Manufacturer March 2012 MarchNZ2012
$7.00
1
www.nzmanufacturer.co.nz
Productivity Matters of productivity.
Workshop Tools Page 12
RFID … it’s hard to spot the big trend.
Page 21
www.solidtec.co.nz
Analysis Commercialisation goes transtasman.
Page 23
Heatbox delivers with Where are the jobs? locally made heating system R By Kevin Kevany
A
Massimo Biscuola with the breakthrough resistant panel.
n Albany-based company, HeatBox, is rewriting the rules on domestic heating by introducing an efficient, ducted heating system which incorporates filtered ventilation – delivering a drier and healthier home - with its patented “thin-film carbon panel” heater technology dramatically reducing the cost of heating. Moreover, ironically, it sees as a gap in the market, that its heaters can piggy-back on the 150,000odd installed ‘positive pressure’ ventilation systems which force air from the roof cavity into the home, as well as offering its own ‘superior’ and price competitive stand-alone system.
It’s all locally designed and manufactured, which explains why it’s attracting the attention of savvy local investors too. A 2011 Otago University study, partly funded by EECA, looked at the actual heating performance of the ‘positive pressure’ systems. The study’s authors virtually endorsed the need for the HeatBox add-on heater by concluding: “The majority of the time, it was calculated that pumping air from the roof space into the house would provide little heating or cooling benefit. In fact, this would often actually act to push the internal temperature in the house further away from the desired level rather than closer to it. Continues page 13
WWW.FOODTECHPACKTECH.CO.NZ
ecently the government rolled out the initial stages of its welfare reform programme requiring beneficiaries at least to look for work. Not surprisingly many people asked where are the jobs these people are supposed to get? With unemployment at 6.7 percent, they said, where are the jobs for those genuinely wanting to work, even semi-skilled people, let alone those with few skills? Let’s make some things clear. There’s absolutely no shortage of work! It’s a truism the world is full of it. In fact there are vast resources of work, of great value to the community, or for private purposes, provided someone is willing to pay for it. The last point is of course the flaw in the argument. Though there might be useful work waiting to be done, often there is no money to pay people to do it just now, or organise the doing of it. It follows if more money was available more jobs could be created provided the products or services resulting from it were sufficient to encourage someone to pay for it. So how do we make the sort of jobs that generate products and services for which there is a market value equal to or exceeding their costs of labour and other inputs? For thousands of years the world’s wealth has grown as our adventurers and entrepreneurs have expanded our horizons, markets and market choices. The innovations they developed and the successful risks they took have been the main engine of our steadily rising standards of living. Such processes are not about to stop, but they do need revisiting and
By Bruce Goldsworthy
the processes themselves can require re-inventing. Let’s consider the Auckland waterfront. We hear from the two companies contracted by the port to supply labour that they have been inundated with applicants for the jobs being vacated by the striking workers in the Maritime Union (MUNZ). Under the port’s previous antiquated labour arrangements and the union’s intransigence to change, many younger people were loathe to apply because of the union’s demands that they work only as much as other union members, and not to their full ability on the job. But that’s another story. This one concerns those who applied, but proved unemployable given the responsibilities of the job. These responsibilities include driving expensive items of capital equipment and demonstrating a mature attitude to observing health and safety codes. Continues page 6
vanessa@xpo.co.nz www.nzmanufacturer.co.nz
2
NZ Manufacturer March 2012
JOIN WITH ‌ TELL US YOUR STORY www.nzmanufacturer.co.nz
www.nzmanufacturer.co.nz words@xtra.co.nz
NZ Manufacturer March 2012
CONTENTS Advisors
www.nzmanufacturer.co.nz
DEPARTMENTS
18 20 21 23 24 25 26 29 30
BUSINESS NEWS
Sir William Gallagher
➡
• What’s needed to get more manufacturing jobs. • Assisting manufacturers export to Australia.
Is the CEO of Gallagher Group Ltd. He is also a Fellow of NZ Institute of Management.
OPPORTUNITY HAMILTON
• Billion dollar potential for Waikato businesses. • Global growth event ‘must attend’.
MANUFACTURING TECHNOLOGY • Why Hi-Tech Plastics made the switch. • New strategies added to FeatureCAM.
Page 7– PROFILE – Expertise + Entrepreneurship = Innovation.
Stephen Drain
THE ROAD TO EMEX 2012
➡
Stephen Drain is a Director at PwC specialising in Leadership Development and Forensics
Platform to demonstrate quality.
AUCKLAND MANUFACTURERS • New structure welcomed. • Auckland tops rankings. • Greening New Zealand’s growth.
PRODUCT NEWS
• Permabond has lots to offer. • Leak inspection system widely used.
BUSINESS NEWS
Page 13 – AUCKLAND MANUFACTURERS – Heatbox delivers with locally made heating system.
Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, New Zealand’s largest business advocacy group, representing businesses of all sizes.
• Keeping staff productive. • Australia, NZ to link Emissions Trading Schemes.
WORKSHOP TOOLS
Bruce Goldsworthy
• RFID. It’s hard to spot the big trend. • Planting the training ‘seedling’.
ENERGY REPORT
• Bioenergy Association welcomes funding. • Commercialisation goes transtasman.
COMMENT
What is your tone?
Page 27 – SUPPLY CHAIN – Overhead sway control crane the way to go.
Catherine Beard
➡
➡
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.
CANTERBURY
Major contract to Christchurch company.
➡
5 8 11 14 17
3
DEVELOPMENTS
Adam Bennett
Is NZTE’s Director Specialised Manufacturing. He is based in Auckland.
Metals Industry – Green Leadership.
BUSINESS NEWS
• Industry leader expands to Christchurch. • IRL appoints Juliet Gerrard.
MARKETING
Smart marketing for manufacturers.
Page 28 – DESIGN IN MANUFACTURING – Masters programme secures yacht designer.
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.
➡
Page 31 – REAR VIEW – Level playing fields matter for job creation.
info@techspanonline.com
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.techspanonline.com www.nzmanufacturer.co.nz
4
NZ Manufacturer March 2012
EDITORIAL
The productivity of a work group seems to depend on how the group members see their own goals in relation to the goals of the organisation.
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
Murray Sherwin, 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
– Ken Blanchard
Productivity and jobs
T
wo of the issues constantly on our minds are productivity and jobs. They are not easy issues to address, nor are there easy answers to them. This month, we have seen the announcement of the new super government department –Business, Innovation and Employment - to be led by Steven Joyce which is bringing (supposedly) greater efficiencies for the business community and – unfortunately – job losses. I wouldn’t be a public servant for all the tea in China or Sri Lanka because your job is at someone else’s whim. How else can you describe the current situation? When I asked how this refinement of government process – as with the addressing of the welfare beneficiaries situation – is beneficial and not monstering people to save money, I had some pretty decent feedback from business-related organisations. This feedback ranged from “its about time government departments became more efficient” to “stop- gap measures to save money can only be dressed up so far – where are the private sector jobs coming from?” To “here we go again letting Australia pick up the slack for us by providing a place for people to continue to find work”. And then there’s productivity. Input per worker or the amount of value that each of us adds to our daily toil. Murray Sherwin, Chair Productivity Commission says that a country’s ability to improve its standard of living over time depends almost entirely on its ability to raise output per worker (see Page 12). And if our GDP per person continues to decline per person then, naturally enough, this affects our standard of living. From being a worldwide top performer in the 1950s New Zealand’s current GDP performance sees us at our around 26th in the world, sliding down the list of nations. Murray Sherwin says that as our productivity and growth rate slides we could over time find ourselves less enamoured with this great little country of ours and what it can offer us. So take a look around your business – you and your other managers and directors – and take in what you see. How is productivity going? Are you lacking trades people? Can you take on an apprentice? Are you under achieving? Are you finding new markets for what you make? Those questions hold some of the answers to better productivity, company development and growth. But you probably knew that anyway.
Doug Green
Vol. 3 No. 2 March 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.
www.nzmanufacturer.co.nz
www.nzmanufacturer.co.nz/videos PUBLISHER & MAGAZINE DEVELOPMENT– Max Farndale max@nzmanufacturer.co.nz
NZ Manufacturer March 2012
5
BUSINESS NEWS What’s needed to get more manufacturing jobs
There is more credit and satisfaction in being a firstrate truck driver than a tenth-rate executive. – B.C. Forbes
T
here is no denying that manufacturing in New Zealand has suffered as a result of the global financial crisis, just like many other countries. But, it’s imperative to realise that we have come off better than most, recognise what we can do to improve New Zealand’s situation and leverage our advantages in the global marketplace. What happens in manufacturing matters to New Zealand because manufacturing is still a big employer – the biggest in the Auckland region, and second largest in the country. It accounts for nearly 50 per cent of New Zealand’s exports. Manufacturing as an employer has been fairly static over the last three years – bumping along in very slight expansion mode, but the key message is that the backward slide (over the whole sector) has stabilised somewhat. So, the questions to be asked are, “What can New Zealand do to grow its manufacturing sector?” and “What can we do to get more people off welfare and into more manufacturing jobs?” We need to tackle the problem from both ends – demand and supply. Growing the manufacturing sector and creating more jobs will pull more people into manufacturing, but we also need to make sure there is a good supply of qualified manufacturing workers. The challenge of getting people off welfare comes down to ensuring those people are work-ready and jobs are available for them. When the economy is growing
slowly and there are not so many new jobs being created, the people most affected are the unskilled and school and university leavers who are looking for their first job. Also in tough economic times, people are more inclined to hang onto to their jobs, so there is less movement amongst jobs. While things might seem tough in NZ, they have been tougher in other countries. The US and EU have had higher unemployment rates to deal with than NZ, and in some countries like Spain it reached an historical high of 22.85 per cent in the last quarter of 2011. Having said that, the NZ youth unemployment rates are unacceptably high and need to be addressed urgently. A recent survey showed that only 7 per cent of employers believe school leavers are well prepared to be effective in the workplace, and only 33 per cent of employers believe university and polytechnic graduates are well prepared to be effective in the workplace.
The challenge of getting people off welfare comes down to ensuring those people are workready and jobs are available for them.
Schools need to do a much better job of preparing young people for further education, training and employment. Feedback we’ve had from a couple of large employers in the BusinessNZ Major Company CEO Group is that they are struggling to find enough Information, Communication and Technology graduates and engineers. NZ is still producing lots of accountants and lawyers, but not enough of the graduates that are needed in manufacturing. If NZ is going to raise its international competitiveness, particularly in manufacturing, we’ve got to get our training and education right. A new initiative called Vocational Pathways is aimed at making learning for young people real and relevant to the job opportunities in the NZ economy. There is a manufacturing sector pathway currently being developed as part of this. You can find out more by contacting Josh Williams, Josh. Williams@minedu.govt.nz. One way we are making headway in our manufacturing sector is in carving out a significant competitive advantage over Australia, in terms of our wages, overheads and exchange
Catherine Beard
Catherine Beard is Executive Director Manufacturing at BusinessNZ www. manufacturingnz.org.nz rates and the ease of doing business in NZ. The mineral and mining boom that is making manufacturing less economic in Australia does not look to end any time soon, so we need to be thinking about how we attract manufacturing investment in NZ and promote ourselves as a good entry point into the Asian markets with our FTA with China.
It’s FREE to subscribe at:
www.nzeco.govt.nz www.nzmanufacturer.co.nz
6
NZ Manufacturer March 2012
BUSINESS NEWS
A
Motivation is the art of getting people to do what you want them to do because they want to do it.
– Dwight D. Eisenhower
Assisting manufacturers export to Australia
ustralia remains New Zealand’s largest trading partner with 23% of our merchandise exports being sent across the Tasman in the year to June 2011. However all is not rosy with many Australian companies in the manufacturing, building and retail sectors who are challenged by Australia’s high exchange rate as well as reduced domestic spending. This has been adversely impacting some NZ manufacturing companies who have faced suspended orders of capital equipment, demands for longer payment terms or increasing requirements for advance payment bonds from their Australian buyers. Over the last year, the New Zealand Export Credit Office (NZECO) has been assisting several manufacturing exporters to overcome these challenges and secure their export sales.
Advancing postponed orders
One example was Robotic Technologies Limited (RTL), a joint From page 1
venture company between Scott Technology and Silver Fern Farms, which designs and manufactures automated meat processing equipment. RTL had a prospective Australian buyer in the meat processing industry that wanted to utilise equipment finance to purchase RTL’s robotic processing system. To advance the sale, RTL offered a 5 year vendor finance option to the Australian buyer which it accepted. Under this arrangement, the Australian buyer paid an advance deposit and then waited until receipt and acceptance of RTL’s equipment before making the first of its repayments over the following five years. This arrangement was funded by RTL’s New Zealand bank, and underwritten by the NZECO. The benefit to the Australian buyer was that it received a line of credit for equipment finance, while preserving its own banking funding lines, with repayments beginning once the
Where are the jobs?
With the right training and skills including life skills, the aptitude and confidence required for them to do the job might be enhanced sufficiently for them to succeed at it. So EMA believes a core part of the answer to the question of unemployment and underemployment will always involve the delivery of more appropriate skills training and improved education across the board. Secondly, the idea that we have a right to allow beneficiaries to remain beneficiaries forever is an abdication of our responsibility to the welfare of others in our communities. Leaving people on a benefit forever is an indictment on the rest of us who fund them through our taxes. Surely we have responsibility to encourage and oblige beneficiaries to participate more in their society by earning at least some of their own income and by contributing income taxes. Widening the scope for lifelong upskilling and appropriate skills training is a vital part of the state’s
www.nzmanufacturer.co.nz
role to achieve this for beneficiaries. They do need to be either in skills re-training, work or a combination of both. The third and most important route for exiting dependence on a benefit returns us to the themes of adventure, risk taking, entrepreneurship and innovation which are the very foundations of higher productivity and economic growth. Many of our beneficiaries would well respond to courses in ‘safe’ risk to help boost their confidence and self esteem. In many respects our society has failed them. Often we have molly coddled our younger people by wrapping them in risk free activities. We leave them playing computer games with no real risks or rewards at stake. As a start I suggest more affordable access to programmes such as Outward Bound and the Young Enterprise Trust would pay us all back in spades. Lastly, and since this is the NZ Manufacturer newspaper and since I have been working with and for manufacturers for over 40 years, many of the answers to getting beneficiaries back at work will see them in manufacturers’ workplaces. Because that is where real practical work is done, delivering tangible job satisfaction and making a real difference to the balance sheet. Bruce Goldsworthy is Manager of Manufacturing Services for the Employers & Manufacturers Association.
Robot Technologies Limited (RTL), a joint venture company between Scott Technology and Silver Fern Farms, designs and manufactures automated meat processing equipment.
equipment was operational and generating revenue. A key benefit to RTL was that it advanced a sale that may otherwise have continued to be postponed. The NZECO’s commitment to this deal was conditional on it obtaining full financial information from the Australian buyer and the NZECO being comfortable with the creditworthiness of the buyer. There have been other recent occasions where the NZECO’s credit assessment of Australian buyers has not been positive, and the NZECO has declined to underwrite an extended credit term arrangement. However, the NZ exporter has benefitted from an independent credit assessment of their prospective buyer.
