nz manufacturer july 2011

NZ Manufacturer July 2011 1

www.nzmanufacturer.co.nz

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The banks are back in the lending game

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July 2011

Don’t get ripped off!


Sir Paul Gallaghan

• Email: [email protected] • www.nz.sew-eurodrive.com

$7.00

www.solidtec.co.nz

From where I sit Auckland Manufacturers Rear View

Observant Hamilton commuters may have noticed an increase in white Hilux utes on the road in the past 18 months.

Rural drivers will have spotted transmission towers dotting across the landscape between Clevedon and Whakamaru.

Both are evidence of New Zealand’s largest energy infrastructure project since the 1960s taking shape on Hamilton’s doorstep.

The North Island Grid Upgrade Project (NIGUP), which will create a new transmission line through heartland Waikato, has reached its halfway milestone this month with 213 towers erected.

The line is expected to be finished by mid-2012. It will traverse 186km and cross 318 properties. The 426 transmission towers will initially run at 220kV but is built to operate at 400kV as New Zealand’s appetite for electricity grows.

When it is completed, the $824 million dollar project will secure supply and meet an increasing demand for electricity in Auckland and the upper North Island. Local industry can also rest easy, as the new line will release the pressure points on the existing local system and give us more capacity for growth.

And there are benefits for the Waikato economy too.

Transpower NIGUP Alliance Project Manager Ian Ditchfield said from the outset the project was determined to shift the economic benefit to the Waikato economy through employment and resources.

“This was always going to be a local project for local people. Our aim was to use Waikato people on

the job. It made sense. They know the area and the people, they’re well connected and incredibly resourceful,” he said.

The project employs more than 300 people, including sub contractors, and will swell to more than 400, at the end of the year when the wires are put on the line what’s known as “stringing” in the trade.

Over a period of three years the construction of the new line is expected to spend over $180million dollars, most of which will have a direct economic benefit back into the local economy.

Hamilton economic development leader Sandra Perry, of Opportunity Hamilton, said the project had a two-pronged positive impact on Waikato’s economy, by providing hundreds of jobs for locals and paving the way for wide-spread economic growth.

Transpower NIGUP Alliance tower crews erecting towers in the Waikato

Energy project means employment

Continues page 10

The altering of a company name over a period seldom tells the evolution of the strategy and positioning of that entity as well

as that of the company we today call Nexus Foams.

And, if you are thinking: “what have foams got to do with me?” then you are obviously not in the construction, manufacturing, retail, design and creative, marine and transport, health, comfort and – maybe a little more obviously – packaging and protection industries where you would almost certainly be using their products.

So here’s the story.DAA Holdings Limited

(Davenport and Associates) emerged from the garage of Nick Davenport’s home. A self-confessed geek – at the time – this mechanical engineer had racked up an MBA as well and was one of New Zealand’s first ‘road warriors’, albeit operating with a ‘brick’ mobile phone and a laptop computer that was barely portable. It was 1993.

A friend he’d met on his OE phoned from the UK and asked if he

was interested in taking over a small business he had in Auckland.

“It had four first-rate customers and I had an engineering background, so I grabbed it. I’m pleased to say we still service those four,” says Davenport.

As the local supplier of Norton Foam Sealants, the business quickly grew, and foam became the dominant offering. The name changed to a rather quirky, ‘Foamalone’, reflecting a ‘passion for foam’.

The initial team he had put together had stayed on – something Davenport, who strikes you more as a designer/creative-type than a manufacturer, is almost evangelical about when discussing manufacturers who move offshore, rather than using Kiwi intelligence and ingenuity to compete globally.

While he is the person telling the story, he is at pains to emphasise that this is about Nexus Foams, customer service excellence, innovation and providing solutions to help fellow

Grant Simmonds GM (left), Guy Herd GM and Nick Davenport CEO

A passion for world-class manufacturing service

By Kevin Kevany

Continues page 15

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DEPARTMENTSCONTENTS

Advisors

Bruce Goldsworthy

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.

Is the Chief Executive of the New Zealand Manufacturers and Exporters Association. John consults to a number of overseas companies and is a Chartered Engineer, a Fellow of the Institute of Professional Engineers NZ, a Fellow of the Institute of Management NZ and a Member of the Institute of Electrical Engineers UK.

John Walley

Chris Whittington

Stephen Drain Stephen Drain is Director at Centre for Innovative Leadership at AUT University, Auckland.


DEVELOPMENTS• Mongolia – Opportunities in frontierland.• Who stands for the Metals Industry?

OPPORTUNITY HAMILTONWaikato growth paves way for business success.

OPINIONIt’s not just the dairy industry.

FROM WHERE I SITSir Paul Callaghan.

AUCKLAND MANUFACTURERSDeepening our engagement with Asia.

COMMENTAfter the quake.

MANUFACTURING TECHNOLOGY• World’s first wirelessly powered wind turbine.• New technology with fibre laser cutters.

BUSINESS NEWSSynthetic cannabis causing workplace dangers.

PRODUCT NEWS• Automatic plastic welding machines.• Live monitoring of air flow.

SOUTH ISLAND MANUFACTURINGStainless steel fabricators wanted.

PROFILEOutstanding growth for product line developer.

REAR VIEWThe banks are back in the lending game.

Page 5 – BUSINESS NEWS – Wellington businesses get financial boost to save energy.

Page 24 – PRODUCT NEWS – A new approach to engine efficiency.

Hans Frauenlob

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

Technical Director with Camplex NZ Ltd. An experienced Graduate Mechanical Engineer with extensive experience in both Product Design and Manufacture. Considerable recent experience in both rapid prototyping and reverse engineering.

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

Catherine Beard

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0 – MAINTENANCE – The way to greater reliability.

Page 13 – AUCKLAND MANUFACTURERS– ATEED supports business growth.

[email protected] www.plasticweldingtools.co.nz

August inNZ MANUFACTURER

Manufacturing Heroes

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Page 26 – SUPPLY CHAIN– Heavy lift system grows with user needs.

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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.

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4 NZ Manufacturer July 2011


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

MANAGING EDIToRDoug GreenT: +64 6 870 9029E: [email protected]

CoNTRIBUToRSPeter Isaac, Kevin Kevany, Bruce Goldsworthy, Catherine Beard.

ADVERTISINGMax FarndaleT: + 64 6 870 4506E: [email protected]

DESIGN & PRoDUCTIoNKarl GrantT: + 64 6 870 9028E: [email protected]

WEB MASTERDan BrowneE: [email protected]

PUBLISHING SERVICESOn-Line PublisherMedia Hawke’s Bay Ltd

SUBSCRIPTIoNSMedia Hawke’s Bay LtdT: + 64 6 870 4506E: [email protected] issues per year. New Zealand $55. Australia and Pacific $95. Rest of the World $132.

MEDIA HAWKES BAY LTDT: +64 6 870 4506F: +64 6 878 8150E: [email protected]/121 Russell Street North, HastingsPO Box 1109, Hastings, NZPublishers of;NZ Manufacturer, Cape & Bay, The Mirror, Asia Manufacturing News. Plus contracted publishing services.ISSN 1179-4992

Vol. 2 No. 5July 2011

Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.

EDITORIAL

Doug Green

Whales only get harpooned when they come to the surface, and turtles can only move forward when they stick their neck out, but investors face risk no matter what they do.

– Charles A. Jaffe

PUBLISHER & MAGAZINE DEVELoPMENT–MAX FARNDALE

www.nzmanufacturer.co.nz/videos

Manufacturinggettingstronger

[email protected]

Good news for the manufacturing sector is the timely indicator from the BNZ Business New Zealand performance of manufacturing index that manufacturing is expanding and actually stronger in May and June than it has been since June 2010.

Manufacturing accounted for half the March quarter’s jump in GDP rising 3.6 per cent, on top of a 3.4 per cent increase in the December 2010 quarter.

So it’s good to know that all industrious, creative, hard working producers of quality products are able to see the rise and potential for further growth in their markets.

We’re extremely pleased to bring you in this issue the first of three chats with Sir Paul Callaghan, who needs no introduction. In the first chat Sir Paul covers, “How and Why we have got to Where we are now (Page 12).

This is a monthly feature, where leading manufacturers and thinkers plan and project this country’s way back to manufacturing leadership through innovation, ingenuity, customer service and the use of technology.

You can read (Page 9) how Waikato has edged into second place in New Zealand’s economic growth stakes behind Auckland being particularly strong in consumer confidence with employment and population growth encouraging spending in the region.

The other good news, of course, for Waikato can be read about in our (Page 1) article on the North Island Grid Update Project which will employ up to 400 people by the end of the year.

Some Christchurch companies have relocated and we will continue to bring their new details to you when they become available. Nothing like a strong and vibrant business community in that part of the Mainland.



BUSINESS NEWSAs I hurtled through space one thought kept crossing my mind – every part of this rocket was supplied by the lowest bidder.– John Glenn

BusinessNZ and Landcare Research have partnered with the producer of the world’s most widely used sustainability

reporting framework, the Global Reporting Initiative (GRI), to provide an accurate and complete sustainability reports database for New Zealand.

BusinessNZ chief executive Phil O’Reilly said consumers are becoming increasingly aware of the environmental impact of products and services. “Businesses providing transparent and comparable reporting on how they manage their economic, environmental, social and governance impacts is a valuable way for them to respond to consumers’ concerns and demonstrate their commitment to sustainable development.”

Landcare Research chief executive Richard Gordon says “Landcare Research’s association with BusinessNZ and the GRI is seen as a positive step towards establishing an

information hub and make available timely and accurate information about sustainability reporting trends in New Zealand, whilst raising the visibility of New Zealand reporting organisations within New Zealand and internationally.”

Phil O’Reilly added that as well as responding to consumer demand, businesses are themselves developing more sustainable and efficient production methods as a way of ensuring long-term profitability and viability.

“Joining GRI’s global network of data providers, means we can gain a more accurate global picture of sustainability reporting, compare organizational performance over time, and measure that performance with respect to laws, norms, standards and voluntary initiatives.

“This new partnership means we can also contribute to the GRI Framework’s continuous improvement and application worldwide.”

New partnerships contribute to picture of sustainability

Wellington companies are being offered an added bonus of up to $1,000 to improve energy use, under a

partnership between Government and Wellington City Council.

Last month the Government launched its Energising Business programme to help Kiwi businesses cut energy costs. Under the scheme, delivered by EECA, companies may be eligible for up to $30,000 (or a third of the project cost) to help them identify and put in place energy-saving measures.

In Wellington, the City Council is offering a further $1,000 per company – or 17% of the project cost – to encourage businesses to get on board. The Council is providing

$40,000 in total, aimed primarily at tourism, manufacturing, large retail and tertiary education sectors.

“Throughout New Zealand there’s an estimated $2 billion in business energy savings that could be unlocked,” said Acting Minister of Energy and Resources Hekia Parata. “That’s a lot of money going to waste that companies could put to better use, developing new products or expanding markets.”

EECA Chief Executive Mike Underhill said the whole region could potentially benefit from a more

Wellington businesses get financial boost to save energy

Acting Energy and Resources Minister Hekia Parata and EECA Chief Executive

Mike Underhill.

The Framework is developed through a consensus-seeking, multi-stakeholder process, with participants drawn from global business, civil society, labour, academic and professional institutions.

Landcare Research will carry out the data collection about reports published in New Zealand, and this will allow BusinessNZ and GRI to maintain and publish a complete and accurate database for New Zealand.

energy efficient business sector.Wellington Mayor Celia Wade-

Brown said she expected the assistance would encourage more local businesses to look at ways to reduce energy use and bills, aligning economic and environmental outcomes.

“Many local businesses are already working to reduce emissions and costs. This will be the incentive others need to take the plunge and start making some changes,” she said. “Partnerships are essential for Wellington if we are to achieve our

ambitious climate change goals.”Nine service providers

throughout New Zealand have been contracted to deliver energy-saving expertise under Energising Business, targeting a range of company sizes and sectors. Four of these operate in Wellington.

The Government is investing $1.46 million in the programme, which is expected to deliver nearly $2 million in energy savings to businesses each year. Around 180 companies nationwide are expected to benefit.

Phil O’Reilly

ExportNZ’s second National Exporter Outlook Survey shows that despite a volatile dollar, 50 per cent of respondents expect their business profitability to improve in the next 12 months. The survey, which includes companies collectively producing over $3 billion of

exports, also shows that 49 per cent expect orders across all markets to rise slowly, and 17 per cent to rise substantially.

Catherine Beard, Executive Director of ExportNZ, says what is particularly pleasing about the survey results is that 61 per cent of respondents are manufacturers, which shows that despite a challenging exchange rate environment, manufacturers are surviving and thriving.

“These results demonstrate that those who are adding value to goods in New Zealand can still be internationally competitive, particularly if they offer products that are innovative and tailored to their customers’ needs. Manufacturers are finding good sustainable export niches and it’s good to see the positivity in the export sector extends beyond our traditional commodity exports.”

On average, respondents were earning 60 per cent of their earnings from exports, and earning an average of $18.48 million, showing that exporting is lucrative once a company cracks it.

