NZ Manufacturer February 2012 February 2012
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Business news Skilled training graduates.
Workshop Tools
How to select a manufacturing system.
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Analysis New Zealand manufacturing is the new New Zealand
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Tandarra typifies NZ Flight Structures soars manufacturing at its best into manufacturing By Kevin Kevany
The mobile Tandarra roll-former leaves their East Tamaki premises en route to Thailand.
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hen products from your machines have been used on some distinctive and distinguished building projects, including Westfield Stratford City (Europe’s largest shopping mall, and a rail portal to the 2012 London Olympics’ site); the ultra-modern Terminal 5 at Heathrow Airport; and, closer to home, Auckland’s Vector Arena and the RWC revamped Eden Park, you don’t have to prove you’re a rollforming ‘player’ of significance. And in an age when ‘outsourcing’ rules, it is most refreshing to hear they have strict limits on what and how much can be ‘shopped out’. General Manager Lance Watson takes up the story: “We place a strong emphasis on production
control, and as such, limit the number of components not manufactured completely in-house, to less than 10-percent of all parts in each machine. At the same time, we rigorously ensure we source only the highest quality materials from our local partners/suppliers.” East Tamaki, Auckland-located Tandarra, like so many of our legendary companies has the streetcred of starting in the garage of the family home – in this case Brian and Marie-Claire Watson’s. Back in 1982, Brian, the current owner and director, manufactured his first rollformer, producing kiwifruit angleboards, used for exporting the fruit, using a manual lathe and simple drill.
WWW.FOODTECHPACKTECH.CO.NZ
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new aviation manufacturing facility is setting up shop at the Hamilton Airport. The company, Flight Structures Manufacturing, is a joint venture between Flight Structures Ltd and Clevedon Aeroplane Company Ltd. The companies are looking to expand their scope of services to meet the current and future demands of aviation manufacturing. Jon Kerr of Flight Structures Ltd, said it is an undertaking he had been thinking about for many years now. “As we have grown,” he said. “It just seemed the logical next step. It’s a great way to expand the business and allows us to not only offer our customers a turnkey solution but also allows us to utilise the rich resources of aviation expertise we have all around us. Together we are greater than the sum of our parts.” Flight Structures Manufacturing
will provide design, certification, manufacturing and installation for special role modification aircraft and helicopters. According to Mr Kerr, because these like-minded companies surround it, it will be able to pull from ready available resources. These resources include Alpha Aviation, which produces the Alpha 2000 Series training aircraft and the Clevedon Aeroplane Company. The Clevedon Aeroplane Company specialises in the manufacture of aviation products and installation of aircraft modifications and repairs. Jon and business partner Richard Andrews founded Flight Structures Ltd in 2003 as an engineering consultancy service. They provide professional design and certification services to the aeronautical industry and have become the largest aeronautical design and certification consultancy in New Zealand. Continues page 7
A C.R. Onsrud Router training session. (pictured from left to right: Jon Kerr, Gary Peace, Clyde James and Jeff Onsrud)
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NZ Manufacturer February 2012
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NZ Manufacturer February 2012
CONTENTS Advisors
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DEPARTMENTS
9 10 13 17 18 20 21 24 25 26 28 29 31
BUSINESS NEWS
Sir William Gallagher
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• Keeping an eye on the competition. • Realistic option critical for Auckland transport. • Skilled training graduates deserve recognition.
Is the CEO of Gallagher Group Ltd. He is also a Fellow of NZ Institute of Management.
OPPORTUNITY HAMILTON
• Local conference to spur global success. • Innovation database launched.
MANUFACTURING TECHNOLOGY Industry partner programme developed.
Page 7– CASE STUDY – Flight Structures soars into manufacturing.
Stephen Drain
AUCKLAND MANUFACTURERS
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Stephen Drain is Director at Centre for Innovative Leadership at AUT University, Auckland.
• Leaders drawn to ‘Innovation Conference’. • Dotmar exports to India. • Go Global 2012.
THE ROAD TO EMEX 2012
Up close and personal with German products.
PRODUCT NEWS
• FeatureCAM works for Hawke’s Bay company. • The future is now.
BUSINESS NEWS
Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, New Zealand’s largest business advocacy group, representing businesses of all sizes.
• Commodities that are grown. • Women in Engineering.
WORKSHOP TOOLS
Bruce Goldsworthy
• How to choose a manufacturing system. • Competent people important.
BUSINESS NEWS
• Malaysian trade fair huge opportunities. • Bright end to year for manufacturers.
CASE STUDY
Productivity up, sales up.
Page 23 – ENERGY REPORT – Solar car travels the country.
Catherine Beard
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Page 12 – MANUFACTURING TECHNOLOGY – Delcam on show at SolidWorks World.
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An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.
ANALYSIS
Building winning teams.
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DESIGN IN MANUFACTURING
Adam Bennett
Is NZTE’s Director Specialised Manufacturing. He is based in Auckland.
Industrial design solves a small problem
BUSINESS NEWS
• Salaries drive employees. • RPM gets through. • When the tough get going...
REAR VIEW
Page 27 – SUPPLY CHAIN – Improving freight transport services.
Sir Paul Callaghan ➡ Is the Alan MacDiarmid Professor of Physical Sciences School of Chemical and Physical Sciences Victoria University of Wellington. He is the Kiwibank New Zealander of the year 2011.
A fair opportunity for industry participation.
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Page 30 – ANALYSIS – NZ Manufacturing is the new NZ.
sales@plasticweldingtools.co.nz
Lewis Woodward
Is managing director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
www.plasticweldingtools.co.nz www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
EDITORIAL
Failure is not to be feared. It is from failure that most growth comes; provided that one can recognise it, admit it, learn from it, rise about it, and try again.
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
Marcus Phillips, Kevin Kevany, Nick Inskip, Catherine Beard, Sir Paul Callaghan
ADVERTISING
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, The Mirror, Asia Manufacturing News. Plus contracted publishing services. ISSN 1179-4992
– Dee Hock, Visa
Added value products are the future
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successful future for New Zealand manufacturing will be in highly transformed, technology-led added value products. This from Adam Bennett, NZTE Director for Specialised Manufacturing.
He goes on to say in his article ‘New Zealand Manufacturing is the new New Zealand’ on Page 30 of this issue that...In a change from the past, the product will not only stand as technically excellent, but be focussed on the end users’ needs. It will often be part of a highly complex value chain or hopefully at the top of it. Get the drift? Manufacturers need to continue to make high quality products, especially in a time when there is less money around. So Adam’s point about technical excellence along with a high level of productivity, enhanced by the tools of the day, is where to aim in 2012... and further. We control the quality of our environment and the quality of the goods produced. There are many examples of this from many New Zealand companies who are firming up export orders and finding new markets. These are the doers, the ones rolling their sleeves up and getting stuck in. Which is not always the way at conferences? Each year New Zealand companies are inundated with news of another conference (or gathering) which is going to provide the answers for success. You know how it goes; top-notch speakers are flown in to tell us how to do business better. The issue I have with conferences - organisers please feed back to me your success stories – is that little seems to change, business doesn’t seem to get better and the tools and information that companies benefit from continues to come from NZTE, economic development agencies or chambers of commerce. Any conference spring to mind where success was found? Let me know, inspire me.
Doug Green
Vol. 3 No. 1 February 2012 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.
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www.nzmanufacturer.co.nz/videos PUBLISHER & MAGAZINE DEVELOPMENT– Max Farndale max@nzmanufacturer.co.nz
NZ Manufacturer February 2012
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BUSINESS NEWS
To succeed you have to believe in something with such a passion that it becomes a reality. – Anon
Keeping an eye on the competition Realistic options critical for Auckland transport
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on’t worry because a rival irritates you. As long as he follows in your steps he will never overtake you. Anonymous. Generic competition is where a company sees its competition as all other companies that compete for the same consumer dollar and are supplying a product or service that meets your customers’ needs. Increased competition is reality and is driven by many factors, including the emergence of a global marketplace, the increased number of companies and new technology that makes it easier for them to enter new markets. Just as one should always reflect and act upon the internal strengths and weaknesses of your organisation a wise company owner must always keep an eye on the activities of its competition. Specifically, the risks and threats that competitor may impose on your business now and in the future. Competition is great. It drives you to continually improve. It drives the quest for and the development of establishing a sustainable competitive advantage which is achieved through differentiation and unique selling propositions. Without competition we would all get complacent and our products and services would become less attractive and of less value to our customers. Without competition we would be at the mercy and exposed to the world and our free market environment would quickly position us to the least common denominator (whatever that might be). Ignore your competition and lose, copy them and be a follower or lead them and become a winner. Winners are always more successful. Take an offensive position not a defensive one and devote time to continual improvement which will place your company ahead of the
Competition is great. It drives you to continually improve.
By Kevin Vincent,
Director, Vincent Nugent Ltd, Business Improvement Consultants
competitor’s offerings. Understand your competitor’s position and gain advantage from exploiting their weaknesses. Whilst it is not always possible to undertake in-depth analysis on your competitors it is appropriate that those who are active or attacking your markets must be on the radar. The process should start with a general assessment of their products positioning, how it compares with yours on price and quality and its relative market share. Secondly ascertain their strengths and, weaknesses their likely next moves. The next step is to counter these initiatives or deficiencies with your own strategy. Tip Never underestimate what the competitions ability to respond will be. Competitor analysis will assist you to understand your competitive advantages and disadvantages relative to competitors. It will give you a greater understanding of the competitors’ past, present (and most importantly) future strategies. It will provide you with an informed basis to develop strategies to achieve competitive advantage in the future and it will help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy?) The following questions should be considered; • Who are your competitors? • What threats do they pose? • What are the objectives of your competitors? • What strategies are your competitors pursuing and how successful are these? • What are the strengths and weaknesses of your competitors? • How are your competitors likely to respond to any changes to the way you do business?
he debate over the funding options required to develop Auckland’s transport should cut straight to the chase, says the chief executive of the Employers and Manufacturers Association, Kim Campbell. “Several of the so called funding options in the Mayor’s paper are simply not going to happen and should be discarded right away,” Mr. Campbell said. “These include more taxes just for Auckland which the council can’t implement anyway. It’s simply alarmist and unhelpful to the discussion. “But it is important for Auckland to have such a process as this so we can all pool our ideas. “The city needs all the projects identified and the community has to accept the only way they will be built is to agree to fund some extra contribution. “Business favours a low level toll to apply to the whole of our highway network and for the projects funded to be across all modes and for both public and private transport. “Important for the debate too is that Aucklanders understand the
major transport project priorities for where and when the funding will be invested. “Without this understanding it’s difficult to see Auckland willing to invest in developing the new transport assets that are nevertheless urgently needed. “So we call on the Mayor to state the priorities and timelines for the investment projects envisaged. “Business already has such a list, strictly in the following priority order: 1. Completing the Waterview project – though underway this needs more urgency – the return on investment is well over $4 for every dollar invested 2. Developing an eastern transport corridor connecting through to a four lane east/west highway from East Tamaki to Onehunga. 3. The central rail loop provided it is justified by a sound business case. 4. The third harbour crossing – a wide ranging debate is needed as there’s no business case for a tunnel. “A funding omission is the possible sale of council selling noncore assets. This needs to be added for serious debate as part of the funding options.”
www.competenz.org.nz
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NZ Manufacturer February 2012
BUSINESS NEWS
Ultimately, we wanted Nike to be the world’s best sports and fitness company. Once you say that, you have a focus
– Philip Knight, Nike
Skilled training graduates deserve recognition
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ompleting a high-level qualification while working fulltime requires a lot of dedication, yet every year several thousand employees in industry achieve highly with little public fanfare. Companies supporting their employees through on-job training are equally dedicated, investing in lifting transferable skill levels throughout New Zealand industry. To recognise the efforts of learners and employers, industry training organisation Competenz has published and distributed a ‘Roll of Honour’ handbook. The handbook celebrates all graduates who completed Level 4 or higher qualifications in 2011 within the engineering, baking, and food and beverage manufacturing sectors that Competenz works with. A total of 846 graduates from 536 companies nationwide feature in the Roll of Honour. Graduates completed their national certificates in disciplines ranging from mechanical engineering, locksmithing, baking and fire protection apprenticeships, to competitive manufacturing, business first line management, quality management, rail operations
and maritime qualifications. It’s a small way of recognising the time and effort learners put into completing their training, and the role of employers providing employees support throughout their on-job and off-job learning. It’s a positive step toward meeting the skill gaps companies identified in research Competenz conducted last year on this issue. But according to the research, a further 3,600 skilled manufacturing workers will be needed by companies within these sectors by 2013.
Joint productivity study welcomed
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usinessNZ and the Australia New Zealand Leadership Forum have welcomed the announcement of joint work by the Productivity Commissions of New Zealand and Australia. An agreement of the joint cabinet meeting of the New Zealand and Australian Governments in Melbourne will see the two commissions working to develop options for further economic reform and integration. “This is a practical step forward and makes good sense,” said Australia New Zealand Leadership Forum Co-Chair Jonathan Ling. “Australia is not just our most important trade and investment partner – the health of the transTasman economy is essential for expanding growth and ensuring both Australia and New Zealand continue to ride out the wave of global economic instability”. The Australia-New Zealand Leadership Forum is supported by BusinessNZ. BusinessNZ Chief Executive Phil O’Reilly said obtaining economic alignment where it is in the interests of both countries is already improving the trans-Tasman business environment. “Achievements under CER and now the Single Economic Market programme have demonstrated the benefits of trans-Tasman www.nzmanufacturer.co.nz
harmonisation. “A number of other significant steps could be taken to facilitate capital raising, ease the approval process for investment and align financial market regulations and supervision. New Zealand business believes mutual recognition of franking and imputation credits would increase investment flows to the benefit of both countries”. Mr Ling said making further progress on the single market would be a focus of discussion at the Australia New Zealand Leadership Forum meeting in Sydney on 12-13 April. “The Forum has always taken a long term view of the relationship. Our Sydney meeting will be an opportunity to discuss how to contribute to the Productivity Commissions’ study and the ongoing single market agenda.” Mr Ling highlighted measures to facilitate trans-Tasman travel. “We congratulate the two Governments on the progress made with SmartGate. Further extension of SmartGate technology particularly on departure from Australian airports and reductions in Australian international departure taxes would assist the ongoing effort to make flying between Australia and New Zealand a more domestic-like experience.”
The only sustainable way for companies to gain the skilled staff they need is to upskill even more of their current employees, or take on new staff to train to requirements.
“Training does require a big commitment, and industry training organisations like Competenz offer companies expertise in planning and training support to help meet their upskilling and business objectives, says Competenz acting chief executive, Fiona Kingsford.” Competenz’s annual alumni magazine - ‘The Guild’ – has also been published to coincide with the handbook’s release. This latest edition features the inspirational stories of nine 2011 graduates, each with an interesting perspective on what drove them to complete a qualification on the job. “These stories show that training positively impacts the lives and career prospects of people at all levels of work experience, and it’s never too late to get qualified in your field,” says Mrs Kingsford.
NZers decline holidays
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ew Zealand business owners appear to be declining holidays so that they can support their businesses during these stressful and uncertain times. The Grant Thornton International Business Report (IBR) that surveyed 6,000 businesses worldwide, including New Zealand, showed that New Zealand had one of the biggest reductions in holidays taken by business people in the last year. In the last year the average number of days taken off by business people dropped from 18 to 13. Only Japan with a drop from 13 to five days off showed a greater change. In the survey New Zealand led the world in the percentage of business people struggling with this work / life balance at 21%, just ahead of Australia at 20% and well above the global average of 9%. The reduction in holidays could also be due to lower staffing levels in many businesses so that it is harder for employers to take a break. Another indicator of how New Zealanders struggle with the work/ life balance is that only 23% looked at better controlling the regularity of their hours worked compared with Australia 38%, United States 50%, United Kingdom 56% and Global 35%.. The survey revealed that global levels of stress felt by business leaders and owners have shown their
lowest annual increase since 2005, with New Zealand no exception. New Zealand businesses showed a 15% increase in stress levels in 2011, down on the 28% in 2010, 34% in 2009 and 36% in 2008. Globally there was a 28% increase in stress levels in 2011, down from 45% in 2010. Asia Pacific was the most stressed region with net 44% reporting an increase in stress over the past 12 months, but this too is down from 58% in 2010. Even in distressed Europe, where the focus of economic turbulence resides, the net increase in stress has declined from 40% in 2010 to 22% in 2011 BRIC/APAC countries are experiencing greater stress (43% and 44%), which is probably indicative of the ever-changing environment that these economies are facing due likely to the uncertainty arising from economic challenges in Europe leaving business owners wondering what the longer term impact will be on their business. For New Zealanders, playing sports and exercising emerged as the main way that business people dealt with stress with 80% of participants citing this as their key strategy. Finland 92% and Netherlands 86% were the only two countries ahead of New Zealand in this aspect. For Australia it was 65%, the United States 79% and the United Kingdom 68%. The global average was 62%.
NZ Manufacturer February 2012
I was raised with the notion that you can do pretty much do anything you want. I always kind of just went ahead and tried things– Pierre Omidvar, eBay From page 1
Starting with a staff of only three, Flight Structures currently employs over 17 people with a variety of experience and skills. “With Flight Structure Manufacturing we will not only be able to utilise our current staff more effectively but will also have the opportunity to bring in others, creating a knowledge base that can’t be beaten,” Mr Kerr said. “We will be able to offer huge value to our present and future customers.” The new facility will boast the first commercial installation of the American made C.R. Onsrud brand CNC Router in New Zealand. A full technological solution, the C.R. Onsrud machine will be used to manufacture Flight Structures designs of aircraft prototype parts. “Parts designed in the morning can be transferred directly to the machine and manufactured onsite in the afternoon,” said Mr Kerr. “This will save our customers time and money,” said Gary Peace co-owner of Flight Structure Manufacturing and Company Director of Clevedon Aeroplane. “We will be able to supply 24 hour technical support when it’s needed.” “Jon and I have worked together for years. When he approached me with the idea of this venture and the C.R. Onsrud machine – it just seemed too good to pass up,” said Mr Peace. “The C.R. Onsrud machine will give us that flexibility to do the work ourselves and not have to wait on others.” As the first of its type in Australasia, the C.R. Onsrud machine is being distributed by MPB Engineering PTY Ltd out of Australia. “The majority of our work had been with sawmill and timber industries but now as the new agent for the C.R. Onsrud machines in this area, we are able to offer services to even more industries including aviation,” said Braydon Cocks, Account Manager for MPB Engineering PTY Ltd. “Our engineers have been working with all types of CNC Routers for a long time but we have been truly impressed with the C.R. Onsrud machine.” MPB Engineering is a second-
Flight Structures soars into manufacturing
generation family company, which has been in business since 1974. The core element of the business is the design, manufacture, service and sales of woodworking equipment and now aviation. With a full staff of engineers, the company prides itself on custom made machines that are designed to a very high standard. “We are really looking forward to working with Jon and his team,” said Mr Cocks. “Jon was serious about quality when he went looking for a CNC Router. He’s the type of customer that is a perfect fit for us. Our focus is completely on the quality of our products. Everything has to be just right.” According to Mr Cocks, the decision to go with the C.R. Onsrud products was an easy one because it is a company that shares the same values as MPB Engineering. The C.R. Onsrud Company, based out of North Carolina, USA, is family owned and specialises in topnotch CNC machinery designed for the aerospace, woodworking, plastics and composites industries. All machines are designed and manufactured at the North Carolina facility. The company has been in business since 1915. The founder, Charles Onsrud, patented the “Inverted
Jeff Onsrud, C.R. Onsrud technician and Grandson of the inventor of the patented router, flew in to Hamilton during the Waitangi weekend to train the crew at Flight Structures Manufacturing on their new machine.
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CASE STUDY
The C.R. Onsrud Router
Router” in 1976. The idea made a huge impact on the woodworking industry by increasing safety and usability. Since then, the Onsrud name has been known for quality and value. They have been building computer-controlled routers like the one purchased by Flight Structure Manufacturing since the late 1950s. “The router will offer Flight Structures Manufacturing a terrific amount of flexibility,” said Mr Cocks. “There is a huge range of usage on this type of router – from big to very small pieces.“ “This type of router has been in many parts of the world for awhile now but this is the first time we’ve had one in New Zealand and coming down here to train everyone seemed a great excuse to see a beautiful
country,” Mr Onsrud laughed. Mr Onsrud went on to explain that besides a knowledgeable agent, C.R. Onsrud also is able to provide online diagnostics through any device that is set up to talk to the CNC router. “Service means everything to us. If we can’t diagnose an issue through our online service, then our partnership with MPB Engineering is going to ensure that Jon and his team’s machine keeps running.” “It’s great that we are all in this together,” commented Mr Kerr as he looked around at the group being trained. “It’s a good example of local companies collaborating for a common goal.” Flight Structure Manufacturing is located on Steele Road by the Hamilton Airport.
The Flight Structures staff training with Jeff Onsrud.
nextSTEP: Visit: www.cronsrud.com Tel: 001 704 528 6170
nextSTEP: www.mpbengineering.com.au Tel: 0061 3 9702 7933
nextSTEP: E: iglands@xtra.co.nz Tel: 09 294 7565
nextSTEP: Visit: www.flightstructures.co.nz E: info@flightstructures.co.nz Tel: 07 843 1128 www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
OPPORTUNITY HAMILTON Tentmaker takes it to next level with RBP Waikato A
Instead of wondering when your next vacation is, you ought to set up a life you don’t need to escape from. – Seth Godin
Matamata tentmaker’s dream of helping the world with his humanitarian housing is closer to reality thanks to Regional Business Partner (RBP) Waikato. LTL Covers owner Lindsay Tasker has developed SeekaShelter tent prototype to use as emergency housing in the wake of natural disasters. Born of LTL’s successful CalfChalet shelter product, Lindsay and his wife and business partner Ellen are working with RBP towards distributing the housing product to governments around the globe. The Tasker’s SeekaShelter product is a 3m by 3.6m half-round tent assembled using a patented flexible join system and light-weight steel-based framing covered with double-skinned polyethylene. The quickly-assembled shelter system has been tested in 120km winds and can house up to eight people. “The next step in the journey is to have it tested by international aid agencies like the Red Cross. Regional Business Partner is helping me get it to that stage,” Lindsay said “RBP has helped me give my business vision a solid foundation.
available throughout the region. Lindsay’s goal is for global governments to stockpile the tents – about 70 per shipping container – to use in the wake of natural disaster. “This business is about much more than making money. As a Christian it is important for me to work towards making the world a better place and that is my vision,” he said. “Finding out about the support available, like RBP and James and Wells patent attorneys has been invaluable.” Lindsay bought the Kaitaia-based tent business after a camping trip in 1998 and relocated it to Matamata. The business, originally manufacturing tents, turned over $50,000 in the first year since
It has equipped me with the things I need to work towards to take the business to the next level.” RBP provides governmentfunded business support throughout Waikato and is managed by Opportunity Hamilton and Waikato Innovation Park. The free service is
There is a brand new service coming soon that will help any manufacturer to Create an unfair sales advantage without cutting prices Unlock hidden profit opportunities in their business worth thousands of dollars a month Attract ideal new manufacturing clients who are not price shoppers Boost sales and profits without working harder Have a lot more fun and enjoyment in their manufacturing business and much, much more
The new service is called – ‘The Manufacturer’s Success Connection’ and you’ll hear all about it in the next issue of NZ Manufacturers’ magazine. Watch this space... www.nzmanufacturer.co.nz
The SeekaShelter humanitarian housing tent prototype.
Lifesaver for print business
Robyn Robertson of Regional Business Partner Waikato and Matamata tentmaker Lindsay Tasker.
An important message to any manufacturer that wants new sales and higher profits without slashing prices and working harder...
growing to $250,000 per annum with the help of new silage and calf shelter products. The Calf-Chalet, retailing for $1900+gst, has hit the right note with farmers with 20 units snapped up at last year’s Fieldays. nextSTEP E: robyn@opportunityhamilton.co.nz.
Sheryl and Dale Ertel credit Regional Business Partner Waikato with saving their business.
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inding the right business support has been a lifesaver for Matamata printers Dale and Sheryl Ertel. The couple bought Tainui Press Design and Print in 1998 with plenty of passion and industry knowledge but little business management experience. Dale had managed the commercial print department of the Matamata Chronicle, formerly aligned with the 80-year-old Tainui Press, while Sheryl worked as a dressmaker. They both saw the potential of the business but outdated equipment meant they struggled with growing demand. “The biggest issue was that we couldn’t meet deadlines. To be quite honest it was tough and that’s when we knew we needed help,” Dale said. Dale approached Regional Business Partner Waikato for support and, along with a commitment to major investment in new equipment, he credits the programme with enabling the future of his business. “Regional Business Partners has been a lifesaver. It has given us insight and support we have not found anywhere else. It’s helped us identify our strengths and weaknesses and put the systems in place to deal with them,” Dale said. Tainui Press Design and Print’s
turnover has grown “exponentially” from the budgeted $23,000 a month when the Ertel’s bought the business. They are continuing to work with a RBP service provider to further expand the business throughout the region. “Our biggest strength is that we are a locally-based family business. We are very proud of that. It means we can offer the customer service that Waikato people appreciate.” Dale and Sheryl are actively encouraging other business owners to seek support through RBP, delivered through Waikato and managed by Opportunity Hamilton and Waikato Innovation Park. “It really helps keep you focused and gives you the extra push you need. It has helped us keep our vision alive,” Dale said. RBP Waikato manager Opportunity Hamilton has distributed tens of thousands of dollars towards business training throughout the region with copartner Waikato Innovation Park distributing more than $9.5m in technology and development funding. Tainui Press Design and Print offers a wide range of printing services to small and medium businesses throughout the region from advertising design and business stationery to brochures and posters.
NZ Manufacturer February 2012
A successful man is one who can lay a firm foundation with the bricks others have thrown at him. – David Brinkley
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OPPORTUNITY HAMILTON
Local conference to spur global success
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iving New Zealand businesses a springboard to international success is the aim of a global conference to be held in Hamilton in June. Innovation and Growth (I&G) manager Nicola Browne, of Opportunity Hamilton, said the event will give up to 300 business people and entrepreneurs a launch pad for off-shore growth and tools for success in the world market. “The conference is designed to give innovative businesses access to already established global connections and show them how to leverage the latest technology to reach the world. This is an exciting opportunity,” Nicola said. Ideon Science Park chief executive Hans Moller, of Sweden, and Manchester Science Park chief executive Jane Davies will speak at the conference. “Hans and Jane will share some
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of their science park success stories and talk about how to establish an effective innovation ecosystem. These two people have enviable global networks,” she said. I&G is a legacy project to encourage beneficial global connections and business support relationships moving forward. “It will help us understand what businesses are out there, the challenges they face, opportunities and barriers so we can better support them with their international connections. It’s also a great way to capitalise on the government’s ultrafast broadband investment in our region.” The state-of-the-art conference will give attendees access to the latest smartphone networking technology allowing them to connect with each other and share profiles before, during and after the event. “All innovative business people
and entrepreneurs interested in tapping into the global market should be at the conference. It’s an opportunity to meet like-minded people and get the right people on your team,” Nicola said. Businesses successfully trading off-shore are invited to share their stories at the conference. “They are integral in inspiring and guiding other businesses to success.” Conference workshops will reveal the missing tools for high growth ventures and the skills of successful networking and pitching. “Entrepreneurs and business owners will have the chance to practice pitching in a relaxed, fun and inspirational environment. Practice makes a pitch perfect after all. There will be prizes aimed at helping them on their goal to global success.” The conference also offers opportunities to accelerate research
Digital Hamilton strategy manager Nicola Browne of Opportunity Hamilton.
and development and talk with potential partners or investors. I&G is a core focus for Nicola who manages Opportunity Hamilton’s digital project. nextSTEP To register interest for the conference contact: nicola@ opportunityhamilton.co.nz
Innovation database launched
he Kiwi Innovation Network (KiwiNet) has launched its online innovation database, enabling businesses, entrepreneurs and investors worldwide to view a diverse range of technologies and expertise in New Zealand’s research organisations. The KiwiNet Innovation Database aims to facilitate collaborations between complementary technologies and increase investor and industry connections by showcasing the commercialisation capability and distinctive portfolio of innovations New Zealand has to offer. KiwiNet, a consortium of New Zealand research organisations dedicated to taking a collaborative approach to research commercialisation, designed the database to act as a shop window to view up-to-date research projects, inventions and patents from across New Zealand. Andrew Turnbull, a KiwiNet director says, “The KiwiNet Innovation Database is designed to jumpstart the transfer of research
technology to the marketplace by bringing together science and business. We have a wealth of innovations in our universities and research institutes and by opening up access and working together we can unlock great value.” Examples of projects seeking investors or industry involvement range from biopesticides and biologically based growth promotants, to artificial muscle materials which can allow users to power and wear devices, to unique electrochemical cells which allow cheap and effective removal of contaminants to provide clean drinking water for cattle. Endeavour Capital has already made several investments through KiwiNet members WaikatoLink, University of Canterbury and Otago Innovation and IRL is spearheading a major offshore export initiative with several other institutions from KiwiNet. Mr Jordan says this collective approach to innovation, a global network and easy access for funders increases the chance of
success for ventures. KiwiNet, which receives support from the Ministry of Science and Innovation as part of its commitment to commercialisation, will leverage the database through international portals to provide heightened exposure and visibility for New Zealand research. Dr Gavin Ross, General Manager Business Development, Plant & Food Research, a KiwiNet member says, “Visibility and connectedness are vital to successful technology transfer. KiwiNet’s national innovation portfolio approach creates greater scale and credibility which will help us promote our technologies on the international stage. By working collaboratively we can also identify opportunities to combine complementary technologies to create more investable propositions.” The first release of the database contains innovations from many of New Zealand’s research organisations including KiwiNet members, Plant & Food Research, Otago
Innovation Ltd the commercial arm of the University of Otago, Lincoln University, AUT Enterprises the commercial arm of AUT University of Technology, WaikatoLink the commercial arm of the University of Waikato, AgResearch, University of Canterbury, Industrial Research Ltd and Viclink the commercial arm of the University of Victoria along with projects from, Scion, UniServices and Landcare. KiwiNet will be working with users of the database to continuously refine the structure and content to best meet personal needs and preferences. The KiwiNet Innovation Database currently hosts over 70 innovations as well as profiles on the organisations, commercial and research groups, and experts who can provide valuable expert advice on technical, commercial and market issues relating to the technology. KiwiNet aims to further develop the database into a more comprehensive national innovation database. nextSTEP www.kiwinet.org.nz/fsearch.aspx
www.opportunityhamilton.co.nz www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
MANUFACTURING TECHNOLOGY
I
You are not your resume, you are your work. – Seth Godin
Industry partner programme developed
RL has developed an industry partner programme that will grow the breadth and depth of its engagement with business across New Zealand. The programme is seeking to enable regional economic growth through the application of technology and assist in developing an innovation culture across the regions of New Zealand. The Programme will tap into the local knowledge and existing relationships of regionally-based business growth and support organisations, such as chambers of commerce, local councils, economic development entities and other service providers. “By working with organisations that have strong, trusted relationships with local businesses, we open up the lines of communication with regional firms,” says recently appointed IRL Partner Programme Manager Irwin Munro. Under the programme, organisations will either become accredited, whereby they work closely with IRL and regional businesses, or act in a referral capacity by simply making connections between businesses that could benefit from working with IRL. Munro says the term R&D can be daunting for many businesses. “For many people R&D suggests lots of complicated and expensive activity that could take years to make an impact on the bottom
line. In reality, targeted R&D can contribute to future product lines or remedy existing design problems and have a significant positive affect on profitability.” He says working with people in the regions who understand the needs of local businesses, how they work and what their problems are will enable IRL to provide the most appropriate solutions. “For many smaller regional firms in the regions we expect to be talking more about assisting at the development and solutions end of the R&D spectrum. “We’ll be focusing on the outcomes that provide near-term benefits that assist in raising profitability and productivity. In short, we’ll be offering technology-based solutions to difficult problems, drawing from our extensive knowledge and networks,” says Munro. With scientists and engineers who are world-leading in applying their knowledge in an industrial manufacturing context across a wide range of areas, IRL is well equipped to assist regionally-based firms. “From production and process engineering to industrial chemical manufacturing and electronic and information technology engineering, IRL has the ability to find the right solution,” he says. IRL offers whole-of-life R&D management. “With the assistance of our partners we’ll be looking to provide best-fit solutions for the specific needs of business.”
Email: acsdesign@maxnet.co.nz Ph/fax: (07) 377 0675 www.nzmanufacturer.co.nz
Munro says this could mean referring businesses on to other organisations if IRL does not have the appropriate capability. “IRL’s key purpose is to increase the contribution of the industrial manufacturing and associated sectors of the economy and this will require collaboration on a national scale.”
Having outlined his plans for the programmme late last year at the Ministry of Science and Innovation and NZTE-hosted Regional Business Partner Conference in November, he is now seeking out potential programme participants. nextSTEP Email: irwin.munro@irl.cri.nz or Tel: 021 02456344.
Intercad strengthens leadership position
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ntercad Pty Ltd has completed a management buyout and plans to introduce new services in 2012 as it further supports the manufacturing sectors in both Australia and New Zealand. Max Piper, chief executive officer, Intercad said: “The global financial crisis (GFC) has seen a drive in demand for solid modelling systems as designers and manufacturers sought to be more productive and competitive. “Intercad has focussed on providing increased implementation, technical services and training. This strategic positioning has resulted in Intercad being able to maintain its position as the leading distributor of SolidWorks in the region and we continue to win market share from competitive products. “For some time, we knew that the ANZ Bank planned to divest itself of its private equity holdings and when the opportunity arose to assume ownership of Intercad, we seized it.” Piper said the ANZ Bank’s decision to divest at this point reflected its positive assessment of Intercad’s strong business position. Intercad’s leadership of the 3D modelling software and services market as well as its robust and rapidly expanding client base were other key factors in the decision. “If you look at our clients, you see a diverse range of outstanding names like Russell Mineral Equipment, Qantas, Fisher & Paykel and Triple 8 Racing Team Vodafone. You also see strong growth as new clients are added in sectors like education with Monash University,” Piper said. Intercad has seen significant growth in the education market with demand for SolidWorkstrained graduates being driven by commercial organisations. While Piper cited macro-economic factors such as the increased competition from low cost regions like China creating challenges for local manufacturers, the sector was also facing the additional pressure of global economic volatility. Companies were responding by seeking ways to increasingly improve their productivity by, for example, further automating their businesses.
Max Piper
“Part of the story is that local manufacturing continues to show resilience and those manufacturers that have invested or will invest to lift capability are going to find themselves well-positioned to grow over the next twelve months,” Piper said. Piper also said SolidWorks’ position as a global leader in 3D modelling is complemented by Intercad’s role as a provider of choice for the industry and education sectors. “Our role as a company is not merely to sell world-beating software,” Piper said. “Frankly, you don’t increase manufacturing competitiveness if you’re not there for your clients before, during and after the sale. Intercad is thriving because software without access to best practice is only half the story, we are about enabling our customers and this means implementation, training, on-site support, online support, and remaining vigorous advocates of best practice adoption. “Intercad stands at an inflection point,” Piper said. “Manufacturing might be challenged in our region but these very challenges offer great opportunities. Essentially, our technology and the pre- and post- sales support we offer increase productivity and help automate as many processes as possible. This means a healthier bottom line for our clients whatever the market conditions.”
NZ Manufacturer February 2012
If you see a bandwagon, it’s too late. – James Goldsmith
MANUFACTURING TECHNOLOGY
Free web technical training
S
olidtec Solutions is adding even more value to Subscription Service customers with free web technical training that will be run in a new and interactive format to ensure Solidtec customers are the most educated and highly supported SolidWorks users in Australia and New Zealand. The training courses are designed to enable customers to get the most from their SolidWorks 3D CAD solution with practical, hands on approach to training. Solidtec Webtec will be free for all Solidtec Subscription Service customers in Australia and New Zealand and will be offered in the following categories:
SolidWorks Web Training Solidtec delivers these monthly sessions to Subscription Service customers to demonstrate how SolidWorks can solve design problems and to introduce new modelling and detailing techniques and methods. Attendees can interact live with the presenter and are encouraged to submit topics, problems and models that can be
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covered in case studies in future sessions. These sessions will be facilitated by Stewart Nankivel who has over 15 years’ experience in SolidWorks technical training.
Simulation Web Training Simulation online training sessions are aimed at existing SolidWorks Simulation users wanting to increase their knowledge and confidence in SolidWorks Simulation. This online training is interactive providing attendees an opportunity to ask questions and even submit problems and models to be covered in future sessions. With the introduction of this free monthly technical web training, Solidtec Solutions will bring together the SolidWorks Simulation Community in Australia and New Zealand where users can interact and share their Simulation knowledge. These sessions will be facilitated by one of the few Certified Simulation Premium and Flow Simulation Professionals in ANZ, Solidtecs’ Elite Application Engineer and in-house Simulation expert, Damien Murphy.
Global survey of engineering software open
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yon Research Corporation has announced the opening of its 2012 Global Survey of Users of Engineering Software. The survey is open to employees of any firm that uses CAD, CAE, PDM, PLM, and/or BIM software for design, engineering, manufacturing, and or construction (generally known as “engineering software.”)
The survey explores users’ attitudes, expectations, and plans regarding the use of engineering software, as well as their view of their business outlook, their
spending/hiring plans, and their expectations regarding changes or transitions in their engineering software mix. Preliminary insights from the survey will be presented at COFES, the Congress On the Future of Engineering Software (http://www.cofes.com) in April. Respondents from qualifying firms—firms that use engineering software, as mentioned above—can receive a copy of the survey results, for their personal use, at no cost. Individuals who work in firms which use CAD, CAE, PDM, PLM, and/or BIM software are encouraged to participate.
hbm.com.au
www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
MANUFACTURING TECHNOLOGY
D
To do a common thing uncommonly well brings success.
– Henry Heinz, H.J.Heinz Company
Delcam on show at SolidWorks World
elcam will demonstrate the 2012 version of Delcam for SolidWorks, its integrated CAM system for SolidWorks, at SolidWorks World in San Diego from 12th to 15th February. This latest release includes programming of wire EDM for the first time, alongside the comprehensive options for the programming of turning, mill-turn, drilling and two- through five-axis milling. To find out more, please visit www.delcam.tv/dfs2012/lz. Other enhancements include target-part comparison, the ability to compare a model of the desired final shape with the shape achieved by the programmed toolpaths, and multiple-instance programming, the programming of multiple SolidWorks components in one operation, either in the same orientation or in different orientations. Fully-automated de-burring and chamfering has also been added to give faster programming of these finishing operations on 2- or 2.5axis parts. The ability to incorporate chamfers, even when they are not
shown in the original SolidWorks model, duplicates functionality previously available in Delcam’s feature-based CAM system, FeatureCAM. Delcam for SolidWorks 2012 also incorporates enhancements from the 2012 release of FeatureCAM, including improvements in the use of stock models and new options in the tooling database. Stock models allow the user to visualise the material remaining after each operation. This makes it easier to eliminate air cutting and so generate more efficient toolpaths with reduced machining times. The models also simplify the selection of the most appropriate tool sizes for rest-roughing and finishing operations. The tooling database is a key part of the automation in Delcam for SolidWorks as it allows the optimum operating conditions to be associated with each tool. In most companies, the database is developed by the most experienced user. It then ensures that even inexperienced operators use safe
and efficient cutting parameters. Delcam for SolidWorks, which has been awarded Certified Gold Product status by Dassault Systèmes SolidWorks Corp, combines the benefits associated with Delcam’s PowerMILL and FeatureCAM CAM systems.
Integrated shielding ensures high functional reliability
N
ew M12 receptacle connectors can be used to connect control units to ProfiNet/Profibus networks via bus modules as well as to transmit analog data at field level. The connectors are available with assembled control cables or with printed contacts for PCB mounting. In the printed contact versions, the integrated shielding ensures optimum flexibility for shield continuity. With the assembled connectors, and depending on the port assignment of the control units, a diagnostics interface can be implemented outside the switch cabinet using an Ethernet connection. This practically eliminates the disruptions resulting from repair or
KEVIN KEVANY
09 520 5206 kevwrite@xtra.co.nz www.nzmanufacturer.co.nz
maintenance work. These receptacle connectors are simple to install thanks to standardised M12 connection technology and colour-coded bus connections. Additional features include industrial protection class IP67, high shock and vibration resistance, and a wide temperature range of -30° to
PETER ISSAC
06 340 8134 peter.isaac@xtra.co.nz
+80° C. They enable highly-available data communication solutions in areas such as mechanical and plant engineering, material handling or public transport. Versions with assembled control cables are intended for rear mounting. nextSTEP Visit: www.beldensolutions.com
M12 receptacle connectors
DAVID BURKE-KENNEDY 09 473 8635 dbk@compublicity.co.nz
SANDRA LUKEY 021 2262 858
sandra@shinegroup.co.nz
It is based on Delcam’s proven machining algorithms that are already used by more than 35,000 customers around the world. The software offers PowerMILL’s exceptional speed of toolpath calculation, plus the advanced strategies for high-speed and fiveaxis machining, to ensure increased productivity, maximum tool life and immaculate surface finish, even when cutting the hardest, most challenging materials. At the same time, Delcam for SolidWorks has the same strong focus on ease of use as FeatureCAM, including all of the knowledgebased automation that makes that system so consistent and reliable. Delcam for SolidWorks is fully integrated into the SolidWorks environment so that the program looks and behaves like SolidWorks. It offers full associativity so that any changes in the CAD model are reflected automatically in the toolpaths. However, this associativity is more intelligent than that offered in many other integrated CAM systems. Delcam for SolidWorks doesn’t simply modify the existing toolpaths but also reviews the choice of cutting tools and machining strategies, and changes them if necessary.
BRENT WHYTE
0061 2 9439 9329 bwhyte@whytepr.com.au
JULIE HANNAM
07 929 4970 julie@writewell.co.nz
NZ Manufacturer February 2012
A meeting is an event at which the minutes are kept and the hours are lost. – Unknown
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AUCKLAND MANUFACTURERS
Dotmar exports quality manufactured components to India
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otmar Engineering Plastics in Auckland’s Mt Wellington industrial area – with other branches in Christchurch and Palmerston North -- is part of a privately-held company which is truly a global giant in the supply and manufacture of game-changing thermoplastics. They don’t need to boast, because they are already the biggest in North America; second- biggest in Europe; and Australasia’s biggest. Then you add the ability to buy the best European plastics and hand them to highly-skilled and experienced, long-term employees like technical manager, Grant Pedersen, and the rest equals sustained success. Customers seek them out for their product-knowledge, design skills, collaborative working relationships, the quality and precision of their manufacturing, and the knowledge they have the highest quality rawmaterials – sheet, rod and tube, almost exclusively of European origin – when they start. The results include uncontaminated – either on or in the thermoplastic -- componentry for the local food and dairy industry; hard-wearing conveyor systems; specialist bearings and fittings for super yachts; seals for petro-chemical pipelines and graphite-filled compressor-grade seals for compressors, amongst a zillion others. The New Zealand operation also has a significant export trade in machined components to Australia, Mexico, the USA and India. From page 1
Which brings us to the headline. After supplying indirectly initially, Dotmar is now providing Swedish headquartered, Atlas Copco, directly with high-spec, compressor piston rings for their now-55-yearold Indian operation. Carl Lunt, the local business manager explains: “Their compressors are part of a growing industry worldwide, the use of tankers to deliver gas to homes and factories, rather than by pipelines, which have a propensity to fail, when not properly maintained, and are sometimes subject to vandalism too. “It goes without saying that compressors operate under extreme pressures and in this application are constantly being switched on and off. Some 80-percent of the costs of those oil-free piston compressors are ‘running costs’, .and the Atlas Copco expectation of 100-percent right first time operation is mirrored by Dotmar. “Clearly Atlas Copco could get cheaper and more readily-available products in India, but after flying out and auditing our processes and systems, and being convinced of our ability to meet their quality and precision requirements, as well as their exacting delivery needs, their key people went away happy. “It also helped that we have removed the need for the specialist parts to be hand-fitted, meaning Atlas Copco don’t need a qualified technician on the other end to handle the change-out. Downtime is a particularly costly exercise in
Carl Lunt (left) with Grant Pedersen and some of Dotmar’s manufactured products.
the tanker-based gas reticulation business,” he says. He and Pedersen believe this example demonstrates a growing move back to design, quality materials, precision engineering and a growing desire to take advantage of the move to thermoplastics in every walk-of-life. “Increasingly, existing customers and new-comers want to discuss, upfront, their product needs and their search for alternatives. Our collective knowledge across our New Zealand operation, our colleagues across the globe and our first-class suppliers means that people are regarding us as an ‘industry knowledge centre’, not just a manufacture-to-order operation,” he says. ‘Functional replacement’ is
the term they use to describe the massive inroads thermoplastic is making globally. “As the world develops and people are getting a better understanding of the quality, precision and robustness of our products, especially when their applications cannot afford to have fatigue or deterioration at certain temperatures, or a variation in strength, for example.” Surely there must be some weakness in their offering? Pedersen again: “We sometimes err by providing too-high a quality, which isn’t really necessary.” Not a problem too many might have. nextSTEP: www.dotmar.co.nz Tel: 09 579 8300
Tandarra typifies NZ manufacturing at its best
Today, Tandarra’s 20-odd staff operate a 10,000sqm full-production workshop and assembly plant, manufacturing custom-order roll-formers and accessories for a number of clients – many of them going back some 25-plus years -both locally and abroad. CNC lathes, VMC mills, radial drills, table-grinders and even their own heat-treating facility, mark this as a world-class design and manufacturing hub, which also ‘loves a challenge’. But, you’ll be pleased to learn, the original, simple drill press and manual lathe are still making parts for their current machinery, because that’s part of the company culture: it’s about maintaining a tradition of quality and high-precision which has
had the likes of Bluescope Lysaght, throughout SE Asia, calling on them to produce speciality products over the decades. “Our attitude is one of ‘almost anything is possible’, so along with producing a wide-range of generic profile machines, we also regularly find ourselves involved with projects to develop new profiles that have never been made before - often because we are the only ones willing to attempt them. “We welcome those, because they stimulate the long-serving team to come up with the solution and then implement it to the budget and the deadline. To date, we have a perfect record on that score, and mean to keep it,” says Watson, who has just received an enquiry from
Ethiopia, from a manufacturer who is so impressed with a 15 year old Tandarra machine he’s acquired, that he wants another. Watson is due to fly to Thailand a couple of days later to supervise the training on and installation of the company’s latest project for Bluescope Lysaght – a containerised (custom-made, 40-footer, with roller door on the end and soft curtains) roll-forming machine which will be craned up onto scaffolding for continuous sheet rolling onto the many and massive warehouses and retail centres popping up all over that rapidly industrialising country. “Although we have a reputation for mobile roll-formers, amongst others, this was a real weight challenge due to the on-site lifting requirements. It will be used to produce continuous sheets, up to 200M in length which have to be spoton accurate as the profile uses a concealed clip system instead of traditional screw fixing. That and they have to be monsoon-proof. “We also don’t want any
problems which would require us to fly back-and-forth to fix. We made it with some 28 kg to spare; and just to keep the team on its toes – we had to accelerate the completion date, right at the end, to beat the pending Auckland dock strike” he notes. Test-sheets were sent to their Australian laboratory in December and only a few minor tweaks were required before the client signed the profile and machine off just before Christmas. “We are committed to continuing our existing relationships, as well as fostering some new ones, through the continuous improvement of our machinery, the safety features within them, and our manufacturing techniques, to ensure a safe working environment, both for our own team, and that of our customers.” NZ manufacturing at its best. nextSTEP: www.tandarra.co.nz www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
AUCKLAND MANUFACTURERS
Only those who are asleep make no mistakes.
– Ingvar Kamprad, IKEA
BD Tensioners compete with the Swiss on quality and service
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f you look at the dual-branding around 4 Tait Place, just off Rosedale Road on Auckland’s North Shore, you might be a little confused as to where you are and what they are about. But don’t let that concern you. All you need to know is that everything on site is ‘Proudly New Zealand Made’; that you have the opportunity to ‘Ask about our customised service’; and that the owner and boss is a gentle, softlyspoken lady – and I don’t mean ‘female’ – who is quietly carving out a reputation for herself in New Zealand Manufacturing. Meet Sue Mill, a former nurse-turned-qualitymanufacturer. The site contains the operations of the well-established Belts & Drives New Zealand Limited, acquired by Mill back in 2007 from founder Paul Osborne, who still consults to the company, which is migrating across to become BD Tensioners, local designers and manufacturers of a wide range of tensioners, rollers, sprockets and chain guides to suit chain from 3/8” to 1?”. They also compete head-on with the Swiss giant which dominates the world market – but not New Zealand’s. As GM Jim Marsh notes: “Their imported products are good, and we make a good one too. It happens to be a niche product and the local market isn’t big enough for them, so we are number one in tensioners. “It also helps that if you get your order in before 4 PM, we will have it at your premises anywhere in New Zealand the next morning. Customers like the fact that we are Kiwis, independent, deliver what they tell us is a great service and our pricing is fair – two increases in five years, isn’t bad.”
Jim Marsh and Sue Mill stand high on a fabricated stairwell, with BD Tensioner products.
How have they achieved that? Mill takes up the challenge: “By constantly improving the product and gaining manufacturing productivity by systematically focussing on each and every aspect of it, including coatings, which we specialise in, to maintain our competitiveness. “We also limit our exporting to Australia, so that we aren’t distracted by small volumes going all over the place. We’d rather give our attention to customised solutions for our customers. We do, however, supply major manufacturers who effectively export our products worldwide.” Their customer total is even longer than their impressive distributor list, where I stopped counting when it got into the twenties. Marsh is obsessive about having parts in stock and ‘confesses’ to being short of a part for one 12-hour period once last year.
The A & S structural and steel fabricators sign which sits alongside the B & D one has been cleverly designed to have a strong ‘family’ core feel to it. And why not, they work side-by-side, albeit in discreet bays where necessary, sharing the decades of designing (a particular skill), manufacturing and fabricating specialist products. It is here that Mill cut her ‘manufacturing teeth’, in a business which literally started out welding wheel-barrows. Today that has grown to include specialising in structural steel for large and complex structures. Additional areas of expertise – under the payline ‘taking the hassle out of steelwork’, which encapsulates the pragmatism which permeates the operation -- include: • Handrails and balustrades (see photograph).
Appointments strengthen international team
J
ohn Cochrane has been appointed Trade Commissioner/ Consul in Guangzhou. He is responsible for developing and maintaining an extensive network of business relationships in the region relevant to NZTE clients’ trade and investment interests.
John Cochrane www.nzmanufacturer.co.nz
John joined NZTE in late 2011 from Commtest, designers of machinery health information systems, where he was the senior executive responsible for guiding Commtest to such successes as Frost & Sullivan’s global “Best Practice” award. Ivan Kinsella has been appointed Investment Director Greater China based in Beijing. He is responsible for shaping NZTE’s investment strategies with China, Hong Kong and Taiwan, working closely with the investment team in New Zealand. Ivan has over 20 years’ experience dealing with Asia in corporate, advisory and government roles. He has been based in Beijing, Taipei and Hong Kong for 16 years, most recently as Investment Director for Austrade in Beijing. Kevin Parish has been appointed Trade Commissioner in Hong Kong.
He is responsible for promoting trade opportunities and building strategic relationships for New Zealand companies in Hong Kong and Macau. Before taking up the role in February 2012, Kevin was the Regional Manager for NZTE’s Christchurch office. He was responsible for managing NZTE’s work with some of Canterbury’s larger exporters in the ICT, Energy, Specialised Manufacturing and Food and Beverage sectors. Richard White has been appointed Trade Commissioner in New Delhi and leads NZTE’s team in north and east India, helping New Zealand businesses enter the Indian market or expand their business in India, and building strategic relationships with Indian businesses that will support business growth and new deals in India. Prior to taking up this role in
• Gates and fences. • General welding. • Steel maintenance. • Steel fabrication. • On-site welding and installation. They also have a full range of coatings systems from hot-dip galvanising to zinc metal spraywith-seal or epoxy over-coating, electroplating and more. And if you need more involved drawings, they can do workshop drawings in Autocad or 3D (Strucad, Autocad). It is the proverbial one-stop-shop, plus. When next you’re on the North Shore look out for the massive span of the Salvation Army HQ and chapel; any number of school facilities and an AUT unit, across the city; complexes for the elderly; awardwining architectural buildings; and many more from their purpose-built factory in Albany. “Since our establishment in 1985, A&S Engineering has built a reputation for quality workmanship, accuracy and reliability. We offer a complete service from supplying free quotations to site-measuring, CAD drawing-facilities, preparation of shop-drawings, manufacture and on-site installation. “We have been operating for 27-years with a very low staff turnover. We currently employ 12 staff with most having several years’ service. We have apprenticeshiptrained-tradesmen, qualified to weld under New Zealand Standards 4711,” Mill says. Marsh credits the outsourcing philosophy for dynamically transforming the B &D operation to enable it to continue competing with the world’s best. Expect more from the Mill and Marsh partnership. nextSTEP: www.bdtensioners.co.nz
Richard White
February 2012 Richard managed NZTE’s Incubator Support Programme which supports the development and growth of successful business incubators throughout New Zealand. Prior to joining NZTE in 2002 Richard spent three years as Chief Executive of the Insurance Institute of New Zealand and 15 years in corporate and commercial banking. He served as New Zealand’s representative on the AIBF board from 2001-2005.
NZ Manufacturer February 2012
I never dreamed about success. I worked for it. – Estee Lauder
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AUCKLAND MANUFACTURERS
Leaders drawn to ‘Innovation Conference’
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ike a good Hollywood producer onto ‘a good thing’, Howick Engineering, a current prestigious ‘TIN 100’ company and winner of ATEED’s Auckland South export award, is to stage a follow-up ‘Steel Framing Innovation Conference’ -- Share, Innovate, Create and Grow. The event will take place in Auckland, 21-23 March, at the premises of RFS Steel Framing. Sir Kenneth Stevens will open the proceedings, highlighting how innovation in New Zealand is boosting productivity. The presentation on ‘fastener innovation’ and ‘correct fastener selection for application’ -- ‘not all fasteners are created equal’ -- is expected to create much interest and discussion. Richard Ogden MBE, chairman of Build Offsite UK, will share the experiences of building offsite – particularly in weather afflicted countries -- and how offsite manufacture has benefitted some of the large projects in Europe. He will outline the vast future potential of offsite construction, including schools, which, given NZ’s leaky schools’ scandal, should prove most interesting. He
is an internationally-recognised building expert across most areas of construction, with great experience in fast-food outlets, amongst others. Are you listening down in Christchurch? The occasion will culminate with the launch of Howick Engineering’s next generation machines, where according to CEO Wayne Rowe: “attendees will be shown the upgrades, as well as details of the latest control system advances”. Pardon the pun, but Howick Engineering is on a roll. It’s not Rowe’s or the company’s style to puff their abilities or their successes, so it takes a while to establish that their machines are now in 54 countries. And they are adding more distributors to grow the brand even further. A business manager for China is currently setting-up shop. A UK office, established by the next generation of Coubrays, Nick, now back in Auckland as business development manager, keeps an eye on matters there and in Europe. Distributors are hard at it in Malaysia; South Africa; India; Brazil: USA; Poland; Rumania; the Middle East; with two in Russia. The previous conference held
in 2010 served to confirm the company, established some 30 years ago by Alan and Bruce Coubray, to be a global leader both in the manufacture of machinery, fixed and mobile, to produce steel framing and allied products, and in bringing innovative products to market, like the Speedfloor, rollformed steel joist, developed by Graeme Stubbing – offering a steel / concrete composite flooring system – which is revolutionising the construction industry (including parking garages) in many overseas countries already. The breakthrough Howick Truss System for use as flooring joists and lintels will also be featured during the conference. Auckland University associate professor, Charles Clifton will look at how steel framed houses survived the Christchurch earthquakes and proved their suitability for modern homes in those conditions. Rowe says the growing contribution of software companies is highlighted by the inclusion of four global leaders, Steel Framing Systems; Tekla; JFBA - Truss D&E; and Finnish-based Vertex, with their Vertex Building Design, a comprehensive BIM solution for
General Manager Wayne Rowe
residential and light commercial steel framed houses. The Vertex solution can be easily connected to other information systems like ERP; can be customised to ‘work the way you build’; and a new solution implementation process. “Without the use of sophisticated computer software, it would be extremely difficult and time consuming to analyse a cold formed steel truss and wall system. The JFBA presentation will outline the fundamental design requirements for CFS trusses and walls; the engineer’s design responsibility; and will give some guidance in the selection of computer software to assist the engineer in the design process,” he says. Chris Kay, the driving force behind the growth of New Zealand Steel’s AXXIS product will also contribute his insights.
Smart marketing for manufacturers
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s a sales and marketing consultant, I advise my clients to do things that differentiate their business in a positive way from all their competitors. And a simple way to do this is with the strategy of ‘added value’. Here are three examples of added value to get you thinking: 1. Warehouse reorganisation: In the book How Champions Sell by Michael Baber there is the case study of Steve who was an industrial sales representative and sold hardware, nuts and bolts to industrial accounts. Steve dealt mainly with buyers in purchasing departments. His products were considered a commodity and he was under constant price pressure. Now Steve was an engineer, and became interested in warehouse operations. During some extended sales calls, and during some of his weekends, he worked with the warehouse manager of one of his accounts. Together they upgraded the accounts warehouse management system. This saved the customer hundreds of thousands of dollars. His customer was very grateful and gave Steve all his hardware
business with little concern for price (as Steve was generally pricecompetitive). The owner of this company and the warehouse manager referred Steve to several other companies in the area. Steve helped install the costsaving warehouse system at some of these companies. He picked up their hardware business, again with little concern about pricing. Soon Steve was calling on the owners of companies (not buyers) all over his territory. He offered the added value service of improved warehouse operations. This was accompanied of course by the purchase of his hardware line. Steve became the most successful sales person in his company. SteveÕs added value service of helping his clients improve the efficiency of their warehouse operations is a perfect example of adding value to his customers.
How can you ‘add value’ to your customers?
2: The movie tickets with the new car: I brought a new car a few years ago. Three weeks after the purchase I received two free movie passes from the car dealer; along with a lovely note thanking me for my business. When I brought this car; I was regularly speaking to several hundred business people a month at live seminars. I told all these people about my delightful little added value bonus from this car firm. I also went back two years later and bought another car from the same firm. 3: The ‘flower man’ recruitment consultant: I met an interesting recruitment consultant in Australia a few years ago. He specialised in recruiting office staff for large companies. He made it a habit of regularly going into the offices of these companies and adding value by giving a lovely rose to all the staff who worked there. He told me he became known as ‘The Flower Man’ by his clients. He also told me it was a very simple way to differentiate himself from his competitors and he got a lot of repeat business by giving away
By Graham McGregor Graham McGregor is a marketing consultant and the creator of the 396 page ‘Unfair Business Advantage Report’. www. theunfairbusinessadvantage.com (This is free and has now been read by business owners from 11 countries.) You can email Graham on graham@ twomac.co.nz these free flowers. Action Step: How can you add value to your clients this week? “One right and honest definition of business is mutual helpfulness.” William Feather www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
AUCKLAND MANUFACTURERS
Whatever you do, be different... If you’re different, you will stand out.
Go Global 2012
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s a one day national exporter conference which will include international speakers including NZTE’s CEO and Beachhead Advisors who are highly successful business people from various markets around the world, who help NZ companies as part of the Beachhead programme. They include from India Vijay Crishna Executive Director of Lawkim Motors Group (Godrej & Boyce Mfg. Co. Ltd). Mr Crishna has had a long and very successful business career (motor vehicle manufacturing, light engineering, IT services, call centre business interests) and is the Chair of the Beachheads India for NZTE. Learn about the India market; the opportunities and the pitfalls. Hear how Mr Crishna turned a loss making company to an immensely profitable company. He serves on the Board of Trustees of the Bombay Scottish Orphanage Society, and is also a
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member of the Advisory Board of the Institute for Technology Management, Navi Mumbai. He also serves as an advisor on the President’s International Advisory Board of Colorado College, the United States., Wayne Norrie, Chair of the Beachhead Programme, is a New Zealander with over 30 years IT industry experience. Wayne has led the cultural change required to set Hitachi Data Systems on the path to success. He implemented a programme on organisational culture, demonstrating through life experience the correlation between cultural strength and financial performance. A popular keynote speaker, Wayne speaks regularly for the Institute of Director’s (IOD) Aspiring Director dinner series, and on Governance for Hi Growth Companies. Ben Anderson from America has core strength in talent
THE ROAD TO EMEX 2012
Fein tools on display
management. Hiring the right talent in overseas markets is critical to the success of any business that is internationalising. Hear about the US market, the challenges and opportunities and how to get the right talent on your side. Ben has an international reputation in recruiting for clients across the global Technology, Media, and Telecom industries. He has successfully identified proven talent for senior general management roles, including CEOs, COOs, CFOs, CIOs, and members of boards of directors. Clients enlist him to recruit talent deemed critical to the success of growth initiatives and to re-energize critical functions. Peter Chrisp, CEO of NZTE will also be speaking, as well as some of NZTE’s international Regional Directors.
Employment relations in the spotlight
ince the last conference, New Zealand has faced turmoil within the international economy, a Rugby World Cup, and an election. The legal framework that employment relationships operate within has also changed in ways that haven’t necessarily been predictable. For one, the impact of the amendments made to the
– Anita Roddick
Employment Relations Act and Plaza, Auckland offers attendees the Holidays Act that took effect in opportunity to hear about the latest 2011 do not appear to have had developments in employment law a particularly profound impact in New Zealand from the experts in on employment relationships. this field. As the country’s longest Conversely, the biggest impacts have running IR and ER conference, arguably been caused by decisions of this conference offers a unique the Employment Court in interpreting opportunity for practitioners to existing legislative provisions. come together as a group to discuss This year’s conference, being the latest developments and what held 13-14 March at the Crowne these mean practically.
Calendar of Events NZ Health Technology Showcase ………………………………… 27-28 February
The Langham Hotel, Auckland
NZ Hi-Tech Awards…………………………………………………… 11 May
Winners announced
Volvo Clear Ocean Race 2012 Auckland South Business Lunch Series: John Key ………… 13 March
Pacific Events Centre, Manukau
26th Annual Industrial & Employment Relations Summit… 13-14 March
Crowne Plaza, Auckland
Go Global……………………………………………………………… 22 March
Sky City Convention Centre, Auckland
NZ Bio Conference…………………………………………………… 26-28 March
The Langham Hotel, Auckland
Better by Design Summit 2012, ………………………………… 26-28 March
Villa Maria Estate, Auckland
Howick Innovation Conference …………………………………… 21-23 March,
Auckland – Location TBA
NZ Engineering Excellence Awards …………………………… 30 November,
Auckland – Location TBA
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yntech Distributors, a leading surface finishing supply company in New Zealand is appearing at EMEX 2012, Syntech have recently taken on the Fein power tool agency, which they will display at the trade show.
Alaina Pennycook of Syntech working hard at EMEX 2010.
Hi–Tech manufacturing equipment at EMEX 2012
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t doesn’t matter which way you look at it, manufacturers today need to stock themselves with the best equipment to compete in business. From a trade show, such as EMEX 2012, the opportunity exists to see firsthand the latest equipment available to suit your company’s needs. Companies exhibiting will show you the best in CNC equipment, plastic s welding equipment, right through to CADCAM software for improved efficiencies. As tough as manufacturing conditions presently are there are always opportunities to take up, new clients to work with, new contracts to win. The right equipment is paramount to successfully winning the contracts and doing the job. My experience with trade shows is that they are ‘the connection’, the place to meet and discuss business, the opportunities and the gear. EMEX is by far the best trade show of its type in the country where you can also benefit from the workshops and talks designed specifically for manufacturers enhanced business intelligence.
-Doug Green
WWW.EMEX.CO.NZ www.nzmanufacturer.co.nz
NZ Manufacturer February 2012
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THE ROAD TO EMEX 2012 EMEX 2012 showcases the new
To be successful, you have to have your heart in your business, and your business in your heart. – Sr. Thomas Watson
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isitors to EMEX 2012 will not only get handson with the latest in engineering, electronics and manufacturing, but also get a glimpse into the future, thanks to the presence this year of eight top New Zealand universities.
Dr Luke Krieg
Dr Luke Krieg of AUT says that the universities will show everything from product design
to non-tech. “We’ll be making this as exciting as we can with a wide range of technologies and expertise on show. We’re also arranging a fascinating programme of speakers from research and industry. Whether it’s micro-machining, friction stir welding, wireless power transfer or anything else, you’ll see the leading edge at our EMEX 2012 space.”
Rob Lavender
The successful event’s sales manager, Rob Lavender, says EMEX 2012 is industry’s key event
for manufacturing businesses, with thousands of professionals gathering over the three days in May. “Auckland’s ASB Showgrounds will again be the only place to be 1-3 May. EMEX offers exhibitors and visitors alike fantastic return on their time and money investment. That’s why more than 150 key industry suppliers exhibit and approximately 4000 people visit. It’s also why it’s endorsed by IPENZ and HERA. “Among the dozens of organisations already confirmed are industry groups New Zealand Heavy Engineering Research Association (HERA) and Metals New Zealand Incorporated. Also at EMEX this year will be worldleading machine tool manufacturers DMG/MORI SEIKI, Road Runner Manufacturing – known for their Precision Abrasive Waterjet Systems, and the New Zealand German Business Association Pavilion.” Leading motor vehicle manufacturer Ford will run a number of show-only promotions before and after the event, giving
visitors a genuine reason to buy. Chris Masterson, national marketing manager at Ford says, “It’s an exclusive business target audience and one that we just had to jump at – and we are the first major vehicle brand to partner with XPO in this B2B exhibition space. “Our vehicles are a great value match for specific business sectors looking at fleet or even personal needs. This is a fantastic new marketing launch pad.” Ford will be giving away a brand new Ford Transit worth more than $50,000 to one lucky EMEX visitor. Visitors will be able to enter the draw on Ford’s stand in Hall 3.” Rob Lavender says that remaining space at EMEX 2012 is filling fast, and suggests that businesses wanting to get face-to-face with thousands of engineering, machinery and electronics professionals should act now. There’s more information at emex.co.nz, and industry professionals wanting to visit EMEX can also find details there on how to register and get free entry.
will receive a report, including contact details of interested partners. “This is a good and safe way to test the market without spending big money. “ It gives the Germans the possibility of building potential business relationships throughout New Zealand. The NZGBA is the official representative of the German Chamber of Trade and Commerce. It is uniquely positioned to help both New Zealand and German businesses and individuals through an increasingly competitive global market environment. Since its foundation in 1983 the NZGBA has become an important partner in fostering bilateral trade between Germany and New Zealand. “Our vision is for the New Zealand German trade relationship to be a healthy growing one “describes Monique Surges. The NZGBA is committed to providing a good solid support basis for companies, facilitating worthwhile trading opportunities and providing the necessary information for companies to further their business. “There is a stable trading relationship between New Zealand & German companies. German product is of the highest quality and has a place in the New Zealand market“, says Surges. A trade fair such as the increasingly popular EMEX, will be one of the best opportunities to get the business
relationship of the two countries closer. The event’s sales manager, Rob Lavender, says the feedback in 2010 was fantastic. “EMEX 2010 was alive, exciting and simply a buzz. People were saying it really was a world-class event. Feedback from exhibitors and visitors proves that EMEX is New Zealand’s leading showcase for products and processes in the manufacturing, electronics and machine tool sector. Nearly 30% of the floor space was already rebooked in the first week after the show 2010.” 3,994 visitors attended EMEX 2010. 92% of these hold direct authority for purchasing and saw something they were most likely to buy after the exhibition. nextSTEP Visit: www.germantrade.co.nz
Up close and personal with German products
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isitors to EMEX 2012 have the opportunity to get face-to-face with German engineering, machinery and electronics professionals. Products and services ‘Made in Germany’ will be showcased at the New Zealand German Business Association Pavilion. “After successfully having organised a couple of joint pavilions at other shows we feel it’s about time to bring quality German products to this key event for manufacturing businesses“, says Monique Surges, CEO of the NZGBA. More than 150 key industry suppliers will exhibit and approx. 4,000 people will visit the ASB Showgrounds from 1-3 May. Amongst the exhibitors at the German pavilion are Wuerth NZ, suppliers of fitting and assembly products, HYDAC NZ, manufacturer of hydraulic equipment, and cleaning solution provider Karcher Ltd. Also participating are IFM Efector, supplier of electronic equipment, and Direct Control, a solution provider for integrated building and automation security. Janitza electronics, a leading global manufacturer of digital integrated measuring equipment, and automation technology company Pilz NZ Ltd. are part of it as well. “We predominantly present German products on the stand and have therefore required that at least
NZGBA staff member Oliver Rube (pictured) and Kathrin Reichel help German manufacturers to market their products in New Zealand.
80% of products displayed must be German“, says Surges. “At the moment we have seven confirmed participants and more who are seriously interested. The preparations are in full swing“, says Oliver Rube, responsible for marketing and business development at the association. The joint stand features an area of nearly 200 square metres and occupies a great location in the hall. German companies, who are not able to attend, have the possibility to introduce their company through catalogues and other media. “The benefits are obvious“, says Rube, “we present the company’s brochures, catalogues and flyers under the brand “Made in Germany”. After the trade fair has finished the participating companies
Kathrin Reichel
www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
PRODUCT NEWS
Even if you are on the right track, You’ll get run over if you just sit there.
– Will Rogers
New design for redrawing machine
Pipes made and delivered within one month
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ACA Engineering, a designer and manufacturer of machinery for the assembly and cutting of aluminium and plastics caps, has released a new version of their RRM10 Redrawing machine, where the two redrawing stations are now built on the same frame which reduces the footprint compared to the previous model by 2.5 metres in length. The RRM10 is a continuous rotary motion redrawing machine with 10 punches suitable for lengthening and trimming long and extra long caps starting from either first draw (caps with heights up to 49mm) or second draw shell for caps that exceed 49mm. The redrawing is made by 10
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dies that have a pneumatic drawing system that can be adjusted on each individual punch. A cam with a constant descent profile ensures consistent control of the redraw (lengthening) process. The caps are discharged oriented, with separate ejection of the trim. Matrixes are made from sintered tool steels and are coated to ensure long life. The new design has integrated the control panel of the machine under the loading channel which features a serpentine infeed that reduced the length of the equipment, but maintains the necessary quantity of caps required to feed the machine. The machine has an output speed of 36,000 caps per hour.
hen Ballance Agri-Nutrients urgently needed custom-made heat exchanger tubes, Pipes NZ had them manufactured to specification in the US and delivered to New Zealand in less than one month – with the Christmas and New Year holidays in between. The normal time-frame for this type of project is four months. Production alone usually takes three months, with shipping adding another month. The project required 430 steel pipes of 7/8 inch diameter. Most of them had to be 18 metres long, without welds or any type of join. After manufacturing, the pipes were trucked to Chicago, and from there airfreighted to Auckland.
Revolutionary stick reader
FeatureCAM gives five-axis success
move to five-axis machining programmed with FeatureCAM feature-based CAM system has resulted in dramatic productivity and quality improvements at WeCan, a Hawke’s Bay company focused on the manufacture of precision components. Founded in 1971, WeCan has gone from strength to strength and is now regarded as one of New Zealand’s premier manufacturers. The business focuses on the manufacture of precision components, critical engineering spares, and complex engineering parts and assemblies in the food and meat processing industries. Canning and packaging equipment is a major part of the business, with the local subsidiary of global food giant Heinz being an important customer. However, the company also works with R & D teams on prototyping and lowvolume manufacturing. With WeCan’s continuing success came a need for expansion. The company’s directors, Rickie Pike and Ian Jamieson, realised that a move into five-axis machining would soon be required to increase output and productivity. In the past, they had encountered problems when integrating another CNC machine www.nzmanufacturer.co.nz
WeCan specialises in components for the canning and packaging industries.
into the business. These problems stemmed primarily from having independent suppliers of machine, cutting tools and CAM system, and the difficulty of coordinating them in a way that provided an acceptable time frame from order to operation. An extensive review of fiveaxis machine tools resulted in the selection of a Spinner U620 with Siemens 820D controller. However, before the company would place the order for the machine, Spinner NZ had to undertake to provide a total package including machine tool, cutting tools and CAM system. Spinner NZ formed a partnership with Iscar Tools and Delcam sales partner Camplex to meet the challenge. “We wanted to ensure that everything was taken care of when
The pipes arrived in Auckland in January on a Singapore Airlines 747 cargo plane and were carted by road on a special over-length trailer to Fitzroy Engineering’s workshop in New Plymouth for fabrication. The pipes are to be used in a heat exchanger that is crucial for the production of urea from ammonia gas and need to be fitted when the plant is shut in February for its threeyearly maintenance and capital improvement programme. Ballance – a farmer-owned co-operative – is the only producer of agricultural urea in New Zealand. To get the new heat exchanger fitted during the annual maintenance shutdown of the plant, the special pipes had to be sourced quickly.
we bought this total package,” recalled Mr. Jamieson. “We wanted to be sure that the machine would perform efficiently from the day it was commissioned.” He was not disappointed. Training of staff on the machine and with FeatureCAM was completed prior to the machine’s installation. In addition, a customised tool database was created within FeatureCAM with details of the Iscar tooling. “We were straight into the five-axis operation in the first few days, which was exactly what we wanted,” claimed Mr. Jamieson. Mr. Pike also endorsed FeatureCAM enthusiastically. “Our previous CAM package had never had the tool library set up except in a haphazard way and we just were not getting the productivity that we needed,” he reported. “Now, that has all changed and productivity has increased. In the first two weeks of having the new machine, we ran six jobs in one or two operations that would have required six or seven setups previously. As a result, we were able to run all these jobs within three days of machine time rather than around two weeks, and without the errors inherent in multiple set-ups”
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he XRS stick reader is part of a complete, integrated range of services for tracking, weighing and measuring stock performance. Farmers will see an immediate difference using the XRS in terms of accuracy, speed, battery life, user comfort and reliability. EID recording and measuring of livestock is quickly becoming commonplace in rural New Zealand and, with the introduction of NAIT for cattle next year, will become even more prominent. This means the stick reader is going from something many farmers might see as a novelty to a necessity – a piece of kit that will be used more often than, for example, a drench gun or a shearing handpiece. The manufacturers have taken a leaf out of the book of mobile phone companies, to achieve the intuitiveness, applications, ergonomics, gains in reliability and battery life that people have come to expect from a modern mobile phone. The simple, easy-to-follow menu coupled with lightness and ergonomic design means you can use it all day without any stress or strain. nextSTEP Email: max@nzmanufacturer.co.nz
NZ Manufacturer February 2012
Raise your sights! Blaze new trails!! Compete with the immortals!!! – David Ogilvy, Ogilvy & Mather
Engel injection moulding – the future is now
Sensitive surface touch panels
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n the cockpit simulation at Fakuma trade fair stand, Engel demonstrated how cars will be even more user-friendly than smartphones in future, thanks to the simple elements of touch, feel and interactivity. Capacitive electronics will be replacing buttons and switches in the cockpit of the future. “This trend not only gives interior designers a new level of freedom; it also reduces the costs of the producing functional elements,” says Franz Füreder, Head of Engel Automotive. “We are already talking to various OEMs and automotive companies. In four to five years the first vehicles will be equipped with this technology.”
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Centre consoles with a sensitive surface were manufactured at the Engel trade fair stand on an Engel duo 350 injection moulding machine with a rotating platen and combination mould in stack technology. For this purpose a capacitive touchskin film was backmoulded and the component upper part was flow-coated with polyurethane by the Engel clearmelt method. Two Engel viper 20 and viper 40 type linear robots took care of component and part handling enabling the ready-for-installation functional components to be manufactured in one work step.
Clear-Melt technology Scratch-proof,
high
quality
Fibox range here
ne of the largest enclosure manufacturers in the world, Fibox has protective, thermoplastic enclosures suitable for all type of installations and environments. Whatever theapplication, the Fibox enclosure family features a wide range of high quality enclosures for the packaging and protection of electrical and electronic components and systems. The product range includes over 800 different
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PRODUCT NEWS
surfaces combined with 3D effects visibly impress, hanks to Engels’s innovative clearmelt method. Decor parts with these characteristics can now be produced in a time-saving, economic and highly productive manner. Sliding table technology floods a thermoplastic carrier with transparent polyurethane. Compared to legacy methods, the required level of scratch resilience and 3D effect is achieved with thin coatings using the clearmelt approach. Compared with coating systems, this means substantial material, time and emission savings. Time consuming and expensive multiple coating techniques, which also
produce a high level of rejects, are incapable of producing an attractive 3D effect below a coating thickness of 0.5 mm. In contrast to this, clearmelt achieves visually impressive effects on decor parts using back-injected foils as a carrier. This makes panels in vehicle interiors real eye catchers. This technology will shed new light on the world in the future. The reason for this is that ENGEL clearmelt also supports overlaid carriers with integrated circuits which are comprehensively protected by a layer of PUR sufficiently thin to support easy actuation. nextSTEP Visit: www.techspanonline.com
enclosures and accessories in a wide range of materials including polycarbonate, ABS, glass reinforced fibre (GRP) and aluminium.
Water manufacturer selects new machinery
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hishkin Les, founded in 1998 is a bottled water company, supplying bottles of water in ranges from 400ml to 5L. Their production line incorporates two SFL 6 linear blow moulding machines, two pneumatic conveyors for the empty bottles and a Still Fill-S 32.32.8 module for rinsing, filling and capping of the bottles. The line has been successfully running for the past five years with an output of 16,000 bottles per hour. The company is using the Still Fill-S, a gravity filling mono block designed specifically for the cold filling of non carbonated beverages such as still water. They can have up to 16 – 120 valves, with a filling speed from 4,800 to 52,000 bph on a 1.5L bottle. In addition to this, Shishkin Les have another three SFL 6 PET blow
moulders running on other lines within their production facility. The SFL 6 has 6 cavities and can produce bottles ranging in sizes up to 5L and is renowned for its high production outputs and excellent container quality. nextSTEP Contact:max@nzmanufacturer.co.nz www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
BUSINESS NEWS
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Every accomplishment starts with a decision to try.
Commodities that are grown
he New Zealand Dollar has been our domestic currency since a switch from the Pound in July 1967. Initially its value was pegged to the movements of the US Dollar; however on the 4th March 1985 the Kiwi was set free and entered the open market at a value of 0.4444. Since then lows of 39 cents were reached in October 2000 and in August 2011 highs above 88 cents were recorded. As an exporter you can’t help but be aware of the Kiwi’s penchant for volatile trade and it is only natural you may be left wondering exactly what influences the value of the local dollar. Without attempting to simplify the complexities of foreign exchange
into a single article, a few of the major drivers are outlined below. The first driver we wish to mention is commodity prices. Although the media frequently reports on gold, oil and copper prices (examples of hard commodities), a commodity price index will also comprise of soft commodities, or ‘commodities that are grown’. With agriculture being the largest sector of New Zealand’s tradable economy a strong positive correlation exists between commodity indices and the strength of the Kiwi; so much so that it is often referred to as a ‘commodity currency’. For example in 2010 exports totalled NZ$40.6 billion1 with agriculture making up more than half; if you look at the Agricultural Raw Materials Index a 12 month high was reached in April this year, around the same time Kiwi rallied above 80 cents for only the second time since 1985. Another notable characteristic of the Kiwi is the rate of interest it pays the beholder. At a time when many central banks are holding their cash rates near 0-0.5% the Reserve Bank of New Zealand holds at 2.5%.
Second only to the Australian Dollar, demand for higher yielding major currencies generates significant buying interest for the Kiwi and thus any talk of increasing interest rates can send the Kiwi soaring. These first two points direct us to the most influential of the NZ Dollar’s traits over the last few years; its status as a ‘risky asset’. Due to its correlation with commodity prices, which boom in times of global growth, and its high yielding status which equates to a higher level of risk, the Kiwi’s value is strongly influenced by global market sentiment towards risky assets, known as ‘risk appetite’. As we have witnessed recently with the ongoing European Debt Crisis, the Kiwi rallies strongly on positive news. This is called a ‘riskon’ environment where investors rush to buy higher yielding assets or those highly correlated to commodities. On the contrary, when doubt resurfaces as to whether or not Europe will be able to contain its debt and the threat of a global economic slowdown rears its head, the New Zealand Dollar has a tendency to tumble in a ‘risk-off’
– Unknown
By Marcus Phillips environment. Such characteristics can often lead to high levels of volatility, leaving companies involved in foreign trade exposed to high levels of market risk. As uncertainty in the EuroZone looks set to continue for some time, both importers and exporters are quickly turning to professionals who can assist by developing tailored hedging strategies aimed at minimising the impact FX risk can have on the bottom line.
Women in engineering who want to make a difference
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hen asked why she chose to do engineering before starting university, Brittany’s usual response is “because I want to make a difference that I can see”. Brittany Challis saw engineering as a career where you can see the results of your work. Great for people who want instant gratification. Or maybe that should be delayed gratification, after planning, design and construction have all been completed. Three years later she is about to start her final year of a Natural Resources engineering degree at the University of Canterbury. Brittany
switched from a Civil specialisation after second year, deciding that she was more interested in focussing on environmental issues than structural engineering. As a child, her family took Brittany tramping all over New Zealand. Funnily enough, Brittany’s dream job involves lots of wandering through bush and undeveloped landscapes. Unfortunately, this isn’t actually a realistic engineering job. She also enjoys the technical side of engineering and hopefully can combine this with work while out in the field. This year Brittany is the Vice
President of Women in Engineering (WIE). Although females are still invariably the minority in the field of engineering, there are lots of opportunities for female graduates. One of WIE’s aims is to make sure that students are aware of the opportunities available. Employers are starting to actively recruit female engineers, which is great for female students and the engineering profession. Brittany believes that women often provide a different approach. Engineering is all about problem solving, and a greater diversity of ideas leads to better final solutions. Brittany really enjoys the
Brittany Challis, Vice President of WIE
www.wie.org.nz wie.president@gmail.com www.nzmanufacturer.co.nz
Brittany’s response is, because I want to make a difference that I can see.
challenge of engineering, learning about how to integrate the different social, environmental and economic requirements of projects. She is really excited about her final year of university, aiming to make the most of all of the academic and social opportunities that university offers. She also can’t wait to get a graduate job in the ‘real world’ and find out how she can begin to make a difference.
NZ Manufacturer February 2012
I have not failed, I have merely found one more way that does not work. – Anon
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WORKSHOP TOOLS
How to choose a manufacturing system
company that’s not putting at least 10 percent of sales revenue back into product development can’t possibly keep pace with technology. You want to buy software from a supplier that’s serious about having great products today and tomorrow. Good software suppliers update their software frequently, making new features and bug fixes available to resellers and customers. Software is one of the few industries where you can upgrade your product to the newest, hottest version for a fraction of the full price. Imagine being able to go to a car dealership and have all the features of this year’s model added to your existing car! With most products you have to buy an entirely new model or do without. A good software publisher will provide frequent upgrades at reasonable prices. Before you make a purchase, find out if your software publisher has a maintenance program in place that gives you access to frequent updates. For a reasonable price, usually about 15 to 20 percent of the purchase cost, you should be able to get an annual maintenance
contract that provides a continuous stream of product updates and improvements. This demonstrates that the developer has an ongoing commitment to the product and to your satisfaction. If you’re not sure how well a system will accommodate your company’s needs as you grow, here are some key questions to help you find out. What are the maximum number of customers, vendors, BOMs, or inventory items that are allowed? What is the maximum number of users that can be working with a particular application at the same time? Can the software be customised to meet the changing needs of a growing company? Your system must be able to extract relevant information easily. A system using database files provides virtually unlimited reporting capabilities. Ask for samples of reports to see the system’s reporting capability. In addition to standard reports, the product should allow non-programmers to design custom reports using industry-standard reporting tools.
Many buyers spend far too little time evaluating this aspect of the software. Yet ease-of-use will have a dramatic impact on the quality of your implementation. Poorly designed software leads to frustrated users who bypass the system or resort to manual shortcuts. If you want a system that delivers maximum productivity, focus on how easily your employees can use it. You want a system that lets you enter information quickly and efficiently. Look for features such as full-screen editing, embedded help systems, and clear prompts. It is important to ensure that production data entry (particularly in sales orders and purchase orders) does
not require excessive mouse use. If the operator’s hand must constantly move between the keyboard and the mouse, data entry can be too timeconsuming. You should also make sure the system can handle all the situations that will come up on a day-to-day basis. Is the sequence of steps to create a sales order simple and straightforward? Can you look up vendor information while you are in the middle of posting a line item on an invoice or purchase order? Can you search the item master file while you are creating a new manufacturing order? Can you add inventory items while you are in the middle of creating a manufacturing order?
Email: sales@sew-eurodrive.co.nz • Web: www.nz.sew-eurodrive.com www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
WORKSHOP TOOLS
Best-in-class for EH&S
The scope of the OHSAS18001 and ISO14001 certification covers all aspects of the company’s assembly, repair, stockholding and servicing activities.
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ompressed air solutions and services provider, Sullair Australia, which has representation in New Zealand, recently achieved accreditation from Lloyd’s Register Quality Assurance (LRQA) Australia for its Safety Management and Environmental Management Systems. This accomplishment ensures that the company is operating to the world’s most stringent standards for Environment, Health and Safety (EH&S) management. The widespread benefits will be felt both internally by Sullair’s own workforce and externally by the company’s end users. The scope of the certification covers all aspects of the company’s assembly, repair, and stockholding activities, plus the servicing of packaged rotary screw and reciprocating compressor systems and associated compressed air equipment at end-users’ sites. The result will be enhanced standards
of product design and build, manufacturing, and after-market care, delivering extensive benefits throughout the company, and— more importantly—to the end user. OHSAS18001 and ISO14001 accreditation ensures that Sullair Australia’s compressed air solutions are designed with safety and environmental considerations as fundamental requirements. As a result, manufacturing and service facilities now set the standard for safety and environmental practices and performance within its industry sector. A key component of the accreditation is to certify that all safety and environmental standards are embedded into onsite servicing and repair operations at end user’s facilities. In practice, this means that when visiting a customer site, Sullair service technicians operate to best-in-class environmental and safety practices and procedures that meet—and often exceed—the end users’ own EH&S requirements.
I`m thankful to all those who said no, because of them I did it myself. – Albert Einstein
Competent people important
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hen the safety and reliability of a component or structure is dependant on the integrity of the welds holding it together, the accepted way of ensuring that this integrity is achieved is to weld to a recognised welding Standard. As a quality control tool, welding standards use a well-established methodology based on the following principles: • welding is carried out in accordance with a Welding Procedure Specification (WPS). • the welder undertaking the work is suitably qualified. • the welding is under the control of a welding supervisor. • inspection is carried out at appropriate stages to verify the weld’s quality. An example of fabrication where weld integrity is critical is the attachment of the towing eye to a heavy transport draw bar. This is a medium strength forging of high toughness with a chemistry that provides good weldability. To ensure its reliable service, it must be welded by a qualified welder strictly following a qualified WPS that involves preheating and a hydrogen controlled welding process. Qualifying the welding procedure involves the welding of a test piece which is then assessed by visual examination and a macro section. A macro section is a relatively simple method of verifying that the weld is of the specified size, has adequate fusion and penetration, and is free from unacceptable imperfections such as gas pores or slag inclusions. Achieving the quality of welding required for critical fabrication such tow eyes in an efficient and costeffective way requires competent personnel. The NZ Welding Centre
NZ MANUFACTURER • February 2012 Issue • 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
Macro-section of fillet weld used to qualify a welder for the tow eye weld
(a division of the Heavy Engineering Research Association - HERA) provides education and training for those who have responsibility for the supervision of welding, and the qualification of welding procedures and welders. Upcoming training events in March include a one-week course leading to qualification to Australian Standard AS 2214-2004: Certification of Welding Supervisors - Structural Steel Welding. This course has been successfully running for 3 years now and is available in Auckland and in Christchurch this year. In May, a one-day workshop on welding procedures to the widely-used AS/NZS 1554 welding standards will be available in a range of locations around the country. This is ideal training for designers, engineers, fabricators, welding supervisors, and inspectors who may need to develop, qualify or review the WPS.
www.nzmanufacturer.co.nz
Manufacturing Technology Control, Instrumentation & Automation Environmental Technology The Road to EMEX 2012 Manufacturing Heroes Advertising Booking Deadline –13th March 2012 Advertising Copy Deadline – 13th March 2012 Editorial Copy Deadline – 13th March 2012 Advertising material is to be sent to: Max Farndale, P O Box 1109, Hastings 4156, Hawke’s Bay Email: max@nzmanufacturer.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 2012
Please think about your legacy, because you’re writing it every day. – Gary Vaynerchuck
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ENERGY REPORT
Solar car travels the country
aving just been released by Customs and MAF and being accorded LTSA approval for road-legal travel in NZ, the distinctive yellow German solar car from Bochum University had to contend with rain in the Auckland Domain, which delayed their planned departure for Bluff by five hours. Their journey, of which this NZ leg is the second section, was part of their attempt to complete the worldfirst global circumnavigation with a car powered only by the sun. Also attempting to make history was the small team of students from Waikato University who, as part of their engineering studies, had designed and created NZ’s first ever scratch-built electric car to become road-legal, and were planning to drive it from Auckland to Bluff to both road-test their handiwork and demonstrate the single seater commuter vehicle’s possibilities. Finally, accompanied briefly by a small red electric Fiat aptly sporting the number plate “QUIET”, the unusual duo and their support vehicles headed out of the Domain and down the southern motorway into what was by now quite heavy afternoon traffic. Both vehicles are capable of motorway speeds, but travelling faster means less efficient use of stored battery power and in a kind of “tortoise and hare” fashion it’s possible to travel much greater distances each day if speeds are kept more modest. A stop-over day in Hamilton enabled Waikato University to host the Bochum team at a traditional Kiwi BBQ function. The President of Bochum University, Professor. Dr.Ing, Martin Sternberg, had also especially come to NZ for the occasion to formalise a co-operation arrangement between the two institutions forged when Dr Mike Duke, formerly from Southbank University in London, and an initial catalyst in Bochum’s solarcar interest, moved to NZ bringing his talent, passion and experience with him. On the way to Wellington, Bochum called in to see Iain Jerrett from Astara Technologies and his electric motorcycle workshop, with which they were suitably impressed. Waikato crossed to Picton on the InterIslander ferry on a cold, windy and rough morning. Bochum arrived at parliament around lunchtime provoking curiosity amongst media, politicians and public alike. A couple of government MPs got to drive the solarcar around the block, sign
Solar car at Bluff.
Left: Professor Dr Ing Martin Sternberg, President (Chancellor) of Bochum University, Germany, who flew to NZ specially to join Waikato University’s Dr Mike Duke, Senior Lecturer, Faculty of Science & Engineering.
the vehicle logbook and pose for pictures. Lunch, some charging and maintenance work and a radio interview all happened beside the Beehive in the improving weather a situation the Germans could not envisage in Europe. Batteries were charged by remaining daylight with solar array on stands nearby. Extra solar panels, roughly doubling the collection area, are carried inside the car body and brought out on occasions like this when the car is parked in one place for long enough to warrant it. In Christchurch the vehicles that had travelled from Auckland were joined by the local Team SolarFern, and all three came together for a combined southward departure presided over by The Wizard. His reference to the single seat Waikato commuter caused much amusement - “Bless this little vehicle - it may look less impressive than our local one - but it’s easier to park.” A sprinkling of wizard-dust (gold glitter) completed each well-wishing incantation, and in the SolarFern case some, sticking to the recently applied and still slightly sticky resign protective covering the solar array created an indelible reminder of the wizard’s protective intent. Next day SolarFern and Waikato carried on down SH1 with Bochum taking the inland road to visit Wanaka and Queenstown, Waikato reached Bluff and one of the team, a surfer, bravely went for a brief swim in the icy water. SolarFern stopped in Invercargill waiting for spare parts from Singapore to fix their motor controller which had overheated climbing the big hill into Dunedin due to some FETS having worked loose from their heat sinks. Team SolarFern waited at Bluff to welcome Bochum at the end of their
journey. The happy Germans didn’t go swimming, but they did climb up and swing from the signpost before packing up to head back to Auckland with their solar car safely in its trailer - next stop USA. SolarFern crossed Cook Strait in gloomy weather, but at least the sea was calm and having the solar car parked on an open deck allowed a little battery charging during the voyage. Back on the North Island constant rain stopped progress completely for a whole day and allowed only
limited travel on a couple of others. But apart from water damage to some electronics below the “tideline” a few fuse replacements and other small inconveniences, the car performed as well as the weather permitted. The jubilant team reached Cape Reinga lighthouse on their 12th day on the road, the last few kilometres in brilliant sunshine, providing a spectacular and fitting finish to the first ever solar-powered and first electric vehicle journey spanning the entire drivable length of mainland New Zealand. Story Courtesy of SEW-Eurodrive (NZ) Ltd, co-sponsor of the `SOLAR WORLD’ car `Around the world by daylight’ challenge.
Solar car at Cape Reinga. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
BUSINESS NEWS
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Most people get ahead during the time that others waste. – Henry Ford
Malaysian trade mission offers huge range of opportunities
he range of business opportunities on offer through a trade mission heading to Malaysia, Sarawak and Brunei in late March represents a rare and important opportunity for exporters, says Sir Ken Stevens. “But time is short to get involved – we need to close registrations off within two weeks. “The mission will facilitate oneon- one meetings with business people as well as briefings, site visits for example to the top Asian theme park, Sunway Lagoon, and to several major food, engineering and supply chain sites such as at Intel and Air Asia,” Sir Ken said. Sir Ken Stevens, who is leading the mission, is founder and CEO of Glidepath Group and Chairman of Export New Zealand. Export New Zealand is organising the mission in association with the ASEAN New Zealand Combined Business Council. Sir Ken said the mission is focusing on: • Fast moving consumer goods plus related technologies, • IT and engineering, • Education, • Cultural and adventure Tourism.
to Vietnam last March it was clear that if you go there on your own you won’t get anything like the same level of business contacts and opportunities. “Amongst them was an introduction to the NZTE Beachheads Advisory Board members for South East Asia, all senior, extremely influential company directors, economists, and industry sector specialists. Sir Ken Stevens
“We are working closely with contacts on the ground in Malaysia, New Zealand Trade and Enterprise and the New Zealand Ministry of Foreign Affairs and Trade to ensure the group gets to places they wouldn’t otherwise get to, and meet business people not normally available,” he said. “Developing trading relationships to achieve specific trade outcomes can carry a lot of pressure and this is where travelling in the group can prove so valuable. “Mission delegates have a huge amount of invaluable advice, contacts and other information they share between them. “After leading a trade mission
Brighter end to year for manufacturers
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anufacturing activity improved enough over December to be back in positive territory, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for December was 51.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up from 46.0 in November and 46.7 in October. Over 2011 the PMI averaged 51.5, compared with 53.0 in 2010. BusinessNZ’s executive director for manufacturing Catherine Beard
www.irl.cri.nz www.nzmanufacturer.co.nz
“A mission delegate said of that visit they had ‘come from zero to a level of activity in the fastest possible time, and to do this we would have spent far more as an individual company’. “Highlights of the mission to Malaysia, Sarawak and Brunei include industry specific business to business matching/introductions, economic and investment briefings, and site tours.”
said that although it was pleasing to see a return to expansion for the last month of 2011, overall the year was a challenging one for manufacturers. Unadjusted results by region showed two of the four regions in expansion, along with a large spread of expansion and decline. The Otago/Southland region (65.6) again led the way, although slightly down on November’s result. Both the Northern (51.9) and Canterbury/Westland (54.2) regions also experienced lower expansion levels, while the Central region (42.7) fell further into decline with its lowest result since April 2011.
NZ Manufacturer February 2012
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CASE STUDY Productivity up, sales up, annual profit up
Nothing great was ever achieved without enthusiasm. – William Wrigley Jr., Wrigley Chewing Gum
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his article explains how, for Express Sheet Metals, second hand PCs on the factory floor and time tracking and labour management software has, in two and a half years, resulted in jobs being completed more than twenty five per cent quicker. Labour costs per job have been reducing accordingly, leading to sales and business increasing four - fold and annual profit increasing substantially. Michael Arcari and Gaspar Lalovich are shareholders and directors of Express Sheet Metal in Otahuhu, Auckland. Michael and Gaspar say that “two and a half years ago theywere a small ten man business with eight on the factory floor and two in the office manufacturing ducting, mainly to order. Business growth was slow and they struggled from job to job. “With hindsigh” Michael said. “we were far from productive on the factory floor. The times that factory staff recorded on their jobs were woefully inaccurate so we could not use these times in our costing of new quotations – and our budgeted times in new quotes were too high and basically, guesswork.” Two and a half years ago their business advisor told them he had witnessed Finewood Furniture, an Auckland based manufacturing business, invest in second hand PCs on the factory floor and inexpensive labour management software that assigned jobs to the factory floor with budgeted times per job. The software then time tracked every staff member on every job as it occurred live. For Finewood, their factory staff productivity and daily production increased in excess of thirty percent within a few months. Michael and Gaspar both visited the site and viewed staff using PCs as they worked on the factory floor and saw how the system could be applied simply and would work for their company. Hence, second hand PCs on the factory floor with time tracking software has made a substantial improvement to their entire business operation: • Labour times on jobs are now on average conservatively 25 percent less. Staff now view on the factory PCs the times they have been allocated to complete each job at the start of the job and they also see the times in which they actually complete the job as they finish each job. • In the majority of cases, factory staff bring their jobs in on budgeted time or better. The culture on the factory floor has
Express Sheetmetals Stock pipe.
been totally transformed. Factory staff are motivated to bring their jobs in on time and the rest of the factory staff team encourage each other to meet and beat their times on jobs as well. • There are now accurate actual times recorded on every job, invaluable for costing and quoting jobs with confidence. The company has been able to maintain the profit margin but bring down the budgeted labour hours and labour cost and quoted price. This has made them a lot more competitive in the market place, which has directly lead to business quadrupling over the last two and a half years. • Jobs quoted to clients, when completed in less time, are charge to clients at less than the price quoted. This has been very well received by clients. • All office management and administration staff, including the owners, log onto pre production processes for each job. Office management and administration staff have budgeted times for pre production processes and all actual times are seen as each job is finished. This has made all staff in the office a lot more time focused and productive. • When a client phones to ask the status and estimated completion of their project there is no need to find and disrupt the production manager. Anyone in management and administration, including reception, simply view job status on Empower and advise clients with accuracy where their job is currently at. • With confidence in staff completing jobs on budget,
Express Sheetmetals have been able to invest a substantial amount in six new machines from Europe, to build a second division to the business and to move into a large new premise. • A bonus system has been introduced for factory staff which drives daily production and factory productivity. • Two and a half years ago Express Sheetmetals was in one small factory. Recently they leased a second factory up the road which has already been outgrown. They are now looking at leasing a much larger premise to cope with all new staff and machines. • They have set up an industry first by making ducting product available off the shelf. Clients can come in and grab all the parts they require in a “drive through” way. Clients also have the significant benefit of a pricelist for all parts rather than having to request and wait for quotes. • The new machinery has allowed the product range to be extended into heavy wall corrugated galvanised steel piping for industry and pre-insulated ventilation ducting for residential and commercial construction. Express has the only stitch welding machine in New Zealand for ducting and is one of two manufacturers in New Zealand with machines for manufacturing ovalised spiral ducting. The corrugated galvanised piping range is from 300mm to 2.0 metres diameter and 2.5mm wall thickness, which is used in volume by the construction and agricultural industries, with 50 year warranty. The residential and commercial insulation ducting ranges from 100mm to 500mm.
They are committed to a large stock holding of items for both ranges. • Stock warehousing has been established in Otahuhu and Hamilton and plans are underway to extend nationally into Whangerei, Tauranga, Wellington and Christchurch. • Earlier in 2011 the company formed exclusive supply arrangements with two large national retail chains which generate very good volume. • They won the ASB north wharf contract from Fletcher Construction and Hastie NZ, a large project over twelve months involving 10 men in the factory and 20 men on site. All ducting is fully exposed as an architectural feature so product was meticulously fabricated and fitted on site. The full fabrication and install service is provided as a “one stop shop” which is what Fletchers and Hastie required – as they did not want to deal with two separate suppliers and attempt to oversee and manage their delivery performance, quality and respective guarantees. Growth in business has caused Michael and Gaspar a lot of challenges. One of the hardest being finding experienced tradesmen and production management to assist with the projects and volumes of orders taken on. “We have certainly witnessed the value of good labour management software. We currently “have a tiger by the tail” with our business growth and to help us cope with the “tiger” we will invest in integrated costing and quoting software and job scheduling software – which will take our systems and business to the next level. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
ANALYSIS
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Wealth, like happiness, is never attained when sought after directly. It comes as a by-product of providing a useful service.
– Benjamin Franklin
Building winning teams
here’s a lot of talk about building winning teams at work, but we’re not always good at doing it. That’s not surprising – working in teams is a relatively new idea. Just a generation ago people expected the workplace to be run in a hierarchical way, with a boss at the top telling the staff what to do. There’s a lot of evidence about the benefit of having teams in the workplace. Businesses that build winning teams are more profitable, they recruit better staff and their staff stay with them for longer. It takes time and effort to build a winning team, but it’s worth it. Being part of a team that works well together is a great experience for everyone involved.
Be a leader A winning team needs a good leader. Leadership isn’t about control; it’s about providing the opportunity for the team members to do their very best.
A good leader is like a good sports coach – their job is to identify each team members’ strengths and weaknesses and make sure they’re all playing in the right position. It’s also about making sure the team work well together to meet common goals.
Set clear rules
Teams work best when everyone knows what they’re meant to be doing: you wouldn’t try to play a sports game with no rules and no set positions for the players. Make sure your staff know and understand exactly what is expected of them – and of everyone else in the team. You need to set clear rules about how they should do their job, comply with health and safety requirements, and also about the standard of dress and behaviour you expect. Put it in writing to prevent any misunderstandings – and make it clear that there will be consequences if people don’t respect the rules.
Be prepared to delegate
If you want to build a winning team you have to be prepared to trust the individual members of the team. Don’t try to supervise everything they do – allow them to work independently, give them the opportunity to make their own decisions, and encourage them to share their ideas.
Recruit the right staff A good team gets its strength from the people who belong to it. That means it’s important to take time choosing your staff. You’re looking for a team player, someone who can work well with the rest of your team. Rather than doing a quick halfhour interview, why not get a potential staff member to come in and work with you for half a day so you can see how they fit in. Ask you’re other staff for feedback – if there’s a personality clash you’ll find it hard to build a winning team.
Spend time together In order to build a winning team you need to spend time together as a team, so that you can bond and learn how to communicate with each other. It’s important to hold regular team meetings where you can talk about work-related issues, and discuss what you’re doing and how you can achieve it. But you also need to spend together socially. Getting together for drinks after work is one way of bonding, or you could try regular morning teas, or occasional activities such as ten-pin bowling or kayaking. Whatever you do, make sure it’s something everyone can take part it in; don’t organise a kayaking trip if you have a staff member with a physical disability, or after-work drinks if one of your staff members doesn’t drink alcohol – or has to get home to their children.
Keep the communication lines open If you want to get the most out of your team you need to communicate well with each other. Good communication helps build openness and trust and creates a positive atmosphere. As well as holding regular team meetings it’s important to create an environment where staff feel comfortable about contributing their ideas and suggestions. Have a suggestions box. Encourage discussion, and invite feedback from your staff. www.nzmanufacturer.co.nz
By Chris Elphick Chris Elphick is a Wellington-based business mentor, coach and trainer working throughout New Zealand and the Pacific with a range of business enterprises.
Manage conflict Even a winning team can experience conflict. Don’t sweep problems and disagreements under the carpet – talk about them openly and invite everyone to share their views. Conflict can be healthy and may even bring out new ideas; unmanaged conflict can lead to dissatisfaction and resentment.
Reward good teamwork One way of keeping your team motivated is to set team goals – and provide a team reward when you reach them. Possible rewards include taking everyone out to dinner, or giving them restaurant, movie or other kinds of vouchers. You could think about giving everyone an extra day off is another possibility.
NZ Manufacturer February 2012
Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations. – Steve Jobs
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SUPPLY CHAIN
Improving freight transport services
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he Productivity Commission has been asked to find ways to improve the performance of international freight transport services. An efficient international freight transport system is essential for New Zealand to compete effectively in the global economy. New Zealand’s international freight costs as a percentage of product value fell from 1989 to 2009. However, they are still higher than in Australia and are significant, representing about $5 billion or 2.7% of GDP in 2010. The sector experienced a productivity surge from the mid1980s to the mid-1990s due to innovation and sustained structural reform. This productivity surge has since dissipated underlining the importance of removing any impediments to competition, investment or uptake of innovation. The Productivity Commission has found weaknesses in the governance framework for ports and council controlled airports. The statutory purpose of those companies is not sufficiently clear (risking impaired performance from multiple - fuzzy objectives); there may be conflicting interests where councillors and council staff act as directors; and there are weak incentives for monitoring performance.
The Resource Management Act International freight services depend on large-scale infrastructure investments, and the continued development of that infrastructure. RMA processes could be made more accommodating of freight infrastructure projects by amending the Act to: • ensure that all benefits, as well as the costs including adverse environmental effects, of new investments are considered; or • include specific reference to importance of regionally and nationally significant transport infrastructure. In addition, the Minister for the Environment should develop a National Policy Statement to guide local authorities and recognise the importance of the national transport network when making planning decisions.
Strategic planning There is a need for more strategic planning or government leadership of the sector, especially in decisionmaking around port and airport development and associated investments in road and rail infrastructure.
Port handling charges and port container productivity compare favourably with Australia.
The Commission favours mechanisms for sharing reliable information to inform individual decision-making, rather than a government-led master plan. The recently developed Upper North Island Freight Strategy is an example. Improvements to the governance framework, particularly with respect to ports, should also improve coordination.
Seaports Most of New Zealand’s international trade is conducted by sea. Even small improvements in port efficiency can deliver meaningful gains across the economy. Port handling charges and port container productivity compare favourably with Australia. But there is considerable variation in port performance. Assessment of port profitability suggests that all but one of the ports assessed are failing to earn an appropriate commercial return. This can be indicative of a number of things, including inflated costs; that ports are subsidising other regional development goals being pursued by councils; that there is over or under investment creating potential future problems; or that some ports are not large enough to operate efficiently given large fixed costs. It also may mean that ratepayers - the ultimate owners of all New Zealand ports (at least by majority ownership) - are not getting a fair deal and, in practice, paying more rates than may be necessary. Highly productive workplaces have effective employer-employee relationships based on trust, shared values and outcomes. This ideal has proved elusive in some ports, with a long and complicated history.
It is time to move on and for the leaders of ports and unions to take responsibility for doing so.
Airports After a history of disagreement between airports and airlines over landing charges, stronger information disclosure requirements were introduced in 2008 to encourage appropriate charges and fees. The Commerce Commission will review the effectiveness of the new regime in 2012 or shortly after. This is a wider regulatory issue than this inquiry’s focus on freight transport services, which are a very small part of airport revenue.
Shipping lines, airlines and competition law International shipping and international air services have enjoyed some exemptions from the domestic competition laws of many countries, but this situation has changed in the last decade.
Airlines Alliances or code-share agreements between airlines can be exempted from the Commerce Act if they meet certain criteria in Part 9 of the Civil Aviation Act, and are authorised by the Minister of Transport. The Commission favours retaining the current arrangements, but strengthening the requirements for assessing authorisation proposals by analysing and publicly testing costs and benefits, including the impacts on competition.
Other transport modes
Road dominates the domestic freight trade. The Commission heard arguments that there is an element
Productivity Commission boss, Murray Sherwin
of subsidy under the PAYGO Road User Charges model as users are not charged a rate of return on past road infrastructure investment. The Commission’s preliminary view is that these arguments are not correct since capital spending is recovered in the period in which it occurs. Rail is subsidised by the Government, which is contributing $750 million to Kiwi Rail’s ten-year Turnaround Plan. So far there has been little public justification for this contribution. A full cost benefit analysis, comparable to the ones undertaken for major road projects, would be a valuable contribution to public debate and to building increased public confidence in rail investment.
Coastal shipping Coastal trade was opened to foreign ships in 1994. The Commission supports the continuation of foreign competition, so that New Zealanders continue to benefit from the lower transport costs that competition creates. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
DESIGN IN MANUFACTURING
The first one gets the oyster the second gets the shell. – Andrew Carnegie
Industrial Design solves a small problem
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or my first article about the correlation between industrial design and manufacturing in New Zealand I was searching my memory and the large number of projects my designers and I have undertaken for the most appropriate example of design to portray. Twenty years of independent design experience have given me the knowledge of how design can complement the manufacturing industry in staying competitive. My consultancy has worked with a wide range of manufacturing industries such as plastics moulding, sheet metal, extrusion, casting, vacuum forming and more. We are equally at home developing new ideas for high tech manufacturers as we are familiar with the methodology of fresh conceptual thinking and development for start-up ventures. As product designers, our involvement with industry is often a case of facilitating both the necessary thinking behind an innovative approach and resolving purely technical issues. Our work is
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By Jurgen Brand,
as varied as helping entrepreneurs in their high risk start-up ventures, whilst also working with established small industries and medium sized manufacturing businesses. Pacific Helmets Ltd of Whanganui is a typical SME manufacturing into a global niche market with adaptability and innovation. Designbrand was enlisted for help in realising their new concept of a ‘push-to-open/push-to-close’
visor for their existing line of rescue and safety helmets. Their novel idea was a world market ‘first’ but their development department needed additional expertise to resolve the problems and integrate the new functional feature. It was not just a case of how to get the new functionality into a helmet as a functional mock-up to prove the concept had already been built. However, our brief was far more complex than simply integrating another small component into their line of rescue helmets. Pacific Helmets knew exactly what they wanted to achieve. A change to any one of the components making up these helmets might have an effect on one or all of the other possible component configurations. The company had designed a new sprung recycling hinge for a visor which had become too complex, as it contained and would have meant modifications to several of their existing tools. The designers’ fresh approach and holistic view, based on wide cross-industry experience, allowed a design solution which
complemented the manufacturer’s capabilities as a key advantage. The solution was to simplify their design and split the PH invention into several components which were easier to produce, easier to install and could be positioned across a range of their helmets for flexibility and cost saving in production. We were able to ‘piggy back’ some of the newly designed parts onto existing moulding tools. The manufacturer had become stuck in their development efforts and Designbrand resolved these issues within their existing capabilities and constraints. We continued investigating and resolving several other small design problems for this manufacturer. Pacific Helmets were so impressed by the designer’s skills that they have now added a young product designer to their staff permanently. We were quite chuffed actually.
technology, reputation and skills to develop high value brands and push out into new markets. These are ambitious, internationally focused businesses that New Zealanders should be proud of. “Sharing their stories helps build understanding of what is required to succeed internationally as well as giving us an opportunity to recognise the contribution they’re making to New Zealand,” Mr Chrisp said. David Green, Managing Director, Institutional New Zealand at ANZ, said New Zealand companies were capitalising on the growing global demand for diversity of products which New Zealand produces well. “While global economic confidence has declined, our export growth is evidence of a domestic
economy which is favourably positioned for global trade flows. The 2012 finalists reflect New Zealand’s progressive move away from our traditional markets. “Historically, 80 percent of our exports went to Europe and the Americas, the majority to the United Kingdom. We now have a fast growing market closer to our own shores, with around two-thirds of all exports going to Asia, Australia and the Pacific, opening up new opportunities for growth.” The Ministry of Science and Innovation (MSI) supports four Special Category Awards to recognise excellence in research and development, intellectual property, design, and innovative ways of doing business. MSI Chief Executive Murray Bain said the Special Category finalists
each had a unique story to share about particular aspects of doing business globally. “However, one of the things they all have in common is that coming from New Zealand, getting noticed on the world stage is a major challenge. I’m proud to say the Special Category finalists have been innovative in getting themselves on the map, and I’m looking forward to watching them continue to develop.” In addition to celebrating company achievements, the New Zealand International Business Awards recognise people who are leading their businesses to global success. Eight business leaders are finalists in two categories that celebrate an emerging and an outstanding leader in international business.
Industrial Designer
Finalists in business awards named
wenty-seven companies are finalists in the 2012 New Zealand International Business Awards, which recognise the myriad of ways companies now do business globally. They include businesses creating health ingredients from everyday foods, companies developing software and systems used in cinemas, hospitals and airports, and firms manufacturing refrigerators, heaters, magnets and baggage handling systems. Winners of seven categories at the awards, which are run by New Zealand Trade and Enterprise (NZTE) and strategic partner ANZ, will be announced on Wednesday 21 March. NZTE Chief Executive Peter Chrisp said “this year’s finalists are using our country’s world class
www.asiamanufacturingsummit.com
www.nzmanufacturer.co.nz
NZ Manufacturer February 2012
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BUSINESS NEWS
Yesterday’s home runs don’t win today’s games. – Babe Ruth
Salaries the top driving force for 36% of employees
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alary expectations are a growing source of tension between businesses and employees, according to Hudson’s Salary and Employment Insights 2012 series of reports. “Employers are under pressure to simultaneously improve the quality of their hires and control the cost of these hires – they need valuable employees to take the business
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forward, but not at any cost,” says Roman Rogers, Executive General Manager, Hudson New Zealand. “Facing the tension of trying to do more with less is especially difficult when salary is the top driver for 36% of employees, with many believing that it will be ‘easy’ or ‘very easy’ to find a similar job with comparable pay and conditions.” Nearly seven out of 10 employees
When the going gets tough, the tough smarten up
xperts in business innovation and strategy presented the smartest advice at an event the Employers and Manufacturers Association (EMA) ran to help firms reach beyond the bounds of these tough times.
Clinton Yeats
First up at the Smart Business Development conference earlier this month was Icehouse chief executive Andy Hamilton to answer questions like: • How do you know if a new idea is any good? • How do you turn an idea into something real? His ‘thinking big’ theme included tips, tools and stories on new product development. Thinking ‘Lean’ is no longer an ‘if’ but a ‘when,’ for all organisations. Efficiency expert Clinton Yeats of Yeats Consulting Ltd says Lean is now established as a disciplined approach for business to identify and eliminate all non-value adding processes. “It’s such a simple concept but dealing with people and change can be hard.” In rough times like these your competitors could be pulling back, says Chris Caiger, director of Traffic NZ Ltd. But businesses should seize the opportunity to create programmes to win market share
and launch new offers. “Fighting for market share on price is alarmingly expensive, and damaging to the brand and morale. It’s often far better to get out of the trenches and spend a fraction of the cost of a price cut on aggressive growth programmes. And they can be just as effective at defending price and market share, as well as creating growth,” Caiger says. Rob Verkerk of Scope Services Ltd adds it is more important than ever for firms to ensure their money is well-spent and returns maximised. “When implementing strategy, a disciplined, project management oriented approach is required, but in a way that eliminates mindless process compliance and report generation. “The problem for many is the success rate of projects can be low when its process-bound and compliance-oriented. But effective implementation of project management can improve profit by an average of 6%.” The Smart Business Development conference delivered practical tools to strengthen business operations, and sell more, or grow market share. It also discussed the latest in IT and web development, how to monetise research and development, and how to super-charge marketing cut-through.
Rob Verkerk of Scope Services Ltd
are considering moving jobs in 2012, while two-thirds of employers say they are worried about losing their existing high performers. Across the board, nearly 28% of employers intend to increase permanent staff levels. Candidates with business acumen, a crossfunctional knowledge and an ability to contribute to the organisation’s overall strategic direction are highly sought-after across all sectors. This is particularly evident as key business functions, including IT and finance, become a key driver of business performance. Almost half of hiring managers report the salary expectations of preferred candidates exceed their budget, with 43% increasing their budget to secure the best candidate, with the remaining employers settling for their second-choice.
Furthermore, about six out of ten employees feel that they deserve a pay rise in 2012. The skills shortage is intensifying competition for the most talented candidates – almost half (46%) of employers said it was harder to secure the right candidates in 2011, particularly for senior strategic and managerial roles. Organisations need to identify high achievers. To do this, they need to broaden their approach from traditional methods of selecting new hires that focus on technical qualifications and experience, And they need to understand their priorities in terms of the harderto-fill strategic roles that help take an organisation forward, and the ‘critical’ and ‘core’ roles that keep the organisation functioning on a day-to-day basis.
Come hell or high water RPM still gets through
P
eter Smith and Aaron Dwight from RPM International Tool and Die have just arrived back from a two week visit to clients in Thailand. The aim of the visit was to see where they could assist and arrange for damaged tooling to be bought back to New Zealand for repair and maintenance work. Both Peter and Aaron were overwhelmed with the devastation caused by the flooding and the enormous cost being incurred by the local manufacturers most of whom do not have insurance to cover the flood damage. The cost of flood damage at one client alone was up to NZ$4.0 million and the money meter was still ticking over with no production in sight. Flood waters were still up to a meter deep in some factories however on a brighter note other parts visited were not affected by the floods at all.
“We have a strong commitment to servicing our off-shore clients through thick and thin” says Director Peter Smith “and we have simply been waiting for a window of opportunity to get up there and see where we could be of assistance. We also took the opportunity to call on some new contacts as well as make a quick visit to Taiwan to look at two new pieces of plant that will be dispatched for arrival at RPM in the New Year.” “The floods are likely to have an impact on some tooling projects that were in the pipeline however overall we are very pleased with our market development in this part of Asia over the past year” he adds. The trip on the whole was very positive and well received and as one client put it to Peter and Aaron “A friend in need is a friend indeed”. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
ANALYSIS
Make your promises sparingly but keep them faithfully
– Jim Rohn
New Zealand Manufacturing is the new New Zealand
W
hen seeing New Zealand manufacturers in action globally, a single thing strikes you as you hear the market’s reaction to their pitch. Surprise. Surprise at the complexity of our offer, surprise at the knowledge our firms have. But mainly surprise at what a company from a small South Pacific nation can do. This is great at face value, but it is my opinion that now it is time for us in manufacturing to help New Zealand recast itself globally. We are more than a plucky, battling economy. We are one of mature, rich and complex solutions. The reaction of surprise should instead be one of expectation. New Zealand lives well on its brands and perceptions of the past. However, these are often commodity based and have minimal value added in New Zealand. We are seen as a nice place for a holiday. Again, fair enough, but not game-changing if we ever want to leverage our country’s real talents. China is a case in point. They are used to our milk, our wine and our logs and are very happy with them. However when we show them examples of our manufacturing industry and aviation training schools, yacht builders and lighting and interiors companies, they realise we are a different proposition. We can help them solve their shortage of pilots, food processing integrity and meet the expectations of the Chinese wanting a better type of house to live in. And this is not aspirational, it is happening right now.
Most of our manufactured products and machinery already fall squarely in the highly value-added camp, and it is the firms producing these that can lead the update of our image offshore. Whether it is the new generation of baggage handling systems from BCS in South America or the YikeBike in luxury markets in the US, each time the customer is reminded of New Zealand’s potential role in their future. People are looking forward when considering working with us, not back. Additionally, there is much money to be made in the less mediafriendly stuff done really well, whether it is chocolate bar wrapping machines from Production Techniques or magnets used in the medical industry by Buckley Systems. Although the media often miss
A S uccessful future for New Zealand manufacturing will be in highly transformed, technology-led, added value products.
them, they all have ‘user wants’ at the forefront of what they are. That is why they sell so well. Some of the emerging markets for manufacturing also allow us to start with a clean sheet of paper in defining the New Zealand offer. Places like Russia, South Africa and to a lesser extent India allow us to start from today’s position with a set of very motivated and increasingly market-savvy Kiwi manufacturing and engineering firms. Awareness of New Zealand in such markets is often nonexistent so we can set the right agenda from the start. Things like Free Trade Agreements will assist in opening doors but each and every one of us will have to be new New Zealanders in the way we think, act and plan our businesses. The America’s Cup in San Francisco in 2013 is another huge opportunity, but not in the way many people will assume. It is not only about selling boats but the chance to pitch New Zealand as a technology and solutions nation, one that can seamlessly interact with US and global supply chains. With less money around to spend, customers are now expecting high quality engineering and manufacturing solutions. Firms that clearly understand their value to customers and are ready to pitch a solution, not just a product, will fare well. A successful future for New Zealand manufacturing will be in highly transformed, technology-led, added value products. In a change from the past, the product will not only stand as technically excellent,
Adam Bennett,
NZTE Director for Specialised Manufacturing but be focused on the end users’ needs. It will often be part of a highly complex value chain or hopefully at the top of it. But you all know this! So be proud to challenge people’s preconceptions of what New Zealand is good at and continue to get closer to the people using your technology. Surprise is a good reaction but not as good as a signed deal or a returning customer.
PARTICIPATING IN THIS ISSUE … ACS Design………………………………………… acsdesign@maxnet.co.nz ATEED……………………………………………… Bessie.Nicholls@aucklandnz.com Belts and Drives…………………………………… www.bdtensioners.co.nz BusinessNZ………………………………………… www.businessnz.org.nz CHEMZ……………………………………………… www.chemz.co.nz Competenz………………………………………… www.competenz.org.nz Dotmar /Universal Plastics…………………… www.dotmar.co.nz EMA………………………………………………… www.ema.co.nz EMEX 2012………………………………………… www.emex.co.nz Empower Marketing……………………………… www.empowersoftware.biz Filtercorp…………………………………………… www.filtercorp.biz Flight Structures Ltd……………………………… www.flightstructures.co.nz Graham Engineering Corp……………………… www.grahamengineering.com HERA………………………………………………… www.hera.org.nz HI-Q Components………………………………… www.hiq.co.nz Industrial Research Ltd………………………… www.irl.cri.nz www.nzmanufacturer.co.nz
Innovation & Growth…………………………… Nicola@opportunityhamilton.co.nz Lean Gemba……………………………………… www.leangembaacademy.co.nz Manufacturers Success Connection…………… www.manufacturerssuccessconnection.com MPB Eng.…………………………………………… www.mpengineering.com.au NZ Forex…………………………………………… www.nzforex.co.nz NZGBA……………………………………………… www.germantrade.co.nz NZTE………………………………………………… www.nzte.govt.nz C R Onsrud………………………………………… www.cronsrud.com Opportunity Hamilton…………………………… www.opportunityhamilton.co.nz SEW-Eurodrive…………………………………… www.nz.sew-eurodrive.com Success Through Innovation…………………… www.nzmanufacturer.co.nz Tandarra…………………………………………… www.tandarra.co.nz Techspan…………………………………………… www.techspanonline.com The Clevedon Aeroplane Co Ltd……………… lglands@xtra.co.nz Women in Engineering………………………… www.wie.org.nz XPO Exhibitions Ltd……………………………… www.xpo.co.nz
NZ Manufacturer February 2012
Start out doing what is necessary..Then start doing what is possible.. The next thing you know you are doing the impossible. – Francis of Assisi
A ’fair’ opportunity for industry participation
T
he challenge of ensuring that a country sustains a strategically healthy level of local industry capability is not unique to New Zealand; Countries around the world are grappling with the issue and coming up with solutions. ‘2500 New Jobs Created in Industry!’ leapt off the page of the announcement by the Government of Victoria, Australia, when they published details of a A$1 billion Victorian Comprehensive Cancer Centre to be built in the Melbourne suburb of Parkville. Victoria has an Industry Participation Policy (VIPP), under which projects can be designated as ‘Strategic’. As a designated strategic project, there is a mandated ninety per cent minimum local content requirement applying to the overall design, construction and fit-out of the new VCCC facilities. On-site labour resources will average 700 persons for the expected
four years of construction, peaking in the order of 1,100 persons. Offsite resources involved in support industries, including design and manufacturing, is expected to average 2,500 persons for the project duration. While the support of Victoria towards maintaining a local industry base are commendable, they are not alone in their efforts, with the Australian Federal Government also taking a proactive stance on supporting local industry by: • Making major Federal grants of $20 million or more, including grants to the States and Territories, contingent on maximising opportunities for Australian businesses. • Requiring future project developers to publish more extensive details on opportunities available to Australian businesses if they want to receive a five per cent tariff exemption on imports
sales@hiq.co.nz
www.hiq.co.nz
for major projects through the Enhanced Project By-law Scheme (EPBS). Their announcement of these initiatives go on to say that, ‘The Australian Government believes that this approach will see Australian industry get a fair opportunity to compete for work on billions of dollars of projects supported by Federal grants.’ This does not preclude offshore companies from participating, it just means that they have to seriously look at what can be done in Australia and it may mean that they partner with local industry. The spin-offs of such an approach are knowledge transfer, the cementing of local industry alliances with offshore companies, more likelihood of training for local companies’ staff to do jobs like commissioning and maintenance, rather than bringing in technicians and engineers from offshore, who just do the job and leave with no residual benefit staying in the form of skills and capability, as well as the flow-on effects to the general economy of enhanced local economic activity. In the New Zealand context, what is stopping us from measuring every major and strategically important procurement activity, against its wider potential to support the development of New Zealand Industry? The reason we need to do this, is so that a solid foundation of capability exists here, which we need to maintain and enhance so that we have a base from which export initiatives can be launched. If Australia thinks that what they have done helps provide ‘a fair
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REAR VIEW
By Nick Inskip
Nick Inskip is Industry Development Manager for the Heavy Engineering Research Association (www.hera.org.nz), which is a member organisation of Metals New Zealand (www.metals.org.nz). Both organisations continually advocate on behalf of industry to promote New Zealand’s industrial capabilities in the engineering sector, as well as develop and explore new sectors and markets for NZ businesses. opportunity to compete for work,’ then we have to ask; what kind of opportunity does industry in New Zealand have without such support? Obviously not a fair opportunity! The world does not provide a level playing field, especially for small countries like ours. It’s time for us to look out for ourselves and take action now to support our industry capability, while we still have something to build on. The example of Australia seems to be working for them, following their example seems to be a no brainer! Who can argue with creating a fair opportunity?
Or visit: www.filtercorp.biz
www.nzmanufacturer.co.nz
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NZ Manufacturer February 2012
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