Funding post shipment credit terms
Dun & Bradstreet’s recent ‘Trade Payment Analysis (Dec 2011)’ which records the ability of Australian firms to pay their bills on time, stated the number of bills left unpaid for 90 days or more grew 20 percent during 2011. Australian firms with 500 or more employees have traditionally been the slowest payers and often demand 60 – 90 day payment terms. Many NZ exporters find it difficult to fund the period between paying their suppliers and receiving payment from their Australia buyer. The combination of trade credit insurance and a bank willing to provide a trade finance facility is one solution to help fund this mismatch of cashflow. The NZECO has provided its short-term trade credit insurance to manufacturing exporters who supply regular shipments to large Australian companies, such as Downer EDI and Holden GM. In addition to mitigating the risk of non-payment or protracted delays, this insurance can be an additional form of collateral to enable a NZ bank to fund this post-shipment credit
term which these large companies demand.
Issuing advance payment bonds
It appears that the requirement for advance payment, performance and warranty bonds are also increasing in frequency for manufacturing exporters. These bonds are typically on-demand bank guarantees, and an exporter is required to provide security to their bank to enable the bonds to be issued. The NZECO may provide a general contract bond guarantee to NZ banks to assist them issue bonds for proven but security constrained exporters. This guarantee works by the NZECO underwriting the exporter’s performance of the bonded contract. The benefit to the exporter is that it frees up access to an advance payment or banking facility to help them finance the delivery of the export. For example, when the Wanganui-based, Q-West Boat Builders won a contract to construct a ‘Harbour Cleaning Catamaran’ for the NSW Maritime Authority, they were required to provide a 10% performance bond during the manufacturing period and a 10% retention bond on completion of the build. Q-West was at lending limits with their bank due to demands for FX and working capital facilities related to the NSW contract and other domestic boat building contracts they were performing at the time. The NZECO issued its bond guarantee to Q-West’s bank, enabling them to issue the bonds required. The NZECO guarantee helped Q-West maintain sufficient working capital headroom in its bank facilities to fund this and its other project commitments. nextSTEP Visit: www.nzeco.govt.nz
NZ Manufacturer March 2012
Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort. – Paul J. Meyer
7
PROFILE
Expertise + Entrepreneurship = Innovation
W
hat do you get when you blend 30 years of engineering experience and a University of Otago Master of Entrepreneurship degree? In the case of Pat Maguire you successfully develop and commercialise a novel way of carrying luggage on mountain bikes. Pat Maguire is the founder of Freeload, a Dunedin- based design company, which has sold thousands of radically new bike carriers around the globe since the company was launched in 2009. Pat first got the idea for a new type of carrier when visiting the world’s largest bicycle trade show, Eurobike, in 2006. He realised that the new types of bicycle required a completely new style of load carrier to the traditional bent wire models which had not changed markedly in a hundred years. What was needed was a versatile rack that would adjust and attach to the 150mm clear sections on the front forks and rear stays. Because every fork and stay is so different in size, shape and angle, the challenge was to develop a universal attachment that would allow strong friction-grip fastening directly to painted tubular surfaces. The result is a patented quick release bracket that tensions webbing strap neatly and without marking the bike, but provides a universal attachment point that can receive a carrier to the front or rear of all bikes regardless of shape or size. Pat says he would not have been able to commercialise his idea if it
were not for the business skills that he gained while doing a Master of Entrepreneurship degree at Otago University in 2004. “This enabled me to leverage my engineering and design skills to successfully commercialise an innovative technical solution”, he says. Pat would recommend that anyone with strong technical skills who would like to develop their own new venture to get the necessary entrepreneurial business skills first. The University of Otago Masters degree has the advantage of teaching the necessary steps to creating a new venture in three-day modules that are taught every six weeks. “This allows you to work on your business idea while learning,” says Pat. The next intakes for the Master of Business degree are in Queenstown in July and Dunedin in February. Partnerships are also important to the successful commercialisation of innovations. In the case of Freeload, this has led to Pat Maguire teaming up with designers Gary Gibson and Tim Armstrong who
Pat gained his business skills while doing a Master of Entrepreneurship degree at Otago University.
The Centre for Entrepreneurship team at Otago University (left to right): Professor Brendan Gray, Dr Jodyanne Kirkwood, Mrs Ruth Matika and Dr Victoria Jameson.
bring complementary skills and experiences to the mix. As well as being a trained engineer, Pat Maguire also worked as an educator for more than 20 years. Prior to leaving Otago Polytechnic to set up his own company, he helped establish the Product Development Centre, which kick-started a number of design and innovation projects within industry. Constantly looking for that next project, Pat was always keen to develop his own products and start his own company. Freeload designs all of its
products, packaging and brand marketing collateral in Dunedin, with much of the production done in Taiwan. Every year the team go to Taipei Cycle in Taiwan, Interbike in Las Vegas, and Eurobike in Germany, to gain new ideas and keep in touch with overseas markets. Over the next 12 months Freeload will focus on developing a bigger range. The company will also venture into soft goods such as dry bags and panniers. nextSTEP Visit: www.freeload.co.nz
www.irl.cri.nz
www.nzmanufacturer.co.nz
NZ Manufacturer March 2012
OPPORTUNITY HAMILTON
I
Why did I want to win? Because I didn’t want to lose!
– Max Schmelling
Billion dollar potential for Waikato businesses
nternational alliances worth billions of dollars may be in the pipeline for more than 50 Waikato innovators who have registered on an on-line global science park portal. Waikato Innovation Park recently became the first Asia Pacific member of the UK Science Park Association (UKSPA), opening the door to new markets and global alliances potentially worth billions of dollars for New Zealand innovators. The UKSPA initiative, a partnership between Waikato Innovation Park and economic
development organisations Opportunity Hamilton and Priority One, allows Waikato and Bay of Plenty technology innovators to register on UKSPA’s virtual database, innovation-search.com. Opportunity Hamilton Digital Hamilton Strategy manager Nicola Browne said more than 50 companies had registered on the portal and she is calling for more innovators to sign on for free. “This is an excellent opportunity for businesses to leverage existing global connections and potentially form partnerships and relationships
KiwiNet and CSIRO sign commercialisation agreement
T
rans Tasman collaboration on innovation research and technology transfer is set to increase with the signing of a cooperation agreement between The Kiwi Innovation Network (KiwiNet) and CSIRO, the Commonwealth Scientific and Industrial Research Organisation. KiwiNet, a consortium of New Zealand research organisations collaborating on research commercialisation, will work with the CSIRO, Australia’s national science agency to uncover synergies and opportunities for technology collaboration. The memorandum of understanding will see parties regularly exchange project and research information in a wide range of areas from precision agriculture to high tech manufacturing to cleantech. KiwiNet and CSIRO will also access each other’s specialist expertise and capabilities, as well as industry and investor networks to assist technology transfer activities and provide more opportunities for those groups. Jan Bingley, General Manager IP and Licensing at CSIRO says, “It makes good sense to take a collaborative approach to research commercialisation. By working collaboratively we can identify opportunities to combine complementary technologies to create more investable propositions.” Dr Nigel Johnson, Director of Research & Innovation, University of Canterbury, a KiwiNet member says, “Encouraging a transparent flow of information on the research and technologies each country is working on will give us the visibility and understanding we need to uncover mutually beneficial commercial opportunities. This www.nzmanufacturer.co.nz
approach will also allow us to develop a valuable learning partnership which will help improve our commercialisation capability.” KiwiNet and CSIRO will initially exchange project portfolio information four times a year to identify collaboration opportunities. Internships and staff exchanges between the two organisations are also likely. Jan Bingley adds, “By leveraging our combined capability we can create new opportunities. We may only have part of the answer in an area and this partnership will allow us to take a collective approach to solving problems and developing innovative technologies. Sharing networks and knowledge will also help us take research and innovations to the marketplace.” CSIRO is the single largest employer of scientists in Australia, with more than 6,500 people conducting and assisting with scientific research in Australia and around the world. The core KiwiNet organisations Plant & Food Research, Otago Innovation Ltd, Lincoln University, AUT Enterprises, AgResearch, University of Canterbury, Industrial Research Ltd, Viclink and WaikatoLink have 6,300 research staff and 127 commercialisation staff; with a research spend of over $500 million. The agreement builds on KiwiNet’s recent commercialisation agreement with the Texas A&M University System. “We know that a collective approach to scientific and technology based innovation, a global network and easy access for funders increases the chance of success for technologies and ventures. We will all benefit from collaboration,” says Dr Johnson.
that otherwise could have been very difficult to establish,” Nicola said. A range of Waikato businesses have registered on the site including manufacturers, laboratories, engineers and agri-tech companies. “It’s great to see such a wide range of innovative and very successful Waikato companies wanting to make the most of this opportunity to reach the world,” Nicola said. The UKSPA membership initially puts Waikato innovators in the spotlight before a membership of 1,000 UK technology companies, with plans by the association to develop similar relationships in the United States, China, Norway, Denmark and Australia. “This creates a virtual global technology corridor with Waikato at the fore. It opens the door for global collaboration and partnerships and shows people using the site that our businesses are ready for action,” Nicola said. Global corporate UKSPA sponsors such as Unilever and Boots trawl the website for technological advancements being made by small innovators. The website grants licenses to such large corporations, noting their specific technological requirements. Waikato Innovation Park’s Peter Maxwell said the database is used to create global business relationships, discover joint research, development and innovation interests, establish strategic alliances and open paths to new markets. “It’s about getting visibility for our companies. They’re getting themselves out there globally so that when people are looking for technology solutions they are there. The big advantage is that this will
A
Nicola Browne
help New Zealand companies get a leg up internationally,” Peter Maxwell said. “Smaller companies like many in New Zealand are more agile and they typically put in more effort. They are more innovative and creative than large corporates, especially at the early stages of development.” Registering on the site is free for businesses for six month with plans to look at implementing a fee structure the following year. Technology companies with an innovation focus are eligible to register. They must be trading and GST registered. “We’re looking for innovators rather than re-sellers or service providers. We’re looking for people who are creating something new and leading edge.” Companies can register for the portal by e-mailing nicola@ opportunityhamilton.co.nz.
Waikato capabilities catch inventor’s eye
Wellington entrepreneur’s nation-wide hunt for a manufacturer to design and produce her new weight-loss product led to the door of a Waikato plastics business. Self Health Company director Gabrielle Sorensen whittled down her list of 80 possible New Zealand companies to produce her invention to just one, Hamilton’s E.S. Plastics. “I had to find a company that could injection mould food grade silicone in colours. The product
needed to be oven-proof and freezer-proof. I needed to work with a company where I could be very involved in the manufacturing process,” Gabrielle said. Gabrielle’s Slimmerings invention is designed to help prevent weightloss plateaus by controlling food portion sizes. The product includes 10 silicone plate rings and two bowl guides to help reduce food intake. People start with the ring size closest to their existing meal size and gradually reduce the size of the rings,
➼
8
NZ Manufacturer March 2012
Even in a little thing like a stick of gum, quality is important. – William Wrigley Jr., Wrigley Chewing Gum
➼
I
9
OPPORTUNITY HAMILTON
Global growth event ‘must-attend’ for businesses
nnovation and Growth - the Hamilton-based event giving businesses a springboard to global success - is poised to be one of the most important New Zealand conferences of the year, say organisers. The event is designed to give up to 300 business people, innovators and entrepreneurs access to global relationships and the tools for making off-shore business connections conducive to global growth. Innovation and Growth manager Nicola Browne, of Opportunity Hamilton, said attending the event is a must for chief executives, directors and entrepreneurs interested in tapping into the global market, and successful companies wanting to support them. “This is a unique event giving attendees access to the knowledge, support, technology and opportunities they need to reach the world with their ideas and products. There has been nothing like this in New Zealand before,” Nicola said. The conference will offer innovators the opportunity to access
The event is designed to give up to 300 business people, innovators and entrepreneurs access to global relationships.
profiles and make connections one month out from the event and into the future,” Nicola said. Global guest speaker Manchester Science Park chief executive Jane
which range in size from 24cm to 15cm. Gabrielle’s own 20kg weightloss helped inspire her invention. “I just couldn’t get the last seven kilograms to budge. Then I was at an art deco fair and I noticed the old dinner plates were much smaller than plates now. So I started to research plate sizes throughout history,” she said. Slimmerings has been about five years in the making and finding a plastics company to work with was one of Gabrielle’s biggest challenges. “It was hard to find a company that ticked all the right boxes. E. S. Plastics has worked out well on a couple of levels - Hamilton is where my daughter lives and she will be distributing the product.” Gabrielle’s ultimate aim with Slimmerings, which retails for about $60 in New Zealand, is to crack the global market.
Hamilton economic development manager Adrian Dixon, of Opportunity Hamilton, said Gabrielle’s experience of finding the right business for her needs in Waikato is a familiar one. “We have many businesses with excellent capabilities here in Waikato. It’s brilliant to have companies like E.S. Plastics willing to work with customers who think outside the box. You never know when the next invention will capture the world’s imagination,” Adrian said. Opportunity Hamilton, the city’s economic development agency, works to connect businesses, leverage opportunities and assist companies to become established in the city. E.S. Plastics director Heather Allen said her company’s willingness to go the extra mile for
customers sets it apart. “There are lots of plastic moulding companies with similar equipment to ours. The difference with us is we are willing to work with people with all kinds of ideas to bring the ideas to reality,” Heather said. E. S. Plastics designs and manufactures a wide range of products including components for the agricultural, automotive and marine sectors. They also produce parts for use in hardware, electrical appliances and control systems. The company also designed and produced the Scorpion offroad roller skate now being sold throughout the world. E.S. Plastics, specialising in custom plastic injection moulding, tool making, blow moulding, multimaterial industrial design and precision engineering, is based in Te Rapa.
already established relationships with the UK Science Park Association, Manchester Science Park and IDEON Science Park in Sweden. It will use the latest smartphone technology to enable attendees to make long-term useful connections in the lead-up to the conference and afterwards. Event information will be accessible by scanning QR codes throughout the event and will be a hot topic on Twitter. “They will have access to a stateof-the-art application allowing them to upload their profile, search other
A guest speaker is Manchester Science Park chief executive Jane Davies.
Davies has supported the growth of innovative companies across the technology spectrum and will be giving exciting examples of science park successes. Jane will share how businesses, regions and countries can work together to generate economic growth. Nicola’s personal experience as one of the world’s top cricketers means she understands what it takes to be competitive on the world stage. “This is a once-in-a-lifetime opportunity to meet people who all want to be part of a bigger vision towards more global success stories in New Zealand. Having the right support network combined with individual expertise and ambition is integral to international success,” Nicola said. Nicola was a White Fern from 2001 to 2011 and was named ICC Player of the Tournament at the T20 World Cup in 2010. To register for Innovation and Growth at the early bird rate of just $195 including GST visit www. ighamilton.co.nz. Full rates of $220 will apply from May 1.
www.ighamilton.co.nz
www.nzmanufacturer.co.nz
10
NZ Manufacturer March 2012
MANUFACTURING TECHNOLOGY
T
On Success: “Under promise; over deliver.