South East Asia, including China, has overtaken the US and UK/Europe as the second biggest market focus after Australia for the respondents,

which mirrors the Government export statistics.Exporters cite the exchange rate volatility as the biggest obstacle to

growing exports, followed by competitiveness of products and for some, a lack of offshore demand.

Most exporters would like more government assistance, with overseas market development topping the list. In terms of regulatory barriers, exporters would like some government agencies to be more timely, responsive and predictable (NZ Food Safety Authority), faster and improved facilitation of the flow of skilled staff and students (Immigration NZ), greater efficiency from Councils for planning approval and better border controls between NZ and Australia, particularly regarding phytosanitary (plant health) requirements.

Around a third of exporters said developing common product safety standards and energy efficiency standards across the Asia Pacific would be beneficial to exporters by simplifying market access.

“Exporters are telling us that while free trade agreements are important, so is tackling non-tariff behind the border barriers to export.”

While exporters are seeking more government support for developing export markets, they were less concerned that access to capital was a constraint on growth, and their second highest priority after market development assistance was help with research and development.

National Exporter Outlook Survey positive about growth



BUSINESS NEWSWhat we actually learn, from any given set of circumstances, determines

whether we become increasingly powerless or more powerful. – Blaine Lee

www.

baskiville.com

By Peter Allport, Honorary Consul of Mongolia in New Zealand.

[email protected] [email protected] [email protected] [email protected] [email protected]

In my first article last month I provided an overview of the opportunities for manufacturing export entrepreneurs in the land of Chinggis Khaan in

the hope that this would spark interest to further investigate the opportunities for themselves in this enclave of business friendly democracy in North Asia.

One of the current difficulties with business activities in Mongolia is that there are far more opportunities than there is time, money or skills available and thus there is a need to focus on only “best fit” opportunities.

There is a significant shortage of specialist skills experience. Mongolia has a very young population with around 60% of the population under 30. This means that, although there is generally a good level of education, because of the mere 20 years of democratic, market economy exposure, the depth of application experience of those skills can be somewhat superficial.

All the huge minerals extraction businesses for which Mongolia is becoming known are placing maximum strain on Mongolia’s aging and inadequate infrastructure – on roads, rail, power generation and distribution; on communication, education, housing, accommodation, consumer goods and services; on water and waste treatment; on lighting, heating and cooling.

Below is an outline of just six mega-projects either currently underway or due to commence within the next 24 months.1. Oyu Tolgoi Copper/Gold Mine

Oyu Tolgoi is predominately a private development owned 66% by Ivanhoe Mines (in turn 42% owned by Rio Tinto) and 34% by the Government through State owned company Erdenes MGL. This is one of the largest porphyry copper deposits in the world and is also rich in gold and silver. The mine development is a USD5 billion investment which includes both open cut and deep shaft mines. OT is situated in the South Gobi region 80km north of the Chinese border and 600km South of Ulaanbaatar. The deposit is assessed at 37 million tonnes of Copper, 1,431 tonnes of Gold and 2,000 tonnes of Silver. The mine with a projected 67 year life

Mongolia -Opportunities in frontierland!will start production in 2013.

The mine will employee predominantly locals and is expected to have 18,000 workers onsite this year with all the attendant services and facilities to house, feed, entertain and equip this large workforce.2. Tarvan Tolgoi Coal deposit

TT as it is known is a major coal deposit in the South Gobi region 270km North of the Chinese border and 540km South of Ulaanbaatar. It is currently 400km away from the nearest railhead. TT with an operational life of 200+ years consists of two main development blocks known as Western and Eastern blocks. The Western Block contains 1,204 million tonnes of Coal, of which 68% is coking coal, and is likely to be developed by an international consortium of investors including, Chinese, Russian, US, Japanese and Korea investors.

It looks likely that operational leadership will go to the US company, Peabody, but the final details of this structure are still under discussion with the Government.

The Eastern block is assessed to have 1,078 tonnes of Coal of which 78% is coking Coalwill be retained by the Government through a State company Erdenes Tarvan Tolgoi and mining activity will be contracted-out. Production has already started with a 250,000 tonne stockpile of coking coal ready for export. Full production of 15 million tonnes annually will be reached in 2014. An IPO of Erdenes Tavan Tolgoi may occur within 12 months with 50% retained by the Government, 30% sold to international investors and 20% directed to domestic Mongolian ownership.3. Thermal Power Plant No: 5

The development rate of the Mongolian economy has outstripped the ability of existing power generators to keep pace with demand thus increasing imports of power from Russia and plans, in the short-term (at least 4 years), to power some of the Gobi mining developments via a new 95km high-voltage line from the power grid in northern China. In addition some of this burgeoning power demand will be serviced with the construction of a modern coal-fired thermal power plant in Ulaanbaatar.

Known locally by the inspired title of TPP#5, this new generator, as well as adding incremental capacity will also replace the aged TPP#3 which is destined for decommissioning. TPP#5 will be a combined heat and power, low carbon emission plant with a capacity of 680MW and a heating capacity of 1,1059Gcal/h for reticulated urban heating and have a total development cost of USD1.4 billion. The Government is seeking to attract private investment in this project through a Public Private Partnership (PPP) structure. Phase I (USD 688 mill) is targeted for commissioning in 2015 and Phase II (USD 712 mill) by 2020.4. Railway expansion

The current rail system in Mongolia is predominantly a North/South line spurring off the Trans Siberian line at Irkutsk crossing into Mongolia passing through Ulaanbaatar and Sainshand to the Chinese border at Erlian and then on to Beijing and beyond to the East coast ports. There is a line gauge change at the Chinese border (wide gauge to narrower Chinese standard) requiring a major transfer operation to swap rolling stock bogeys.

It is planned to hugely expand this network with the addition of about 5,700km of new track opening up new rail access to Russia’s Pacific ports and to link into the industrial heartland of Northern China and more of their Pacific ports. Access to Pacific ports is vital to Mongolia’s economic interests. Phase I of this programme will commence this year with 1,040kms of new track from Tarvan Tolgoi , through Sainshand to Choibalsan and thence on existing infrastructure into Eastern Russia. Phase I investment is estimated at a USD 3 billion. Phase II commencing in 2012 consists of 893 kms of new track to establish three new rail crossing points to China. Phase III consist of 3,600km of new track linking Tarvan Tolgoi and other mining developments through a Western network and connecting onward to Europe. Phase three is likely to begin in 2015. The total investment in this three phase expansion is assessed at USD14 billion.5. Sainshand Industrial Park

One of the strategic waypoints

of Mongolia’s industrial expansion is the city of Sainshand. This is on the existing trans-Mongolian rail link and is where the new North Eastern rail link from Tarvan Tolgoi to Russia will intersect. A major industrial park and logistics centre is planned and will include a Coking plant, a Metallurgical facility, a Coal chemicals facility and Copper smelting. To service these industries will require construction of an 800MW power plant. This project will seek participation from private investors and will develop over the next 5 to 8 years at an estimated total investment of USD10 billion.6. New housing program

The Mongolian Government has announced their intention to encourage the construction of 100,000 new dwellings by 2016 ie about 16,000 per year every year for the next 6 years – that’s over 300 new homes every week. That is a very ambitious programme but even if only half of that is achieved it is an awful lot of houses and apartments requiring a wide range of manufactured fixtures, fittings appliances and skills which could potentially be sourced from Kiwi manufacturer/exporters.

Outlined above is over USD 25 billion of new infrastructure investment over the next 5 to 10 years and this is not all that is going on by a long way. As I said earlier, so many opportunities – not enough time, money or people but if New Zealand manufacturers are not able to identify and access some very profitable niches amongst all that then you’re just not looking hard enough. The Aussies are there already!nextSTEPwww.mongolianconsulate-nz.com



DEVELOPMENTSOne important key to success is self-confidence. An important key to self-confidence is preparation.– Arthur Ashe

50 Years of AchievementUllrich Aluminium, a market leader in the field of aluminium extrusion manufacturing, fabrication and distribution, celebrates its 50th year in business in New Zealand, Australia and the Pacific markets.

Supported by a loyal team of over 700 personnel made up from many different nationalities, the company operates 43 distribution centers across New Zealand and Australia.

Two state-of-the-art extrusion plants, one in Hamilton New Zealand, and the other in the Hunter Valley in Australia, provides extrusion to the company’s manufacturing, fabrication and distribution facilities. Ullrich also operates a small foundry in Dunedin.

Ullrich sponsors the New Zealand Pacific Business Council, and further information can be obtained by looking up www.nzpbc.co.nz

Past employees and CLIENTS of the company are invited to contact a branch nearest to you, to obtain a souvenir of our History.

For further Information please viewwww.ullrich.co.nz or www.ullrich.com.au

Together with our clients and friends we plan to build a bright future.Gilbert UllrichCEO Ullrich Aluminium

By HERA Industry Development Manager

Nick Inskip

In the lead up to the global economic crisis, imports of steelwork from developing countries were increasingly

seen in the New Zealand domestic market.

The economic crisis has exacerbated the situation as project budgets are cut and procurers come under pressure to cut costs resulting in price becoming the major factor in the purchasing decision. The willingness of procurers to re-design and change specifications to facilitate imported products has increasingly worked against local suppliers, and ultimately will likely result in poorer infrastructure that we all will be forced to live with for decades.

But we are not alone; many developed countries are experiencing a similar trend towards favouring imports over domestic suppliers. The impact on jobs, foreign debt and GDP are contributing to lacklustre growth in the economy resulting in a protracted slow recovery from the economic crisis. An increasing range of people around the developed world are recognising the dangers to their industries that the importation of sometimes inferior materials can have on their domestic industries.

In the USA, Democrat Representative and Vice-Chairman of the Congressional Steel Caucus Pete Visclosky, has introduced the ‘American Steel First Act’ to the US Congress. This Act requires that only American-made Iron and Steel be used in Government-funded projects in order to support domestic steel

producers and address the public safety threat posed by substandard steel imports.

He said in a statement that, “During these difficult economic times, it is more important than ever for the Federal government to reject unfair and inferior imports from countries like China and uphold American manufacturing.”

The measure requires the Departments of Transportation, Defense, and Homeland Security to use only iron and steel produced in the United States for the construction, alteration, maintenance, or repair, of roads, airports, harbours, tanks, ships, and other projects related to the USA’s defense and infrastructure.

Congressman Visclosky went on to say that “Steel is at the heart of the economy in Northwest Indiana and a critical component of American industry.”

It is interesting that the ‘American Steel First Act’ was co-sponsored by Republican Congressman Tim Murphy, indicating cross-party unity on addressing what is a clear national concern.

High value manufacturing is intrinsically linked with a healthy metals industry. Innovation cannot occur in a vacuum and requires the support base of a sustainable domestic industry. While the US manufacturing industry and economy might be argued to be ultimately large enough to weather the economic downturn, clearly the US Government recognizes the threat to their steel industry, and is looking seriously at how that threat can be reduced.

The fact that the United States has a Congressional Steel Caucus shows the value they place on the industry and ensures that when extraordinary events happen, such as the Global Economic Crisis, that they are there to provide legislative support.

Congressman Visclosky, has a history of authoring successful ‘Buy America’ provisions, including the Buy America amendment that was passed with the 2009 American Recovery and Reinvestment Act.

In New Zealand, the total number of people working in 2010 in the statistical groups primary metal and metal product manufacturing and fabricated metal product manufacturing was over 26,000. Basic metal product manufacturing GDP contribution alone was around

$2.6 billion annually based on the latest figures available, from 2007.

The other contributions of our industry are added into other product groups such as in agriculture, food processing and machinery and equipment manufacture and are hard to establish but indicate a GDP contribution of over $10 Billion. Over $2.3 Billion of it is exported each year representing 5.5% of our total exports.

Perhaps it is time that we had a Steel Caucus in recognition of our contribution, and to ensure that government support is there when it is needed.

Will our ‘Congressman Visclosky’ please stand up?

High value manufacturing is intrinsically linked with a healthy metals industry.

Who stands for the Metals Industry?

The month of May saw the manufacturing sector continue its march towards stronger expansion, according to the latest

BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for May was 54.7, up from 52.0 in April and the highest value since June 2010 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Four of the five indices were in expansion for May, the same as April.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the second consecutive month of improvement in activity is consistent with other positive indicators recently seen within the sector.

“Although there have been some recent publicly announced layoffs in the sector, overall the manufacturing sector has shown signs of resilience, even in the face of a high dollar versus the US dollar. It is particularly pleasing to see such a positive result from Canterbury manufacturers, which have come back quite quickly into expansion mode after the February earthquake in a relatively short space of time.”

“Official data has shown a lift in total manufacturing sales, while manufacturing sector exports have also been steadily rising. Add to that the latest PMI result showing a pick-up in production and new orders and the sector is showing encouraging signs.”

BNZ economist Doug Steel said the May PMI was further evidence of the economic recovery gathering momentum.

“Within the rather diverse fortunes across the manufacturing sector at present, there are some rather strong pulses coming through.”

Unadjusted results by region showed three of the four main regions in expansion, with Canterbury/Westland (57.7) leading the way with its highest value since November 2010. This was mainly due to improved production and new order results (both domestically and offshore). The Central region (57.1) bounced back from a sluggish April result, while the Northern region (52.3) returned to a very consistent level of activity for three of the last four months. In contrast, the Otago/Southland region (45.3) remained in contraction for the four consecutive months.

May march for manufacturing activity

http://www.nzpbc.co.nz/

http://www.ullrich.co.nz/

http://www.ullrich.com.au/



OPPORTUNITY HAMILTON Success is not a destination, it’s a journey-

– Anonymous

The LEAN GEMBA ACADEMY provides a unique opportunity to combine expert training from New Zealand’s

leading Lean training organisations and the chance to see how Lean Thinking has been applied within a real business. Participants can experience the culture of Continuous Improvement, witness the results and hear how employees at a New Zealand company make the most of Lean Thinking in everything they do. On 6th July we ran the “How to Lean Change” course which was well received by all the participants. To complete the day John Cooke, CEO of Stainless Design Limited took the group on a tour of the facility and answered questions about Lean Leadership.We have two further courses planned for July:26th July-Introduction to Lean• Understand the basic principles

of Lean Thinking and Continuous Improvement philosophies and how they could be applied to your business

• Learn how you can transform your business through a Lean simulation

• Help build confidence by sharing experiences with other participants embarking on their Lean journey, including a company tour.

• Understand how the tools and techniques transform a workplace

27th July-5s Workplace Management•Understand one of the key Lean

tools and see it utilised in a real environment

•Talk to employees who have seen the benefits of 5s workplace organisation

•Understand the five steps to a successful rollout via a simulation

•Develop the capability to implement 5s

•Understand how 5s empowers and engages employees.

The trainer for the course Ian Lines has been helping organisations on their Lean journey for over ten years. In the UK he worked in the automotive industry implementing Lean and taking Leadership Teams on the journey of Lean transformation. Since moving to New Zealand seven years ago he has worked with over 30 organisations, in the service and manufacturing sectors, developing Lean processes and strategies.

For more details visit www.leangembaacademy.co.nz

A Kiwi executive is throwing his weight behind workplace literacy training – saying it’s a great tool for manufacturing

firms with a migrant workforce.Hamilton-based Longveld

Engineering manufactures a range of stainless steel products from boat parts and bench tops to powder dryers and milk tankers.

The company introduced literacy training in 2009 for migrant employees who speak English as a second language.

Managing Director Les Roa explains: “At the time, we were recruiting talent from overseas as a way to beat the skills shortage. But we soon realised a lack of fluency in English was hampering their performance.”

Today migrants from India, Sri Lanka, Bangladesh, Russia and Fiji make up a third of Longveld’s workforce. Literacy training helps them learn new skills, as well as settle into New Zealand society and the Longveld workplace.

The company’s literacy training focuses on workplace health and safety and includes exercises on form filling, safety signage and simple numeracy.

Trainees improve their literacy and numeracy skills, as well as achieve a level one Occupational Safety and Health (OSH) qualification recognised by Longveld’s customers.

Longveld has since developed an internal communications course for staff who need to improve their communications skills to move into leadership roles.

The course features a range of literacy exercises and is geared

towards both the company’s migrant and New Zealand-born employees.

“When we started to look at our literacy issues, we found it wasn’t just our international people who

struggled. Many of our Kiwi staff needed help too.

“We found simple things were being miscommunicated. Some of our very best tradespeople were too embarrassed to write on a whiteboard because of literacy problems,” says Mr Roa.

Indian Machinist Team Leader Sukhdev Singh, 39, says Longveld’s literacy training has made a huge difference to his work life.

Mr Singh, whose first language is Punjabi, immigrated to New Zealand from India in 2002. He says training built up his vocabulary, improved his confidence and helped him get to grips with New Zealand’s health and safety requirements.

“I do a lot of reading, writing, maths and communication. I interpret

drawings and measurements, work out angles and communicate with the rest of my team. Literacy training’s helped with all of that. It’s even helped me better understand the Kiwi accent,” he says.

Mr Roa says workplace literacy training has had an enormous impact on company performance too.

“Before introducing literacy training, we found it difficult to build more than three milk tankers a week.

“In the past year, we’ve built seven per week – an improvement I attribute to better communication among staff and improved literacy and numeracy skills.”

Staff communicate more effectively, they have more fun at work and are more engaged. They work through issues more calmly, reach outcomes that work and are going on to complete more training, he says.

“As company owner, I’m very proud of what we’ve achieved. I really believe in literacy training. It’s part of our company culture. We take it very seriously.”

“I’d encourage other business leaders to look at it, too. You just need to get your head around it as a business and make it work. I believe businesses can’t afford not to do it. They need to see it as an investment, not a cost. That’s because the payback is enormous,” says Mr Roa.

Trainees improve their literacy and numeracy skills

Longveld staff flourish with literacy training

Longveld Engineering Managing Director Les Roa

Longveld Engineering Machinist Team Leader Sukhdev Singh

A Kiwi conceived summer football game that has attracted widespread business and workplace support is about to

kick off its 14th season in Auckland and launch in Hamilton before going nationwide.

SUB Football creator Bill Davies is calling for teams and referee candidates from businesses, workmates and friends for the upcoming season which runs from late October until early March. The game is easy to play for anyone who can kick a ball and he says it is a great opportunity for those interested in becoming referees.

Davies is a former soccer player and coach who began playing at primary school level in Liverpool. He developed SUB Football to encourage more people to kick a soccer ball instead of carrying or throwing a rugby ball.

It was first played in the Auckland Domain and spread across the region. Last season some 300 teams played 2100 games on 50 pitches and over 400 teams are expected to compete this year. Around 24 teams could be fielded from Hamilton.

Bill Davies has taken the game overseas to Ireland, Australia and the Pacific Islands. In Dublin a newspaper sports editor put him in touch with the famous Home Farm Football Club and he ran competitions there for two summers. There will be 32

teams competing in Melbourne this summer.

The main difference between SUB Football and Association Football (soccer) is that the Laws of the Game do not permit players to use force when taking or attempting to take or keep the ball from an opponent.

Players who indulge in referee abuse, violent conduct, serious foul play, spitting at another player or official, or racism, are banned from participation.

The game attracts both men and women in single gender or mixed teams coming from business houses, workmates or groups of friends – with unlimited substitutes.

For more information about the game, referee training and enrolment, visit www.subfootball.com

Sub football to launch in Hamilton By David Burke-Kennedy

Bill Davies



OPPORTUNITY HAMILTONI was made to work. If you are equally industrious, you will be equally successful.– Johann Sebastian Bach

www.opportunityhamilton.co.nz

Waikato has edged into second place in New Zealand’s economic growth stakes, leading all regions aside

from Auckland.ASB and Main Report’s Regional

Economic Scoreboard ranked Waikato second behind Auckland, nudging the region ahead of the Bay of Plenty.

The scoreboard shows Waikato is particularly strong in consumer confidence, with employment and population growth encouraging retail spending in the region.

Waikato retail trade was up 10 per cent in the March quarter compared to the previous year with employment and new car sales up three and nine per cent respectively.

The economic scoreboard looks at eight growth factors, including total share of the economy, population, employment, retail trade, house prices, construction and new car sales.

Economic development leader Sandra Perry, of Opportunity Hamilton, said the news is good for the region and businesses throughout New Zealand eyeing Waikato as a potential base.

“We know Waikato is a great place to do business and this gives us great leverage when we ask those in other regions to consider us when they look to relocate or set up a new branch,” Sandra said.

Auckland, Waikato and Bay of Plenty, the three leading regions, make up the area referred to as the growth triangle of New Zealand, Sandra said.

“It is increasingly apparent that these regions are the growth powerhouse of our country. They are the place to be if you want business growth,” she said.

Although Waikato’s manufacturing sector had initially suffered during the recession it is now experiencing strong growth, according to Sandra.

Waikato’s construction sector had also taken a hit which Sandra said would be eased by road developments underway in the region and positive projections for the sector.

“It’s important to remember that construction in this report includes both infrastructure and commercial and residential construction. These are different markets within the construction sector.”

The Waikato Expressway, to be completed by 2019, will provide 102km of four-lane highway and a 6km reduction in the length of State Highway One.

It will provide a further 12km of new or upgraded links and a new Waikato River crossing north of Hamilton.

Rider Levett Bucknell’s latest New Zealand Trends in Property and Construction forecast shows construction activity is expected to grow to near $8 billion a quarter by 2014, up about $3 billion from 2011.

Opportunity Hamilton, the economic development agency, is making the most of regional growth by establishing a website to encourage new business and partnerships with the region.

Website www.investwaikato.com matches potential global business investors, suppliers, distributors or partners with Waikato business owners interested in making global connections

“We are committed to working with any business owner from out of town interested in establishing in our region. We have the knowledge and the right contacts to make their relocation as smooth as possible,” Sandra said.

Waikato’s traditional successful business sector, the dairy industry, is behind a regional leaning towards specialised manufacturing. Other fields in which the region excels include digital, innovation, agbio, equine and aviation.

Waikato growth paves way for business success L

eading Hamilton into the future technology-wise is an exciting task for Opportunity Hamilton’s project management specialist

Marcus Lee.Marcus has been appointed to

implement the Digital Hamilton Strategy and is looking forward to getting his teeth into the new role.

“Hamilton and Waikato has the potential to be a digital leader in the South Pacific and I am very excited about being involved in something that is going to be so positive for this region,” Marcus said.

Originally from South Korea, Marcus will be drawing on the technological advancements made in his homeland and his well-established global networks in the new role.

“Korea has made significant investment in technology and now it is Waikato’s turn. I think all businesses here should be very excited about what the future holds in regards to technology.”

Marcus, who is fluent in English and Korean, is looking forward to collaborating with businesses and experts involved in the ICT sector in the Waikato.

Opportunity Hamilton chief executive Sandra Perry said adding Marcus to Hamilton’s digital mix has positive implications for the Digital Hamilton Strategy, particularly with global connections and knowledge.

Introducing Marcus Lee

A Fonterra cold store in Hamilton, incorporating groundbreaking fire safety measures, is among finalists in the Innovate NZ

Awards of Excellence 2011.The Awards, organised by the

Association of Consulting Engineers NZ (ACENZ) recognise innovation in consulting engineering both in the structures or processes developed and in the means of providing engineering services to the client.

Sinclair Knight Merz (SKM) features for the concept design for the state-of-the-art Crawford Street Cold Store hub facility, one of the largest cold stores in New Zealand.

The cold store, a central point for all the butter and cheese produced in the Waikato and Bay of Plenty, takes 20 per cent of all Fonterra’s butter and cheese products.

The design integrates the coldstore/drystore hub with the Kiwirail network allowing easy port access and reducing truck movements on local roads by 65,000 a year.

An intense safety focus was a key aspect of the project, including world first use of the Vanquish dry pipe sprinkler system which is designed to ‘surround and drown’ any fire while minimising damage to the store and its contents.

Hamilton cold store amongst Awards



Energy project means employment

“Paying attention to simple little things that most men neglect makes a few men rich.”

– Henry FordOPINION

• Value of exports and imports both increased in May 2011 compared to 2010.

• $429 million increase in exports led by milk powder, butter and cheese.

• Largest increase in export sales to China.

• $594 million increase in imports due to petroleum – related products, aircraft and parts.

• Trend in value of exports increases 30 percent since September 2009 low point and continues to reach new heights.

• In May 2011, trade surplus was $605 million. Or 13 percent of the value of exports.

• Population 4,407,403.

• Unemployment March quarter 6.6%.

• Manufacturing continues to rise.

THE NUMBERS

Since the economic turmoil of 2008 some things still remain a constant. One of those is the need to continue developing the manufacturing sector.

Markets are constantly being found for what we make here and it would be a good thing if we were able to export more than we imported. Simply put, in the last quarter exports increased by $429 million while there was a $594 increase in imports.

A lot of export success was led by dairy products and that’s okay. However, what we make in other sectors has a part to play in those figures as well.

Take, for example, Precision Microcircuits Ltd, manufacturers of miniature ceramic heaters, amongst other things, who recently won back a Chinese contract because of their quality, consistency and product

performance against aggressive Asian competition, based on pricing.

Or Fraser Cars who export 65% of the Lotus 7 replicas they make. Neil Fraser in 1988 took his hand-built replica to the National Car Show and the company hasn’t looked back since.

Or Hi-Q Electronics who manufactures protection caps. Taking the initiative, the company looked at the safety requirements on work sites and building projects for the protection of exposed scaffold tube, reinforcing bars and stakes to avoid injury and damage to buildings.

In response to demand, Hi-Q decided to do something about the concerns and manufactured a multipurpose cap that could fit as many things as possible.

And so it goes on…These companies are the least

of my concerns. More of an issue is the likes of Hillside who saw work pulled from underneath them and sent to Asia. Or Fisher & Paykel who, possibly through a need to satisfy shareholders, started manufacturing overseas.

And at a time when we need to continue to invest in the manufacturing sector, we find government forking out $36 million for a boat race. I would have preferred to have seen that type of money invested in manufacturing for the good of the country and its apprentices and graduates. But, more of that later…

What makes business business is the sniff of success, the knowing that lots of dreams can become realities if they are believed (and invested) in. Just look at companies like Navman, Gallaghers, and Tait Electronics as examples of this. So it follows that

It’s not just the dairy industryBy Doug Green

The project was determined to shift the economic benefit to the Waikato economy through employment and resources.

“Having good infrastructure is vital for a growing economy and this project increases and improves the capacity of the North Island grid. That’s essential with increasing power demands,” Sandra said.

From their base at the Ruakura substation next to Waikato Innovation Park, the Transpower NIGUP Alliance has been working to ensure the construction project is on track and delivers the transmission line on time and in budget.

Construction is a complex job.First, tracks need to be built to

gain access to tower sites on working farms. This includes upgrading existing tracks or building new ones, culverts and land reinstatement post build. Fencing and vegetation clearing is also a large part of site access.

Local contractors Schick and J Swap were awarded the tender for the access works in 2009.

J Swaps Contractors Ltd Contractors Manager Mike De Luca, says working on NIGUP has increased turnover significantly over the two years they have been

what makes success success is the quality of the finished product that finds a ready market for innovation, development and price.

At present, the country is on a path which is now looking at trade with India in a bigger way. What are we making that India wants? Is this going to be another dairy industry bonus or are plans being put in place to encourage manufacturing contracts for electronics, aviation equipment and software to come our way?

Will there be a Kiwi Call Centre in Delhi and will we be the centre of the world?

Continuing to find the niche markets for real products is essential. To research and then manufacture for export will keep us strong. The $36 million could have been used to start a business to create employment and a brand spanking new product for local and overseas markets.

So why is there no competition to white goods maker Fisher & Paykel? Why do we seem to be so hesitant on mining? Why isn’t manufacturing more on the government’s radar?

And what do we recycle back to Asia that we could use here for a manufacturing venture?

Isn’t now the time to be offering incentives to small companies so that we can work towards a win- win situation?

From page 1

working on the project and has boosted employee numbers for J Swaps by 10%.

“It’s been good for us. We’ve taken on more staff as our work load has increased. This undoubtedly has been the largest project we’ve work on in the region.”

“We’ve also raised the game with our health and safety to comply with Transpower practices. We now have a fulltime safety officer - so we are also up skilling people too,” he said.

Mr Ditchfield said that gearing up for project included the purchase of over $20 million dollars to date of vehicles, plant and equipment. Most of which was sourced through local suppliers.

“Our mantra is that we always look local first. The construction activities and the nature of this project, connects us into a wide range of industries and we work closely with suppliers in Hamilton. It’s not often that we have to go elsewhere.”

“It’s everything from vehicles, plant and equipment, reinforcing cages, concrete, safety gear and administration support and services.

We’ve even made an impact on accommodation in Hamilton - at one time our main competition for accommodation was the Waikato University students,” he said.

Putting up towers is like playing with a giant Meccano set. The steel arrives on site flat-packed bundles and typically within five days, the average 30 tonne tower, is erected. The majority of towers are approximately 46 metres high with the tallest standing at 70 metres.

As tower erection is completed in the Waikato region, the project will move into the stringing phase. This, too, requires another step up in the level of resourcing and expands the project capacity.

Local stringing gangs will be joined by overseas crews and will move up and down the line as the project completes the sections.

“We also have satellite storage yards in Maramarua, Hamilton, Matamata and Tokoroa and as we start stringing we will look at moving crews throughout the Waikato,” said Mr Ditchfield.

“This means more accommodation and more services in places like Tokoroa, Putaruru, Morrinsville and Te Kauwhata.”

The transmission line project has not been without controversy. When it was proposed in 2003, there was opposition from environmentalists, farmers and lifestyle block owners whose lands were affected. At the time, Transpower said the project was vital to New Zealand’s economy. Several issues with electricity supply had put the Upper North Island at risk, which meant it was essential to gain increased capacity.

Transpower NIGUP Alliance Project Manager Ian Ditchfield



DEVELOPMENTS“The secret of success in life is for a man to be ready for his opportunity when it comes.”– Benjamin Disraeli

The Kiwi Innovation Network (KiwiNet) will increase the scale and economic impact of science and technology

commercialisation in New Zealand through an unprecedented level of national collaboration between universities and crown research institutes.

KiwiNet will act as a hub for commercialisation activities for its member organisations, as well as participants in the wider innovation system, as they work to create commercial outcomes from science and technology research. Founding members include WaikatoLink, Plant and Food Research, Otago Innovation Ltd, Lincoln University, AUT Enterprises, AgResearch, University of Canterbury, Industrial Research Ltd and Viclink.

Hon Ruth Richardson, Chairman of KiwiNet says, “We live in an era where discovery is the new currency and the success with which nations can foster the climate for innovation will determine their future prosperity. Much rests on our capacity to commercialise the ideas, schemes and dreams of our brightest and best as a small but competitive nation. Ambition to succeed in forging an innovative economy is one thing, but the acid is now on to lift our ability to execute that goal. We cannot be content with the status quo.”

KiwiNet members, with a total combined research expenditure of more than $500 million, encompass the large proportion of NZ’s science capability. Members have already demonstrated the ability to execute at the early stage of commercialisation but KiwiNet is a bold advancement on this. As a national network with strong institutional and regional presence KiwiNet will reach deeply into the innovation systems and into NZ’s

major industry sectors. KiwiNet’s collaborative commercialisation model enables members to share resources, networks, best practise, IP and experience to create more commercially viable IP and start-ups from research based ventures.

Duncan Mackintosh, Chief Executive of WaikatoLink, the commercial arm of the University of Waikato says, “Through KiwiNet we can capture and transfer University intellectual property assets, along with other work from research institutions and commercial organisations, into New Zealand industry. The investment the University makes in WaikatoLink recognises the importance of transferring IP to industry. Visibility at an early stage allows us to combine IP, if appropriate, and to tap into the skills of the group for commercialisation. This means we’re not duplicating effort and we’re giving each venture the best chance of success. Our collective goal is to maximise the economic benefits realised from New Zealand’s investment in publically funded research.”

The collaborative imperative is reinforced by David Hughes, Group General Manager Commercial, Plant & Food Research. “We need to encourage collaboration rather than competitiveness to maximise the commercialisation of research and create high value products with global demand. The Crown Research Institutes within KiwiNet provide a vital link to many of New Zealand’s key productive sectors. CRIs and Universities can better support these sectors by working together. CRIs bring deep knowledge of their sectors while Universities bring a diversity of experience. What we’re doing in the wine industry with Lincoln University is a great example of this. We are combining Lincoln’s

biochemistry expertise with our viticulture and sensory experience to manage key aroma compounds in Sauvignon Blanc wine. KiwiNet will allow us to collectively achieve real flow-on effects to add value for industry.”

Investor and director Andrew Turnbull and well-known entrepreneur Bill Day, Chairman elect of the Investment Committee join Hon Ruth Richardson as independent directors of KiwiNet.

KiwiNet expect their strong track record to attract fresh interest from two important quarters; the investors who are on the hunt for propositions of commercial promise, and other entities with ideas who will want to test them through KiwiNet.

Neville Jordan, Executive Chairman of Endeavour Capital, one of New Zealand’s leading private equity and venture capital companies says, “The benefits of KiwiNet’s strategy are clear cut. Research based organisations generate a wealth of discoveries and these innovations need to establish networks and get close to their markets as quickly as possible. Collaboration and early visibility to investors who understand the potential of these research opportunities dramatically increases the chance of success for ventures. KiwiNet ‘s approach will accelerate the export growth of New Zealand products and services based on science and technology.”

In July Endeavour Capital, with a strong portfolio of research based ventures, signed a $20

million investment two-way deal with the state government of Florida. The partnership will provide opportunities for expansion into global markets for existing businesses and for US intellectual property to be further developed in New Zealand by KiwiNet members according to Mr Jordan.

KiwiNet provides the essential ingredients of success; strong governance, rigorous investment screening and decision making, well-structured project guidance and monitoring, and the ability to excite and harness investor appetite,” says Tim Balmer, Investments & Commercialisation Manager, Industrial Research Ltd.

“KiwiNet has attracted some exciting commercialisation firepower and we have lots of concrete examples of what we’ve already been able to do. ZyGEM, Magritek, ArcActive, eco-n, SuperGel, HTS-110, Geosense, General Cable Superconductors and Endace are all good examples of companies formed and in-market products from research commercialised from Universities or CRI’s that are either already doing well in offshore markets or are showing enormous potential,” says Duncan Macintosh.

KiwiNet members are very committed to collectively pushing the boundaries in the search for better and smarter ways to commercially leverage the substantial, but latent and untapped pool of NZ’s intellectual property says Ruth Richardson. “As a country we really need to get moving to create the positive economic shifts we need. One way we can do this is to get really bold about executing on an agenda of commercialisation and innovation. KiwiNet is a very practical and crucial push for smart commercialisation.”

A bold advancement for science and technology

Food production firm EasiYo is using workplace literacy training to give it the competitive edge in an industry known for being the

best in the world.EasiYo exports yoghurt products

to more than 20 countries around the world. In 2009, company sales topped $30 million and the company appointed its first-ever Chief Executive.

Paul O’Brien, EasiYo Chief Executive, says: “We introduced literacy training to our factory staff in mid 2010 to protect the quality and integrity of our brand (and New Zealand’s) overseas.”

All EasiYo factory staff are Tonga-born and speak English as a second language.

“If you look around, you’ll see a proliferation of similar services. It’s

difficult to innovate these days. But we believe literacy training will give us that crucial point of difference.”

Mr O’Brien believes literacy training will also help the company manage risk.

“There’s a risk – particularly in our industry – in having staff who are unskilled. People overseas trust New Zealand’s food, our dairy food in particular. They want a healthy, nutritious product and they know our food is the best in the world.”

However, says Mr O’Brien, a skills analysis in 2010 showed very few EasiYo factory workers were able to read, write, do maths and communicate well.

The company immediately contacted their Industry Training Organisation and, with their advice, opted to run an hour or two of basic

literacy and numeracy every week for 16 weeks in company time.

EasiYo will keep training in place until all factory staff attain the skills they need to upskill further and progress in their careers.

EasiYo uses literacy training to edge out competition

EasiYo Chief Executive Paul O’Brien.“Investing in this kind of training

is about investing in your bottom line. It’s about improving the quality of what you offer, it’s about mitigating against risk – it’s about all of these things,” says Mr O’Brien.



FROM WHERE I SIT If at first you do succeed try not to look too surprised.

– Anonymous

This, the first of three chats with Sir Paul, who needs no introduction, covers “How and Why we have got to be Where we are now”. In the next two,

he will project the pathway to a sustainable and environmentally benign future and finally, reveal additional opportunities and challenges he has discerned for Kiwi manufacturers, following his sojourn in the halls of academe in Oxbridge, UK and his forthcoming visit to China.

Starting with the post-WW2 era, can you set the scene for “How and Why we have got to be Where we are”?

In 1950, New Zealand’s per capita GDP was amongst the world’s highest. It was a prosperity built on “processed grass”, with high prices for agricultural products and guaranteed British markets.

Throughout the 1950s our prosperity ranked at about 90 percent of the United States. This period saw major investment in infrastructure with the building of hydroelectric dams, bridges, road sealing and a large stock of state housing. But New Zealand’s was a highly regulated economy with import controls and tariff barriers, fixed exchange rates, control of bank interest rates and capital controls.

Were there any early signs of what was to come?

Although our prosperity continued into the 1960s, warning bells rang. In 1966 wool prices collapsed, the exchange rate was devalued, and by the end of the 1960s, Britain was signalling its intention to join the European Economic Community. That joining in 1973 probably represented the greatest jolt to the New Zealand economy in its 130-year history.

From then on New Zealand had to look to new markets and new trading relationships. Despite market diversification, and despite continuing, albeit limited, economic growth, our relative position grew weaker. 1973 marks the beginning of a long slide in our per capita GDP relative to both the United States and Australia.

Was New Zealand an isolated case and were we too slow in responding?

Of course, the 1970’s were turbulent times for the entire world economy. The oil shocks and the costs of the Vietnam War caused weak growth in the US and other Western economies. Despite slow growth and high inflation, New Zealand managed to maintain relatively high employment throughout this period with tariff barriers and import substitution policies leading to protection of local manufacturing for the local market.

But the terms of trade had turned decisively against us. Increasingly the high standard of living that New Zealanders had come to expect, was maintained by offshore borrowing. While trade liberalisation was expanding in the rest of the world, New Zealand’s “fortress economy” was slow to open up.

The first step was taken, however, with the Closer Economic Relations (CER) agreement with Australia. Controversial at the time, we now recognise this as one of the most important events in shifting New Zealand towards the global economy and the beginning of the painful process of discovering and building competitive advantage.

Did the CER agreement provide a boost or did government remain wary?

During the 1970’s governments of both centre left and centre right were reluctant to take steps to further liberalise our economy because of the rise in unemployment that would inevitably result. The ultimate necessity for change became explicit, and politically feasible, because of a crisis which had its origins in New Zealand’s response to the second oil shock of 1979.

The so-called “Think Big” strategy involved the building of large energy projects aimed at moving us to energy independence. The investments, while impressive engineering exercises, were mostly economic failures. Meanwhile government tried to combat inflation by “fiat”, using a draconian wage and price freeze from 1982 to 1984, all the while borrowing abroad to maintain living standards and employment.

Ultimately the high level of public borrowing through this period led to a debt repayment crisis in 1984. Change was about to be forced on us.

New Zealand’s attempt to maintain 1950’s employment levels and public expectations of prosperity through regulation, borrowing and ill-conceived public investments had proven a disaster.

Was this the ‘staring down the barrel of a gun’ time?

Dramatic economic reform was now politically feasible as the newly-elected 1984 Labour government implemented an overhaul of our economy in response to crisis. The exchange rate was floated, farm subsidies slashed, trade protection and regulatory barriers to free trade were reduced. The government’s aim was to liberalise our economy and open it up to global competition.

At the same time, state-owned enterprises were required to operate on a commercial basis, shedding vast numbers of jobs in the process. And

the role of the Reserve Bank was changed to make inflation control a prime focus.

The social upheavals caused by these changes were immense, both in the cities and on the farms. Car and TV assembly factories closed. Farms no longer propped up by artificial prices suffered severe reduction in land values. The result was soaring unemployment, business failure and farm mortgagee sales. As the human consequences became manifest, the public grew weary of major economic change.

Was this the moment the game changed for the better?

Gradually, inflation was tamed as we grew used to a volatile exchange rate. New Zealand had entered the world market place, painfully, but with a diversified economy. By the early 1990s, the export markets for our primary products had changed drastically. Britain, rather than taking 90 percent of our products, was now taking less than 10 percent.

A greater proportion of our overseas earnings was coming from tourism. And manufacturing, forced to turn from import-substitution to finding export markets, had shifted to the challenge of discovering niche products where they could effectively compete internationally.

Over the decade following deregulation, economic growth was sickly, resulting in the “New Zealand paradox”, whereby the fundamentals for economic growth based on open and effective markets failed to produce expected prosperity gains.

Finally, from 1993 to 2008 New Zealand entered a period of sustained economic growth, interrupted, but not disrupted, by the Global Financial Crisis. Over that decade New Zealand was paying back debt and became the first OECD country to run a fiscal surplus. With the onset of the GFC, and the shocks of the Canterbury Earthquakes, New Zealand faces tougher economic times.

Consequently, where do we sit in global terms?

If one looks at the relative prosperities of New Zealand, Australia and the United States over the past 40 years, it is clear that our delay in bringing about economic change has caused a gap to open. Our per capita GDP now lags Australia’s by 35 percent, representing a NZ$-40 billion per annum earnings gap.

While our current rate of economic growth is comparable with Europe and North America, the challenge for us now is to accelerate that growth so as to bridge our relative “poverty gap”.

This is a time to take stock, to

see how we might find comparative advantage.

Where do you see that comparative advantage coming from?

Our farming and forestry sector continues to perform well with our free access to China’s vast markets a positive factor, but resource limitations do not allow the four-fold expansion needed to achieve our export earning goals. Tourism, because of low revenue per job, is not an effective route to greater prosperity.

The really interesting question for us is whether we have the capacity to greatly expand manufactured and knowledge-based exports with high product value per unit weight and per employee.

Therein lies the opportunity for sustainable, environmentally benign, economic growth. Watch this space.

Sir Paul Callaghan

This monthly feature,

where leading manufacturers

and thinkers plan and project this

country’s way back to manufacturing

leadership through innovation,

ingenuity, customer service and the

use of technology, focuses this issue on Sir Paul Callaghan.



NZ ManufacturerJuly 2011 13

OF the three divisions of ATEED, the Business and Sectors Development is the one that provides support to businesses and promotes

growth through various different programmes and mechanisms.

In general, these programmes have two approaches for business growth. The first is through the individual business and the second, known as sectors, is across a group of like businesses either doing the same type of work, or all using the same technology, or contributing to the same goals.

The first two Services, delivered by ATEED for Individual businesses within the Auckland region, come under the Regional Business Partnership programme. This is a programme that has 14 partners nationwide and businesses will find a delivery agent is in their region.

Technology Development This is a key issue for

manufacturing businesses. New technology and processes are all part of the competitive edge that is critical to the survival and growth of businesses.

The majority of business based technology development in New Zealand comes from the diversity of manufacturing subsectors.

Examples of new technology can be from new chemical formulations for specialist food manufacture, veterinary products, human health products, to wine making, paints and other coatings.

In contrast, metal formulations are the basis of processing metals for construction of machinery, boats planes, the electronics industry, farming industry and the building and construction industries.

To support businesses in the development of these new technologies, ATEED is a partner in the Ministry of Science and

Innovation’s TECHNZ programme. What that means is business can

approach their local offices and gain support to apply for technology development grants. These grants are applicable when the business doesn’t have the specialised technology in house and requires the knowledge of external experts to prove or support the development’s technical feasibility.

The grants can range from very small concept investigatory grants to clarify that no one else owns the intellectual property already. Larger grants of up to $60,000 are able to be processed by the partners. For even bigger technology research applications, the TechNZ partners can screen the initial concepts and applications.

To understand your eligibility, make contact with the nearest ATEED in Auckland or the Economic Development Agency office near you. For further information go to http://www.frst.govt.nz/funding/business/partners.

Business capability Is another key issue for business

survival and growth. Running a business today requires a very wide range of skills in management, production and marketing. ATEED arranges for eligible NZ businesses, being under 50 FTE, to receive the NZTE Capability Development Vouchers.

This begins with a capability assessment for management and across the company. The application of this funding is for increasing the skills and competency within the business.

Some of the activities businesses have been supported with under this programme have been management development programmes, staff development for succession planning, and productivity. This programme is an NZTE programme

and delivered in partnership by ATEED.

http://www.business.govt.nz/growing/assessing-capaci ty-and-capability/nzte-capability-development-vouchers.

Awards We tend to think of these as the

glamour dinners and the newspaper announcements. They are more than this. They are an in- depth business process of self assessment that is then judged by a group of independent judges. Many businesses have used this programme to find the gaps in skills and capability then work on these for a year or two before putting in an entry.

Networking events and meetings

Of various forms, with a generalist focus or a very specific purpose, take place across the Auckland region for businesses to participate in. Knowledge is shared, businesses get to know each other and discuss and deal with localised business issues. To ensure you are getting information on these activities and when they are happening make contact with your nearest local office and ask to be put on the data base. South 09 262 2244 West 09 839 0880 North 09 414 1341

Manufacturing sectors development programmes

These ATEED programmes fall into four main development focuses and a number of interrelated enabling activities.

The four main manufacturing focuses are food and beverage processing, marine/boat building, health technology and specialist niche manufacturing. These are supported by related enabling activities of the bio network, the ICT network and investment network.

Within the sectors programmes

there is a diversity of activities. Each of the activities comes from in- depth engagement and knowledge of the businesses. This is where the challenges to growth are identified.

Specialised sector export ready programmes, waste management projects, new innovation scale up centres, productivity programmes, value chain development, industry wide succession planning, distant market access, are but some examples of the sector specific activities ATEED has identified as needs and worked on providing solutions and programmes to make our businesses more competitive and smarter.

On a more ad hoc basis, ATEED sector specialists are the conduits for information across the business sectors linking partners to: new concepts, enquiries from exporters, maintaining a source of information on such things as where, when and how to access such things as the above business support programmes, the Export Guarantee Office, information on some of the most frequent trading partners compliance regulations, introducing valid international buyers to the manufacturing businesses, supporting business associations, trade missions and international trade fairs etc.

There are also semi -regular sector events and training programmes developed to respond to the current identified need, or at the request of a group of companies.

An example of these types is an Intellectual Property Management seminar and follow up. This looked at not just patents, but copywrite and managing trade secrets in a business environment.

nextSTEPFor enquires on the manufacturing

sector and its services for businesses in Auckland please contact:[email protected]

ATEED supports business growth



AUCKLAND MANUFACTURERS Good is not good where better is expected.

– Thomas Fuller

www.nz.sew-eurodrive.com

Rollforming Services (RFS) was established by Howick Ltd for customers who required rollformed products and

engaged Howick Ltd to build machines for that purpose.

With a number of clients requiring this service, a specialised factory was set up in 1996 to cater for demand and allow Howick Ltd to return to their core business of engineering machinery.

RFS has continued to grow and is a leading supplier in the Top Hat purlin market providing a quality product to resellers New Zealand wide. RFS also supply manufacturing resource to

Speedfloor Ltd, a product which was reputedly not possible to roll due to the tight radius and high tensile strength of the raw material.

In addition to these products and services, RFS manufacture and supply numerous sections for customers including plain and lipped channels, playground sections, radiator headers,

fencing sections, roller door guides and many other specialized profiles to clients in both New Zealand and Australia.

In 2003 the company moved into a new purpose built facility in East Tamaki incorporating three 5 tonne gantry cranes and space to develop its steel frame, joist and truss systems.

This division of RFS has grown substantially supplying engineered steel framing systems to residential, commercial and industrial clients. As a result of our proven track record in this industry and the growing demand for steel framing solutions, RFS have been nominated as the supplier of steel frame and truss to Placemakers nationwide.

The RFS Detailing Hub provides domestic and international clients with steel frame system designs, engineered and ready to submit for building consent. This service when combined with our manufacturing capability makes RFS a leader in this area.

To date, the company has continued to obtain new markets whilst continuing to grow, along with its partners. Their commitment to providing clients with quality products and superior service to meet the challenges of the ever evolving market place.

Funny what success can do

Confused by the plethoria of regulations around the world for motor efficiencies for different countries?

The answer for Iphone users is the free app from SEW-Eurodrive available from the Itunes App Store.

SEW-Eurodrive are the first to provide an app in the field of electrical drive technology. The app will help you find answers on questions as to what energy efficiency class will become mandatory when and in what country.

Use the “IE Guide” to obtain information on the new global energy efficiency regulations for energy-efficient motors quickly and easily. This is yet another feature of the extensive range of services of

SEW-Eurodrive, a market leader in drive technology.

The IEC 60034-30 standard specifies the efficiency classes for low-voltage AC motors and standardises the previously different local regulations. The minimum efficiency classes og the IEC 60034-30 standard were defined for the following motors;• 3 phase low-voltage motors with

a line frequency of 50Hz or 60Hz• 2, 4 and 6 pole motors• Power range 0.75 to 375kW• Line voltage up to 1000V• S1 duty cycles (continuous load

The standard specifies four efficiency classes (IE = International Efficiency• IE4 = Super Premium Efficiency

• IE3 = Premium Efficiency• IE2 = High Efficiency• IE1 = Standard Efficiency

With energy efficient motor of the modular DR motor system (DRE

New free Iphone Apps from SEW-Eurodrive= IE2, DRP = IE3) as well as the mechatronic drive system Movigears (IE4), SEW-Eurodrive provides an extensive range of products to meet these energy efficiency regulations.

SEW Diagnostics:Your frequency inverter from

SEW-Eurodrive (Movitrac B, Movidrive B or Movimot® signals an error and you need quick support in diagnosing the problem?

For IPhone users, this app supports you quickly and easily in determining the possible reasons for the error at any time and any

location. All you have to do is enter the displayed error code to the controller type and quickly get a list of possible causes with matching solutions. Save time looking for the missing Operating Instruction Manual which is never where you think it should be.

Download the free app from the ITunes App Store today.

nextSTEPVisit: www.nz.sew-eurodrive.com



AUCKLAND MANUFACTURERSI found it easier to get rich than I did to make excuses. – Jim Rohn

www.rollforming.co.nz

Grant Simmonds, GM industrial (left) with Logan Lindsay, production manager.

Kiwi manufacturers achieving and maintain global excellence, plus ‘the team’, which has only lost one member over 17 years.

Which brings us to the name change to Nexus Foams, suppliers of smart foam solutions, through a sophisticated-but-not-ostentatious head office and clinical factory in Highbrook Estate, Auckland, a matching facility in Christchurch, which has been largely spared; and, because he is obsessive about having back-up at all times – “the only way you can truly guarantee your commitment to clients is to have a mirrored operation” – Nexus Foams now has a JV with another NZ manufacturer in Thailand.

“Those Christchurch guys have been fantastic. In the first three months since February, they’ve actually exceeded budget and goals every time. That’s stunning. Their commitment in the circumstances is phenomenal,” Davenport notes.

By now you’ll probably have worked out why ‘nexus’ was chosen to take the company into its third phase of development; which has seen them move into markets in the US, Australia and Asia, where as the founder puts it, “Nexus extends the same strategies and practices to deliver smart and competitive solutions, as we build on our product and materials’ range, backed by innovative design and great customer service.”

Here he is on ‘nexus’: “It encapsulates the coming together of our product range, systems and processes, knowledge, efficiency and, of course, our underlying focus on solving our customers’ problems. We truly believe anything is possible in the world of foam, fibre and flexible polymers.”

The Nexus Foams’ mantra is: ‘understate and over-prove’. And, at all times, ensure the customer gets exactly what he wants a little before he expects it. They’ve lived by it from Day One and whoever you talk to in the complex, has totally bought into it. They’ve seen how it works.

Davenport travels the global markets, even a low-cost one like Mexico; comes back and challenges the team to come up with a solution for a new customer; and, typically, beats

out the Mexican bulk manufacturer ‘with Kiwi skill and ingenuity’.

“I do not believe in the number 8 wire mentality…..any more. I think Kiwi intelligence and ability to apply the generalist skills is what sets us apart in so many areas.

“New Zealand manufacturers must aspire to become ‘superb generalists’, initially because of the size of our market and, on the plus side, our traditional quality craft and engineering skills and early uptake on technology. Kiwis are innovators. Lateral thinkers. It means we should foot-it in any niche in any market, solve a problem and we are in – especially since, in our case, an empowered team in the factory will shave the ongoing costs of that solution to help our customers grow over time, in the bigger markets abroad.

“That’s what Nexus Foams is about.

“We have never been a nation of mass manufacturers,” says the entrepreneur, who got fired in the early years for telling employers not to waste their companies’ time and money on “opportunities” he could tell from research, simply weren’t there.

“NZ manufacturers need to be reminded that we will always be competitive when it comes to design, quality, stability and, of course, exceptional customer service – and providing intelligent solutions. That’s what all customers want, wherever they are in the world,” Davenport says.

Nexus Foams have put their money, resources and their focus where their mouths are, as they go global – but, as you are immediately reminded – without impacting on their ability to service the mother market. That’s in their DNA. This brings us to ‘lean’. Having

harboured a low opinion of the ISO rating system for many years – “too many incompetent suppliers and competitors have them” – Davenport and his team have raced recently to the 9001 version in a mere six weeks. And they have been working with the Kaizen Institute to absorb lean manufacturing and management alongside their established track-record for quality manufacture.

Like everything else they do, there is an enthusiastic and holistic adoption of the philosophy and practice. Take a look at the photograph (above) which shows a workstation tool board, symbolic of a mind-shift that’s already intuitively up-and-running, alongside the terminal. (Each member of staff has a ‘dashboard’.)

“One of the guys came up with cut-out foam board, as a way of improving his productivity by always having handy, all the tools and appliances needed to perform his role, 100 percent. In no time at all it was adapted and adopted, and we believe we have a new product we can tailor for our customers: everyone who sees it says: ‘I must have one’,” says GM Grant Simmonds, clearly pleased that the message has clearly come home.

Production manager – industrial, Logan Lindsay, volunteers too that not only does it improve productivity, but also cuts costs, by cutting out unnecessary and dating tools and aids expiring in workstation drawers.

“One of our chaps had been stockpiling so many pens that he was embarrassed to hand them all back

at once, and has consequently been dribbling them back to the stores,” he grins.

How many millions of dollars worth of gear is lying in New Zealand drawers and shelves – “because I can never find one when I need it”.

Needless-to-say, Nexus has immersed itself so totally in the lean philosophy and practice that he now wants to help promote it more widely in support of his ‘Kiwi can do’ beliefs and Nexus Foams commitment to productivity and International competitiveness.

To that end, the functional boardroom we meet in is to become a training-room and if (can you even think of doubting?) Nexus Foams succeeds, the factory will soon be viewed in the same light as the now iconic, Stainless Design operation in Hamilton.

“We would like to catch-up and then keep keeping-up with them. That would be a great challenge for us,” says Davenport.

To a person, they are competitive. Their ideas of company fun are focused on innovation and competition – including the ‘impossible’, the Red Bull ‘see how far you can fly off a bridge’ competition. They’ll take on any challenge in a spirit of fun and commitment.

There is so much more to tell. But that will keep. As you’d expect, they have a stylish and comprehensive website. Look them up; you’ll be amazed at the imagination and range of their products and designs.

Or phone them, by the way it must be answered by the third ring.

From page 1

A passion for world-class manufacturing service

http://www.NEXUSFOAMS.COM



AUCKLAND MANUFACTURERS Perseverance is not a long race; it is many short races one after another.

– Walter Elliott

www.velocitytrade.co.nz

A leading foreign policy expert says it’s time for New Zealanders to think more broadly about this country’s

engagement with trading and security partners in Asia.

Professor Robert Ayson of Victoria University’s Centre for Strategic Studies, says that while New Zealand’s economic and security interests have been encouraging a closer connection with Asia, we also need to be emphasising common values with our Asian partners for stable, long-term engagement in the region.

“At the moment we are heavily focused on how New Zealand can boost its prosperity. That seems to be the driving factor in our regional engagement,” says Professor Ayson, who will deliver his inaugural professorial lecture on Tuesday 19 July.

“We’ve had the global financial crisis, the Christchurch earthquakes, a couple of years of slow growth—the Government is understandably very focused on what our international connections can mean for advancing our economy. This encourages us to think about our material interests as we engage Asia, but where do we end up when we add values into the mix?”

Professor Ayson says that while our engagement with Asia can be justified on interests alone—our prosperity and security depend on it—emphasising shared values can help deepen cooperation.

“If we want a sustainable long-term approach that is going to cope with the swings, shocks and crises of international relations, then we need

to look seriously at the values that motivate us, as well as the interests.”

He says that we often find it easier to talk of values with traditional partners such as Australia, Britain and the US.

“When engaging with these like-minded countries we speak naturally about shared values, but we also need to think about the values we share with Asia’s rising powers who are changing the region we are part of.”

He says finding common ground with our newer partners in Asia is challenging, but not at all impossible.

“I think we do have common values. We share democratic values with the likes of India, Japan, Korea and Indonesia for example.

And in its deeper engagement with the global economy China is increasingly part of a rules-based international system. There are also the values that are implicit in free trade and open access and the avoidance of armed conflict that we share with many of those countries.”

Professor Ayson says New Zealand’s engagement with a changing Asia will be our most important foreign policy issue over the next 50 years.

He says New Zealand and Australia have an interest in seeing the US and China accommodate each other so as to avoid conflict, and should therefore emphasise the values in our foreign policy that help facilitate this.

Beyond interest—deepening our engagement with AsiaProfessor Ayson agrees that

putting values in foreign policy can sometimes cause division, rather than cooperation.

“There are the arguments that we should only engage with democracies, or that we shouldn’t engage with China because of its human rights record. These arguments don’t dominate the current debate. But public sentiment could make these real issues again, and so I think we need an approach which is ready for that challenge.”

He says he wants to go beyond the argument that an emphasis on values may harm some of our economic and security interests and prevent us from engaging with some of the countries that matter.

IN BRIEFGrowth in business confidence not reflected in hiring The latest research by leading fi-

nance and accounting recruiter, Robert Half, shows confidence is returning to the New Zealand business market. Despite the positive outlook, hiring predictions for the second half of 2011 remain modest.

Nine out of 10 hiring managers surveyed were confident in their company’s growth prospects over the next 12 months but this confidence is not mirrored in the corresponding hiring predictions.

Managers reported just a net four per cent rise in plans to increase the number of full time, permanent staff in finance, accounting and banking roles in the second half of 2011.

Hiring managers who are intending to hire are doing so to help

ease the workload of existing staff members (51%), while 41 per cent of new hires will involve tackling a new project or initiative and 32% will help grow the business.

Sixty-six per cent of employees reported their workload had increased in the last 12 months, with 27 per cent of those saying their workload had increased ‘significantly’. This suggests that people are already overstretched and may not be able to cope with increasing workloads that will eventuate if companies do not grow staff in line with the confidence level.

l l l l

MFAT launches Trans-Pacific Partnership web columnThe Ministry of Foreign Affairs

and Trade (MFAT) has launched

a new web column to open up the conversation around the Trans-Pacific Partnership (TPP) free trade agreement negotiations.

The column is written from the perspective of the New Zealand negotiating team to keep you up-to-date with developments in the TPP negotiations involving Australia, Brunei, Chile, Malaysia, Peru, Singapore, the United States, Vietnam and ourselves.

The column highlights major pieces of commentary on TPP and aims to provide fuller information on New Zealand’s approach and the reasons behind it.

MFAT sees this as a complement to what is already being done to engage with those who have a stake in negotiations. It remains keen to get input from stakeholders as the negotiations move forward, and you can find more about this in TPP Talk.



AUCKLAND MANUFACTURERSYour big opportunity may be right where you are now.– Napoleon Hill

If you are one of those people who ‘just know’ that the bank will always give you the best foreign exchange rate when you import machinery or are sending

off an exhibition stand to an international tradeshow, prepare to be disappointed.

That’s the claim of Sargon Elias, GM of Velocity Trade, and someone who has done his time in the foreign exchange market internationally and in New Zealand.

And if you think he is shaving a margin and making a lot of noise, how about this for a statement to make you think again: “If your company has hired someone from the UK and they are selling a GBP400, 000 home (an average price), you can tell them the difference between going via their bank or using our services will be that they can buy a fairly decent second-hand car when they get here with the savings they’ve made.”

That got your attention?Velocity Trade Limited is a New

Zealand-based foreign exchange company, FMA approved, part of Velocity Trade International – originally founded in Canada in 2007 – with offices in Toronto, London, New York, Auckland, Sydney and Cape Town.

Their “secret” or the basis of their ability to trump your local bank is they have “global access to wholesale interbank rates and advanced trading platforms” with relatively miniscule overhead, according to Elias.

Clients using their services get the rate at the exact moment they strike the deal, rather than a bank rate,

which is fixed for some 24-hours or more.

“Obviously, the larger the sums involved are, and the frequency thereof will dictate an even better deal for you,” says Elias, “and unlike the banks we are flexible when it comes to deadlines – within reason. But if you are, say, a day late with assembling your money, we won’t make you start all over again at a new rate. The one you secured with us at the outset will stand.”

So, let’s get down to the nitty-gritty: given they are not a charity, how do they make their money?

“Our online platform is designed to give our customers control over the transfer of their money (you need to be computer-savvy enough to use Trade Me, to establish a reference point on that front) and empowers them to choose the exchange rate they want, when that rate is ‘best’, rather than just having to accept the one the bank gives them – ‘take it or leave it’ style.

“Banks get their rates from the interbank market, to which they first add a margin of up to 2.5 percent (ours is 0.3 percent, on average) and then they charge a fee for each transfer made, usually from $15-$25. We don’t charge any fees. It is the ‘last opaque frontier in banking’.”

What about security then?“Two large and reputable

financial institutions, one Canadian and the other Australian, have a significant stake in Velocity, but more importantly, since we don’t earn interest on client funds, we never hold these funds in our account, but simply facilitate the deal between yourself and whoever it is that you are transacting with,” explains Elias.

“By all means go to the banks for

Don’t get ripped-off on your next foreign exchange deal

Sargon Elias (left) GM Velocity Trade Limited with Laura Dolphin, marketing executive, in their Auckland CBD online facility.

‘convenience items’ such as cash and cash cards, but stop getting ripped off on the big transactions, which all Kiwi manufacturers get involved in, whether it’s machinery, licence payments or imported materials and components. When you are next planning to do that, go online to our website, compare our rates and then call up your bank and have a chuckle as you work out what you’ve saved.

“The more frequent the transactions you make, the more money you save which you can invest back in your business. It’s our way of supporting New Zealand manufacturers.”

nextSTEPwww.velocitytrade.co.nz

If you think that the bank will always give you the best foreign exchange rate when you import machinery, prepare to be disappointed.

WWW.NEXUSFOAMS.COM [email protected]



AUCKLAND MANUFACTURERS Luck is what happens when preparation meets opportunity.

– Lucius Annaeus Seneca

With the economy still spluttering back into life plus the impact of the Christchurch quakes, you’d likely anticipate

life and prospects at not-for-profit Skills4Work, one of our pre-eminent training establishments, would be pretty grim. And you’d be very wrong.

Under the established leadership of Rosalie Webster, the organisation reported on a most successful year, to its membership at a well-attended AGM in Auckland in early July. The Ellerslie Event Centre meet just happened to be the day after the first successful training programme in the latest Skills4Work venture – the Lean Gemba Academy in the Waikato, linking the established partnership with the Kaizen Institute NZ (now integrated into the organisation’s Mt Wellington premises) to John Cook’s now-legendary Stainless Design Limited’s award-winning factory in Hamilton.

“Trainees receive the benefit of many proven and robust workplace productivity programmes, with advanced Kaizen approaches and techniques, which are then either demonstrated, observed or applied in the Stainless Design factory. ‘Gemba’ is a Japanese term meaning ‘the real place where value gets added, and where the work gets done’,” says Webster.

Skils4Work remains committed to building high-performance organisations which will move New Zealand into the top quartile of the OECD, when it comes to sustainable productivity gains, through continuous improvement – “essential to the future success of this country”.

The organisation offers the total package from literacy and numeracy – they are one of, if not the leading supplier of same – to boosting the performance of Gateway and Star products in schools and on through distance learning, adult education, shop-floor-based training to “Business Improvement”, which Webster describes as “the most powerful productivity programme available”.

And all part of an “Integrated Learning Solution” package, which moves clients from foundation skills through to management and finally onto leadership; which is where KINZ has added to its capability.

Skills4Work is also concentrating on improving the country’s support services with a focus on “maintenance excellence”,as well as bringing balance to the social issues in the workplace.

“We can play a leading role in growing New Zealand’s economic wealth. Our mission is to transform industry and to create better working lives. We can do this by developing the highly-skilled, innovative workforce that this country needs to compete in the global marketplace.”

She also noted that ProMapp, a Kiwi software system which offers a touch screen module and has already attracted significant interest abroad for its ability to turn the traditionally wordy and often out-of-date process manuals into simple, smart and visually effective guides, on screens, in the workplace or factory floor.

Ivan Seselj is the director of the Auckland-based ProMapp, a Deloitte Asia Pacific Technology Fast 500 company, which was previously rated in the New Zealand Fast 50 category too.

Promapp, simply put, is web-based software which helps companies build, improve and share their process knowledge from a central, online repository.

“Write your process in words and Promapp does the rest – it generates process maps from text. It allows you to stop moving boxes and arrows around a page and start improving processes,” he says.

Seselj believes processes which are easily understood, and readily changed by process-owners are “useful and help drive change, rather than hinder it”.

Features he highlights include:* Easy to use for the whole team* Process maps generate directly

from the text* Simple process map format* Drill-down to detail, related

documents* “Change tracking” for every

change recorded* Browser-based, easy roll-outHe points out that the company,

which started back in 2003 has

grown steadily with a client base that stretches from local manufacturers, with say 30 staff, to global organisations, such as risk management giant, SAI Global, which credits Promapp with “making it easier to understand and improve processes”.

According to a SAI Global statement: “Promapp has delivered us the perfect solution. It’s really made a difference for us. Having the major challenge of offices across the globe, more than 1,000 staff, and different technology platforms, SAI Global Assurance Services had a tough job to implement a single global process management system. Promapp is delivering the perfect solution - with real business benefits.”

Promapp recently announced a partnership with SAI Global in which that company secured distribution rights for Australia and their global client base.

Seselj again: “Why would you use tools that only specialists can understand? Empower your teams to own their processes with Promapp. Your process owners can finally take accountability and drive process improvements,” he says.

The Promapp Touch screen is designed to make it as easy as possible for teams to learn and execute processes safely and correctly.

“Content is made up of step-by-step instructions, supported by short videos and clear pictures. Touch the screen to select your process; then the specific numbered step; and then to play the instructional video. And this content is all created using the existing, simple Promapp online editor. Just tick on the touch screen checkbox to publish to touch screens,” says Seselj.

The company offers a “break-through” Risk and Compliance module and a Process Approval

Workflow module, in addition to the touch screen module.

Rosalie Webster (left) and Ivan Seselj, ProMapp(behind screen) share a discussion on the touch screen module demonstrated at the Skills4Work AGM.

Rosalie Webster CEO Skills4Work addresses the AGM.

Skills4Work is concentrating on improving the country’s support services with a focus on maintenance excellence.

Skills4Work adds leading-edge partners in 2010/11By Kevin Kevany



Defeat is simply a signal to press onward.– Helen Keller COMMENT

The most recent PMI (Performance Manufacturing Index) in March, one month after the Christchurch earthquake, showed a country

of two halves. The North Island was just in positive territory, but the South Island had slipped back into contraction and sentiment from the whole South Island had taken a dip.

We also heard from the Otago Southland Chambers of Commerce that all the usual training activity had ground to a halt in Dunedin, as businesses in that region reacted to the enormity of what had befallen the South Island’s biggest city and commercial centre.

Feedback from the Canterbury Employers Chamber of Commerce and the Canterbury Development Corporation suggest that Christchurch itself is a city of two halves. The manufacturing sector has (by and large) escaped the worst of the earthquake, being largely situated outside the CBD and the damage was mainly in the East, between the CBD and Lyttelton Tunnel, being referred to as “the blast zone”.

For those in the affected part of the city, clearly it has been not good news, but the majority have been back at work quite quickly, and the next challenge they faced was letting their customers know they were still open for business.

NZTE did a good job in assisting the exporters with this task, making grants available for exporters to visit their customers in overseas markets to reassure them they were still in business and keen to do more.

Staff rose to the occasion in difficult circumstances

After the quake - what it takes to be successful…

By Catherine Beard, executive director Export

NZ and Manufacturing, division of Business NZ.

With global supply chains and ‘just in time’ manufacturing now being a norm, manufacturers were all very conscious that their problems could not become their customers’ problems, and some manufacturers that did have significant damage shifted heaven and earth to meet their commitments.

In addition, staff rose to the occasion in difficult circumstances. Guy Stewart, MD of SKOPE Industries Ltd said although they did not suffer any significant damage at the firm, many employees turned up for work very soon after the earthquake despite some having experienced damage to their homes.

He was grateful that although he and some staff had experienced property damage, no family or staff was hurt badly in the quake. He says ironically, work has become a place of normality for those whose property was affected and coming to work provides the calm and stability that people normally get when they are at home.

At BusinessNZ we have been actively thinking about how to advertise that Christchurch manufacturers are still in business, since we know that the best remedy for Christchurch will be the economic success of Christchurch business. BuyNZ Made, which

is part of BusinessNZ launched a Love Christchurch Made Campaign www.lovechristchurchmade.org.nz .

Canterbury businesses can get the marketing collateral from the website to encourage people to buy from a Christchurch based firm.

We also have a section on our national manufacturing website where we are happy to list contract manufacturers www.manufacturingnz.org.nz and if any manufacturers around New Zealand want to help a Canterbury manufacturer by working with them, check out the list of manufacturers at www.recovercanterbury.org.nz and look under “open for business”.

Apart from the subject of the earthquake, I asked Guy Stewart, MD of SKOPE, one of New Zealand’s most successful manufacturers in refrigeration and heating, what his prescription was for success.

He notes that it is extremely hard to be a manufacturer in New Zealand, since most manufacturers are competing in well established markets where there is a lot of competition.

“The cost of manufacturing is high in New Zealand relative to our Asian competitors, so to survive in New Zealand manufacturing you have to be able to have a mix of low cost and high value manufacturing.

Manufacture the high volume low cost aspects with a manufacturer that is suited to that, and keep the high value aspects in New Zealand, where the focus should be on design, innovation, creating sexy products that the customer will pay a premium for.”

Guy Stewart says SKOPE is in

the business of solution provision. For example, if they can design and deliver an uber cool refrigeration cabinet that sells more drinks because the product is so well lit and looks so enticing to the customer that the beverage retailer gets a 5% increase in sales with a SKOPE unit, then SKOPE has a winning formula.

“It’s all about understanding the psychology of the customer that wants high end value, selling a dream and having the conviction to believe that if you create a product that meets their needs over and above the competitor products, the customer will be prepared to pay for it.”

www.promapp.co.nz



MANUFACTURING TECHNOLOGY If a window of opportunity appears, don’t pull down the shade.

– Tom Peters

www.cogita.com

After adding FeatureCAM feature-based CAM system, Bruce Waugh has been able to move into 3D machining in the

one-person machine shop, Waugh Machine, he runs in his garage. Until two years ago, he turned down jobs involving 3D parts because he was unable to program them. Now he can produce any part that fits within the capabilities of his two Haas Minimills.

In addition, the feature-recognition capabilities within the software have reduced the time required to program typical 2.5D parts from one hour to ten minutes.

There is a common misconception that only large companies can benefit from introducing CAM software. Examples like Waugh Machine prove that even the smallest operations can also boost their capabilities and productivity with these systems.

“FeatureCAM has changed the nature of my business,” claimed Mr. Waugh, who has been a machinist for 35 years. “Because I can now do more complicated parts, I have been able to raise my rates while running my machines at full capacity. My customers are more than happy to pay my new rates because I am able to deliver a higher level of quality on more difficult jobs.”

Mr. Waugh’s two main customers are a large medical-device manufacturer and an aerospace subcontractor. “The aerospace manufacturer usually gives me drawings,” he said. “Sometimes these are up to 60 years old.”

“The medical-device company used to give me drawings as the starting point for contract machining jobs,” he added. “One day, the customer told me that it was going to do away with drawings and begin providing CAD files. I saw this as the writing on the wall for 2.5D programming and made the decision to upgrade to FeatureCAM

With FeatureCAM, Mr. Waugh can now programme anything that can be

machined on his Haas Minimills

FeatureCAM enables move to 3D machining

with its feature-recognition and 3D-surfacing modules.”

Mr. Waugh now regularly produces parts with profiling and 3D surfaces. “I get several parts a month with 3D surfaces and I enjoy doing them,” he said. “I also do many parts I could have done in 2.5D in 3D. It may take a bit longer because I use a small ball-nose end mill rather than a larger radius cutter but 3D often lets me produce the entire part with a single tool in a single set-up. This means I can set the machine up and let it run while I do other things such as quoting a job or programming the next part. The ball-nose end mill also provides a better surface finish than the radius cutter.”

FeatureCAM has also substantially reduced the time required to program 2.5D parts. “It used to take about an hour to program the typical 2.5D part,” explained Mr. Waugh. “The automatic feature-recognition capability of FeatureCAM reduces programming time to only about ten minutes. It’s impossible to make this kind of comparison on 3D parts because I was never able to program them before I had the software. Now, I can program 3D parts almost as quickly.”

Successful implementation of new generation inductive power transfer technology in wind turbines highlights advantages of wireless power in difficult industrial environments

PowerbyProxi, a leader in high-efficiency industrial wireless power solutions, has announced the successful trial of the Proxi-Ring 480, a contactless slip ring made in New Zealand that provides wireless power and data to pitch control systems that drive blades in wind turbines.

The Proxi-Ring 480 makes wind energy generation more cost-effective by increasing uptime and reliability and eliminating costs of maintaining and replacing mechanical slip rings.

Details of the trial were announced at the Windpower 2011 Conference & Exhibition in Anaheim, California.

Fady Mishriki, VP of PowerbyProxi, says, “Our contactless slip ring has been working flawlessly ever since installation in a hydraulic wind turbine in Spain eight months ago. It replaced a mechanical slip ring which was causing problems several times a week and this frequency was increasing as the turbine aged. These faults are very hard to diagnose due to their intermittent nature and as turbines are stationary when tested. We set out to prove our wireless technology delivers significant benefits over mechanical slip ring technology and we’ve done that.”

The Proxi-Ring 480 passes the required level of power and communication signals wirelessly and without friction. Proxi-Rings allow 360? continuous rotation and are corrosion-resistant and waterproof.

Unlike mechanical slip rings they do not require cleaning or maintenance as contaminants like oil or brake dust do not affect operation. PowerbyProxi has spent 18 months developing its world leading wireless power solutions featuring Proxi-Wave and Dynamic Harmonization Control technology for the wind industry. The technology is currently in use or trial with a number of FORTUNE 100 companies.

PowerbyProxi have achieved similar success using other wireless power solution platforms in a wide range of industrial applications including aerospace, off-road vehicles, security systems, battery recharging, sensor networks, hydraulic actuation, hydraulic control and slip ring replacement.

Fady Mishriki says, “By unplugging the power cable we provide customers with solutions that solve continuity of delivery and maintenance pain points and simplify the implementation or installation process. Our solutions also create unique competitive advantages in the design, operation, and convenience of products which deliver significant cost savings in installation and ongoing maintenance over the lifetime of the product.”

PowerbyProxi enables world’s first wirelessly powered wind turbine

SolidWorks World 2011 was the 13th annual gathering of customers, partners, re-sellers, and employees of DS SolidWorks,

maker of software for design, simulation, data management, technical communications, and sustainability assessment.

SolidWorks World 2011 hosted more than 4,500 attendees including engineering and design professionals, students, educators, partners, resellers, and DS SolidWorks employees from around the globe.

Key note speakers included: • Jim Lovell and Gene Kranz, who

flew on the Apollo 13 mission • Bernard Charles, president and

CEO of Dassault Systemes • Jeff Ray, Executive VP, Geographic

Operations, Dassault Systemes

• Bertrand Sicot, CEO, Dassault Systemes SolidWorks Corp

• John Hirschtick, Founder and Group Executive, Dassault Systemes SoldWorks Corp

• Casey Pieretti and Bill Spracher, Bionic BuildersThe conference included

numerous partner exhibitions, information sessions, training and certification, product launches, networking sessions, a special guest appearance from notable actor Kevin Bacon, as well as SolidWorks’ youngest user, and even a special event night including a live band, and a professional bull riding contest!

Products Launched included:• n!Fuze – an effective online

application that makes the process of sharing files and collaboration

SWX World huge success

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Greatness lies not in being strong, but in the right use of strength.– Henry Ward Beecher MANUFACTURING TECHNOLOGY

Essentially a fibre laser uses single emitting semiconductor diodes as the laser light source. The laser beam emitted is contained

within optical fibres and delivered to the cutting head.

The first reason a fibre laser is useful is because it is stable. On a fibre laser to direct the beam to the cutting head we just simply run the optical fibre to the desired position; bending the fibre is no problem and the laser power is safely contained. A CO2 laser uses mirrors to direct the beam, but these need to be very finely aligned. So CO2 lasers are very sensitive to being knocked or banged, and once the optics go out of alignment it takes a specialist to sort them out. With no need for mirrors a fibre laser is almost completely maintenance free. The second reason is a fibre laser has exceptional efficiency and is significantly cheaper to run over a CO2 laser. A fibre laser uses far less electricity to generate the beam over a conventional CO2 laser. Typically over 30% reduction in wall plug

electricity consumption is obtained. This dramatically reduces running costs. Furthermore a CO2 laser consumes significant quantities of gas to generate the beam. A fibre laser requires no gas to generate the beam and the estimated diode lifetime is greater than 100,000 hours.

The third reason a fibre laser is useful is because the beam quality is so high. The beam is generated and confined inside the small core of the fibre. In practise, this means that the beam is very straight, and that it can be focused on a very small dot. The smaller the dot, the more effective the laser will be for cutting. The fourth reason is that they are very efficient and easy to cool. CO2 lasers are only able to convert a small percentage of the power put into them, but a fibre laser converts around 70-80% of the power put in. The fibres can be quite long, up to 100 metres, and the heat is distributed over the length of the fibre, which protects the fibre from getting so hot that it breaks. The fifth reason is a fibre laser has

a different wavelength to a CO2 laser. Even though aluminium is a soft material a CO2 laser struggles to cut it. This is because the molecular structure of aluminium gives it a high reflective property at the CO2 laser wavelength. The fibre laser wavelength significantly improves aluminium cutting.

An investment in a Durma fibre laser cutter offers unbeatable savings over a CO2 laser with typically over 30% reduction in wall plug electricity consumption possible.

Maintenance Free Operation• Estimated Diode Lifetime >

100,000 hours (No periodic part replacement required)

• No mirrors on the beam path thus no expensive periodic replacements, no dust cleaning, and no realigning due to mechanical movements.

• Fibre laser lens durability is typically between 1.5 to 2 yearsThe Durma HD-F series fibre

laser is a true plug and play machine.

The Siemens 840D controls the X, Y & Z axis head movement via servo motors on a rack & pinion drive (standard) or linear motor system (optional).

The operator interface has a complete cutting library for all standard applications. The operator can interrupt the cutting operation at any time. The HD-F series runs the IPG fibre laser source.which was chosen because they are the world leader in high power fibre lasers and amplifiers.

They pioneered the development and commercialisation of fibre lasers and are the only company that controls the performance, cost and yield of both active fibres and semiconductor pump diodes - the core technology of fibre lasers.

The HD-F series come standard with an over / under twin pallet change system for maximum production to magnify return on your investment. nextSTEPContact: [email protected]

New technology with fibre laser cutters

The HD-F series Fiber Laser offers great cost saving and faster cutting on thin sheets (<10mm).

Polyamide Cable Protection:30 years of experience, now ATEX 95 certified

Products for the protection of cables, wires and hoses against not only mechanical damage but also the influences of UV radiation, weathering and chemicals.

Products made of specially modified, load discharging Polyamide materials (PA11, PA12) for use in explosion endangered zones 1/ 21 (gas / dust)

TEL: 04 566 5345 • FAX: 04 566 [email protected]

between large teams very simple.• SolidWorks Live Buildings - a

brand new 3D conceptual design tool for the architecture and construction industry

• SolidWorks 2012 enhancements driven by customer insights - including improvements for creating balloon order, magnet lines, view label reuse, a costing analysis tool, sheet metal enhancements

• The top ten list of enhancements as requested by customers on the SolidWorks forum – including

angle mates that don’t flip at random, file compatibility between versions, converting a solid body into a surface body without having to delete, offset, or knit faces, enhanced equations input, and editing and linking. Solidtec Solutions was also

announced the winner of Top Reseller Highest Customer Satisfaction Asia 2010.

Solidtec was founded with a clear vision to offer customers best in class service, support, and back up.

X



BUSINESS NEWS It still holds true that man is most uniquely human when he turns obstacles into opportunities.

– Eric Hoffer

[email protected]

www.hiq.co.nz

Readily available legal synthetic cannabis products are posing significant dangers for workplaces and workers, says

one of New Zealand’s leading workplace behavioural healthcare companies.

Instep Limited’s chief executive Matthew Beattie says, “The rapidly escalating use of Kronic, Spice, Dream, K2 and other synthetic cannabis products now has major implications in the New Zealand workplace.

“Not only have employers a responsibility to keep the workplace safe, but also they have the onus of individual worker safety – helping the employee to look after themselves. Synthetic cannabis is currently a legal drug and its use poses significant risks to the workplace. For an employer it is not about legal or illegal, it is about safety and managing workplace risk – after all, employers are expected to manage the impact of alcohol in the workplace. We believe that employers need to take a strong position on the issue of synthetic drugs at work.”

Kirk Hardy managing director of the NZ Drug Detection Agency agrees with Instep’s concerns. “We work very closely with high-risk industries such as aviation, transport, civil engineering and mining companies with their employee drug testing programmes. The negative effects of Kronic and other similar drugs have become very visible in the last nine months. Testing for these legal synthetic cannabis products has only recently become available and we’re now seeing more corporates wishing to include these legal drugs in their on-site workplace drug testing regimes.”

The effects of taking synthetic cannabinoid products mimic the effects traditional cannabis with users experiencing euphoria and paranoia. However, Kronic and others are anecdotally known to be much more potent than illegal cannabis.

Kirk Hardy says that he’s seen up to 20 times stronger effects from Kronic users. “Employers need to draw a line in the sand now. Using the analogy of alcohol – which is

of course also readily accessible - employers must take a stand.”

A recent number of random specimens taken from a specific sector in one region of New Zealand that NZDDA sent overseas for synthetic cannabis testing returned a 30% positive rate for the synthetic drug.

Kirk Hardy says that this provides real evidence that there are people in the workplace who are willing to put themselves and others at risk of being seriously hurt or killed from using these types of drugs.

“In the industries we test you don’t necessarily get a second chance if things go wrong. Employees have to concentrate and just can’t afford to be at risk of being impaired. We are talking safety-sensitive industries and if someone is not on their game, so to speak, you are going to have a much higher chance of someone being killed or seriously injured in a workplace accident and that is not something you can take chances on.

“We just hope that this acts as a deterrent to others not to use synthetics, or other substances legal or illegal, that pose a serious workplace safety issue,” said Mr Hardy.

Instep’s Matthew Beattie says that although the NZDDA testing results at this point should not be used as indicative of a trend “the figures don’t look good.”

Instep offers some guidance for employers. “It is not just about compliance with health and safety in employment legislation. It’s also about best practice for employee wellbeing. Employers are legally required to provide a safe working environment. We recommend that businesses alter their workplace policies to include the ability to test for the presence of synthetic drugs, and this will include a consultation process. For some this will involve unions represented in their workplace,” said Matthew Beattie.

“Instep also strongly recommends that businesses continue to educate and inform their staff about drugs - legal and illegal, including alcohol - so good choices are made and their workplaces are safe. Businesses should monitor suspected employee drug use and test where appropriate, and then make sure they provide a supportive environment for employees who are found to have a drug or alcohol problem,” says Mr Beattie.

On 17 June, the Hon Peter Dunne, Associate Minister of Health, announced amendments would be made in the next few weeks to the Misuse of Drugs Act. This would make synthetic cannabis a Class D drug, making it a restricted substance.

Kronic and other named synthetic drugs that mimic the effect of cannabis were banned in New South Wales from t1 July 2011 under the NSW Drug Misuse and Trafficking Act. A ban on the use of synthetic cannabis will come into effect seven days later. Western Australia recently banned synthetic cannabis products, with other Australian states considering similar action.

Synthetic cannabis products causing workplace dangers

Matthew Beattie

Kirk Hardy



Celebrating peak performance

Never let the competition define you. Instead, you have to define yourself based on a point of view you care deeply about.– Tom Chappel DEVELOPMENTS

Clean energy technology company LanzaTech was at the world’s largest air show in Paris showing the aviation industry

its technology for producing next generation jet fuels.

Dr Jennifer Holmgren, LanzaTech’s chief executive, says the aviation industry (both its commercial and military sectors) is keen to reduce its carbon footprint and is looking to low carbon fuels as an element of a basket of solutions to help achieve that target.

LanzaTech has just been awarded funds from the United States’ Defence Advanced Research Projects Agency (DARPA) to perform research focusing on novel, low cost routes for the production of jet fuel (JP-8) from carbon monoxide (CO) rich sources.

The project will focus on technology development to reduce costs for producing alcohol intermediates, which will be thermochemically converted to JP-8.

“The Department of Defence has set ambitious targets for alternative fuel use with the Air Force goal of 50% alternative fuel use in all its domestic flights, and the Navy’s objective to use 50% alternative fuel across all of its operations by 2020,” Dr Holmgren says.

Alternative aviation fuels were a key theme at the Paris Air Show this year. The New Zealand founded Lanzatech being part of the global exhibition showcase.

Dr Holmgren says biofuels produced through hydroprocessing of lipids recently received approval by ASTM (American Society of Testing and Materials). The next biofuel expected to be certified will be fuel prepared from alcohols. LanzaTech is represented on an alcohols-to-jet (ATJ) task force, which is working on

the certification process.The efficient conversion of

alcohols to aviation fuel has already been demonstrated by a number of groups. Dr Holmgren says a number of those routes for converting alcohols produce aromatics not just isoparaffins, which means there is a possibility of longer term certifying a fully synthetic aviation fuel (not just a blend stock).

“There is a need to stabilize the price of aviation fuel, which can only happen if there is more than one source of such fuels,” Dr Holmgren says. “However, the rapid adoption of alternative aviation fuels requires that they be sustainable in all dimensions – environmental, social and economic.

“LanzaTech provides a sustainable, cost-competitive route to drop-in hydrocarbon fuels by producing alcohols from CO-rich feedstocks, such as industrial off gases that have no impact on food or water security.”

Dr Holmgren says LanzaTech’s approach for the production of alcohols also results in a cost effective final aviation fuel.

“In order to deliver cost competitive aviation fuels from alcohols, the price of the alcohol must be driven to a very low number,” she says.

The reason for this is that ethanol to jet conversion requires that two gallons of alcohol be converted per gallon of jet fuel produced.

“We believe that there are a number of handles which can further reduce the price of our alcohol such that the final aviation fuel will be cost competitive with petroleum derived fuels without incentives. DARPA’s support will enable us to continue to improve the economics of this unique technology platform.”

New Zealand Trade and Enterprise (NZTE) is once again sponsoring the annual Bay of Plenty Productivity Award as part of

the 2011 Bay of Plenty Sustainable Business Network (SBN) Awards. This is the sixth year that NZTE has sponsored this category.

The Productivity Award is specifically targeted at businesses which embrace productivity im-provement practices - such as lean - that have allowed them to increase output and profitability while de-creasing resource use, waste, or time.

The award, to be presented at the 2011 Bay of Plenty SBN Awards Gala evening on Thursday 15 September, will acknowledge the strategic approach the winning business has taken to productivity as well as the influence this has had with all stakeholders, including staff, suppliers, and customers.

This year’s Award winner not only receives the SBN trophy and certificate but, thanks to NZTE’s sponsorship, will also spend a

day working with internationally recognised productivity ‘guru’ Bryan Travers, an experience valued at over $2000.00.

Entries for the Productivity Award close at 5pm on 19 August 2011. Queries about the process and requests for the self-assessment go to [email protected]

Judging, by Jimmy Conway of Freeflow Partners and Warwick Downing of TiDA, will take place between 22nd August and 2nd September with site visits at the discretion of the judges.

Previous winners of the Productivity Award include Design Mobel (2006), Generation Developments (2007), Oasis Engineering (2008), Trevelyan’s Pack & Cool (2009) and La Nuova Apparelmaster (2010).

NZTE works in partnership with Sustainable Business Network (SBN) Bay of Plenty to highlight the significant role sustainable business development plays in a strong New Zealand economy.

Jet fuel technology in ParisA

ctivity in the manufacturing sector for June saw an ongoing and steady level of expansion, according to the latest BNZ

- BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 54.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Although this was slightly down on the May result of 54.7, combined it was the strongest two months of manufacturing activity since early 2010.

Part of the relative positive and steady result for the last two months can be attributed to our Trans-Tasman cousins.

Many of the positive comments by manufacturers have centred on increased orders and sales from Australia given the competitive exchange rate at present. While issues such as the ongoing effects from earthquakes and the economic downturn are still mentioned, the Australian situation is as least providing a valuable market opportunity for businesses looking to broaden their sales base.

BNZ economist Doug Steel said there seemed to be plenty of

reasons for the rate of manufacturing expansion to cool in June, but it didn’t.

“This is fundamentally en-couraging. Export growth is holding up despite its many threats, including the strength of the currency, and domestic manufacturing sales look likely to strengthen with the wider economic recovery we foresee. All up, this survey gives a sense of sure and steady improvement.”

Four of the five seasonally adjusted main diffusion indices were in expansion during June, with deliveries (56.1) again leading the way, followed by new orders (55.6) and production (52.4). