in a twostep solution, compared to a single step solution is that energy costs are reduced by up to 50%. nextSTEP Visit: www.hbm.com.au

www.spinnernz.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

PRODUCT NEWS

“Obsession without discipline results in chaos. As obsessed as you are, as much as you want to succeed, if you’re not disciplined it doesn’t work.” -Steve Schiffman

Innovation spells the end of When time and safety matter “hot” gates

t’s been shocking farmers for years, but now there’s a solution. Farm gates - not a widely recognised hot-bed for innovation – have been put under the microscope by agriculture products innovator Tru-Test Group. New Zealand’s world leader in animal weighing, milk metering, electric fencing and traditional fencing tools has pioneered an adjustable hinge for farm gates to save farmers from electric shocks and to improve gate durability, strength and performance. “The explosion in the use of electric fencing over the years has been a boon for stock control, but in some instances it’s inadvertently electrified the farm’s gates which is not a welcome experience when you go to open them” said Verne Atmore, Tru-Test Group Sales and Marketing Manager. “It’s become an increasing problem to which our team has put its mind to solving.” At its essence is a non-conductive nylon insert in the hinge that insulates the gate, preventing current from an adjacent electric fence electrifying the gate. The nylon insert gives a perfect

Hayes Gate in action, Nylon insert and Double bolted hinge fit and a superior bearing surface to reduce wear, while the two bolt onepiece design increases clamping and limits unwanted gate movements. Effectively the new hinge prevents gates from coming off the gudgeon, requiring farmers to lift and drag the gates open. Dragging poorly fitted gates open can be the bane of many farmers lives! The double-bolted hinge is adjustable to suit any existing gudgeon configuration which also allows easy adjustment to raise or lower the gate. The new adjustable hinge design (patent pending) will be progressively rolled out to new Hayes and Cyclone farm gates. The new hinge is also sold separately at leading rural resellers.

Taut tonneau covers suit Kiwi utes

stylish, new type of tonneau cover that resembles a hard surface but it actually made from fabric is ideal to cover the cargo areas of utes. Covering equipment or materials stored in the back of a ute is a must for trades people, contractors and some farmers, but existing metal lids restrict carrying options, according to automotive accessory specialist Best Bars Limited, which has designed the new fabric option. The advantage of the Best Bars Tonneau again a metal cover is that it can be folded back to allow room from tall items to be carried in the tray – there are two fold-back settings for ultimate versatility. The fabric is also flexible enough to enable it to cover items that are only slightly over height and still be closed, which would prevent a metal cover from shutting. Sturdy powdercoated steel is used in the framing and the fabric is a high quality PVC-style material. Best of all, the tonneau can be easily fitted in less than a minute without any need to drill holes in the metal, as it comes with its own frame that securely fastens to the top www.nzmanufacturer.co.nz

of the wellside. Equally important, it can be fitted to under-rail and sprayon liners without any modifications and also to over-rail liners with some adjustments. Vehicle with cab guards will need to have these removed prior to fitment. Once fitted, the Best Bars Tonneau is practically weatherproof. The Best Bars Tonneau is supplied completed assembled, meaning there are no loose parts that can get lost.They have been designed to fit a wide variety of double cab ute models available in New Zealand, Toyota Hilux, Holden Rodeo, Nissan Navara D40, Ford Ranger and Mazda BT50.

The Best Bars Tonneau is styled to suit a range of double cab utes in New Zealand

etting up heavy lift equipment for truck, tractor, railway stock and machinery servicing can be time-consuming and hazardous if not undertaken properly. Frustrating problems can arise in both workshop situations, where space is at a premium, and in remote situations where normal plant services and lifting surfaces are not available. A solution to such problems is the POW’R-RISER Lifting Jack which can be used in even the tightest locations and over rough terrain. The heavy-duty lifting system combines a high capacity (54-181 ton) cylinder and an electric or air-powered hydraulic pump unit integrated into a mobile cart. It is ideal for companies where time and safety are paramount, such as mining and energy, oil and gas, heavy infrastructure construction and heavy transport. POW’R-RISER has the speed, power and versatility for a wide variety of on-site site applications, including servicing tires, tracks and other maintenance functions on heavy equipment, lifting and positioning of large constructed elements and many other applications that require heavy lifting equipment in remote locations. Key features include: • Can be rolled into position for easy placement. • No exposed hoses or fittings to damage. • Narrow width for hard-to-reach areas. • Wide selection of capacities, strokes

and jack heights for a variety of applications. • Electric motor fully enclosed to withstand elements. • 54, 90, 136 and 181 ton capacities with pneumatic or electric pumps for the toughest jobs • SUP-R-STACK™ Extension System allows lifting at all heights without blocking. For safe mechanical cribbing of a lifted load, accessory Locking U-Rings can be placed around an extended piston and come in four lengths for each POW’R-RISER capacity. They are available individually or in sets. Locking U-Rings are accommodated by storage racks integral to the POW’R-RISER provides safe, efficient, mobile lifting and loadholding for the toughest applications and is backed by Enerpac’s extensive product support. This support includes national and worldwide networks of local distributors and authorized service centers as well as regional customer and technical service centers. nextSTEP Contact: neville@enerpac.co.nz

Additional sizes added to range

further nine sizes have been added to Hammond Manufacturing 1550 family, a range of industry standard sizes small die-cast aluminium enclosures that provide robust mechanical protection and good EMC attenuation levels. The tapped holes and machine screws used to secure the lid make them particularly suitable for use where interior access will be required on a regular basis in a wide variety of applications. Available with a natural or black epoxy powder coated finish; the units are supplied in two versions, standard and watertight. The sizes range from 60 x 55 x 26mm to 275 x 175 x 63mm; the standard units are sealed to IP54. The 1550W watertight versions are supplied with a separate compressible self-adhesive gasket, which, when fitted between the lid and the base, provides dust and water sealing to IP66, enabling them to be used in both benign and hostile environments. The thin wall aluminium enclosures have high impact strength but are also easily drilled and punched to accept

cables, switches and indicators as required. All units can be supplied factory modified with machining and silk screening to the user’s specification; AutoCAD and PDF dimensioned drawings can be downloaded from www.hammondmfg.com. nextSTEP Contact: Hi-Q Electronics Ltd, email: sales@hiq.co.nz or ph 0800 800 293

NZ Manufacturer February 2011

“There is one quality that one must possess to win, and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it.” -Napoleon Hill

PRODUCT NEWS

Blow moulder added to range

he SFR 6 EVO is the smallest version in a rotary range, withsix blowing cavities. It is ultra compact and can produce up to 13,800 bottles/hour dependant on bottle design. The new machine is based on

technology from two successful blow moulding systems: the SFL linear blow moulder and the SFR rotary blow moulder – both of which are considered among the most reliable systems available on the market today.

Ministry of Science and Innovation to sponsor NZBIO 2011 Conference

he 2011 NZBIO Conference is shaping up to be the best one ever with the confirmation of the new Ministry of Science and Innovation (MSI) as the Platinum Sponsor. “NZBIO 2011 is New Zealand’s largest business R&D and commericalisation conference. It is dedicated to bringing together the worlds of innovation, research and development with a focus on successfully enabling enterprises to commercialise their products and grow their businesses internationally,” said Bronwyn Dilley, CEO of NZBIO. “Approximately 70% of New Zealand’s export earnings are currently derived from bio-

based industries representing a significant, and more importantly a growing input into New Zealand’s economy. With MSI coming on board as our platinum sponsor demonstrates the new agency’s focus on generating economic growth through science and innovation, working alongside NZ’s innovation enterprises to ensure they are adequately encouraged to create new products, processes and services, turning New Zealand into an innovative powerhouse,” said Bronwyn Dilley. The NZBIO 2011 Conference: Enabling Successful Bio Enterprise takes place in Auckland from 21-23 March, 2011.

Investment Wanted

The SFR 6 EVO has the following features:• A preform alignment system inside the machine that contributes to its compactness, which means that the machine can be shipped in a single unit making its installation much faster. • A vertical mould opening (SIPA Patent) which ensures maximum simplicity of preform/bottle transfer wheels and the lowest peripheral speed in the market. • Handling of the preforms is performed by a technopolymer transport chain, with the neck up heating and with very simple and low speed movements. • The heating oven features great process flexibility and can be used to produce extremely high quality standard containers as well as hot fill containers of various shapes.

• SIPA ARS and ARS-PLUS air recovery systems results in a 50% saving on compressed air and electricity. The SFR 6 EVO can produce extremely lightweight and complex containers such as a 1 litre container, weighing only 16g utilising preforms which determine a total stretch ratio of 18, producing a speed of 2,200bph per cavity. The design also allows the coupling with SIPA’s range of rotary fillers for synchronised filling and capping (SincroBloc version) for outputs more suited to the Australian and New Zealand markets. Suitable for products such as water, juice & isotonics, teas, carbonated soft drinks, milk & milk based products , edible oil, beer etc. nextSTEP Visit: www.hbm.com.au

In 2011 NZ Manufacturer covers the issues for manufacturing success. We will: 1 Focus

on the innovators and what drives them.

2 Support

‘mainland’ business with our special SouthMACH 2011 preview in the April issue.

3 Find

out what is not happening fast enough for the future of our

manufacturing sector and assist do something about it.

4 Have

exclusive reports from our business specialists in Australia and Overseas on the latest manufacturing developments which can benefit New Zealand.

Is your company part of the growth? part of the future? have a story to tell? Talk to me Doug Green 0064 06 870 9029 or words@xtra.co.nz and we’ll share it with our many readers both here and overseas.

nvestment finance is being sought by a Hawke’s Bay company wanting to bring Arctic Cats into New Zealand. Graham Houghton requires the investment to “get it off the ground here.” What he is especially excited about is the Prowler range which he believes has a very bright future in the rural community. These models, made in the USA, can have their trays removed as flat deck and they have a double carrying capacity. They are ideal where run off is a concern, where the ground is

sales@hiq.co.nz compacted and are a light diesel model made by Arctic Cats. Arctic Cats are in the 500,700 and 1000cc range and at 60kms an hour have the ability to work. nextSTEP Contact: Graham Houghton Tel 06 974 8152 or 021 246 5773 or email agri@airnet.net.nz

www.hiq.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

ANALYSIS

“The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low, and achieving our mark.” -Michelangelo (1475-1564)

Value adding to stay in the game

ew Zealand manufacturers need to create and retain more ‘value-added’ products in order to continue to be successful. This is one of the conclusions of Victoria Professor of Management Lawrie Corbett be on the state of manufacturing. Professor Corbett observes that over the last 10 years there has been a growing interest among manufacturers in bundling services with products—and he believes this will continue to grow. “Services are more profitable than products per se, and the source of revenue is more stable so they can provide a more sustainable competitive advantage.” However, he warns that the move into adding services has to be deliberate, well planned and systematic. “Manufacturing organisations are suddenly being asked to develop a whole new set of capabilities, new processes, new resources and also a new culture—and has to develop a

whole new set of relationships with their customers. This can take some adjustment.” He also notes the changing face of manufacturing. “Manufacturers from developed countries are

locating new production facilities closer to where their growing markets are—generally in emerging economies. “Meanwhile, factory jobs are vanishing all over the world, even in China, largely because technology and new knowledge has enabled manufacturing to become more efficient.” Like most OECD countries, New Zealand has experienced a steady decline in the share of manufacturing in total employment, Professor Corbett says. However, the sector still employs a significant portion of the workforce. His research indicates that manufacturing accounts for 14.1 percent of GDP and employs 12.7 percent of the workforce, and as many as five more jobs depend on each person directly employed. Manufacturing and technical capability plays a role in 50 percent of New Zealand’s tradable exports and this percentage is growing. A recent stint in Switzerland while on research leave enabled him

to observe small central European manufacturers close at hand. He found that many of these companies survived by improving the quality of their products to match worldclass levels. “Rather than being tied to an outdated product range they focus on research and development to produce differentiated products. As the product matures they move production to a lower cost location in their global plant network, but keep the research and development at home.” This is another lesson New Zealand manufacturers can learn from, says Professor Corbett. He also believes more companies need to develop international plant networks in order to grow. “For the future of our economy we need global head offices and globally managed manufacturing businesses here in New Zealand, to develop our international capability.”

these “hidden champions” have helped propel Germany to a bigger trade surplus than China. These are companies which are medium in size, usually privately owned and have developed global leadership despite their relatively small size. How have they done it? Qualities these companies have in common: • focus on a global niche and aim to dominate it (focus scarce resources) • they pursue technology based product leadership to stay ahead of competitors (constantly innovating) • private ownership allows for a culture of long term relationships

within firm and with external partners. • are relentless about customer service and control the value chain through wholly owned distribution channels (stay close to customer feedback) • have passionate sales people (partly achieved through private ownership of the companies) determined to open up new markets. • gain revenue from services as well as selling hardware. • They significantly out-perform other German companies. Read the full report at www. manufacturingnz.org.nz/news-

By Catherine Beard

Professor Lawrie Corbett

Manufacturing Export Domination - Lessons from Germany

ew Zealand manufacturers and the New Zealand economy could benefit a lot by learning from the manufacturing and exporting success stories of Germany, which have been studied by business academics Bernd Venhor and Klaus E Meyer. They found that Germany tops the charts in manufactured exports; largely due to a large number of “hidden champions” they call “Mittelstand”. Despite low economic growth in Germany, an ageing workforce, high unemployment, over-regulated labour markets and high labour costs,

NZ MANUFACTURER • March 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 www.nzmanufacturer.co.nz

Executive Director Manufacturing BusinessNZ and-info/latest/?a=19364 (highly recommended). One of the observations the academics made is that the German education system has a strong traditional emphasis on vocational training, which is something that has fallen off in New Zealand. The other observation is that they have good applied research institutes that facilitate the transfer of scientific research into innovative products and services.

www.nzmanufacturer.co.nz

Manufacturing Technology Manufacturing Heroes Supply Chain Sustainable Production

Advertising Booking Deadline – Last business day of the month prior Advertising Copy Deadline – Last business day of the month prior Editorial Copy Deadline Tuesday 1 March 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.

NZ Manufacturer February 2011

“Spectacular achievements are always preceded by unspectacular preparation.” -Roger Staubach

MANUFACTURING TECHNOLOGY

Delcam supports GKN Aerospace project

elcam has played a major part in a GKN Aerospace project to supply new electro-thermal ice protection technology for the wings of the Boeing 787 Dreamliner aircraft. The project represents the first application of this technology to a major wing environment. The Delcam contribution involved both Delcam Professional Services, which developed a novel manufacturing process for the leading edge of the wing, and the company’s Advanced Manufacturing Facility, which manufactured demonstration parts and the initial production samples. The process is based on Delcam’s adaptive machining technology that uses a combination of the company’s machining and inspection software to manufacture complex components to high levels of accuracy on a consistent basis. The complete Wing Ice Protection System for the Boeing Dreamliner is a joint project between GKN Aerospace and Ultra Electronics, which provides the System

controller. The System will provide electro-thermal ice protection to the leading edge slats of the aircraft wing. Electro-thermal systems remove the need to bleed hot air from the engine, which has been the traditional approach to wing ice protection. An electro-thermal system is more fuel efficient and avoids the problems associated with channelling hot-gas tubing through complex wing and fuselage structures. As a result, the performance efficiency of the aircraft engine is increased, whilst maintenance requirements are reduced. The new product is the result of the combination of GKN Aerospace’s unmatched expertise in advanced composite structures and the company’s experience with electro-thermal heating. Similar GKN products have already been proven on the Boeing V-22 engine inlet and on the AW101 main rotor blade. Following the successful completion of the initial production

The Huron KX 200 at Delcam’s Birmingham headquarters was used to manufacture demonstration parts and the initial production samples samples at Delcam, the process was transferred to GKN’s Luton site for the move into full-scale manufacture. Furthermore, the staff at GKN were so impressed with the results from the Delcam software that they subsequently purchased

both the PowerMILL CAM system and the On-Machine Verification version of the PowerINSPECT inspection software. NextSTEP Contact: Chris Whittington, Camplex NZ Ltd Tel 06 836 7487

SWX World wrap-up Kiwi technology companies offered a soft landing in Sydney S

ustralia’s leading business acceleration company ATP Innovations has announced a special programme to assist New Zealand technology companies entering the Australian market. Aimed at companies in the areas of biotechnology, life sciences, clean technology, ICT and engineering, the programme is designed to provide a ‘soft landing’ for New Zealand companies. Located within the Australian Technology Park at Redfern, Sydney, ATP Innovations supports Australia’s largest cluster of highgrowth technology businesses. As well as access to ATP Innovations’ networks, events and business programmes, other benefits include: * Provision of up to five days office use per month (over up to three months) at no cost. Includes internet access, meeting rooms, photocopying and printing services * Temporary discounted room rental for tenures of up to three months * Consideration for inclusion in the ATP Innovations’ portfolio at the conclusion of the initial three month period “This offer presents a prime opportunity for New Zealand technology companies to more

easily establish themselves in the Australian market”, said Susan Wilson New Zealand Trade and Enterprise’s Australia National Manager, Bioeconomy, based in Melbourne. ATP Innovations CEO Hamish Hawthorn said the decision to work with New Zealand business was motivated by a desire to facilitate better business commercialisation of Kiwi companies. “ATP Innovations supports innovation – something New Zealand is internationally renowned for. Through the creation and building of new businesses within an innovative environment based on world best practice, we hope to strengthen our Australasian networks and make this a real hub of technology.” “Through working with New Zealand businesses we can strengthen our trans Tasman alliances and use these to help businesses to more successfully grow, both in Australia and into third party markets.” nextSTEP Contact Susan Wilson, National Manager NZTE Australia on +61 3 9604 2004 or email susan.wilson@ nzte.govt.nz or visit www.atpinnovations.com.au

olidWorks World 2011, which was held in San Antonio, Texas in January, was the 13th annual gathering of customers, partners, resellers, and employees of DS SolidWorks, maker of software for design, simulation, data management, technical communications, and sustainability assessment. SolidWorks World 2011 hosted more than 4,500 attendees including engineering and design professionals, students, educators, partners, resellers, and DS SolidWorks employees from around the globe. Key note speakers included: * Jim Lovell and Gene Kranz, who flew on the Apollo 13 mission * Bernard Charles, president and CEO of Dassault Systemes * Jeff Ray, Executive VP, Geographic Operations, Dassault Systemes * Bertrand Sicot, CEO, Dassault Systemes SolidWorks Corp * John Hirschtick, Founder and Group Executive, Dassault Systemes SoldWorks Corp * Casey Pieretti and Bill Spracher, Bionic Builders The conference included numerous partner exhibitions, information sessions, training and certification, product launches, networking sessions, a special guest appearance from notable actor Kevin Bacon, as well as SolidWorks’ youngest user, and even a special event night including a live band,

and a professional bull riding contest! Products Launched included: * n!Fuze – an effective online application that makes the process of sharing files and collaboration between large teams very simple. * SolidWorks Live Buildings - a brand new 3D conceptual design tool for the architecture and construction industry * SolidWorks 2012 enhancements driven by customer insights including improvements for creating balloon order, magnet lines, view label reuse, a costing analysis tool, sheet metal enhancements * The top ten list of enhancements as requested by customers on the SolidWorks forum – including angle mates that don’t flip at random, file compatibility between versions, converting a solid body into a surface body without having to delete, offset, or knit faces, enhanced equations input, and editing and linking. Solidtec Solutions was also announced the winner of Top Reseller Highest Customer Satisfaction Asia 2010. Shane Preston CEO of Solidtec Solutions remarked “It was fantastic for Solidtec to be recognised amongst its peers for customer satisfaction. Solidtec was founded with a clear vision to offer customers best in class service, support, and back up. To have achieved this award so quickly is a testament to the dedication of all Solidtec staff” www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

MANUFACTURING TECHNOLOGY

Safest-ever machining

elcam has released the 2011 version of its PowerMILL CAM system for five-axis and high-speed machining. This release makes the programming of safe toolpaths easier than ever thanks to new stock-model-engagement options that protect both the cutting tool and the machine from excessive loading. Other enhancements include new editing capabilities to simplify the machining of duplicate items; more versatile control of feedrates for leads and links; and extra functionality for sketching, plus the completion of the move to the new clearer forms for the complete range of strategies. The options to optimise tool loading will help overcome a constant conflict for programmers. On the one hand, they want to maximise productivity by setting feed-rates as fast as their machines will allow; on the other hand, they need to ensure safe speeds that will not break the tool. The need for safe machining has, of course, become more critical as a growing number of companies are introducing lightsout, unmanned operation overnight or during weekends. A number of CAM programs incorporate strategies based on the extent of cutter engagement to give more consistent loading on the tool and so allow higher feed-rates. However, these options are usually limited to the initial roughing operations, or to only roughing and rest-roughing. PowerMILL’s new stock engagement technology can also be employed with all of the system’s finishing and rest-finishing strategies so ensuring that the safestpossible toolpaths are run on the machine at all stages. The key to this more comprehensive solution is the accuracy of the stock models produced within PowerMILL after each machining stage has been completed. These models give a precise representation of the material still remaining on the part and are used to ensure that the cutter is never asked to remove more material than it can safely cut. At the same time, the stock models also ensure that toolpaths are not produced where there is no material remaining so the machine tool is never left cutting air. The new toolpath editing options in PowerMILL will make it easier to produce multiple copies of any duplicated item, for example, when machining a series of cavities into a mould tool. The user can now specify an array of multiple copies in one operation, using approaches such as a number of rows and www.nzmanufacturer.co.nz

columns or a radial spacing around a central point. Once the copies have been produced, the complete series of toolpaths can be re-sequenced to minimise tool changes. Enhancements to feed-rate optimisation have been introduced to give better control of leads and links at the points of cutter engagement and exit. Typically, the feed rate as the cutter enters and exits the material needs to be slower than that set for the main length of the toolpath. Setting the entry speed too high will risk damage to the cutter and the spindle, and can even move smaller parts on their fixtures. Exit speeds are critical when machining brittle materials, such as graphite electrodes, since the cutter can chip the surface of the part if it is moving too quickly. PowerMILL users can now avoid these problems by setting specific entry and exit feed-rates, either as percentages of the feed-rate for the main toolpath or as absolute values. PowerMILL has incorporated sketching functionality for several years, for example to draw boundaries within the model to limit individual machining strategies to particular areas of the part. This has been enhanced with a number of new editing options, including the ability to offset or transform curves, and to flatten 3D curves into 2D curves, or to project 2D curves onto 3D surfaces. nextSTEP Contact:chris@camplex.co.nz

“Most people are about as happy as they decide to be.”

-Abraham Lincoln

Rockwell highlights growing Grey Market in Australasia

he emergence of a Grey Market in Australia and New Zealand mirrors what has happened in markets in Europe and the United States; customers should be concerned because they may be exposed to a range of negative impacts. The simplest description of a Grey Market is the buying and selling of goods that are not what they purport to be. Grey Market goods enter the marketplace in a variety of ways. In some cases, companies seeking a certain number of a particular component may order a greater quantity in order to qualify for a cheaper price. The excess might then be resold as discrete items for a profit. Other potential entry points are liquidation of stock by companies that have over purchased,

perhaps for spare parts; or insurance liquidators trying to make a profit on fire or water-damaged goods. Many companies are unaware they are purchasing grey market goods, but those who do so knowingly should be aware of the risks they are running. “One of the major potential difficulties is significantly greater downtime– either due to the failure of products that would not otherwise fail, or longer lead times and expense on repairs” said Twain Drewett, Managing Director Australia and New Zealand, Rockwell Automation. If a company’s products and success depend on production lines working reliably, is the risk of increased downtime worth a few dollars that might be saved?

New blood for Rockwell sales team

ey personnel changes in the Rockwell Automation Australia and New Zealand sales team include a new Australia and New Zealand sales director, a new Queensland state sales manager, and a new state sales manager for Victoria and Tasmania. The new blood in the team brings a wealth of industry experience and enthusiasm that will directly benefit end-users across the region. According to David Hegarty, Rockwell Automation Australia and New Zealand sales director, his most recent position with the company’s architecture and software business in Singapore has provided him with key insights to bring to his new role. “The Asia Pacific markets—particularly China and India—are much less constrained by conventional wisdom than our approach here in Australia and New Zealand,” he said. “We can

learn a great deal from their passion and their willingness to consider less-orthodox methodologies. This experience has also given me an invaluable understanding of some of Australia’s key trading partners.” The Australia and New Zealand Sales team comprises six state sales managers reporting to Hegarty, covering all Australian states, New Zealand and Papua New Guinea. “While we operate a common business approach across these regions, each state sales manager has the flexibility to tailor the model to the specific local needs,” said Hegarty. “When dealing with industrial end-users, consultants and OEMs that operate across the regional divides, the Australia and New Zealand sales team ensures a cohesive approach is achieved for the delivery of seamless and consistent services.”

Rockwell Automation Australia and New Zealand Sales Director, David Hegarty, heads up the sales team.

NZ Manufacturer February 2011

“Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.” -Og Mandino

LEAN THINKING

The Power and Magic of Lean

Productivity Solutions invited Norman Bodek, the Godfather of Lean, to visit New Zealand and deliver a 2-day workshop on the “Power and Magic of Lean”. Mr Bodek will deliver the workshop on 5th and 6th of April in Auckland. Norman Bodek is known as Mr. Lean, Mr. Productivity and the Godfather of Lean and who was inducted in to the Industry Week (US) manufacturing hall of fame in Dec 2010 is to deliver a 2-day workshop in Auckland on the 5th and 6th of April 2011 at Sorrento in the Park. This is a great occasion for New Zealand business people to learn from a great master who has been credited with introducing TPS (Lean) to the US manufacturers 30 years ago. He has discovered a number of famous personalities such as Shingo, Ohno, Arai, Ishikawa, Fukuda, Nakamura, and others. Bodek has published over 100 books on lean including a few of his own and others being translation of Japanese books. Bodek also is the co-founder of Shingo Prize for Operational excellence. He has visited Japan 77 times and counting (visiting Japan in March 2011 again to meet Takashi Harada and write a book on the Harada method). His recent discovery is the amazing “Harada Method” which has been taught to more than 50,000 people in Japan and this is part of our 2-day workshop. The article below is written by Norman Bodek for NZ Manufacturer.

have to say that 2010 was another wonderful year for me. I was able to lead two study tours to Japan for The Shingo Prize, one in September and the other in December. Both were outstanding learning experiences for the travellers and myself. I found many new and powerful methodologies that I feel are missing in the West. Most of what I discovered is related to Toyota’s second pillar: “Respect for People,” or the Human Side of Lean. Each month in my newsletter I want to share with you some of what I learned. Over the past few months I have asked different groups of managers the following question: “What is the main role of a manager?” I then give them ten possible answers and ask them to rank each one. These are: 1. Profits 2. People growing 3. Happy people 4. Customer service 5. Great products 6. Great process 7. Cost reduction 8. New products 9. Quality 10. Productivity The managers give a 1 to the most important and a 10 to the least important. The last time I gave out this survey, I was traveling with 21 managers in Japan. Below are the results from that survey (the lower the number, the higher the ranking): 60 - People Growing 70 - Quality

71 - Customer Service 87 - Happy People 101 - Great Process 106 - Productivity 134 - Profits 136 - Great Products 136 - Cost Reduction 145 - New Products By a significant amount, the managers picked “People Growing” as their most important role. I’ve taken this survey four times in the last few months (surveying over 100 managers) and each time the result has been nearly identical. The managers recognize that improving employees’ skills and increasing their knowledge strengthen the company and improve employee work satisfaction. Unfortunately, managers are unsure how to put this into action. What can you do to help people grow? A few months ago, I spent time working with a group of senior executives from some of the largest corporations in Canada. When I asked them if any of their companies trained their employees at least two hours per month, they all laughed and no one raised a hand. How can employees grow if they do not receive even two hours of training each month? If managers are serious about helping people grow, then I believe we have to challenge people and help them continuously learn and build new skills. There are systems out there that do encourage employees to grow. For example, Toyota’s “Respect for

People”, or Jidoka, allows workers to stop the line when they detect a quality problem. This teaches everyone in the company to become a problem solver. Quick and Easy Kaizen, the suggestion system that encourages all workers to solve small problems around their work area, also encourages employees to improve. Both systems are important but there are other additions needed to help people grow. One of my latest discoveries in Japan is the Harada Method, created by Takashi Harada. It makes a major shift giving managers a new perspective in helping people grow. In addition to asking people to improve the production process by reducing defects, eliminating the seven wastes, etc., it asks managers to empower people to be personally responsible for their own success. Imagine how exciting work can be when in addition to doing your normal job you are also working on creating a new future for yourself. Mr. Harada is a former junior high school teacher in Osaka, Japan, where he coached track and field at one of the worst schools in the city. Through study and diligence, he developed a new methodology to work with the students, who had few opportunities for success. It took him a while to perfect his system, but after seven years of working with it, thirteen of his students won gold medals in track and field-the highest medal in all of Japan! In addition to the individual successes, the rest of the school was transformed both

By Norman Bodek athletically and academically. Mr. Harada also set up a consulting and training practice to teach industry. To date, over 40,000 people in Japan have been trained. Harada’s method is not complicated, but it is very powerful. Each person first picks one thing at which he or she wants to be successful. This first step is challenging but with thought you can find something that you would like to succeed at. The more specific this vision is, the easier it is to attain. Once you have the vision, you come up with eight categories to work on to reach that goal and then you create eight specific action tasks within each category - creating a 64 Chart that helps you focus on what you need to improve to be successful. You then use the 64 Chart to develop your long-term goals, your monthly plans and your daily action sheets to accomplish all of your tasks. For example, my goal is to be “the Best Teacher to Teach Managers (Teachers) how to Teach their Employees (Students) to succeed in life.” One of my eight categories is to “Write” a specific action and then a specific task which would be to write a book in the next three months with Mr. Harada. To register for the 2-day workshop, organised by Productivity Solutions Limited and delivered by Norman Bodek: email PSL on info@pslglobal.net or visit www.pslglobal.net

www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

FOOD MANUFACTURING

- Steve Jones

Waste expense into profits from green energy

world leader in clean water and green energy solutions, Global Water Engineering, is introducing new generation RapTor technologies to transform waste water byproducts from an industrial disposal expense into green energy profits. The Raptor treatment system for organic residues can convert almost any organic residue or energy crop into biogas, valuable electricity or heat., says GWE, which has successfully built and commissioned more than 75 biogas utilisation plants for clients worldwide. Its Raptor technology – which builds on this wealth of experience - stands for Rapid Transformation of Organic Residues. It’s a powerful liquid-state anaerobic digestion process that consists of enhanced pre-treatment followed by multistep biological fermentation. “A Raptor plant is a total solution, starting with logistics for handling the energy crop and ending with the production of biogas, green electricity or steam. A wide range of organic residue types can be processed, resulting in an efficient and rapid conversion or the material to agricultural fertiliser and biogas,” said GWE CEO Mr Jean Pierre Ombregt, whose company has been involved in more than 250 water and waste water projects in Asia, Africa, North and South America, Australia, China, Europe (including Eastern Europe) and Russia. Clients include Budweiser, Chang, Carlsberg, Coca Cola, Corn Products Int’l, Danone, Fosters, Heineken, AB InBev, Kraft, National Starch & Chemicals, Nestlé, Pepsi Cola, SAB-Miller, San Miguel, Singha, Sunkist, Tsingtao and many

“You only have two choices about your future: you can let it happen, or you can make it happen.”

more national and international leaders, for which projects have been completed involving a wide spectrum of environmental topics such as anaerobic and aerobic wastewater treatment, biogas reuse, renewable energy, green power, carbon credits, bio-ethanol, biomass to energy, bio-waste to energy, sludge digestion, and water recycling “Raptor builds on this wealth of global and local experience to help provide biogas guarantees are unmatched in the industry. Our technologies specialised knowhow in generating biogas with our extensive range of anaerobic reactors, and in supply and installation of biogas re-use and handling systems for fossil fuel replacement or power generation,”said Mr Ombregt. Raptor technologies are particularly applicable to such industries as: u food waste, such as market surplus, kitchen waste, off specification fruit and vegetables, and excess crops u agro-industry residues, like starch and sugar pulps, vegetable or potato waste. u industrial residues, such as brewery waste (spent grain), fruit processing waste, and paper mill sludge. u energy crops, for example corn (silage), various grasses, algae. The diversity of the material to be processed means a range of different Raptor pre-treatments are available, to allow the highest possible conversion efficiency. These pre-treatments include: u Enzymatic pre-treatment: A high temperature enzyme reactor is used for pre-treatment of certain cellulosic substrates, to

solubilise the organic matter prior to fermentation, enhancing the fermentation speed. u Chemical pre-treatment: Mild caustic treatment, at an elevated temperature, is used for partial hydrolysis of hard-to-digest polysaccharides and proteins, increasing biogas yields. u Thermal pre-treatment: Slurry is heated for hygienisation of animal products, protein denaturation and cell autolysis. This is used in combination with enzymatic, chemical or mechanical pretreatment. u Biological pre-treatment: GWE’s proprietary Thermophilic Acidification Reactor (TAR) enhances the digestibility of many organic substrates through partial solubilisation of solids, low pH induced protein denaturation and polysaccharide hydrolysis. u Mechanical pre-treatment: GWE’s Powerpulper turns coarse slurry into a fine mash. Powerpulper consists of a compact tank with a powerful cutter pump mixing system.

Rapid anaerobic digestion

In the Raptor process, the pretreated and blended substrate slurry is transferred into GWE’s Anamix digester that uses energy efficient and low maintenance mechanical mixing. The digester tank comes in sizes up to 12,000 m3. Optional extras include a foam breaker fan, a scum buster system and a bottom grit trap. The digester tank is fully insulated, heated by recycling the digester content through a special heat exchanger. Loading rates of up to 10-15 kg COD/m3 per day, and biogas production rates of up to 6.3 Nm3

per digester per day, can be obtained in Raptor plants, depending on the nature of the substrate. The digestate from the digester is usually treated in a centrifuge for removal and disposal of nondigestible solids in the form of wet sludge cake, ideal for use as an agricultural fertiliser. Sludge cake drying and pelletising systems are available. The liquid concentrate from the digester is added to the fresh solid waste in the slurry-making stage, or recycled to a TAR treatment, or ultimately disposed of in a conventional wastewater treatment plant.

Biogas use

Biogas generated in the Raptor process is desulphurised and partially dried, using GWE’s Sulphurix and Gasodrix systems, and consequently used for green power generation. Alternatively, it can be used in a steam boiler for steam production, in which case desulphurisation and drying are typically not needed. With more than 300 successfully completed projects in more than 50 countries, GWE is one of the market leaders for anaerobic wastewater treatment and for the transition of biosolids into green energy. The Global Water Engineering group of companies specialises in industrial wastewater solutions and renewable energy solutions. GWE’s wide range of technologies cover state-of-theart solutions for water recycling, digestion of biomass and sludge and slurries, biogas production and reuse, bioenergy and carbon credits. nextSTEP Visit: www.globalwaterengineering.com

Airstrokes tackle process and packing issues

ibratory tables are widely used within industrial processing, where they facilitate precise control of product weight or volume in all packaging applications, as well as allowing optimum packing of standard bags, cartons, drums, crates and containers. Problems can arise, however, with the disruptive noise generated by their clashing springs causing OH&S issues - or where their hydraulic or pneumatic actuators malfunction if too much grime is present in their operating environments or too much water is to spilt on them as operators wash down their machines to ensure the proper sanitary conditions. A solution to both the noise and breakdown issues is offered by the Firestone Airmount isolator and structurally identical Airstroke® www.nzmanufacturer.co.nz

range of actuators from Bridgestone New Zealand, which contain no seals, shafts or internal moving parts to break, wear and disrupt production in plants ranging from metals, minerals processing and electrical components to food, beverage and primary processing. The enormously tough rubber and fabric-reinforced isolators and actuators are, in effect, balloons or bellows engineered for particular tasks – including simultaneous high speed actuation while eliminating up to 99 per cent or more of NVH from normally raucous equipment. The single, double and tripleconvoluted and rolling sleeve Airstroke designs are made to the same rigorous standards as the air springs used as suspension springs in heavy vehicles such as semi-trailers, where they have to

withstand monumental battering year in, year out. The range available to manufacturers and processors throughout Australasia extends from the largest, 40,000kg capacity, models down to palm-sized Airomatic mini actuators for delicate Continues page 28

Single convoluted Airstrokes in a vibrating table application

NZ Manufacturer February 2011

“Strong minds talk about ideas; weak minds talk about people.” - Sean Covey

COMPANY PROFILE

Temprecord International Ltd

0 years ago, the directors of Temprecord saw the need for a temperature and humidity logging system suitable for processing, storage and logistics environments. At that time, research indicated a requirement across a variety of industries that dealt with perishable and/or temperature/ humidity sensitive products. Now with a wealth of experience in food processing technology and temperature and humidity monitoring, Temprecord International Ltd supplies monitoring equipment to a range of industries nationally and internationally including blood services, pharmaceutical companies, laboratories, hospitals, food processing companies, food export industry, as well as industrial applications such as HVAC systems. Some of the products monitored are critical life saving items, and Temprecord exports worldwide due to a reputation for accuracy, precision, reliability and warranty provided with their products. Temprecord, based in East Tamaki, Auckland, has been operating for 19 years and is accredited to ISO/ IEC 17025 Calibration Laboratory standards as well as ISO 9001 Quality Management Systems. All products are made and designed locally with the focus on high quality and reliability, with a commitment to the environment in the form of an extensive recycling programme. Software is designed locally and supplied free of charge including updates, as a commitment to customers, facilitating total after sale service and support.

Calibration

Temprecord understands the importance of accuracy in temperature and environmental recording and is one of the few temperature/humidity monitoring equipment manufacturers in the

Phone Auckland +64 (09) 274 9825

From left Karyn Barrett, Sandy Keenan and Harish Kumar. world accredited to ISO/IEC 17025 Reports can be printed and/or saved as PDF format documents Calibration Laboratory Standards. for future reference or electronic The company has designed and transfers; for example, as an developed approved sys-tems and attachment with email message. quality calibration equipment to ensure that their temperature/ 2. The Temprecord Active Display Real-time Monitoring System humidity recorders are manufactured monitors temperature, humidity, to the highest precision and accuracy room pressure differential, standards available. power failure and door opening The company’s unique 3-point information as it happens, then calibration process enables their sends out a warning enabling products to be extremely accurate action to be taken in a timely and provide repeatable readings manner to preserve critical which has contributed to achieving a items. This is a fully automated reputation for reliability. monitoring, warning and reporting This has resulted in increased demand for product both locally and internationally while providing customised solutions as required and cost savings for clients.

system requiring minimal human input, saving time and money as well as reducing the potential for human error. 3. Cold Chain Transportation System – Temprecord have developed a traceable validated system for transporting temperature critical product at set temperature parameters in order to maintain the integrity of the product on arrival. A calculator based on the required parameters is built into software, based on traceable and validated tests performed in our laboratory. A current project is a version of the Temprecord Active Display Real Time Monitoring, using embedded technology to provide an Electronic Chart Recorder to replace the older mechanical paper Chart Recorder. This new technology will provide labour savings and facilitate the electronic storage/transfer of data. Initial supply to an offshore medical company that stores critical perishable products is proving very successful and Temprecord is targeting similar companies locally and in Europe. nextSTEP Visit:www.temprecord.com Or email: Sandy Keenan, Market Development and Sales Manager sandy@temprecord.com

Product Categories:

1. Temperature and Humidity Data Loggers – monitor, record, and report temperature and humidity data. Logged data indicates whether the temperature and/ or humidity critical product has been stored within pre-set limits or not, as well as a detailed statistical information ‘picture’ of the time monitored.

Email: info@temprecord.com

Temprecord dataloggers

www.temprecord.com www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

BUSINESS NEWS

“Success isn’t magic or hocus-pocus, it’s simply learning how to focus.” - Jack Canfield

New government growth initiative inspiring Waikato business

aikato business is leading the way in response to a new government initiative giving them access to thousands of dollars funding and advice even before the scheme’s official launch. Opportunity Hamilton’s business development manager Adrian Dixon said businesses are lining up to be part of the regional partners scheme providing funding and advice for business growth and innovation. “Waikato appears to have the highest number of registered training providers for the scheme in New Zealand so far and we are already working with several businesses keen to make the most of the initiative. It’s looking good for business and good for the region,” Adrian said. About 250 business owners will attend the official launch of the initiative on February 7, with guest speaker Trans-Tasman rower Shaun Quincey expected to draw a crowd. “This initiative delivers seamless, integrated support to New Zealand business from idea to full commercialisation and export. It gives businesses access to research and development support, global expertise and will help drive technology, innovation and business capability training,” Adrian said. Opportunity Hamilton and Waikato Innovation Park are jointly appointed as one of 14 regional partners of NZTE and Tech NZ for the scheme throughout New Zealand, making them the contact for any business seeking government funding assistance. Adrian is working with Innovation Park’s Peter Maxwell to provide regional businesses access to funding, advice and support geared at business growth. Innovation Waikato has already distributed more than $1.5 million in technology and development funding to businesses through the scheme, and at least 20 training providers have applied to be involved in the region. New Zealand Institute of Management and BDO

www.nzmanufacturer.co.nz

are among providers on the list. Opportunity Hamilton, the city’s economic development agency, will manage the business funding arm of the initiative for the greater Waikato, while Waikato Innovation Park leads the research and development programme for commercial business. The regional partners initiative replaces NZTE’s Enterprise Training Programme giving greater flexibility in training and development options for businesses, Adrian said. Opportunity Hamilton and Innovation Park will work closely with economic development agencies, chambers of commerce, industry organisations, educational institutions and other key stakeholders in developing support programmes for the specific needs of each community. “This is very much a regional initiative and our goal is to make it relevant and beneficial to everybody. We will be working closely with each community to ensure this happens,” Adrian said. Opportunity Hamilton, formerly the Business Development Centre, has more than 20 years experience helping thousands of people start and grow businesses, through business coaching, training and high impact support programmes. A more recent focus has been helping businesses relocate and set up companies in Hamilton and marketing the city as an ideal business location. As a regional partner Opportunity Hamilton can support privately owned, New Zealand GSTregistered business with less than 50 full time staff in accessing up to $5000 funding each year to pay half their training costs. Other assistance available through the business development programme includes connecting businesses with experts, research partners and companies with complementary skills, commercialisation and advice on protecting intellectual property. To be eligible for the voucher-

From left, Opportunity Hamilton chief executive Sandra Perry, business development manager Adrian Dixon and Innovation Waikatoís Peter Maxwell. based funding system business owners must demonstrate a desire to innovate and grow their business. “Part of the assessment is talking through their business, getting a feel for where it’s at, identifying their skill gaps and executing a strategy to close their skill gaps with the appropriate training programme. Depending on a business’ size and aspirations, regional partners can tailor funding and support to meet their needs,” Adrian said. Research and development funding support from a national pool of $75 million is available through Waikato Innovation Park’s TechNZ arm of the initiative. The R and D investments focus on growing commercial business through the creation and commercialisation of innovative technology. “Grants can be used for a range of R and D activity including new product development, enlisting domestic or off-shore expertise and internships for students,” Peter said. The regional partners provide access to TechNZ’s Global Expert service to locate and connect businesses with international and

national experts offering help from concept to commercialisation. They also help business engage with Crown Research Institutes and universities. “These R and D investments are made in the expectation that supported businesses will become more successful, ideally looking at developing or growing their export markets, and make a contribution to job creation and New Zealand’s economy. Ultimately they are giving something back to New Zealand,” Peter said. Businesses, scientists and students are among those already benefiting from the grants. “This is really a way of enabling New Zealand companies to up their game and become more competitive internationally,” Peter said. NZTE is the government’s national economic development agency. TechNZ is the Foundation for Research, Science and Technology’s business programme, investing millions of dollars a year in research and development in New Zealand business. www.opportunityhamilton.co.nz

NZ Manufacturer February 2011

SUPPLY CHAIN Maersk’s focus firmly on sustainability

“We can do anything we want if we stick to it long enough.” - Helen Keller

aersk Line’s role as official Transportation Partner for the VELUX 5 OCEANS race demonstrates the increasing importance the company is placing on environmental sustainability, says the company’s New Zealand Managing Director, Julian Bevis. “While Maersk Line has a long association with competitive sailing of all shapes and sizes, here and around the world, it is the race organiser’s focus on sustainability that encouraged us to get involved with this particular event,” says Mr Bevis. “Competitors in the VELUX 5 OCEANS race are trying to sail around the world with the least possible environmental impact – something Maersk Line is striving to do with our own fleet.” Maersk Line’s Climate Box – a refurbished container featuring interactive displays demonstrating shipping’s environmental impact and what Maersk is doing to cut its carbon footprint, was on display in the VELUX 5 OCEANS race village during the fleet’s Wellington stopover, and will visit Auckland’s Viaduct Harbour in February. Mr Bevis says the Climate Box proved very popular with race village visitors, and illustrated the value of improved environmental performance to the whole supply chain. “Very often, eco-efficiency also means financial and operational efficiency,” he says. “If you can reduce the amount of fuel you use, for example, you not only reduce your CO2 emissions, but also your fuel bill.” Mr Bevis says the business reasons for improved environmental performance do not end there. “As people around the world pay closer attention to the carbon footprint of the products they use and consume, their suppliers – our customers – increasingly look to us to help them ensure best environmental practice across their entire supply chain. “This is particularly the case for a country like New Zealand, whose economy is so dependent on trade, and whose international brand is so tightly linked with a clean green image.” Over the past few years, Maersk has made considerable progress in reducing its CO2 emissions, including being the first shipping company to have its carbon emission calculations independently audited and verified. The company is now aiming to cut CO2 emissions by a further 25 percent per container by 2020, something Mr Bevis says involves assessing every aspect of their operations. “The process begins when our

ships are designed, with a focus on energy-efficient construction of the hull, propeller, and engines. Even the paint plays a part: anti-fouling paints reduce friction and thus increase fuel efficiency, as does polishing the hull and propeller. Then there are innovations such as an electronically controlled main engine, and a system that captures waste heat and uses it to provide power for propulsion and electricity. That alone cuts fuel use by as much as 10 percent,” he says. The focus on best environmental practice continues even beyond the ships’ working life. Between 2000 and 2010, Maersk’s Ship Recycling initiative recycled more than 50 ships, without any of the serious injuries and damaging pollution that is so often part and parcel of the ship-breaking industry. Mr Bevis says Maersk has also put a lot of effort into improving the environmental performance of its refrigerated containers. New refrigeration software has cut the energy used for cooling by up to 50 percent, generating CO2 reductions equivalent to 325,000 tonnes per year. Improved refrigeration technology also opens up new opportunities for exporters to cut their own carbon footprint. Rare delicacies, previously automatically transported by plane, can now go by sea. In 2009, Maersk transported its first consignment of live seafood from the East Coast of the US to Spain. “By switching from air to sea, shippers can cut the CO2 footprint of the goods they are transporting by 90 percent,” Mr Bevis. Mr Bevis says the introduction of slow steaming, led by Maersk, has generated significant improvements in fuel efficiency for a number of lines. Previously, it was thought that slow steaming – reducing speed from 24 knots to 18 knots – would damage a ship’s engines. Through an extensive series of tests, Maersk was able to demonstrate that was not the case, and other lines were quick to follow the company’s lead. Mr Bevis says that, used in conjunction with voyage planning programs that identify the most fuelefficient route, slow steaming not only cuts fuel consumption, it does so without adding much if any time

Over the past few years, Maersk has made considerable progress in reducing its CO2 emissions.

to many trades. “Transit times on most of our routes are relatively unaffected,” he says. “All that happens is less time is spent waiting to berth at the other end of the journey.” Mr Bevis says the drive for increased eco-efficiency is now a central part of Maersk’s business strategy, and the company is lending its weight to efforts to develop industry-wide systems to improve shipping’s environmental performance. “The nature of shipping makes regulation on a country-by-country basis difficult,” he says. “For example, should the

responsibility for greenhouse gas emissions fall on the ship’s country of ownership, its country of registration, the country where the cargo originates, the country where it is landed? “Clearly, an industry approach is the most effective, which is why we are supporting the work the International Maritime organisation and others are doing to develop one.” “In the meantime, we will continue to work on improving our own performance. Shipping can play an important part in creating a lower carbon future for supply chains around the world, and we want to continue to lead that process.”

Port of Tauranga international hub

ort of Tauranga has welcomed the Shippers’ Council recommendation that it should become New Zealand’s North Island international hub port. In its report on New Zealand’s international supply chain released today, the Council says Port of Tauranga is the logical choice to be first to make the investment to accommodate the larger 7,000TEU ships that are becoming the trend in international shipping. “It is time for New Zealand to make some tough decisions on infrastructure investment to ensure that our exporters remain competitive globally,” says Port of Tauranga Chief Executive Mark Cairns. “We congratulate the Shippers’ Council on their analysis and recommendations, which gives the sector a robust, objective report on which to base future discussion and investment decision-making about the supply chain.” The Port of Tauranga has superb infrastructure, both road and rail access, a strategic land bank, the best productivity in Australasia,

as measured by the Australian Productivity Commission, a strong balance sheet and is located at the heart of the New Zealand export and import belt. The Company’s application to widen and deepen Tauranga harbour’s shipping channels is about to be considered by the Environment Court following a recommendation from Environment Bay of Plenty to grant the resource consents. Dredging will allow the port to take vessels of up to 7,000 TEUs (twenty foot equivalent containers). Mr Cairns says the Company has sufficient balance sheet capacity to invest in the necessary infrastructure without taking on additional debt. “We have Board approval to commence the first stage of the dredging project as soon as we have resolved the appeals.” Port of Tauranga is already by far the country’s largest port by volume. According to Statistics New Zealand, Tauranga handled around 80% more international cargo than its nearest competitor (up from 56% last year) and three times the volume of exports. www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

SUPPLY CHAIN

“You don’t have to be great to start but you’ve got to start to be great.” – Joe Sabah

RFID – watch this space

hat would life in the 21st century be like without the Internet? I predict we will be asking ourselves the same question about RFID in 15 years’ time. For anyone not yet familiar with the term, RFID is “radio frequency identification” – digital technology that uses tags, readers and radio signals to automatically identify and describe any object you care to name. RFID will revolutionise how supply chains and retailing work in future. It will take over from the bar code eventually as a fast, efficient and seemingly indispensable means of identifying, tracking and tracing products, assets and any other object that can be tagged. Who could imagine life as a retailer or supermarket shopper without bar codes ...even as far back as 20 years ago! This might sound a fanciful claim for RFID, particularly in New Zealand where the technology has little or no public visibility yet. But there is no reason to believe this country will not follow – and perhaps even lead in some industries – a global shift to RFID in everyday life and commerce. The cost savings, efficiency gains and opportunities for competitive advantage will become to great to resist and ignore. When the individual identity of cartons, pallets and/or containers (with information about their contents) can be remotely read in a distribution centre, cool store, ship hold or elsewhere, the logistical efficiencies are easy to imagine. Share that data online and you have the potential to track and trace items right along a supply chain, even globally and in real time. When RFID tags are attached to items of clothing, electronics goods or any other consumer product, there are huge potential benefits to everyone in the retail marketplace. Of course RFID can also have a vast range of uses in the provision of public services, infrastructure maintenance, defence systems and so on. Ultimately it can raise visibility, management capacity and choice in every realm of society, especially when linked to that already-established indispensible technology – the Internet. RFID’s potential has plenty of recognition among business leaders and future thinkers worldwide. And there is plenty of evidence that 2011 will be a year of progress on many fronts. In the US, for example, retailing giant Wal-Mart will be taking the technology right through to the consumer with item-level tagging of men’s clothing. WalMart was the first major retailer anywhere to embrace RFID when it required the tagging of pallets in its distribution centres five years ago. www.nzmanufacturer.co.nz

Other major retailers in North America and Europe have their own RFID programmes, mostly using the EPC (Electronic Product Code) global standard for encoding identification and other data on tags and in information systems. Global standardisation is absolutely fundamental to RFID for two reasons: It enables the global sharing of meaningful data and it brings down costs. Gerry Weber International AG, the big German apparel maker and retailer, is another great example of what is just round the corner. This year, it will start placing EPC/ RFID tags on 25 million garments sold through its 340 stores and other outlets: The tags will be read in the storeroom and at point-ofsale with many logistical, customer service and anti-theft benefits. “In our opinion, there are no question marks about the future of RFID,” Gerry Weber’s chief information officer said recently.”We have seen overwhelming interest in what we’re doing from our suppliers, from our points of sale, from IT companies, from other apparel companies and more. RFID has a bright future in the apparel sector.” As more big companies take up the technology – and apparel is just one of many sectors – the demand for EPC/RFID tags will rise and with this, their per-unit cost will fall. Tag prices around US5 cents have long been seen as necessary for mass take-up at product level. In 2011, the world will move much closer to that tipping point in consequence of rising demand from Wal-Mart, Gerry Weber and others, and of improved tag design and manufacture, mostly in the US and China. On another front, the linkage of RFID to the Internet becomes ever more robust and reliable. RFID adopters around the world have the EPC Information Services (EPC IS) protocol for the uploading and access sharing of data captured from tags and held on a computer system anywhere (regardless of operating software differences). ECP IS is break-through technology in itself, enabling RFID to really deliver on its potential over the coming years. So, what about New Zealand? We have no high-profile retailer programmes under way, but there is plenty of movement on RFID. Last year saw a successful proof-ofconcept trial on the use of EPC tags and EPC IS in the meat industry: ANZCO and GS1 New Zealand used the technology is track and trace meat products from a Canterbury farm, through a processing plant and ultimately to a retail store. It is a taste of things to come, especially as this country moves to adopt individual livestock identification

and traceability in the beef and deer industries. The latter initiative, with Government backing, is well underway and it will involve the widespread take-up of RFID technology on farms, in saleyards and meat works from later this year. In the kiwifruit industry, one of the largest pack house cooperatives recently completed its third export season using EPC/RFID to track and trace pallets of fruit in busy cool stores. The example set by Eastpack continues to attract big interest at home and from abroad for its proven logistical benefits. Watch this space for other companies and industry sectors in New Zealand’s to start embracing EPC/RFID in the coming years and the business cases begin to emerge. The government took an important, but little acknowledged, step to facilitate this and much more with a re-allocation of radio spectrum during 2010. In simple terms, the re-allocation creates

A global shift to RFID in everyday life and commerce.

By Gary Hartley, General Manager – Sector Development for GS1 New Zealand more space for ultra high frequency (UHF) RFID which is exactly the kind needed for effective EPC application. Communications and IT Minister Steven Joyce could see the merits in better enabling “emerging technology” , which is how RFID is described in officialise. We will all benefit as time goes on and as EPC/RFID gains momentum in supply chains and retail outlets the world over.

DB Schenker achieves ISO certification In line with DB Schenker’s Global Environment Program www.dbecoprogram.com, Schenker Australia Pty Ltd and Schenker (NZ) Ltd are now ISO 14001:2004 certified, having established an Environmental Management System that will ensure sustainable operations across Australia and New Zealand in the long-term. The audit and certification was undertaken by Bureau Veritas Pty Ltd. Ron Koehler, CEO of DB Schenker in Australia and New Zealand says “Having achieved the ISO 14001:2004 certification shows that we are on the right track as a company and that our Environmental Management System builds on and complements the other initiatives we have in place already such as reducing truck movements by shifting containers to rail freight and successfully introducing intermodal transport concepts.” Consistent with the DB Group sustainability strategies and environmental protection programs and initiatives, this certification is a testimony to the broader DB Schenker commitment to Green Logistics. Within the comprehensive “DB Eco Program” of DB Group, DB

Schenker has developed suites of Green Logistics Lighthouse Projects, which cover extensive products, tools and services such as Green Consulting, Green Terminals, Green Logistics Networks, Green Road, Green Products, as well as the carbon calculation tool EcoTransit (refer www.dbecoprogram.com and www.ecotransit.org). The DB Group will reduce its specific carbon output worldwide, i.e. its carbon emissions relative to its transportation volume, by 20 percent between 2006 and 2020. Ron Koehler adds, “Being environmentally responsible is not only our corporate social responsibility but also our goal as a company and the best way to add value to our customer’s products through a reduction of their logistical carbon footprint. “In Australia, DB Schenker was awarded two highly commended awards for ‘Best Green Initiative’ and ‘Environmental Transport’ by Logistics Magazine and Lloyd’s List in 2010 and is the first international Freight Forwarding company to participate in the government program “Sustainability Advantage” run by the NSW Department of Environment, Climate Change and Water”.

NZ Manufacturer February 2011

“Adversity causes some men to break, and others to break records.” -Anon

BUSINESS NEWS

Businesses to benefit Flooring Brands grabs largest flooring business in Australia from new Institute F

usinesses and industry groups will be able to access the latest management thinking and research expertise with the launch of the Institute for Business Research at the University of Waikato. The new institute, to be launched at separate functions in Hamilton and Tauranga, draws on the expertise of researchers at Waikato Management School, ranked the number one business school in the country for research quality. IBR Director Dr Stuart Locke says the IBR will work with a range of clients, from industry groups and government agencies to some of New Zealand’s biggest companies, in areas ranging from innovation to economic impact analysis. “The key challenge facing NZ Inc today is how we are going to increase productivity and provide sustainable profitability into the future,” he says. “The IBR offers a significant and internationally recognised depth of research expertise that can make a valuable contribution in this context.” The IBR’s four main areas of interest are business performance and leadership, agribusiness and innovation, business in the service sector, and business in society. Recent and current projects include supply chain integration, the uptake of sustainability practices by New Zealand businesses, the impact of cultural support in the workplace, and adding value to businesses through improved technology investment. The IBR is also home to the Management Research Centre, which in conjunction with the New Zealand Institute of Chartered Accountants (NZICA), compiles the annual New Zealand Business Benchmarking Survey of more than 5,000 small businesses. It also works with clients to provide tailored business performance studies. “Through the IBR, we can now offer research, advisory and consultancy services to help businesses and organisations add further value to what they do,” says Dr Locke. Keynote speaker at the IBR launch events is Professor David Hensher, an international authority on urban transport issues and the role of private partners in infrastructure developments. Professor Hensher FASSA is the Founding Director of the Institute of Transport and Logistics Studies (ITLS) and Professor of Management at the University of Sydney.

looring Brands Limited, run by Auckland businessman Rodney Martin, has acquired 100% of Master Kelwin Floors, the largest flooring business in Australia. Operating since 1972, with over $A50m ($NZ65m) of revenue Master Kelwin has provided flooring to a long list of high profile developments across Queensland, including the Queensland Underwater World, the Townsville Airport, the Versace Hotel and the Gold Coast Convention Centre. Master Kelwin is generally regarded by the Australian flooring industry as the highest quality and the most successful commercial flooring operator in Australia. Rodney Martin founded Flooring Brands in 2004 with the acquisition of Carpet Court stores in Dunedin, Napier and Palmerston North. He has gone on to acquire more than 30 flooring businesses throughout New Zealand and in the process take over the “Carpet Court” brand and start “The Floor Store” brand in New Zealand. In 2007 Martin acquired Melbourne Carpets Specialists, a large and long established commercial flooring business in Melbourne. Martin has been working on the acquisition process for more than two years, and has been a director of Master Kelwin since 2009. Flooring Brands is now a $260m group with over 70 stores, including 40 franchisees, more than 500 staff and more that 35% of the New

Rodney Martin of Flooring Brands Zealand carpet market. “Master Kelwin is a fabulous Master Kelwin has been run for company, the biggest and the best the last 21 years by Mike Dunn, who commercial flooring business in has previously worked for 11 years Australia, and we have many for Feltex New Zealand and five possibilities to adopt its best practices years for Feltex Australia. Dunn was here in New Zealand. It is very General Manager of Feltex Australia exciting having such a high quality, for two years before acquiring a high profile business in our stable. controlling interest in Master Kelwin “Australia is more buoyant than in 1989. “We are very pleased New Zealand at the moment, both to be associated with Flooring commercially and residentially, and Brands, an exciting company with presents us with attractive growth a bright future in New Zealand and opportunities,” said Mr Martin. Australia” says Dunn. “We will continue to look for viable “We are very excited about acquisitions in Australia that add the future opportunities and value to our group, and to grow our possibilities that Master Kelwin market share and profitability in presents us with in Australia” says New Zealand through rationalising Martin, now Chairman and CEO of and optimising our network of Flooring Brands. outlets.”

IRL researcher honoured as pioneer of the nano-scale

RL scientist Shaun Hendy has been awarded the prestigious New Zealand Association of Scientists Research Medal for his pioneering work in the field of nanotechnology. Dr Shaun Hendy received the which acknowledges honour, outstanding fundamental or applied research in the physical, natural or social sciences published by a scientist aged under 40, at a ceremony in Wellington last week. Dr Hendy has pioneered, established and continued the transformational research area of theoretical nanotechnology in New Zealand. His major research discoveries include identifying new solidliquid phase behaviour induced from nano-scale collisions, and the classification of novel recoil behaviour of nano-particles. These new phenomena are absent from both the smaller atomic-scale, and from the larger macro-scale. Dr Hendy has also discovered new physical laws at the nano-scale,

for the drag between a liquid and a solid surface; and obtained new results for droplet entry into nanotubes. His IRL responsibilities have included successful application for, and management of over NZ$20M of research contracts. Dr Hendy is currently Deputy Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology and has been employed at IRL since 1998, where he is a Distinguished Scientist. Dr Hendy says he shares this award with a team of talented young scientists at IRL and the MacDiarmid Institute. “Thanks to their enthusiasm and hard work, and the unique research environment provided by the MacDiarmid Institute, our work has had significant impact in New Zealand and overseas,” he says. “I must acknowledge the investment made by the MacDiarmid Institute in the Blue Fern Supercomputing Centre at the University of

Canterbury, which has provided high performance computing resources for us since 2008.” IRL CEO Shaun Coffey says Dr Hendy has demonstrated outstanding and far reaching scholarship and leadership in multiple scientific fields. “Dr Hendy’s work at IRL has led to applications in micro and nanofluidics, and in nanotechnology, and this award is a well deserved acknowledgement of the achievements of one of New Zealand’s finest young scientists.” www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

CASE STUDY – WESTLAND

“A lot of people quit looking for work as soon as they find a job.”

- Zig Zigla

Break with tank-building tradition benefits progressive thinking local government A

pragmatic local government organisation is reaping the benefits of breaking with tradition and adopting the latest Australasian manufactured technology in storage tanks for potable water supply. Westland District Council, based on the remote and climatically challenging West Coast of New Zealand’s South Island, moved away from the traditional concrete tank for its tank farm. It adopted instead an innovative and cost-effective bolted steel storage tank solution from Australasia’s leading storage tank company, Tasman Tanks, to supply urban and rural consumers ranging from towns to a diary industry joint venture. Following the success of this strategic move over the past decade, the forward-thinking council has continually invested in Tasman Tanks’ bolted steel storage tanks for its potable water supply in the region, with the latest tanks selected through public tender to be installed in coming months. The modular tanks – which are speedy and safe to erect – offer a method of construction that can be readily and aesthetically blended with surrounding buildings in applications such as commercial and industrial mining, energy, resources, manufacturing, government and infrastructure, engineering, food and beverage processing, chemical and primary product processing, water and waste water and fire protection. Ian McGregor, Tasman Tanks’ New Zealand Territory Manager, says the Council has now invested in two 450m? bolted steel storage tanks for its Hokitika tank farm, with the latest 1,500m?

in production to be installed in the coming months. “The move by Council away from concrete tanks makes a lot of sense. Bolted steel tanks are steadily overtaking alternatives such as concrete because they won’t leak, they are less expensive to build in the first place, they are cheaper and easier to maintain and typically outlast alternative materials. “Welded tanks would have been an option but they are substantially more expensive to build,” Mr McGregor explained. The tank farm is not Westland District Council’s only application for large capacity industrial tanks, with Tasman Tanks recently involved in a joint venture with the Council and the Westland Dairy factory to construct a large, 2,100m? storage tank on the Hokitika dairy site for potable water to service the dairy factory. “We have also recently provided two 500m? potable water tanks for the townships of Franz Joseph and Fox Glaciers which all form part of the Westland District Council area,” he said. The tanks installed are all steel bolted round tanks of hot dipped galvanised sheet panels that have been powder coated. Mr McGregor said the tanks have all been built to a 50-year plus design life with a maintenance schedule. “However, we fully anticipate our tanks to go way past the expected 50-year timeframe.” Mr McGregor explained the Council is very happy with the innovative tanks and the service Tasman Tanks provides. He cited comments from Westland District Council’s Manager Professional Services Business Unit, Mr Peter Anderson after Tasman Tanks

From page 22

Clean green Airstrokes tackle process and packing jobs requiring a clean actuator that doesn’t need lubrication and can cope effortlessly with highrepetition tasks. Eliminating lubrication eliminates another sticky surface for waste adherence. “They can also stroke through a radius without a clevis, thus eliminating both complexity and cost when you need to actuate through an angle,” says Jim Hine, Product Manager, Bridgestone NZ Ltd. “Their ability to soak up shock without damage while delivering high-repetition strokes means they are highly applicable to vibratory tables, vibratory screens and multiple conveyor sections including transfer www.nzmanufacturer.co.nz

gates and lift sections”. Another plus of the Airstroke range is that it can fit into the tight spaces frequently encountered in food and beverage plants. The range offers actuation strokes ranging from 12.5mm for the tiny (16mm high deflated) new Airomatics, through to more than 300mm for triple-convoluted models used as both actuators and isolators. These collapse (deflate) to a fraction of their inflated height, for compact installation. nextSTEP Contact: Jim Hine, Product Manager, Bridgestone New Zealand Ltd Tel 0800 247 235

won a design and build contract for a 450m? water reservoir for the township of Hokitika, some 10 years ago. “Although the contract was evaluated under Lowest Price Conforming Tender methodology, this was not the only reason for accepting Tasman Tanks Ltd price,” said Mr Anderson “The simplicity of design, speed of construction, aesthetic advantages and ability to erect the reservoir in confined areas are all factors which contributed to the success of Tasman Tanks Ltd proposal. “The contract was completed within budget and time. As a result of the successful competition of the original contract and due to the professional nature of the company, both management and construction staff, and the positive relationship between the company and Council, Council Management decided to forego the tendering process and extended the original contract to include an additional 450m? reservoir which it had originally intended to tender the following financial year. This too was completed within budget and time. Mr McGregor says the comments are particularly valuable because Westland are a well informed council and appreciate the benefits of new technology. “Over the years, we have built a strong relationship with the council who appreciate the excellent service and constant communication we provide. “We don’t just walk away and leave the customer with the tank. We provide outstanding back up and ongoing service,” he said. “We have been successful with the tenders we have been involved with. I think both price and relevant experience along with that old fashion customer service has played a big part of our winning.

Our steel bolted tanks are far more cost effective to put up than the traditional concrete tanks with which they were using.” Mr McGregor said another major factor giving impetus to the adoption of bolted construction throughout Australasia is suitability and speed of construction in remote and climatically challenging areas. Westland District stretches some 400 kilometres from the Taramakau River in the north to Barn Bay in the south and is bordered by the Tasman Sea to the west and the magnificent Southern Alps to the east. “Factory coated, site-bolted steel tanks offer superior quality control during the manufacturing process. They are less subject to uncontrollable factors such as inclement weather, which (in the case of concrete) can impact upon mixtures specifications and joint connections.” Mr McGregor said councils and companies on both sides of the Tasman who are contemplating the move away from concrete tanks should talk to the experts in this area. “Tasman Tanks recognises that factors such as innovation, costefficient design and quality products are key to customer satisfaction,” Mr McGregor said. Tasman Tank Co is a recognised leader in the quality tank building industry, with in-house design, manufacture and installation expertise for prompt and professional performance. Each Tasman Tank is certified to all relevant codes, with independent engineers providing verification of specifications and performance. The company provides costeffective storage solutions in capacities from kilolitres (KL) to 30 megalitres (ML).

In the foreground are two of Tasman Tanks’ bolted steel storage tanks with old style concrete tanks behind.

NZ Manufacturer February 2011

BUSINESS NEWS

“It’s kind of fun to do the impossible.” - Walt Disney

Metals New Zealand Industry Conference

ngineering industry players should be interested in attending the Metals New Zealand Industry Conference 2011 to be held on the 14th and 15th of April at the Duxton Hotel in Wellington. Formerly known as the Metals Industry Conference, this event comes as a result of the fantastic success of four previous Metals Industry Conferences with each event attended by well over 300 key people from the industry, Government and academia. However, for the first time this event is organised by the newlyformed Metals New Zealand society and the Conference is used to officially launch this pan industry body. If there is one common agreed theme in respect to securing New Zealand’s prosperity, then this must be that New Zealand needs to improve its productivity

n the 21st December 2010, the Inaugural General Meeting of Metals New Zealand was held with its rules being adopted and the required signatures for its registration as an incorporated society being collected. This was ‘success at last’ after nearly 8 years of conceptual planning derailed by the failed attempt to create a Metals Institute of New Zealand funded via industry contributions through an amendment of the HERL Act. The new organisation will be officially launched by a Government minister at its first major event, the 2011 Metals New Zealand Industry Conference on the 14th April in Wellington. The current Executive, still termed an ‘interim’ Executive as the final one is intended to be determined when a membership drive has been completed, has put a brief About Us statement together to highlight what needs to be known about Metals NZ (see Box). Foundation organisational members have agreed to pay the annual subscription of $1,000 and are in alphabetical order: • Casting Technology NZ (CTNZ) • Galvanising Association New Zealand (GANZ) • Light Alloys Manufacturing New Zealand (LAMNZ) • Heavy Engineering Research Association (HERA) • National Association of Steelframed Housing (NASH) • New Zealand Stainless Steel Development Association (NZSSDA) • Steel Construction New Zealand A large corporate membership is expected via Ordinary Corporate membership and

14th-15th April in Wellington and innovation. The Conference organisers have picked up this theme with the intention to put our industry in the driving seat. No doubt this will be an immense challenge considering that the recession is constraining the industry in its ability to innovate due to financial and capability constraints. However, if the Industry and New Zealand in general wishes to seriously achieve the Government target of catching up with Australia’s GDP per capita growth by 2025 and, from a company’s perspective, to make profits, we need not just adjust the way we do things, we do need to transform dramatically. This Conference, with its theme “Driving Productivity and Innovation”, is about informing on the big picture from a national perspective but most of all, it is

about giving industry leaders perspectives and solutions to progress and achieve measurable productivity gains. It also is about offering the opportunity to network with sector groups or the entire metals engineering industry. Members of Metals New Zealand such as the Heavy Engineering Research Association (HERA), Steel Construction NZ (SCNZ), NZ Stainless Steel Development Association (NZSSDA), National Association of Steel Framed Housing (NASH), Light Alloys Manufacturing (LAM-NZ), Titanium Industry Development Association (TiDA), Galvanisers Association of NZ (GANZ), have teamed up to cover not only the productivity and innovation topics but also focus in their specific sessions - typically conducted in a workshop-type

environment - on their particular sector group development needs. Following feedback from the last Conference, the format has been changed in that there is just one main conference day concluded by the Industry Awards Gala Dinner, where outstanding achievements of peers is acknowledge . The second Conference day allows sector groups to pursue their own interests and Wellingtonbased sponsors IRL and BRANZ offer a guided tour of their research facilities. For partners, you will be in the heart of the city which offers an ideal base for exploring the many attractions of “ Positively Wellington”. We particularly encourage partners to come along for Thursday night’s Industry Awards Gala Dinner in the Ballroom of the Duxton Hotel. nextSTEP visit www.metals.org.nz

Metals New Zealand formed Affiliate membership. Ordinary corporate members pay an annual subscription of $500 and have the right to nominate representatives to the Executive. Examples of Ordinary Corporate Foundation members include NZ Steel and OneSteel and recruitment of Executive members will be achieved through this membership category. However the majority of the Corporate members will most likely come via the Affiliate Member pathway through free membership of the members of existing Organisations’ members as e.g. all HERA or SCNZ members will be entitled to free Affiliate membership. So what are the additional individual benefits when there are already existing sector organisations such as HERA? Ultimately, Corporate members will benefit from a much stronger industry voice being provided by Metals New Zealand which carries the weight of multiple sector Associations, and for this to be demonstrated Metals NZ needs wider member representation. So. to be successful, it will need you the members and with the free affiliate member access option, it is possible for all industry members to participate and lend their voice. Industry members also benefit indirectly through efficiency gains of the participating organisational members as resources will be shared. Metals New Zealand is not meant to supplant existing industry associations, but rather consolidate and focus their energies into one voice for the wider engineering

industry, particularly to Government but also to the global market. You can download a Metals NZ membership form from the Metals NZ web site at www.metals.org.nz

Who Are We?

Metals New Zealand (Metals NZ) is an incorporated society serving the needs of New Zealand’s metals related industry. Launched in 2011, it consists of Organisation Members made up from metals related industry associations, Ordinary Corporate Members made up from key stakeholder companies and Affiliate Members who are generally the members of the Organisation Members. Its Executive consists largely of leaders of New Zealand’s major organisations operating in the metals based sectors. The Executive are nominated by Metals NZ members because they are recognised as ‘captains of the industry’. They offer their time to contribute to sector group strategic thinking and believe as leaders they have a responsibility to the industry and need to speak out on its behalf and also that of the wider community. The Secretariat for Metals NZ is provided through the NZ Heavy Engineering Research Association (HERA) with the HERA Director Dr. Wolfgang Scholz being the current Secretary.

Our Vision

Metals NZ is a pan-industry sector organisation whose vision is to position the industry to be a prosperous, vibrant, sustainable and

socially responsible contributor to the New Zealand economy.

Our Mission

Metals NZ will achieve this vision through advocacy and strategic leadership on issues that affect the entire metals industry.

Our Approach

The Metals NZ Executive believes that through the co-ordinated effort of the many metals industry sector groups the overall metals industry performance can be improved. Based on objective research, open dialogue and understanding of the interests of each sub-sectors, it is believed that sound industry policies can be developed and promoted. Joint activities such as the Metals Industry Conference, the Sustainable Steel Council and shared administration are delivering significant benefits for members and the industry as a whole. Metals NZ will limit its activities to matters of specific relevance to the metals industry. It will co-operate with other industry and business development organisations on common issues.

Independence and Funding

Metals NZ represents the interest of the NZ metals related industry, however is independent of any specific company or organisation interest. It is currently funded through membership contributions. www.nzmanufacturer.co.nz

NZ Manufacturer February 2011

MANUFACTURING HEROES Bill Kearon a Manufacturing Hero

“Your ability will grow to match your dreams.”

- Jim Rohn

From page 1

Bill Kearon of Inovent Limited, Balclutha shares his story of his hopes and dreams for his own manufacturing company and all those across New Zealand. Bill’s story is rare in that it is his story However his journey may well be similar to your journey, in some way. Read Bill’s story then tell us yours as we journey throughout the country to profile the Manufacturers of New Zealand – Doug Green I arrived in the UK with $60.00 and one phone number of a friend of a friend. My new friend gave me a sofa bed for the night. I only had one thing on my mind, to get a job the next day. Which I did, panel beating. I worked at the company for six years. In that time I designed and built a chassis straightening and measuring system, We were so used to working cumbersome jigs, I tried to purchase chassis jigs but all were the same, after complaining my boss said “you know what’s best, build me one.” I built his one and over the next two years built 18 for other panel shops who wanted the same production - simple, safe, fast set up time and strong , Just when everything was on top of the world, bang the 1987-88 world recession, interest rates through the roof, bankers pulling the rug from under, politicians telling lies, the rich getting richer, poor about to get a lot poorer. I learnt a lot over the next few years, especially how to get back to the tools and survive, One thing I have learned is the world goes in cycles, just as we are experiencing today,; greed is the main problem ,no scruples, no loyalty, no quality. Corporates, banks, investors, so called best friends, politicians - you would think that one of them could help a business venture with open arms, Believe me ,today it is so hard, all the R D, and there are truck loads of it , in my case we have patents, the cost is very scary Luckily, I had

friends who saw the potential in the Inovent company and bought shares to get it off the ground . Then with help from Upstart incubation, Inovent finally has four products on sale to the vehicle and glazing industry, They are:

Rotacrane

Designed for \ heavy lifting of Body panels, Windscreen shields, in the heavy vehicle and glazing industry.

Spraymate

Designed to hold 2x doors on one stand. Doors can be sprayed inside and out at once, The stand is mobile and eliminates contamination.

Panelfit

Is designed to hold the door in a vertical position. All the inner mechanical parts of the door are easily accessible for removal and the door can be held in the upright position for repair.

Panelmate

Has been designed for the panel beater to repair any panel. The patented gimble, clamp and panel are attached to a bench vice, The panel is now secure; the Panelmate can rotate and tilt, the panel to any position for repair, And today we have designed and built all the products above because they are needed in the panel beating and spray industry, They are tested by the industry here in New Zealand,, they are proven by industry NZ, they are currently manufactured industry NZ and they are marketed industry NZ “We have sold 50x Spraymate units to the spray industry, all who purchased them recommend

Spraymate, 15x Panelfit to panel beaters and car breakers, 2x Panelmate to car restoration businesses. We are currently demonstrating the Rotacrane to the Bus and Coach Industry, train and tram industry And the commercial glazing industry. Every one who sees the Rotacrane in action is impressed by its maneuverability, 200kg lifting capacity, rotation, tilt, remote control, patented gimble and safety. I ask the following questions constantly: How do we get enthusiastic Kiwi entrepreneurs to back it? How do we get good honest bank managers to believe in manufacturing in NZ? How do we get industry to back good old made in NZ? Inovent Limited is an innovative company which believes in quality, full back up service, guaranteed products and full training services. The only way ahead is to manufacture here in NZ, our story says it all,

I suppose my destiny was always going to be what it is todayinventor and designer of simple workshop equipment.

Or visit: www.filtercorp.biz

www.nzmanufacturer.co.nz

The proudest person is me when I have employed a young man from NZ All the great work ethics, practical skills, common sense, starting back to my apprenticeship days are important, still remembering the old boss’s words: nothing was a problem. We were a proud nation of hard workers and learnt our trades well, so well we are sought after all over the world. What annoys me the most is that have people like myself who invent and bring their dreams to the table, protect and pay dearly for it, only to be sold short by some smart business man who can send it to China to a sweatshop, have an inferior product made on the assembly line the next day and get away with it, Our so called politicians have free trade agreements with China, our corporate companies get rich, who also help our politicians get rich How can a government t not care about the Intellectual Property Law.? What value or respect to a nation of tradesmen? We have to make sure that government understands inventiveness and helps create jobs, pathways to success. Our people will continue to travel oversees like I did, and they will learn more. Some will return and want to give back what they gained in experience and knowledge. Others won’t come back, but they will never forget their upbringing and rue the lack of support which might have seen them stay.

NZ Manufacturer February 2011

“Power is the ability to act.” - Anthony Robbins

Extraordinary measures for extraordinary times

he global financial crisis has generated a new climate of competition where margins are constrained and companies, industries and countries are all doing whatever they can to secure their share of markets, and in some instances, to secure the survival of their industrial capability. The occurrence of the global financial crisis was an extraordinary event which has required an extraordinary response from countries and financial regulators around the world in order to prevent a collapse of the financial systems that commerce is totally reliant on. The first wave of responses was to bolster banks and announce economic stimulus packages, despite which, confidence and activity in most economies reduced significantly, companies reduced staff numbers and curtailed planned investments. An increasing focus by procurers and project owners on reducing costs has resulted in a trend towards aggressively seeking cheap offshore sources of supply at the expense of local industry. Few in industry would disagree with competing on a level playing field, but with some ‘cheap source’ countries undervaluing their currency and others engaging in a myriad of activities to support their industries, the playing field is increasingly looking like a field full of holes, valleys and hills designed to make sure that trade flows

towards those countries who have been remodeling the field. While State Owned Enterprise (SOE) Transpower in New Zealand sources steel transmission towers from Zamil, Steel in Abu Dhabi, Arab countries are intent on forming a steel trading block where steel traded between Arab nations is tariff-free and steel from other countries is subjected to a 20% customs duty. According to the publication Arab Steel, Mr HE Amer Al Hadeedi, Minister of Industry & Trade in the Kingdom of Jordan announced the adoption of a 20% levy following a meeting with Dr. Hilal Hussain Al Tuwairqi, Chairman of the Arab Iron & Steel Union and made a commitment to promote the adoption of the tariff across Arab nations. New Zealand is not the only victim of unfair trading practices: EUROFER the European Confederation of Iron and steel Industries - report that the EU steel industry recovery is threatened by unfair international competition. According to EUROFER, import monitoring has revealed intensifying steel price undercutting of up to 25%, with the largest margins originating in China and Ukraine. They also note that “China’s excess capacities fuelled by massive subsidization and supported by a protectionist industrial policy, has become the decisive factor in the global steel sector distorting steel and raw

materials pricing, capacities and trade flows”. Malaysia is also taking action to support their steel sector with the Sun Daily stating that Prime Minister Datuk Seri Najib Razak has pledged to assist the industry in line with ensuring its competitiveness. He committed to a number of strategies including: • “Continuous support for steel manufacturers in their local and international competition through encouraging government and quasi-government projects to use Malaysian manufactured products and fabrications” and, • “Being committed to enforce rigorous quality standards on imported and domestically produced steel products in the effort to not allow sub-quality steel products to be dumped into the country hence threatening the safety of the people”. The actions of Arabian countries and Malaysia are indicative of extraordinary measures and are by no means unique in the aftermath of the financial crisis as countries try to prevent the decimation of their industrial bases. New Zealand has

New Zealand is not the only victim of unfair trading practices .

REAR VIEW

Commentary by HERA Industry Development Manager Nick Inskip a comprehensive industrial base built over more than a century that generates export earnings, provides a strategic capability in times of crisis and natural disaster and supports the development of a broad range of domestic industries. It is naïve to believe that the competition that New Zealand industry is experiencing from imported steelwork in both domestic and export markets is simply the effect of normal ‘market forces’. For a country not well-versed in re-modeling the uneven field of trade in order to support our industries, perhaps it is time to look to what others are doing and stand up for ourselves, our industry and our country. We could start with a 20% tariff on steel from Arabian countries and by emulating Prime Minister Razak, by encouraging government and quasi-government projects to use New Zealandmanufactured products and fabrications. Extraordinary times call for extraordinary measures; it’s time for New Zealand to act.

NZ wave power device secures international certification

New Zealand developed and designed wave power device has been awarded Statement of Design Feasibility certification by an international certification agency, Det Norske Veritas (DNV). The Wave Energy Technology – New Zealand (WET-NZ) consortium has been experimenting with a ?-scale (2 kW) wave power device, which has been deployed off Christchurch since 2006. The WET-NZ consortium comprises IRL (Industrial Research Limited), and Power Projects Limited, a private Wellington-based company. The consortium is currently developing a ?-scale (20 kW) prototype version of its device, as a result of funding received from the NZ Government’s Marine Energy Deployment Fund, which will be deployed in New Zealand waters in

2011. The design of this prototype is based on DVN certification principles. DNV certification is a lengthy process of risk identification and mitigation. In this case it covers not only the design of the device but also ancillary equipment, such as the moorings. “The DNV Design Feasibility certification will give investors confidence in the viability of the WET-NZ design”, says Power Projects’ director, Dr. John Huckerby. “It shows we have a robust design and have thought through the issues of deployment for the device”. IRL commercial manager Gavin Mitchell says the certification reflects well on IRL’s technical competence in what is a very new and challenging area of engineering and design. “Due to the harsh operating

environment of the ocean there are many variables to contend with in designing such a device.” IRL energy technologist and Leader of the WET-NZ research and development team Alister Gardiner acknowledges the substantial effort involved in introducing the fault mode investigation and analysis processes at the prototype development stage, but expects that the time invested now will result in engineering benefits as the technology approaches commercialisation. “DNV have tremendous experience in the marine engineering sector and it makes sense to tap into this as soon as possible. “This external audit of our progress provides us with the confidence to proceed with our next tasks – to confirm the design

of our scale device, which will be constructed early in 2011. The design principles developed will also be built into a more advanced ?-scale device for deployment in Oregon,” he says. www.nzmanufacturer.co.nz

NZ Manufacturer February 2011