Thousandth viper robot delivered
his robot will be used to handle inserts and pre-fabricated parts in hybrid applications at Seletec Plastics in the Austrian town of Uttendorf. Seletec has been using injection moulding machines from Engel since the 1980s, with the focus switching to automation in its new projects. A Viper 40, the anniversary edition robot, was delivered to the Pinzgau region as part of a complete package that included a duo 650 injection moulding machine. “With pressure continuing to build on costs, those of us in Western Europe can no longer afford to work without automation”, says Gerald Rauch, head of sales and development at Seletec. “Automation guarantees stable processes, which raises productivity and enhances our production quality. The new large-scale machine will be used to make technical parts for a wide range of application fields, including housing components with metal threads. “When several inserts are placed into a mould at once, the speed of
– Tom Peters
the robot is what counts”, stresses Rauch. “We also look for fast cycle times and maximum precision in our handling operations.”
Minimal cycle times, precise movements
The Viper robot is the ideal machine for these requirements thanks to its innovative software packages: vibration control, mass identification and efficiency control. Software packages eliminate the structure-borne vibration of the robots - even with longer axis dimensions - and optimise their movement and dynamic values. This ensures high tracking and positional accuracy and minimises cycle times. The Viper robot also adjusts its movements to the respective manipulation weight and avoids unnecessary wait times outside of the machine. Since Engel supplies both injection moulding machines and robots from a single source, full integration of the two control environments is guaranteed. “Operating the robot is simplicity itself”, says Rauch. From product development to
Engel Viper robot for Injection Moulding Machines
series production Seletec - a Klepsch Group company - has its roots in metalworking. The company started producing high quality injection moulded articles for technical applications in the 1950s. Today, as a global service provider, Seletec covers the entire value chain - from product design and development to mould production and series manufacturing. Seletec’s customers represent many segments of industry, including logistics, materials handling, mechanical
engineering, agriculture, furniture production, electronics and medical engineering. Engel Viper robots are available in six sizes with nominal loadbearing capacities of 6 to 90 kg. The linear machines are sold not only in a package with injection moulding machines, but also as replacements for old equipment or use with injection moulding machines of other brands. nextSTEP Visit:www.techspanonline.com
New strategies added to FeatureCAM
To contact us call 07-843-1128 or refer to our website www.flightstructures.co.nz
www.nzmanufacturer.co.nz
overall efficiency for the toolpaths. Stepovers for 2.5D mill roughing can now be set as large as the tool diameter itself. Previously, stepovers were limited to 50% of the tool diameter and, if this limit was exceeded, the toolpath would leave stands. The new algorithm supports larger stepovers by providing extra moves automatically to clean up those stands. Other milling improvements include an option to add an extra profile pass exactly at the base of flat pockets, the ability to use face-milling tools with chamfered edges to machine chamfers as well as faces and so minimise the number of tools needed, a choice of right- or left-handed thread-
➼
D
elcam has launched the 2012 R2 release of its FeatureCAM feature-based CAM system, which includes important new strategies for roughing and turnmill operations, alongside a range of more general enhancements to allow faster toolpath generation. FeatureCAM was the world’s first feature-based programming software when it was launched in 1995. Constant development since then has ensured that the system has retained its leadership in programming speed and ease of use, while an increased range of strategies has been added to provide more efficient toolpaths giving greater machine productivity. The main addition to FeatureCAM 2012 R2 is a series of new strategies for 2.5D roughing. These include a continuous spiral option to minimise wear on the cutter and machine tool, high-speed roughing options, including trochoidal machining and Delcam’s patented Race Line Machining, and “tear-drop” moves to clear corners more smoothly. In addition, more styles of leads and links can now be used to give greater
FeatureCAM release supports turning with live tooling
NZ Manufacturer March 2012
Business has only two functions – marketing and innovation. – P.F. Drucker
H
11
MANUFACTURING TECHNOLOGY
From pen and paper to Autodesk Inventor LT
i Tech Plastics are manufacturers of high quality products, specialising in new mould design, for marine, farming, industrial, and commercial industries in New Zealand. When AEC Systems, first met Bevan Mills, Director of Hi Tech Plastics, he was still using pen and paper for his designs. Professionals in the industry who are used to pen and paper find it overwhelming to switch to designing on a computer, however Bevan’s experience shows just how easy it is! Bevan stated, “I look back and after using Inventor LT for 18 or so months now and say the switch was easy.” The key to his success in this transition, he says, is effective training. “I feel the training course is a must, the experience and knowledge the trainer had was invaluable. I
must admit when I first tried the software I did get quite frustrated because I had no previous experience in CAD, I Didn’t even know where to begin. During the three day introductory course, I learnt so much that when I returned my first drawing scored us a very good contract that we may not have got if the designs were the old school paper sketches.” Said Mr Mills. AEC Systems Autodesk Authorised Training Centres make it easy for you to gain the skills and knowledge necessary to give you a head start in the industry, even if you have never had experience with CAD before. As Bevan discovered, this was a simple way to learn all the necessary tools for his new software; “The training was fantastic, I highly recommended the course. I did
the three day introduction course because I only use The LT version. Because of my lack of experience in CAD prior to the course, I don’t think I would have been able to draw what I have if it wasn’t for the training I received.” It didn’t take long for Bevan to realise the possibilities opened to him now that he was able to provide his customers with 3D designs on Autodesk Inventor LT. His design process is now more efficient and effective, “It (Autodesk Inventor LT) has made our design process quicker and a lot more accurate. With being
Why Hi Tech Plastics made the switch and how it worked out for them.
By Tania Fanaeyan
able to show the customer a CAD drawing we have found that we have not had to make as many prototypes because of the fact that you can specify the material of the product I can accurately price the final product, the drawing is that detailed that we can go straight to the next stage which is mould design. Mould design is another thing that CAD has helped tenfold.”
Hand drawing by Bevan Mills.
➼
Designed in Autodesk Inventor LT by Bevan Mills
milling tools resulting in either climb or conventional machining of the thread, and the ability to reduce calculation times by saving boundaries as curves if they will be needed for subsequent calculations. Roughing has also been improved for users of turning equipment that can operate with live tooling. A new option allows cutting with a live milling tool, while the workpiece is rotating in the turning spindle. This approach avoids the issues associated with interrupted cutting and ensures regular chip breakage, so removing any chance of wraparound by the swarf. Turn-mill programming has been improved with the addition of more flexible five-axis positioning. For example, any amount of negative b-axis movement available can be used, so avoiding extending the y limit too far back into the machine. Switching the positioning angles in this way makes editing easier to keep the machine within its travel limits. Another turn-mill improvement is support for cylindrical interpolation,
which allows toolpaths to be created with NC code for a plane and then wrapped around a cylinder. This approach, which can also be used for four-axis milling, allows cutter compensation to be applied when calculating the toolpath and gives smaller NC code files. All FeatureCAM users will benefit from improvements to the simulation module. In particular, they will see much faster results through the use of multiple cores for these calculations. In addition, the ability has been included to save a position during the simulation, for example, while toolpaths are being edited, and then to run the simulation from that position rather than from the start. Other general enhancements include direct cutting and pasting of models between FeatureCAM and Delcam’s PowerSHAPE design and data repair software, and the ability to create machining configurations on a network as well as on an individual computer, so saving time and encouraging consistent results from different users.
AEC Systems aim TO provide holistic solutions FOR customers, with the right technology for your design. When Bevan installed his new software on his existing computer, he realised he needed something more up to speed, he stated; “Anton made contact with me and offered a purpose built machine that is working extremely well”. Having the right hardware to support your software assists you in getting your daily work done efficiently. HP has a specific range of hardware suited to Autodesk software, all available through AEC Systems.
We are glad that AEC Systems was able to assist Hi Tech Plastics with the move from pen and paper through to CAD with Autodesk Inventor LT, and are pleased to know that Mr Mills “would definitely recommend the switch from paper.” He mentions that the biggest benefit “is being able to see the product from all sides, zoom in and out, rotate and being able to make changes without having to redo the entire drawing.” nextSTEP Visit AEC Systems on Stand 2070 at EMEX 2012 Or visit www.aecsystems.com.au
www.nzmanufacturer.co.nz
12
NZ Manufacturer March 2012
PRODUCTIVITY
P
‘
Raise your sights! Blaze new trails!! Compete with the immortals!!!
– David Ogilvy, Ogilvy & Mather
Why productivity matters
roductive’ is one of those buzzwords currently used to describe everything from the power of new photocopiers to the latest fertiliser. But many of us would struggle to pinpoint exactly what productivity is. In technical terms, productivity is broadly ‘output per worker’ or the amount of value that each of us adds in our daily toil. To translate that into a more tangible example, improved productivity in the health sector would allow more or better care to be delivered for the same amount of money and effort. So increasing productivity is key to increasing our standard of living and, without exaggeration, is the mechanism through which societies progress. Importantly, increasing productivity is not generally about working longer or harder. It’s about working smarter.
New Zealand’s productivity performance – where are we now?
New Zealand has moved from being one of the wealthiest countries in the world in the 1950s to around 26th in the OECD in terms of GDP per person. GDP per capita is not necessarily synonymous with wellbeing. However, this decline in GDP per capita in New Zealand relative to other countries suggests that our standard of living is not keeping pace with that in faster growing economies. Most of this relative decline reflects a very poor productivity performance. As New Zealand’s relative income slips, the choices available to us as a country and as individuals diminish. Our ability to afford the latest healthcare drugs, to pay medical staff salaries comparable to other countries, or to upgrade hospital facilities, is reduced. If the economic consequences weren’t enough, according to recent work out of the OECD and other organisations, a country’s income is strongly linked with its sense of wellbeing. So, as our productivity and therefore growth rates slide,
KEVIN KEVANY
09 520 5206 kevwrite@xtra.co.nz www.nzmanufacturer.co.nz
we could over time find ourselves less enamoured with this great little country of ours and what it can offer us. As observed by Paul Krugman, “a country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.” “Productivity isn’t everything. But in the long term, it is almost everything.”
How can we increase our productivity?
Over the years, there has been a huge amount of ink spilled on the subject of poor productivity and how to fix it. Clearly, it’s not a simple or easy task. We do know that there is a wide range of drivers that can potentially influence productivity in an economy. In a small country like New Zealand that is a long way from international markets it is critical that each of these drivers is making its maximum contribution possible to improving our productivity. Even small advances in productivity can make a big difference over time. Some of those key drivers are: • Our very basic institutional settings such as the protection of property rights, rule of law, a political system that facilitates coherent decision-making in line with public expectations. • The quality of our people, their education, skills and experience base, their attitudes and effectiveness in the workplace. • Our firms - the quality of their management and leadership, their strategies, risk management and workplace arrangements. • Our innovation systems and capacity to develop, acquire and apply new technologies. • The quality and extent of our infrastructure and commercial or industrial capital. • Our access to finance, savings behaviour, our choices as investors together with effective and transparent ‘price discovery’ mechanisms that facilitate the movement of resources to their best use.
PETER ISSAC
06 340 8134 peter.isaac@xtra.co.nz
DAVID BURKE-KENNEDY 09 473 8635 dbk@compublicity.co.nz
• The tax system. • The public sector and its performance - as advisors, regulators and service providers. • Our wider macroeconomic policy settings including monetary policy, fiscal policy and related effects through interest rates and exchange rates.
Where does the Productivity Commission fit?
The Commission has been up and running since April 2011. Closely modelled on the well regarded Australian Productivity Commission, our core product is the conduct of in-depth inquiries into areas where opportunities to enhance productivity and wellbeing appear to exist. We work independently on these very specific areas in particular markets or segments of the economy. In essence, we are being asked to pursue productivity gains in bitesized chunks. Our first topics for inquiry were housing affordability and international freight transport services. Our draft reports were released recently; housing affordability in December and international freight transport services in January. Our work is primarily in the world of policy and regulatory change and based on evidence and grounded in the real world so as to be effective. Both inquiries attracted over 50 submissions from a wide range of organisations and engaging with individuals, businesses, as well as peak organisations and iwi across
A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.
SANDRA LUKEY 021 2262 858
sandra@shinegroup.co.nz
Murray Sherwin,
Chair Productivity Commission
the country has been a critical, if time-consuming, part of the inquiry work. We clocked up over 140 separate engagement meetings across the two inquiries. The benefits of improved performance and efficiency in international freight services are very clear, as any manufacturer will know. The efficiency of international freight transport matters a great deal for a geographically remote country like New Zealand. International trade allows our firms to access export markets as well as import raw materials and equipment necessary for producing goods and services. Trade expands the range of technologies available to local firms and consumers, as well as promoting productivity growth through competition with overseas firms. Total freight costs in 2010 were approximately $5 billion – if we can make efficiency gains that shave even a small percentage off this cost, there are huge gains to be made for both individual firms and collectively as a country. Ultimately, the Commission will have to earn credibility and influence on the back of the quality and impact of our work. If we can’t do that, we won’t survive and won’t deserve to. That’s as it should be. I am in no doubt about the significance of the mandate the NZ Productivity Commission has been handed. Productivity increases will ultimately make a difference to New Zealand’s overall income, and therefore the lifestyles and choices open to all of us. We’ll be working very hard to make a positive contribution.
BRENT WHYTE
0061 2 9439 9329 bwhyte@whytepr.com.au
JULIE HANNAM
07 929 4970 julie@writewell.co.nz
NZ Manufacturer March 2012
13
AUCKLAND MANUFACTURERS Heatbox delivers with locally made heating system
Most people get ahead during the time that others waste. – Henry Ford From page 1
“They basically found that ‘positive pressure’ ventilation systems do not provide heat when you need it most – during the early hours of the morning, whenever the sun is obscured and at night – because they introduce air from the roof cavity and the roof air is COLD! “It also means these systems have to be set up so that ventilation performance is impaired when the temperature of the roof cavity gets cold – they automatically reduce fan speed to prevent cooling the house down (in many cases to zero), so the system is not only cooling your cold house down but it also stops performing its primary function of ventilation,” says one of two pioneering boffins behind HeatBox, Massimo Biscuola. Consumer Magazine’s research and testing manager, Hamish Wilson, noted at the time that he was “absolutely delighted” to see the study’s results. New Zealanders who have been or are still to be affected by the devastating consequences of the leaky homes’ health scandal could
also see HeatBox’s economical system as a way to keep their homes liveable while they go through the process of repairing them, the company believes. Its technological edge has been achieved by a breakthrough in the use of thin-film carbon fibre panels, as well as airflow dynamics through the positioning of the carbon panels. This all flowed from the determination and investment of two Kiwi pioneers in this field, the previously-mentioned, Massimo Biscuola and Daryn McDonald, a former builder, who spent their last five years -- not to mention a large chunk of their life-savings -perfecting their clean, efficient, homeheating and ventilation system; initially working in Massimo’s garage from 2009 and now from their specialist manufacturing facility on Auckland’s North Shore. The HeatBox creates heat using thin-film carbon panels. Unlike more conventional electric heaters, which generate radiant heat using a heated metal coil, or heat pumps which use coils to transfer heat, it uses thin-
Coming to a Placemakers near you
film carbon, resistive-panels. These panels act as resistors and warm up to around 120°C but only use the amount of electricity as a 100W light bulb. “The most remarkable thing about our panels,” says Biscuola, “is how efficiently they heat. A typical 2.4 kW unit can comfortably heat four, medium-sized rooms. That’s on par with the electricity consumption of a standard bathroom heater (or hairdryer).” Last year the company approached the Engineering Faculty of the University of Auckland to test the HeatBox Multi unit and to ‘evaluate its actual heating performance and rate its efficiency’. “I am proud to say they calculated the efficiency (i.e. the rate of conversion of electrical energy to heated air) to be above 95-percent,” he notes. And a recent independent test, focussed on the cost of heating 1 bedroom apartments for the elderly – another growth market for the product -- confirmed the HeatBox system, with a thermostat, cost less than 50 cents A DAY, while alternative heating options cost up to five times more. The company recently signed an agreement with Placemakers to distribute their products, with initial marketing efforts are focussed on the entry-level Mini system. They also offer a Midi and a Multi – which will efficiently heat two bedrooms, and is a simple DIY installation). “Being compatible with any existing ventilation system and selling at a retail price of $1,495, we are expecting it to be snapped up as we head into winter,” Biscuola says. The heating technology used in the HeatBox has been used for many years in saunas. But the duo saw the opportunity to create a whole new category of home heating-system – especially when they saw how enthusiastically Kiwis had embraced home ventilation systems to try and dry-out and ventilate their homes. “As a child in Switzerland and Northern Italy”, says Biscuola (the concept design of the HeatBox unit draws on his earlier studies at Technikum in Zurich, Switzerland too) “where every home had a central-heating system, it’s the first thing you design when you are building a house there. However, in most NZ homes, it’s one of the last things people think about.
Massimo Biscuola on the Heatbox Mini production line.
“And let’s not kid ourselves: it does get cold here, right up to Whangerei. “A warm, dry house is not a luxury – it is essential to healthy living. The beauty of the HeatBox system is that it can be retrofitted to existing houses or included in the design of a new home. Installations are unobtrusive – hidden in the ceiling or under-floor cavity – and can be completed in a couple of hours,” he notes. Who would disagree? He’s on to it. nextSTEP Visit: www.heatbox.co.nz The new, efficient, NZmade solution for your home • not limited or restricted by changes in temperature • high heat output and low power consumption • two options – heat and ventilate from the start OR retrofit heating to your existing ventilation system • filters the air you breathe. • only heats if there is not already sufficient warmth within your home • eats more than just the room in which it is installed • delivers a healthy level of humidity to your home at 45-55-percent • unobtrusive in appearance. No units on the outside of your home, no noise to bother your neighbours and no emissions • easy-to-install: no special permits required • equals a warm healthy home
WWW.EMEX.CO.NZ www.nzmanufacturer.co.nz
14
NZ Manufacturer March 2012
THE ROAD TO EMEX 2012
E
To win without risk is to triumph without glory. – Pierre Corneille
Platform to demonstrate quality
MEX 2012 could be the ideal platform to demonstrate the quality of products ‘made in Germany’ and explain why the cost/performance ratio is spot on. The exhibitors of the joint stand, organised by the New Zealand German Business Association, are optimistic.
Dimitrios Konstantopoulos
“To exhibit under the umbrella ‘made in Germany’ gives us the opportunity to emphasise the quality and the origin of our products,” says
www.roadrunnerltd.co.nz Ph: 64 6 322 1575
www.nzmanufacturer.co.nz
Dimitrios Konstantopoulos. He is Deputy General Manager at Hydac Ltd, a manufacturer of hydraulic equipment with headquarters in Germany. The products range from components and sub-systems to complex controlled and regulated drive units for mobile and industrial machines. Being at EMEX for the first time Dimitrios is interested to see “how the New Zealand market will perceive the German Engineering attribute.” “EMEX is the only show of its type in New Zealand”, says Tony Catterson, Sales Manager at Pilz Ltd NZ. The company is a subsidiary of German-based Pilz GmbH and Co., Europe’s largest and most respected manufacturer of safety automation equipment. Catterson admits that Pilz NZ was going to go to the show anyway, but hopes to get more attention under the banner “Made in Germany”. “The perception of German products is very good, they have a reputation for excellent quality”, he says. “We would like to improve
our sales and get in touch with new customers”, says Darren Salt, Sales Manager at Würth NZ. The NZ subsidiary belongs to the Würth group, which has over 410 companies stretching across 84 countries. Würth NZ is a supplier of fixing and assembly products to the automotive, cargo, metal and construction industries, nationwide. “Our customers appreciate the ‘made in Germany’ label. It might be regarded as pricey, but its reputation for quality has a higher standing than products from other countries”, says Salt. EMEX could be the ideal platform for communicating the excellent quality of German products and that the price and performance relationship is a good one. To showcase under the German flag will add momentum, thinks Matthew Jones, New Zealand Manager at Sick Pty NZ. The company is a division of Sick AG, which was founded in 1946 in Germany and is today one of the world’s leading manufacturers
of sensors, safety systems and automatic identification products for factory automation, logistic automation and process automation applications. Jones hopes that this year’s event will be better than the ones previously. “The last EMEX was pretty average, not a lot of decision makers showed up”, he explains. However, he has also observed
➼
Michael Welzel, Direct Control
NZ Manufacturer March 2012
Leadership and learning are indispensable to each other. – Anon.
15
THE ROAD TO EMEX 2012
Omax to highlight waterjet machines at EMEX 2012
O ➼
max Corporation introduced its Maxiem line of costefficient, industry-standard waterjet cutting technology in 2009. Today, the line is a proven success with more than 20 different table sizes from which to choose. Manufacturers attending EMEX 2012, can experience Maxiem’s unparalleled machining advantages in Roadrunner Ltd. Stands 4073, where the 1530 JetCutting Center with a 30 hp (22 kW) direct drive pump will be demonstrated. Designed, assembled and tested in the United States, the Maxiem 1530 is ideal for fabrication shops,
metal service centers, trade schools, job shops as well as architectural, sign, stone and gasket shops. The machine has a table size of 3.8 meters x 1.8 meters and cuts complex parts out of most materials, including metal, plastic, glass, ceramics, stone and composites, directly from a CAD drawing or DXF file. It can also tackle extremely hard, reflective and nonconductive materials. Furthermore, the 1530 reduces setup time and material usage by cutting parts directly from the raw plate and sheet material. Another key advantage of the 1530, as well as all abrasivejet
machines, is that it cuts smooth surface finishes and eliminates the need for secondary machining. And unlike conventional machining operations, waterjet machinists enjoy clean, safe processes that are free of noxious gases, liquids and oils. In order to achieve position accuracy, the Maxiem 1530 utilizes exclusive Intelli-TRAX drive technology. The drive system is fully enclosed inside coated steel covers, making the 1530 robust and well suited for harsh environments. The Maxiem1530 features an X-Y cutting travel of 3 meters x 1.6 meters and comes standard with
that the performance of the EMEX has improved over the years and hopes that this year it will again excel. “There is always room for improvement. We are looking for business opportunities in the Pacific islands”, he says. The success story of the familyowned IFM Efector Pty began in 1969 in Germany with the invention of inductive proximity sensors on the basis of film technology. Today the trade name “efector” is synonymous with position and fluid sensors, object recognition, diagnostic and identification systems, with a rising customer base in New Zealand. “We would like to connect with customers at EMEX”, says Mike Moore, IFM’s New Zealand Manager. Direct Control Ltd., a solution provider for integrated building automation, energy efficiency and security, will represent Janitza electronics GmbH at the “Made in Germany” stand. Janitza electronics GmbH is known globally as a supplier of smart energy
management systems, energy measurement devices, class-Apower quality monitoring systems and power analysers. “It is important to find a platform where customers and potential partners can communicate”, says Michael Welzel from Direct Control. “It will bring structure into the
marketing mix”. Cleaning solution provider Kärcher Ltd. is looking forward to showcasing their range of cleaning products to engineering and manufacturing businesses. “EMEX is a good opportunity to show our wider cleaning range”, says Mike Roberts, country manager New Zealand.
the company’s exclusive IntelliMAX Software Suite, which contains the core functionality of Omax’s waterjet-specific, critically acclaimed control software. The software can calculate the precision of the velocity of a tool path at over 1,000 points per inch, allowing for complete control over the motion of an abrasivejet, and enabling rapid machining. The software runs on the Windows® 7 Ultimate operating system and automates most programming and tool setup work. While the 1530 JetCutting Center comes standard with a 20 hp (15 kW) high-pressure direct drive 3,450 bar (50,000 psi) pump, EMEX 2012 attendees will experience the machine’s performance using an optional 30 hp (22 kW) pump. Engineered for optimal efficiency, Maxiem pumps deliver more than 90 percent of the electrical input power to the cutting nozzle, providing higher cutting speeds than other pumps with the same size electric motor and power consumption.
www.eurotools.co.nz 04 293 6422
Karchers new B40 scrubber
See our article on page 11 in the Manufacturing Technology section
www.aecsystems.com.au www.nzmanufacturer.co.nz
16
NZ Manufacturer March 2012
THE ROAD TO EMEX 2012
Making money is a hobby that will complement any other hobbies you have, beautifully. – Scott Alexander
Sheetmetal folding machines What is a Trade Show? from Variobend and Euro Tools A
V
ariobend AG offers elegant solutions of up and down bending machines and long length folding machines for manufacturers that need to bend sheet metal. Driven by a passion to innovate and bring double bending capability to medium and small manufacturers, the engineers at Variobend developed and patented a unique bending system. This bending technology results in a superior clearance and in an exceptional variety of profiles and flexibility. Introducing the new up and down bending machine DB 6.1.5 from Variobend, with state of the art technology, Euro Tools are proud to be appointed as the sole distributor within New Zealand for Variobend, a Swiss made long folder. The bending capacity is 1.5mm steel, 2mm aluminium and 1mm stainless steel with a working length of 6400mm. The machine comes complete with angular bending beam for unique profile varieties, comprehensive safety package including light curtain and brush table support for scratch free support of the material and tapered folding function, in addition to a roller shear for quick
and easy cutting to specification. The DB 6.1.5 operation only requires one person and time usually afforded to turning and flipping material is now eliminated. In effect, productivity will be doubled and manufacturing costs will be halved with the advantage of a two person job being reduced to that of one. Variobend offers a varity of products ranging from standard simple long folders with a capacity of 4000mm to double folders 2mm steel, 8000mm long. Euro Tools is also very proud to be associated with Schechtl a German based company producing high quality folding and cutting facilities ranging from hand folders right through to CNC operated folding machines. Euro Tools product range is further complimented by hand tools manufactured by Stubai and the world’s smallest folding brake, the Wuko Bender. Euro Tools welcomes you to visit them on Stand 3067 in Hall 2 at EMEX 2012, ASB Showgrounds Auckland 1-3 May or contact their office directly to make an appointment during the show. Phone (04) 293 6422 Email sales@eurotools.co.nz
Valuable resources FREE at:
s you are reading this article in The Road to EMEX 2102 buildup it possibly means you are considering going along to look at the machinery and technology on display or an exhibitor wanting to keep up to date with the latest snippets of information. So here are some things to consider: • A trade show is not a place for buyers to run through with list in hand, checking off items and getting in and out as fast as possible like a frantic last-minute holiday shopper with presents still to wrap and dinner to cook. • A trade show is about people, about relationships, about sharing the knowledge that is inside all of the attendees’ heads, and about building on all of that together as a group. • The real value of a trade show is in the conversation struck up with a fellow attendee that leads to learning something unexpected that helps your business, or even leads to a relationship that creates a new business.
T
You’ll see us at EMEX 2012
• The value of a trade show is in confidential one-on-one conversations (not ones that are broadcast over the internet and even recorded). • The value of a trade show is in the stand you only notice because it has attracted a crowd, or the lunch line chat that sends you somewhere you’d never have made time to go. • Getting people together, in one location, to discuss and do business cannot be replaced by a series of video broadcasts. Face-to-face meetings are critical not only to the development of individual businesses, but to the health of industry as a whole.
EMEX TV
his is an exclusive live opportunity for you to speak to the show visitors after the show via video footage. At the show a two minute interview will be conducted on exhibitors’ stands showcasing products on display. After the show this footage will be loaded onto the EMEX website giving show visitors a constant reference to products over the next two years. nextSTEP Email rob@xpo.co.nz
• Only 10 minutes to EMEX • Close to restaurants and bars
T: 09 520 3000 E: host@questnewmarket.co.nz W: www.questnewmarket.co.nz www.nzmanufacturer.co.nz
NZ Manufacturer March 2012
You can’t advertise for one group. Otherwise, you end up having a very small business! – Calvin Klein
N
17
AUCKLAND MANUFACTURERS
Revenue recognition changes being ignored
ew Zealand businesses currently lead the world in their lack of awareness of proposed changes to the way that revenue is recognised in financial statements. Research from the Grant Thornton International business report, which surveyed 2,800 businesses globally, found that 86% of New Zealand business owners were not aware of revenue recognition changes being proposed by the International Accounting Standards Board (IASB). Of the 40 countries surveyed only Poland 96%, France 92% and Finland 90% showed greater ignorance of the proposed changes. The global average was 58%. The United States had the best knowledge of what was happening with only 40% of businesses being unaware of the proposed changes. Later this year a global,
accounting standard for accounting revenue will be introduced. Mark Hucklesby, National Technical Director for Grant Thornton New Zealand Ltd, said that “How revenue is accounted for is extremely important. It is almost always the largest dollar amount reported in any set of financial statements and for many listed companies it is the first number that gets reported by the media. For businesses in New Zealand, now is the time to ask “do these changes work for us?” This is why this standard has been re-exposed for comment a second time by the IASB. For example, is separating out goods and services as separate revenue streams feasible, and is the guidance on separately accounting for warranty provisions reasonable? The aim of the changes proposed
New structure welcomed
B
usinessNZ welcomes the announcement of a new Ministry of Business, Innovation and Employment. Chief Executive Phil O’Reilly says pooling and coordinating services and policy relevant to business within a single ministry makes a lot of sense. “Reducing current levels of duplication will be appreciated by many enterprises. “A single, dedicated businessfacing government department, focused on delivering results, will be a great improvement on the current situation. “A results focus where managers will be held accountable for achieving specific objectives, rather than just managing a department or agency, will better align the public sector with private sector practice. “However, significant changes in the way the new merged ministry will operate will require close attention by Government to ensure the changes are implemented
Phil O’Reilly
successfully.” Mr O’Reilly also welcomed the expectation that all transactions with government will in future be digital. He said other expectations outlined by the Prime Minister today – including more people achieving NCEA level two and advanced trade qualifications – indicated the Government was serious about planning for a more competitive economy.
Calendar of Events
by the IASB and the Financial Accounting Standards Board (FASB) is to improve and converge financial reporting requirements of International Financial Reporting Standards (IFRSs) and US General Accepted Accounting Principles (US GAAP) for revenue (and some related costs) from contracts with customers.
NZI merges with NZ Business Roundtable
T
he New Zealand Institute and the New Zealand Business Roundtable are to merge to form a new, independent, nonpartisan think tank. The new think tank will be better resourced and able to provide a stronger voice on public policy issues. It will promote sound and well-researched economic, social and environmental policy for the purpose of improving the overall welfare of all New Zealanders. The New Zealand Institute and the New Zealand Business Roundtable have had different approaches but share a common goal of improving outcomes for New Zealanders. Rick Boven, Director of the New Zealand Institute, will depart from his role on 31 March. The contributions of Roger Kerr CNZM, leader of the New Zealand Business Roundtable for 15 years, were marked with many heartfelt tributes when he sadly passed away in October 2011. Recruitment is under way for a new leader of the merged organisation. Both the New Zealand Institute and New Zealand Business Roundtable websites remain available online and the work of both organisations will be available as archives on a new website for the new organisation in due course.
Workshop Proactive Selling ……………………………………………4 April,
EMA, Auckland
Supervision – An Introduction …………………………………………18 April
EMA, Auckland
Design of Steel Concrete Composite Bridges Seminar ……………26 April
HERA, Auckland
EMEX 2012 …………………………………………………………………1-3 May
Auckland Showgrounds, Greenlane
Workshop – Value Added Negotiation ………………………………2 May 2012,
MEA, Auckland
Woz 2…………………………………………………………………………1 May,
Auckland, Guest Speaker Steve Wozniak
Management – An Introduction
EMA, Auckland
7-8 June
Delloitte Energy Excellence Awards …………………………………17 August,
Auckland
Management – An Introduction ………………………………………25 – 26 October,
EMA, Auckland
NZ Hi-Tech Awards …………………………………………………………11 May
TBA
Mark Hucklesby
IN BRIEF Auckland tops rankings
A
ccording to the latest ASB business report, The Super City remains at the top of the rankings for the 10th consecutive quarter. Auckland’s firm grip on the top spot reflects its strong showing across a broad range of measures, including employment growth, housing market activity, guest nights and traffic jams. The hosting of key RWC games, particularly in the knock-out stages, provided an extra boost to activity in the region. Beyond this boost, which is largely reflected in the robust increase in employment and guest nights over the past year, the region’s relatively strong housing market activity is underpinning the recovery in its household sector. u u u
Greening New Zealand’s growth
G
reen growth is an issue for the entire economy, says the Green Growth Advisory Group. It would be a mistake to think there is a special category of economic growth called ‘green growth’. We need to recognise and work towards the greening of all New Zealand business to best meet customers’ and supply chains’ demand for sustainable products and services. The Advisory Group makes ‘greening’ recommendations around business capability, innovation, Brand New Zealand, the role of EECA, biodiversity, government procurement and the four key sectors of high value tourism, high value manufacturing and services, minerals and petroleum, and food and beverages. www.nzmanufacturer.co.nz
18
NZ Manufacturer March 2012
PRODUCT NEWS
F
– David Parker
Permabond – the cost effective solution
or many years the flooring industry has turned to Permabond for specialist and cost effective solutions in the manufacture of their products. Permabond has a specially formulated high purity cyanoacrylate which can be used to bond a wide range of substrates that may be difficult to bond with general purpose “Superglues”.
E
Who does Mr English think he is kidding? New Zealanders aren’t fooled --- that’s why they oppose these asset sales by four to one.
This makes it particularly suitable for bonding natural rubber, butyl rubber and EPDM. It is ideal for bonding rubber matting sections together and edges onto matting and provides a long lasting, durable high strength bond. Permabond also has a general purpose cyanoacrylate which has successfully been used for bonding carpet strips onto aluminium
Engel at Plastics Trade Fair
ngel makes the Difference. Is the motto at the Engel North America stand during the most important Plastics Trade Fair of America from 1st to 5th of April 2012 in the Orange County Convention Centre in Orlando, Florida. Engel North America records a strong demand for solutions for efficient injection moulding processes. Investments are being made especially in new technologies and energy-saving options. Engel shows at the NPE 2012, how highquality injection moulding parts can be produced efficiently and economically with solutions suited to each single industry.
Engel automotive
Is a cockpit without buttons and switches. The vision of a vehicle interior without buttons and switches is becoming increasingly tangible. At the stand visitors can take a seat in the automotive cockpit of the future. Various control functions can be activated via the centre console in the simulation cell, which Engel is presenting in cooperation with Magna Exterior & Interior Systems (Munich/Germany). All you need to do is to lightly touch one of the functional elements below the completely closed surface.
Thanks to Engel clear melt technology and the integration of a capacitive foil via in-mould labelling, vehicle controls will be just as elegant as smart phone controls in the future. This trend not only gives interior designers a new level of freedom; it also reduces the costs of producing functional elements. In four to five years the first vehicles will be equipped with this sensitive surface technology. Centre consoles with a sensitive surface will be manufactured at the Engel trade fair stand on an Engel duo 350 injection moulding machine. In America this is the first showing of this new machine size, which brings the power of the duo large-scale machines ñ maximum power on a small footprint ñ to the lower clamping force class. Further companies besides Magna are involved in this project as Engel system partners. The mould maker is Schˆfer from Schwertberg/ Austria; Hennecke from Sankt Augustin/Germany is the exclusive project partner for polyurethane technology and the function foils are supplied by plastic electronic in Linz/Austria. nextSTEP Visit: www.techspanonline.com
entrance mats and carpet squares to moulded plastic entrance mats in heavy wear and tear areas, preventing the carpet pieces from lifting up and helping to avoid trip hazards. For more specialised applications, a high-strength structural acrylic adhesive, which is a two part nonmix product, is used for bonding aluminium stair nosings. It can also be used for bonding blind bumps onto ceramic tiles in public buildings. All these Permabond products are rapid curing and easy to use for a quick and easy production process. Products are solvent free and have excellent chemical and temperature resistance.
nextSTEP Contact Homersham Ltd Tel: 0800 659 888 or 03 358 8309
System uses powerful LEDs
T
he ONT-365 On-Trak NDT Inspection System an overhead track light-style modular system utilises powerful UV-A and white light LEDs attached to a mountable platform for maximum flexibility and versatility.
It is ideal for use in NDT inspection booths, and for pre-inspections and screening applications requiring maximum uniformity of coverage over a large area. The ONT-365 system features four broad-beam lamp heads. Each has three ultra-high-flux UV(365nm) LEDs for NDT inspection and one white light LED for general illumination. This unique lighting system allows inspectors to move the lamp heads anywhere along the tracks so that beam patterns can be made to fit specific needs. Lamp heads can even be added for increased area coverage. Electronic Intensity Stabilisers ensure consistent UV LED performance during extended use, and built-in cooling fans moderate temperature. The “instant on” operation of the lamps enables them to reach full intensity immediately. The LEDs have a rated life of 30,000 hours. The ONT-365 system comes complete with UVS-30 UV-absorbing spectacles.
Email: permabond@homershams.co.nz
www.permabond.com www.nzmanufacturer.co.nz
NZ Manufacturer March 2012
I was raised with the notion that you can do pretty much anything you want. I always kind of just went ahead and tried things. – Pierre Omidyar, eBay
T
19
PRODUCT NEWS
Leak inspection system widely used
he new NexGen Rotary Leak Inspection System is proving a popular choice with plastic bottle blow moulding, metal container, composite container and dispensing closure manufacturing companies worldwide, with more than 75 units sold since its recent launch.
It utilises encoder based timing and patented speed compensation technology to perform functional tests on plastic containers and other products to ensure they seal and can hold pressure. The system eliminates issues particularly related to current generation light- weight bottles that use recycled materials where there
High quality images onto containers
T
he Digitiube – Digital transfer machine encompasses a new transfer technology for decorating containers with high quality images. The images are pre-printed on a Xeikon printer at 1200dpi on rolled up silicon paper. The rolls are then used by the Moss Digitube machine to transfer the high quality images onto the containers plastic substrate. This transfer is achieved by a combination of heat, pressure and perfect synchronization. A lacquering device and optional UV drying feature improves the scratching resistance and appeal for the final product. Production costs are minimal, particularly on small runs, as
offset plates and or silk screens are not required. This provides manufacturers with fast turnaround, production flexibility and low setup costs.
is an increased probability of ‘micro-leaks’. NexGen seals and pressurises every container with a test probe – performing a decay timed pressure test – and can test from hundreds of milliseconds to several seconds on the container or closure depending on the level of testing required. It has a detection range from 0.1mm diameter and detects defects such as: gate pinholes and cracks, laser coding holes, contamination holes, thin wall holes, short shots, seal surface nicks, malformed bottles or containers, weak bottle shoulders or base by utilising the top-load test option The machine is available in configurations from 4 to 30 heads, designed to meet specific speed and sensitivity requirements and has a speed of up to 60,000 bph. They are ideal for lines ranging from 50 – 1000 cpm, and are currently being used on FMCG production lines worldwide for food, beverage, household cleaners, automotive
products etc. Product changeover takes as little as ten minutes, with quick lock – no tool change parts and they have integrated air blow-off ejectors and standard reject verification. 10,000 plus leak testing circuits have been installed globally including the product range from the single head linear machines to the NexGen high speed rotary systems. nextSTEP Visit: www.hbm.com.au
www.nzmanufacturer.co.nz
20
NZ Manufacturer March 2012
BUSINESS NEWS
E
It is not the employer who pays the wages. He only handles the money. It is the product that pays the wages. – Henry Ford
100-Megawatt AutoDR success expanded upon
nerNOC, a leading provider of demand response applications and services, is to provide automated demand response (AutoDR) capacity for Genesis Energy on New Zealand’s South Island. This agreement builds upon EnerNOC’s success in the instantaneous reserves market on New Zealand’s North Island and makes it the first demand response aggregator to secure this reserve capacity in the South Island.
The company will immediately begin enrolling commercial, institutional, and industrial energy users who can curtail usage with single-second precision in exchange for regular financial payments. Their AutoDR resources will then be offered year-round to the instantaneous reserves market, which helps to maintain reliable, cost-effective, and clean energy supply throughout New Zealand. This program represents an excellent opportunity for New Zealand’s businesses to be paid to help maintain a reliable and highly renewable electricity grid. New Zealand has committed to making its electricity generation sources 90 percent renewable by 2025. Currently, the nation’s electricity grid is served largely by hydropower, the vast majority of which flows northward from the South Island. The nation’s instantaneous reserves market helps
Shining spotlight on future stars
Y
oung achievers in the electrical industry will be given the opportunity to unlock their full potential at an Outward Bound course sponsored by Powerbase. Powerbase, a 100% Kiwi-owned and operated electrical wholesaling group, has joined forces with New Zealand’s leading outdoor education provider - Outward Bound - to create an eight day course for 14 young people aged 20-30 years called Powerbase Edge which is designed to develop emerging talent. “We’re looking to identify and encourage young and emerging talent in our local electrical industry. Candidates on the course have been hand-picked by Powerbase members and are a selection of Powerbase customers and member
employees. “They’ll spend an action packed eight days at Anakiwa, learning a variety of skills to increase their effectiveness in the workplace. As a leader in the electrical industry, Powerbase is committed to helping grow our young leaders,” Powerbase chairman Phil Badger said. The young achievers will participate in a range of activities at Outward Bound including: tramping, rock climbing, sailing, high ropes, kayaking and classroom learning. Activities will focus on: developing decision-making skills, stepping outside comfort zones, adapting to working styles in teams, problem solving, giving and receiving feedback and assertiveness.
to maintain reliable import and export of electricity between the islands by regulating frequency. To provide reserve capacity, EnerNOC will contract with a robust, diverse portfolio of energy users from industries such as manufacturing, food processing, and cold storage. These users will be paid based upon the load reduction they can provide, and when an underfrequency dispatch is triggered, this load will be instantaneously
C
Keeping staff productive
ompanies must embed engagement into business practices, share accountability for change and focus on the basics if they are to improve their employee engagement levels, according to a new report from leading HR consultancy Aon Hewitt. These three non-negotiable practices for improving employee engagement can have a measurable impact on any company’s bottomline, with research demonstrating a clear link between engagement, productivity and profitability. Best Employers (with an engagement score of 65% or greater) demonstrate an average profit growth of almost four times that of other organisations. However, with less than a third
Australia, NZ to link Emissions Trading Schemes
A
ustralia and New Zealand are to link their emissions trading systems as soon as 2015, once Australia has moved from a fixed carbon tax to a flexible price mechanism. Australia’s Clean Energy Bill overcame its final hurdle in November, with the Senate passing the law to introduce a carbon tax in July 2012, The controversial tax targets five hundred of Australia’s most polluting producers, and has come under fire from a variety of fronts, particularly the coal industry - Australia’s largest export industry. The Australian plan will create www.nzmanufacturer.co.nz
the largest emissions trading scheme outside of the EU when the fixed tax develops into a market-based trading system in 2015. Earlier, when the future of the Australian carbon tax was still unclear, the domestically controversial scheme received strong backing from the EU. Along with providing public support, Brussels also indicated that it would be holding discussions with Canberra on a possible linkage of the two carbon trading systems. Now that the Australian plan has been passed into law, the EU and Australia have been exploring ways of linking their carbon markets. Australia is now planning the same
removed from the grid. This innovative AutoDR resource offers benefits over traditional generation sources. For example, AutoDR participants may be restored in a staggered fashion, which limits the further stress on the grid that would occur if they were all to come back online at once. This agreement expands upon EnerNOC’s existing position on the North Island, where it crossed the 100 megawatt weekly average bidding threshold in late 2011.
with New Zealand, which has had its own trading scheme since July 2011. On the sidelines of the global climate summit in Durban, Australian Climate Change Minister Greg Combet and his New Zealand counterpart Tim Groser expressed their intention to link their respective emissions trading schemes as soon as possible. In Australia’s case, linking its carbon market with other countries could have the additional advantage of locking in the scheme, making its removal - as planned by the conservative opposition in case of victory in the country’s 2013 elections - more difficult.
(31%) of Australian and New Zealand organisations improving engagement in 2011, many companies still have a long way to go in reaping the demonstrated benefits of strong employee engagement. With the release of Aon Hewitt’s Your Pathway to Improving Employee Engagement report, companies are now able to obtain research-based advice for the first time in Australia and New Zealand on how to improve employee engagement. The research analysed the people practices of more than 200 Australian and New Zealand organisations, with a total base of over 200,000 employees. The three non-negotiables for improving employee engagement: 1 Embed engagement into business practices. Engagement improvement plans must be aligned with the business strategy and managed as an ongoing activity, rather than a oneoff standalone initiative. Engaging people must be part of everyday business processes. 2 Share accountability for change. More than nine out of ten (93%) of those companies which improved employee engagement share accountability between senior leaders, people managers and HR, compared with 66% of other organisations[2]. This shared accountability helps align the actions of these key influencers of employee engagement in a business. 3 Focus on the basics and good communication. There is no substitute for frequent, quality conversations between a team member and their immediate manager.
NZ Manufacturer March 2012
The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools. – Confucius
WORKSHOP TOOLS
RFID … it’s hard to spot the big trend
A
s another year gets into full swing, it’s a fair question to ask about an emerging technology of huge potential in just about every area of the economy. Are there particular industries and applications where RFID is becoming a major driver of change – and where the potential of the technology is being more fully revealed for others to follow? The answer is “no” at this stage, both in New Zealand and internationally. The uses of RFID are surely being explored and developed in many places and settings, but we cannot really pin a leadership role of any particular industry or application. In Europe and North America, there is a concerted effort to roll the technology out in some major apparel industry supply chains – think of Gerry Weber retailing in Germany and Wal-Mart in parts of the United States – but these do not define a trend. In our part of the world, the New Zealand kiwifruit and livestock industries are the most obvious examples of RFID rollout although not yet sector-wide in either case. Kiwifruit post-harvest operator
EastPack has now had three seasons of efficiency gain through application of RFID in its pack houses and in 2012, we will see a form of the technology become operational in the cattle farming and beef processing. These demonstrate diversity in the drivers for RFID adoption and in the value that can be secured from doing so. In the livestock industry, there is a very useful ongoing exploration of technology standards for the further rollout of RFID for deer and, in time, sheep. Right now, GS1 is supporting further tests on the use of UHF (ultra high frequency) RFID for these species within the framework created by the National Animal Identification and Traceability (NAIT) system. But again, we cannot say these industries are the trend leaders for RFID deployment in New Zealand. The truth is that RFID is such a
What’s the big trend in RFID (radio frequency identification)?
21
fundamentally important -- and, at the same time, still-emerging – technology that it defies assignment to one particular area of the economy (here or internationally). The real trend is a growing awareness and interest in its potential usage and value economywide, in public service functions as well as in business and trade. There are obviously ongoing developments in the design and production of RFID tags and readers, and in associated data standards. In this regard, there are definitely trends towards cheaper and more durable tags, more efficient readers and greater technological interoperability for data sharing. UHF is becoming more the norm, in place of LF (low frequency) in many contexts. These developments help drive the trend towards broader, more diverse takeup of the technology. For those of us in the “RFID industry”, the challenge is to stay as open-minded as possible to the use of the technology (as it continues to develop) in as many industries and contexts as possible. Industry decision makers will, themselves, identify and action the opportunities
Gary Hartley, GS1 New Zealand
as they recognise them: Our role is facilitate and support at both conceptual and technical levels. In New Zealand, I can assure readers there is plenty of interest in RFID across a broad front – and that includes interest from some nonobvious organisations! We are very keen to see primary industries like kiwifruit and livestock farming secure more value from broader, smarter application of RFID. But we are not looking to them alone to set the trend for the technology in our economy – and no-one else should either. In 2012, there is even more reason than ever to look hard are RFID’s value to every industry, every supply chain and every area of public service delivery. The only trend really is towards broader interest and greater diversity in application.
Email: sales@sew-eurodrive.co.nz • Web: www.nz.sew-eurodrive.com
www.nzmanufacturer.co.nz
22
NZ Manufacturer March 2012
WORKSHOP TOOLS Planting the training ‘seedling’
Live daringly, boldly, fearlessly. Taste the relish to be found in competition – in having put forth the best within you.
– Henry J. Kaiser
I
n 1996 Metal Skills started in the manufacturing industry as a small family owned business, employing just 6 staff. Today they are New Zealand’s leading manufacturer of sheet metal products, and home to a team of 70. But with growth came many challenges for directors Graeme Bartlett and David Blackett, including declining productivity levels, and low staff engagement. “We realised there was no silver bullet to solve our issues – so we made the decision to entrench training as a long-term business strategy. We want our staff to be on a career pathway that leads them to greater challenges – not a dead end,” says Graeme. And so, in early 2011, the training ‘seedling’ – as management refers to it – was planted. “We started with a hiss and a roar and enrolled employees into the Level 3 National Certificate in Competitive Manufacturing – but we quickly realised that a number of our staff had literacy and communication issues,” says Katrina Lee-Guard, office manager. “We’re a league of nations here, and that can bring its own set of problems such as building barriers between different cultural groups we needed to make sure all our staff were on a level playing field before we moved forward.” So management decided to start the team on the Level 2, National Certificate in Manufacturing – core skills; a course that would ensure all staff had the practical know-how needed to take on the next stages. Initially though, many staff were opposed to training – viewing it as a way to make them more accountable
for their work, while others were embarrassed by their English – despite it being their second language. “People associate literacy with intelligence, but that’s not the case at all. Literacy was embedded in Health and Safety material, disguising it for
Our greatest opponents of the change have now become our greatest advocates
those concerned,” says Katrina. “Our greatest opponents of the change have now become our greatest advocates,” notes Graeme. “It’s easy to assume that everyone knows what you’re talking about – but many didn’t even understand simple engineering terms which we took for granted.” While the training is still in the early stages, Competenz account manager, Mark Powley, says there is a profound difference between trainees at the start and at the end of the qualification. And the training is also attracting new employees, increasing staff retention and improving engagement with every day.
NZ MANUFACTURER • April 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
“For one assignment they had to present to senior management the improvements they had made in their teams and how,” says Mark. “That’s extremely daunting for most, but once they had finished, their confidence flourished.” Metal Skills can see that the training is yielding real results, and plans to induct a new set of trainees into Level 3, First Line Management. “We believe training was the first step to change our culture,” says Graeme. “Our team is a hot bed of ideas now – people are starting to see the potential training has for them and our business – it will be interesting to see where we are in another few months.”
www.nzmanufacturer.co.nz
Manufacturing Technology Workshop Tools Environmental Technology EMEX 2012 Preview Manufacturing Heroes Advertising Booking Deadline –16th April 2012 Advertising Copy Deadline – 16th April 2012 Editorial Copy Deadline – 16th April 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 March 2012
23
ENERGY REPORT
Winners take time to relish their work, knowing that scaling the mountain is what makes the view from the top so exhilarating. – Denis Waitley
Bioenergy Association welcomes funding Commercialisation goes transtasman
T
he Bioenergy Association of New Zealand (BANZ) has welcomed the announcement of a new funding scheme to promote the uptake of bioenergy. The Energy Efficiency and Conservation Authority (EECA) has announced that grants of 40% (up to $20,000) will be available to fund feasibility studies to investigate using bioenergy (e.g. wood) or geothermal energy for large-scale industrial and commercial heat. Brian Cox, the Bioenergy Association’s Executive Officer said, “New Zealand has immense untapped potential for bioenergy, particularly from our forests. A strong local bioenergy industry would reduce our reliance on fossil fuels, and also bring huge economic and social benefits through increased employment. It’s very pleasing to see Government supporting bioenergy through initiatives of this kind, and in its recently-released energy strategy.” Mr Cox added, “Bioenergy is based on well proven technology and so doesn’t require research, but what it needs is demonstration and this funding will allow good ideas to
proceed to implementation.” The Bioenergy Association: • Mission Statement is “to promote the maximum utilisation of all forms of sustainable bioenergy in New Zealand”. • Vision is that “Bioenergy in all its forms will supply more than 25% of the country’s energy needs, including 30% of the country’s transport fuels by around 2040.” • Has over 300 hundred members working across the length and breadth of the various supply chains. • Provides a central focus point for liaison with Government agencies, the dissemination of information amongst the industry and long-term positioning of bioenergy into New Zealand’s energy system. • Works closely with the Energy Efficiency and Conservation Authority (EECA) and New Zealand Trade and Enterprise Has four Interest Groups which enables a focus on key areas: • Liquid Biofuels • Wood Pellets • Biogas • Wood Fuel.
Consultation – another step towards realising Northland’s mineral potential
T
he government will be seeking bids from minerals exploration companies interested in better understanding metallic mineral prospects over part of Northland this year. Consultation and an eventual competitive tender process follows the gathering of geological data via an airborne aeromagnetic survey conducted between February and August 2011. The survey was conducted as a partnership between the Ministry of Economic Development, the Far North District Council, the Northland Regional Council and Enterprise Northland. “Past studies have highlighted the potential for a wide variety of new and known mineral deposits and resources in Northland to create jobs and income for the region,” said Josh Adams, Director Minerals, New Zealand Petroleum & Minerals (NZP&M). NZP&M is a branch within the Ministry of Economic Development. “As a result of the aeromagnetic survey, over 13,590 square kilometres of the region have been surveyed and 77,600 kilometres of data has been collected. The data is being readied for public release in May 2012.”
For the Northland region, the new data will have a wide range of applications in fields such as geological mapping, geothermal exploration, forestry, agriculture, horticulture, geological hazard assessment, and engineering and construction investigations. For minerals exploration it provides valuable information on the geological structure and possible locations of mineral deposits. “The new data is expected to attract the minerals exploration industry who will do further interpretation of the data to identify potential mineral prospects in general, and apply for permits to explore for minerals in specific areas in Northland. Through the investment of exploration companies it will be possible to identify whether there are commercially viable mineral deposits,” said Mr Adams. “The government wants to manage the potential exploration interest in metallic minerals strategically. For this reason, New Zealand Petroleum & Minerals will be inviting companies to take part in a competitive tender process for mineral exploration permits from May 2012. Exploration permits will be limited to 7,500 hectares.”
A
world-leading pilot project to convert waste gases to low carbon fuels and chemicals is being extended through a new agreement between LanzaTech and New Zealand Steel. The agreement gives NZ Steel, and its Australian parent company Bluescope Steel, the opportunity to use LanzaTech’s technology commercially. The two companies established a partnership in 2008 when LanzaTech built its pilot plant to produce ethanol from waste gases at NZ Steel’s mill at Glenbrook, south Auckland. Dr Jennifer Holmgren, LanzaTech’s chief executive, says this new agreement reflects both LanzaTech’s move from technology development to technology commercialisation and also NZ Steel’s commitment to supporting innovative solutions for sustainable growth. NZ Steel President Simon Linge says NZ Steel was founded on innovation and the relationship with LanzaTech is an extension of that innovative spirit. “This agreement helps build our various investments in a sustainable manufacturing business and continues our commitment to lower our environmental footprint.”’ Reducing carbon emissions play a key role in reducing the environmental footprint of the steel industry. LanzaTech’s process captures and diverts to fuel around a third of the carbon that would otherwise be emitted as CO? through the steelmaking process. “LanzaTech’s process addresses all three sustainability pillars,” Dr Holmgren says. “The use of a waste gas as a feedstock means we are not impacting land use or the food value chain while promoting economic growth and producing low carbon
fuels.” The NZ Steel pilot has proven LanzaTech’s proprietary fermentation process is scalable from the laboratory. Some of the ethanol produced at Glenbrook has been further converted into aviation biofuel as well as fuel grade ethanol. LanzaTech now has a well developed fuel strategy encompassing technical, strategic and commercial partnerships with global entities, including eight Fortune 500 global companies. The construction of the first 100,000 gallon a year demonstration scale plant using LanzaTech technology is being completed in China and further plants in China and India are expected to be started in 2012. Founded in 2005 in New Zealand, LanzaTech has developed a novel gas?liquid fermentation process that produces low carbon fuels and chemicals from waste gas resources. Backed by global investment, LanzaTech has offices in New Zealand, the US and China and has a rapidly growing patent portfolio. A full description of the technology, as well as a video, is available from http://www.lanzatech.com/ content/lanzatech-process. New Zealand Steel Limited is the country’s sole producer of flat rolled steel products for the building, construction, manufacturing and agricultural industries. It operates a fully integrated steel mill at Glenbrook, about 60 kilometres south of Auckland. Using locally sourced ironsand, lime and coal, New Zealand Steel produces around 600,000 tonnes of steel each year using a direct reduction process, turning west coast black sand into metallic iron. Around 60% of its steel products are exported. New Zealand Steel is part of the Bluescope Steel group of companies.
Dr Sean Simpson shows Virgin Air founder Richard Branson some of the offtake from the pilot plant at Glenbrook. www.nzmanufacturer.co.nz
24
NZ Manufacturer March 2012
COMMENT
I
Corporation: An ingenious device for obtaining profit without individual responsibility.
What is your tone?
t took me some going backwards and forwards to be satisfied on a new suit purchase recently. Suits are not frequent purchases, but necessities for me nowadays. There was a bit of checking different styles (who notices!) but in the end it came down to the colour - the tone. A recent survey by the UK firm of PwC explored the conditions for preventing and detecting dishonest behaviour. My leadership work is usually about empowering leaders to grow their organisations, starting with self-awareness to impact on others and learning to deal with different types. At senior leadership where the organisational strategy is being formulated and led, leadership becomes a question of developing culture to align with values and strategy. I recently helped an organisation start the process of developing a culture aligned with board aspirations. The situation was distressed with distrust at all levels, demonstrated in part by a “divide and rule” management (it’s difficult to use the term leadership in this context). The board were being
actively divided and distrust of them encouraged in the wider team. A dire situation. After much discovery and I have to say pain, new leadership emerged. It was only then the full extent of the impact of such negative leadership had had. There was, as we expected, a lot of mis-information deliberately promulgated but worse, there was dishonesty embedded in the culture. The PwC survey found that the key driver for preventing and detecting fraud is the “Tone from the top”. The signals that we send as leaders of, or within an organisation, can and will have a dramatic impact not only the performance of the business, but in preventing fraud, theft and other dishonesty. Fraud prevention strategies, processes and stringent accountability are necessary components to avoid organisations
Suits are not frequent purchases, but necessities for me nowadays.
becoming victim to fraud from their employees and management. In today’s world it’s not just a “nice to have” but a necessity. We’ve heard it and it’s certainly true, that the ingenuity of a fraudster is unlimited, and certainly not limited to yesterday’s opportunities or controls. In leadership work, developing trust is critical to managing relationships and gaining the most from the team and the team from their work. But trust is not a control and shouldn’t be confused with either fraud controls or culture that is constructively led. The selection of my suit tone was pretty shallow in reality. Selecting and then role-modelling the tone in your business is the foundation of an ethical culture that doesn’t tolerate dishonesty in any form: from unethical business behaviour through to fraud and all points inbetween. It embraces transparency and the fearless coming forward to deal with those who would deceive. Deception in a business damages us all in our business. Ask anyone who’s worked alongside someone and found out they’ve been stealing. You’ll hear it
– Ambrose Bierce, The Devil’s Dictionary
Stephen Drain
pretty clearly the impact goes well beyond the money lost. What tone are you setting in your business? Is it as visible as your other key strategies? *Stephen Drain is a Director at PricewaterhouseCoopers New Zealand and an Advisor to NZ Manufacturer. His two areas of speciality are forensic services where he works with organisations developing anti-fraud and corruption strategies, and leadership development with a focus on authentic leadership development for senior leaders.
Government urged to retain support for biofuels
T
he Bioenergy Association of New Zealand is urging the Government to renew its commitment to supporting biofuels as a way of providing the nation’s transport fleet with alternative energy supplies and maintaining New Zealand’s adherence to a low carbon environment. The Bioenergy Association of New Zealand (BANZ) says it is concerned at reports that the Government may not continue its commitment to biofuels.
Kevin Snowden Convener of the BANZ Liquid Biofuels Interest Group says that the current government support for biofuels (which includes biodiesel and bioethanol) assists the growing New Zealand biofuels manufacturing industry make biofuels available to vehicle users. “Providing biofuel is a very important measure at this point in time as it has encouraged the commercial adoption of environmentally responsible fuels by the likes of Gull Petroleum. Since
APRIL 2012 ISSUE FEATURES • Manufacturing Technology • Environmental Technology • Workshop Tools • EMEX 2012 Preview For further information contact:
Managing Editor: Doug Green P: 06 870 9029 E: words@xtra.co.nz www.nzmanufacturer.co.nz
Advertising Booking & Copy Deadline – 16th April 2012
Sales Manager: Max Farndale P: 06 870 4506 E: max@nzmanufacturer.co.nz
2007 biofuels have been adopted as a great alternative by tens of thousands of Kiwi motorists as a way to reduce greenhouse gas emissions. The end of the support for biofuels would mean the death of biofuels and New Zealand should not allow this to happen,” says Snowden. “It would also send a significant signal to the whole renewable energy community that the Government is not serious about initiatives that support its climate change and other environmental measures”. Brian Cox, Executive Officer of BANZ says “Any move to drop the support for biofuels would be a retrograde step that would expose
Providing biofuel is an important measure at this point in time as it has encouraged the commercial adoption of environmentally responsible fuels.
New Zealand as playing lip service to its obligations under the Kyoto and Copenhagen initiatives. “The emerging biofuels sector could be supplying 30% of New Zealand’s transport fuels by 2040 but that will be put back significantly as investors will have been given the message that New Zealand is not interested. “Biofuels are made from New Zealand’s natural resources and their production provides a significant economic stimulus which can lead to a $6billion industry within a short period of time. This is only achievable if investors and fuel users have confidence in their quality and availability. Today’s production of biofuel leads to providing that confidence.” Cox also says that every Government around the world supports its own biofuels industry particularly those that use locally sourced, sustainable and reliable natural resources that can reduce dependence on imported fuels. In New Zealand there have been a significant number of jobs created and hundreds more could be created if there was a continuing support from the government that provided investor confidence.
NZ Manufacturer March 2012
25
CANTERBURY
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. – Charles Darwin
Major international contract to Christchurch company
A
face-to-face meeting in the USA proved to be the turning point for a Christchurch company, which has just secured a major US contract to supply parts for a drilling product designed in Timaru. Fabrum Solutions manufactures cryostats and associated composite products for the high temperature superconductor industry as well as offering waterjet cutting and profiling. Over the last year Fabrum has been developing carbon and glass fibre composite rotors for a new drilling product for underground directional drilling, which was being designed by Flexidrill in Timaru. The license to manufacture the full drilling unit has now been secured by Vermeer, a large US Agricultural machinery manufacturer based in Iowa, USA. Vermeer has recently awarded Fabrum Solutions a three month, $350,000 contract to supply all titanium and composite parts for the first ten drilling machines. It’s a great achievement for Fabrum Solutions owners Chris Boyle and Hugh Reynolds, who
established Fabrum Solutions in 2004. “When we turned up on their doorstep in September last year we discovered we weren’t even being considered for the job. Being so far from the USA Vermeer did not think New Zealand could offer them the service they were after. Add to that the Christchurch earthquakes and they were fairly adamant that Christchurch was not a place where manufacturing could be relied upon.
A Christchurch company has just secured a major US contract to supply parts for a drilling product designed in Timaru.
We were adamant that we had to change their mind,” says Chris Boyle. That meeting, which Chris Boyle describes as a turning point, was made possible by a $24,900 grant from the Canterbury Business Recovery Trust given to Fabrum Solutions to help them reconnect with their markets in the US and UK. On their return to Christchurch Chris and Hugh set about working with Flexidrill and Vermeer to re-design the product in order to reduce production costs. They were rewarded for this work by being offered the first stage of the production contract. To fulfil the contract, which needs to be completed by March, Fabrum Solutions is expanding its production facility and recruiting two more staff. They are confident that following the successful completion this first stage of the contract that their agreement will be extended for a full year. “This is a real example of New Zealand companies leading innovation in the design of new global products and, in our case,
the ability to competitively supply high technology components internationally. “It also speaks volumes of the need to have face to face meetings with prospective clients, no matter where in the world they are!” says Chris. Recover Canterbury business recovery coordinator Dion Kerr says although Fabrum Solutions is a small company, they have the skill, drive and tenacity to punch well above their weight. “One of the biggest challenges Fabrum Solutions faced following the earthquakes is disconnection with their largely overseas markets. Chris, Hugh and the team have worked tirelessly to re-establish relationships and reassure clients that Christchurch is still very much open for business. “With a little help from the Canterbury Business Recovery Trust and Recover Canterbury their message has been heard loud and clear, and now Fabrum Solutions, and the wider Canterbury community, is reaping the rewards,” says Dion Kerr.
gary.seear@colliers.com
brent.bailey@colliers.com
noel.gilchrist@colliers.com
www.colliers.co.nz/10186
www.nzmanufacturer.co.nz
26
NZ Manufacturer March 2012
DEVELOPMENTS
T
The only difference between a Good Day And a Bad Day Is your attitude.
– Dennis S Brown
Metals Industry - Green Leadership
here seems to be a move by companies worldwide to improve their green credentials. This provides both a challenge and an opportunity for many New Zealand companies. Sustainability scored high in a survey of the metals industry last year with 81% or respondents rating it as important, or very important to their companies. SAFE Engineering has gone one step further than some others and has installed a 60kW, photovoltaic solar array at their operation in Drury, just south of Auckland, meeting a large proportion of their electrical needs. General Manager Barry Robinson says that, “The array is an investment in our future and as we add plant, we can add to the array.” The first stage of the array has been operating and supplying 10 kW to their operation for the past month, and the full array is scheduled to be completed and online within weeks. When asked about the economics of going green, Barry said that, “The payback on the investment is 9 years, while the solar panels we are using have a 25 year performance warranty; so it just makes good sense.” Project Manager for SAFE, Richard Johnstone, said that the photovoltaic panels are ground- rather than roof-
Commentary by Industry Development Manager Nick Inskip
The solar panels installed at SAFE Engineering’s Drury facilities
mounted with their lower edge around 400mm above the ground. They sit at a 30 degree angle and are oriented towards the North. Each panel produces 190watts and there are more than 300 panels in the array. The array was supplied and installed by Ramarama company What Power Crisis Limited, who also negotiated the power purchase agreement with Meridian Energy. While the energy produced is typically used on-site, any energy
that isn’t, is sold into the grid. There are a number of constraints on companies investing in their own generation capability; one is that for sizable arrays, such as the SAFE installation, power companies in New Zealand are not obliged to take the power generated, or required to pay the same price that they would charge for the power. Where agreement is reached to purchase the power, it is usually on a short-term contract. Both of these
inject uncertainty into the investment decision process. Many developed countries now have purchase guarantees and guaranteed feedin tariffs to encourage and support distributed generation. The decision to look at generating their own power came from SAFE asking themselves a question many companies have, that is ‘How do we reduce an ever-increasing power bill?’ What is needed now is to create a climate with more certainly with regard to power purchase guarantees, so other companies that ask that question can look at investing with confidence in producing their own power, further enhancing New Zealand’s green credentials. In many markets, green credentials are becoming important and SAFE Engineering is an obvious choice for such customers looking for forging, heat treatment, machining and metallurgy services. I have no doubt many other companies will be looking at producing their own power as industry pursues sustainability.
Landmark building set to rise from the rubble
W
ork will begin this year on a new medium-rise 13-level office building on the former landmark BNZ House site in Cathedral Square Christchurch. Owned by Cristo Ltd, a small private company of local investors, 2 Cathedral Square will rise 50metres and contain 11,000m2 of leasable space, including penthouse levels. It will have a similar shape and size to the previous building but incorporate the latest engineering and design features. Construction is dependent on preleasing and availability of insurance but the owners intend to begin this year with completion scheduled for 2015. The medium-rise block would have a 5 Green Star rating. Clad in glass on three sides, areas of the exterior would bear the same green welsh slate as the former building.
Structural engineer John Hare of Holmes Consulting said the owners are investigating designing the building with deep piles and a steel frame with seismic dampers to give significantly improved performance if there were more large earthquakes. “The dampers are similar to large shock absorbers which would dissipate energy in the event of an earthquake, reducing the amount of movement felt by tenants, and reducing the damage to their contents,” Hare said. The seismic dampers on the Colombo Street end of the building will be a visible design feature, encased in glass walls so that tenants can see the engineering in the building. Architect Andrew Barclay, of Warren and Mahoney, said that in designing 2 Cathedral Square, they
A New Manufacturers’ Success Resource at:
www.nzmanufacturer.co.nz
were aware of the responsibility to deliver a new model for commercial development in the city, to provide a sustainable design, “and to signify a fresh start in an optimistic and confident direction for Christchurch.”
The design features a ground floor café, and other retail. A large foyer opening from Hereford St through to Cathedral Sq will incorporate a stained glass artwork recovered from the older building.
NZ Manufacturer March 2012
Management is nothing more than motivating other people. – Le Iacocca
27
SUPPLY CHAIN
Sway control crane chosen for Veyance Belting
V
eyance Belting is enjoying the benefits of its new 55 ton Double Girder multifeatured overhead crane from Konecranes, featuring the safety and precision of sway control. It replaces a 40 ton crane that had been giving satisfactory service for many years. “Our new overhead crane is typically lifting 32 to 36 tonne loads of coiled conveyor belting on and off our processing machinery and onto delivery trucks. The previous 40 ton crane was very good but was due to be replaced,” said Veyance Plant Engineer Hong Koh. Veyance Belting, with branches throughout Australia, is the country’s only manufacturer of Goodyear Engineered Products. The factory in Bayswater has been manufacturing and supplying Goodyear-branded conveyor belting to the Australian mining and materials handling industry since 1965. The new Double Girder crane comes complete with sway control that minimises swinging or swaying of the load. Sway control modifies the crane operator’s speed command so that the requested speed is reached without end swing. The operator spends less time worrying about load sway and adjusting it during the operation. The most accurate and efficient load positioning is thus achieved. “With sway control, the crane movements will be safer for our operators. Speed isn’t so much a benefit for us, as our crane travel is small, but we’re aware that we can move the load more quickly with
sway control,” Mr Koh said. He said that all Veyance’s operators learn to use the 55 ton overhead crane as part of their standard training. It’s company policy that they be skilled on all the production machines at the factory. Konecranes Project Manager James Alamade said, “This was a very interesting project to look after, as the new crane has many high tech features, namely sway control. “We had a small window of opportunity for installation, which was to be during Veyance Belting’s planned shut period. We had to be in and out within the timeframe that was given to us. This meant coordinating our component factory, suppliers, engineering, and the installation crew to come together to meet the planned installation date. Thorough planning was vital for the success of the project. Features and benefits of Konecranes’ Double Girder overhead cranes include: • High performance hoisting motors with 60 per cent ED rating, which combine extra power with superior cooling characteristics. The hoisting motors also have the power and flexibility for temporary peak usage situations. • Built-in durability and performance combined with gears of extreme accuracy, with hardened and ground helical gearwheels and corrosion-proof housing, which means trouble-free operation even after years of intensive use. • Fast and accurate load positioning with True Lift as standard, which means the hook moves
horizontally only 5mm during a one-metre lift. • Because of the innovative mechanical design of the hoists, with a large rope drum diameter and a short drum length, the horizontal travel of the hook during lowering is minimal. • Ergonomic hook design, which makes rigging of the load safer, while the rope drum to rope diameter ratio is more than double that of conventional designs. The innovative design of the hoists, with a large rope drum diameter, reduces the stress and wear of the lifting rope.
• Durable adjustment-free and dust-proof high performance brakes for safety and bottom-line reliability. For special demanding applications the hoists can be equipped with a second brake. The Double Girder overhead cranes have excellent hook approaches at both ends of the crane and the headroom requirement is minimal. The cranes are designed to eliminate unused or under-utilised square metres because the crane can operate closer to the walls and lift the load higher. nextSTEP Visit: www.konecranes.com.au
Visit www.konescranes.com.au
www.nzmanufacturer.co.nz
28
NZ Manufacturer March 2012
DESIGN IN MANUFACTURING
I
The first one gets the oyster the second gets the shell.
– Andrew Carnegie
Industrial design creates intellectual property
vividly remember a long term client of Designbrand standing in our office with a product in his hands and asking: Can you get me around this patent? Without wanting to be specific about particular products, I would like to demonstrate in this article how good industrial design thinking, coupled with process-inherent problem analysis, can create a path to unique intellectual property for manufacturers who might initially be tempted to largely ‘copy’ an existing product to break into a particular market/product niche. The manufacturers were happy to attempt a ‘near-enough’ copy which they wanted to introduce to the American market. However, they soon discovered that elements of the product had patent protection in the USA which was their potentially biggest market. There were some ideas as to how they wanted to differentiate their product, but no matter which angle of approach they took toward the product development, they could not get past the patent. Now, enter design into the equation! Part of any good design process is a problem analysis with
R
sets of questions tailored to both the product genre and manufacturer. We look at perceived limitations, capabilities, aspirations and ideas - challenging where they were prepared for us to facilitate change.
In this case however, it was far more important to find out what the manufacturers wanted to achieve with their new product, their aspirations for its use and the customer experience. This set of questions and subsequent discussions about how the product might perform lead to a preliminary set of criteria for the first idea development and concept design. Designbrand then delivered answers to fulfil the criteria which were so clearly defined in our first round of consultation. The designs were uniquely different from what the client ever imagined possible at the start of the project. While this was still early in the design process, it enabled fresh patent searches with IP professionals and showed that we were on the right track: the detailed definition of the design ‘problem’ lead the designers directly to ideas to create a foundation for their own unique intellectual property. Three individual patents made it possible for the manufacturers to enter the market with a new competitive product and consolidate their position internationally.
By Jurgen Brand,
Industrial Designer
New product design and development are important investments for any manufacturer and the IP protection, especially at international level, is a serious financial commitment which is often questioned as to its true worth. In the above case Asian copies of the product were advertised on Alibaba.com by more than one ‘copy-happy’ mass manufacturer. However, we were able to produce evidence of our patented designs and had the competitor’s products ‘pulled’ within 24 hours. The benefit of applied industrial design was multi-fold in this case. Designbrand was approached with what the manufacturers perceived as a huge obstacle and turned it into an opportunity for something with a true point of difference. The result was a unique product protected by its own set of patents enabling market entry and consolidation at international level. Sales are still performing well and are a direct result of product uniqueness through design.
Masters programme secures yacht designer
enowned superyacht and performance sailing yacht designer Ron Holland will be lecturing in The University of Auckland’s new masters programme in yacht engineering. The Master of Engineering Studies in Yacht Engineering, offered by the Yacht Research Unit based in the Faculty of Engineering, is believed to be the first yacht engineering masters degree in the world. Mr Holland, who is widely regarded as one of the world’s most influential yacht designers, has been involved with the yacht design industry for 37 years. The Ireland-based yacht designer, who was born and raised in New Zealand, has design studios in Kinsale, Ireland, and in Vancouver, Canada. Director of the Yacht Research Unit Professor Richard Flay says Mr Holland will be taking six lectures focused on the practical aspects of running a yacht design business. “Ron will be lecturing on how to deal with the business side of the industry including how to set up a yacht-design business, and how www.nzmanufacturer.co.nz
to work with the client to achieve a successful outcome. “We are incredibly fortunate to have Mr Holland involved in the masters programme. He’s won numerous awards and been responsible for many innovations within the yacht design industry in the past three decades,” says Professor Flay. Professor Flay says the one-year programme provides students with technical, engineering, economic, and regulatory knowledge. “The masters degree is for students who are looking to work as designers or research engineers in the yacht and small craft industry, or the high performance yacht racing sector.” The University launched the Masters in Engineering Studies in Yacht Engineering at the 4th High Performance Yacht Design Conference in Auckland this month, hosted by the Yacht Research Unit, and the Royal Institution of Naval Architects (NZ branch). The conference coincided with the Auckland stop-over of the 2011-2012 Volvo Ocean Race. Right: Ron Holland an influential yacht designer
NZ Manufacturer March 2012
29
BUSINESS NEWS
You must either modify your dreams or magnify your skills. – Jim Rohn
Industry leader expands in Christchurch New Goughs depot opens near Red Zone
D
espite being forced from its earthquake-affected offices, Tasman Tank Co, a storage tank manufacturing company, was able to quickly move to new offices outside the red zone and continue operating throughout the devastation all around. Jason MacLauchlan, Tasman Tanks’ General Manager, who hails from the area, says the company has increased its support of the region after the earthquakes hit, by expanding its Christchurch staff numbers. “We have more than doubled our numbers in our Christchurch office, including additional drafts people and sales people. While our factory and offices have been declared uninhabitable, and looks like they will have to be demolished, we have rented other premises and it’s business as usual for us,” said Mr McLauchlan, whose company produces more than 200 large industrial and municipal tanks a year. Demand for the company’s speedily erected bolted steel tanks
has stepped up since they offered outstanding performance during the earthquakes, which included the February 2011 6.3 magnitude shake that caused widespread damage across Christchurch with damage exacerbated by buildings and infrastructure already weakened by the September 2010 7.1 magnitude earthquake and its aftershocks. Bolted tank designs are winning new friends across a wide variety of industries because of their content security, cost-efficiency and often because of the speed with which they can be erected on-site from modular components. In addition to providing a durable cost-efficient solution for the storage of both liquids and dry bulk goods, rolled tapered plate RTP) bolted tanks minimise exposure to delays caused by weather and reduce OH and S issues on-site. One of the biggest advantages of bolted tanks and dry bulk storage silos is that they can be safely constructed in the field in less than half the time required for field-weld construction.
T
he Gough Group has opened a new “pop up” branch on the edge of the Christchurch CBD Red Zone, with the prime aim of helping service the needs of contractors and the Alliance (Fulton Hogan, Downer Construction, Fletchers, MacDow NZ and City Care) throughout the demolition and subsequent rebuilding of Christchurch’s city centre and infrastructure. The branch, on the corner of Lichfield and Barbadoes streets, was officially opened in mid December by the Member of Parliament for Christchurch Central, Nicky Wagner. The branch will be staffed by a team of heavy duty mechanics and technicians and will include CAT sales service and parts, CAT Rental, Transport Wholesale sales, CAT Power Systems and Gough Engineering. Karl Smith, Chief Executive of the Gough Group says the aim of the “pop up” branch is to ensure that the deconstruction and later rebuilding of Christchurch is not held back by machinery down time and that the branch provides the most immediate service capability to all contractors operating within the central city.
I Tasman Tank Co’s bolted steel tanks, which fared well during the Christchurch earthquakes.
N
Hindin Solutions appoints CEO
ew Zealand software firm Hindin Solutions has announced the appointment of Neil Fletcher as chief executive officer. Mr Fletcher joins Hindin after seven years working for smart energy metering firm Arc Innovations Ltd, where he was both Chief Technology Officer and General Manager of Technology Services. At Arc, Neil helped to bring smart meters to New Zealand on a commercial basis, the first company to do so worldwide. Prior to Arc, Mr Fletcher spent many years working internationally in product development at Motorola, Lucent Technologies and Tait Electronics, developing new technologies and products to enable customers to achieve their business goals. Neil brings a wealth of experience and a keen interest
Neil Fletcher, chief executive officer of Hindin Solutions.
in commercialising technology coupled with a strong business acumen, effectively bridging the gap between technology and business needs.
Karl Smith and Nicky Wagner at the opening of the new Goughs branch in the CBD.
“One of our key aims is to ensure that operators can get their machines serviced at night so that they are able to work through the daylight hours maximising productivity for contractors. “We also have a new fleet of CAT gear arriving over the next few months specifically for this new branch.” The site is self-sufficient in parts and the portacom can access, track and price CAT parts from anywhere in the world. It also had a large stock of filters to fit other brands such as Volvo, Sumitomo, Hitachi and so on. As well as the service operation, Goughs based its rental and sales operations out of the new facility and could offer straight rental, rent to buy, lease or purchase options on any machines.
IRL appointment
RL has appointed Professor Juliet Gerrard, a biochemist and leader in the industrial application of biochemistry in New Zealand as its second Industry and Outreach Fellow. IRL’s Industry and Outreach Fellowships have been established as part of IRL’s drive to strengthen links between the research and highvalue manufacturing organisations. “New Zealand’s economic success depends on our ability to get greater coordination and alignment across our research and industry sectors. One area of significant potential is through greater mobility of highly talented people,” says Shaun Coffey, IRL Chief Executive. The Industry and Outreach Fellowships attract leaders from the research sector into IRL to develop areas of scientific research and assist with their application to industry. Professor Gerrard, who runs the Biomolecular Interaction Centre at the University of Canterbury, has held a number of significant positions in recognition of her scientific work and has recently been appointed Chair of the Marsden Council. Professor Gerrard sees the overall strategic aim of the Industry and Outreach Fellowship programme as boosting collaboration. “There is a lot of research being done in both universities and industry and I’d like to bridge
Juliet Gerrard
that gap between fundamental and applied work,” she says. “By collaborating with IRL I believe that we will be able to achieve this.” Professor Gerard’s track record includes stints working for Crop and Food Research Ltd, and conducting research for the likes of Fonterra. She is also a principal investigator at the MacDiarmid Institute and Riddet Institute and has been on a number of editorial boards for scientific journals. She has written over 100 journal articles. IRL Industry and Outreach Fellows are initially appointed for a five-year term and are mandated to resolve industry-related problems while building links between research institutions and business. IRL’s first fellowship was awarded to Professor Shaun Hendy, who is building a complex system modelling group at IRL with the aim of characterising, modelling and understanding the New Zealand innovation ecosystem and its relationship with the world economy. www.nzmanufacturer.co.nz
30
NZ Manufacturer March 2012
MARKETING
The only way around is through.
– Robert Frost
Smart marketing for manufacturers
How to turn your best customers into your sales team.
T
his is one of the most effective and profitable marketing strategies you can use in any business. The surprising news is that less than 5% of businesses use it. The strategy here is to use positive testimonials’ from your best clients and customers in a lot of your marketing material. You want testimonials that talk about things like this... 1: Why your customers love the products they have bought from your manufacturing firm and why they love doing business with you. 2: The many benefits that customers have got by using your product (or your manufacturing services) and why they would highly recommend you and what you do to other people. 3: Why your products (or manufacturing business) is far superior to all your competitors and why people should choose your products (or business) compared to other choices that they may have. There are two reasons that positive testimonials work so well for any product, services or business. Reason one is what I call the McGregor Marketing Rule of Ten. What other people say about you, your company, your products and services is at least ten times more credible than anything you can say on your own behalf: In any positive testimonial it’s your customers and clients who are saying how wonderful your products and services are and not you saying these things. (And that makes all the difference in the world.) • If you say it, potential clients and customers will tend to doubt what you say.
• If your existing customers say it, the same thing is far more believable. Take a moment or two and think about all the marketing you currently do for the products and services that your business sells. Who is saying positive things about you in all your marketing material? Is it you or your happy clients? If it’s your happy clients saying positive things about your products and services you are far more likely to make sales than if it’s you saying the same things. Reason two is what we call ‘Social Proof.’ Let me explain. Many customers have an unspoken question: The question is, “Who else has purchased this product or service and what happened when they did?” When you can show these people PROOF that other people similar to them have purchased your product or service and enjoyed some wonderful benefits you will increase your chances of making a sale. And positive testimonials from clients who have enjoyed some great benefits after buying your product or service answer nicely this unspoken question. Look at how effective these testimonials are from two of my clients for instance. “Graham, I am delighted with the wonderful sales results I achieved from using just two of your
The strategy here is to use positive testimonials’ from your best clients.
marketing strategies. The end result was over $137,000 of brand new business within a few short weeks. I would never have thought that such simple strategies would have worked so well to increase my sales.” Doug Callander Speaker, trainer, consultant
“Graham your marketing strategies have been the most profitable things we’ve ever done to create new business. We had them up and working for us in just less than two weeks. In the last eight years we have generated over eight million dollars of new sales since we began using them. Thanks again.” Grant Laing Laing Building Relocators
So how do you collect amazing testimonials from your best manufacturing clients? Basically you ask your best customers very simple questions like these: 1: What do you like most about our products or services? 2: What benefits have you enjoyed (or what problems have you solved) as a result of using our products or services? 3: Why would you highly recommend our products and services to other people? 4: May we have your permission to use your feedback and comments in our marketing? There are three ways that you can ‘ask’ your clients these questions including a personal phone call, a short email and a hard copy letter and client feedback form. My personal favourite is to send a small number of your clients a short letter and carefully designed client feedback form. I have used this method with dozens of organisations to collect literally thousands of positive client testimonials. Now I don’t have space in this short article to go into great detail
This is the second article by Graham McGregor on effective and profitable marketing.
how to collect and use amazing client testimonials. So what I have done is make available my complete ‘Solid Gold Testimonials System’ as a resource you can download at no charge from ‘The Manufacturers Success Connection Website. (This is a no cost, added value site for anyone involved in manufacturing.) nextSTEP: www.themanufacturerssuccess connection.com/ (Look under the resources tab on the home page.) Collect and start using amazing testimonials in all your marketing material for your manufacturing business. You’ll be delighted at how well these work for you.’ 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 27 countries.) You can email Graham on graham@ twomac.co.nz
PARTICIPATING COMPANIES IN THIS ISSUE … AEC Systems……………………………………… www.aecsystems.com.au Ashburton Business Estate……………………… www.ashburtonbusinessestate.co.nz ATEED……………………………………………… Bessie.Nicholls@aucklandnz.com BusinessNZ………………………………………… www.businessnz.org.nz CHEMZ……………………………………………… www.chemz.co.nz Competenz………………………………………… www.competenz.org.nz EMA………………………………………………… www.ema.co.nz EMEX 2012………………………………………… www.emex.co.nz Filtercorp…………………………………………… www.filtercorp.biz Flight Structures Ltd……………………………… www.flightstructures.co.nz FoodTech PacTech………………………………… www.foodtechpachtech.co.nz Heatbox…………………………………………… www.heatbox.co.nz HERA………………………………………………… www.hera.org.nz Homersham’s……………………………………… www.permabond.com IGO…………………………………………………… www.ighamilton.co.nz www.nzmanufacturer.co.nz
Industrial Research Ltd………………………… www.irl.cri.nz Innovation & Growth…………………………… Nicola@opportunityhamilton.co.nz Konecranes………………………………………… www.konecranes.com.au Manufacturers Success Connection…………… www.manufacturerssuccessconnection.com NZECO……………………………………………… www.nzeco.govt.nz NZGBA……………………………………………… www.germantrade.co.nz NZTE………………………………………………… www.nzte.govt.nz Opportunity Hamilton…………………………… www.opportunityhamilton.co.nz Quest Newmarket………………………………… www.questnewmarket.co.nz Roadrunners……………………………………… www.roadrunnerltd.co.nz SEW-Eurodrive…………………………………… www.nz.sew-eurodrive.com SolidTec …………………………………………… www.solidtec.com.au Success Through Innovation…………………… www.nzmanufacturer.co.nz Techspan…………………………………………… www.techspanonline.com XPO Exhibitions Ltd……………………………… www.xpo.co.nz
NZ Manufacturer March 2012
Skills make you rich, not theories. – Rich Dad
Level playing fields matter for job creation
T
he Government has made changes in the welfare system that will reduce the cost of welfare if our economy can create jobs to bring people into the workforce. Job creation is an essential part of any pathway to work and how the economy creates jobs needs policy attention. Our debt problem is coming to a head as New Zealand’s economic recovery is getting pushed out by weak markets and exchange rate problems. In essence, businesses are not able to invest and grow as they should and therefore the job base is not expanding. We are in danger of returning to the ‘lend and spend habits’ which fuelled domestic inflation and overvalue
our currency squeezing job growth from the traded sector. Two factors are vital to creating jobs in the productive sector: • The profitability of traded sector firms; and • The skilled workers to fill their positions. Investment in the traded sector will only come with more certain returns and the right policy framework that, as far as possible, levels the playing field between local producers and their offshore competitors. As the table below shows, simply relying on commodity exports and tourism alone will not provide the export sales and jobs that the economy needs. Reforms need to focus on added value products.
The exchange rate and fiscal incentives, incentives that respond to incentives in other jurisdictions, are the keys to encouraging investment in value add activity. The exchange rate directly affects a firm’s profitability and its volatility prevents firms in the tradable economy from calculating the return on any investment made. This
uncertainty is the key issue for job creation in the tradable sector. New Zealand’s tax system also favours investment in land and buildings over productive assets with capital gains going largely untaxed. In contrast, overseas we see Research and Development Tax Credits, fast write off for investment, personal tax breaks for early stage
business investment and export development loans. These need to be matched here to level the playing field so that our tradable sector is on an even footing with overseas firms. Given further investment in the traded sector it is important that New Zealanders with the right skills are able to support this expansion. That largely falls to industry apprenticeships which allow firms to train staff in the skills they need to grow their business. The problem is such apprenticeships have been underfunded by the Government. In 2010 the Government moved $55 million of trade training funding to universities reducing the share of funding available to firms training apprentices to work in the productive sector. This was a step in the wrong direction as, like it or not, lawyers, doctors and accountants cannot earn New Zealand a living.
In 2008, even before this shift in funding, 55% of the tertiary education funding was given to the universities and they were responsible for 27% of the students; industrial training organisations received 8% of total government
31
REAR VIEW
John Walley
Chief Executive NZ Manufacturers and Exporters Association
funding, combined with cash contributions from industries, and they trained 46% of the students. Clearly the priorities are way out of kilter. Trade and technician skills feed through immediate benefits to industry, the community and the economy. Trade training has significant spillover benefit and this should be recognised through more support for this effort not less. More effort is required to ensure that the trade training is viable for employers by increasing the support for trade training via the Industry Training Organisations. High levels of productivity are essential for sustainable growth; to be competitive in world markets we need to have a competitive exchange rate, a level playing field for the tradable sector activity and the right trade skills. A lot more effort is needed from the Government to ensure that these requirements for a strong traded sector, and therefore more jobs, are in place.
Or visit: www.filtercorp.biz
www.nzmanufacturer.co.nz
32
NZ Manufacturer March 2012
We want you to know ‌
your company’s developments are being read about around the world. www.nzmanufacturer.co.nz
www.nzmanufacturer.co.nz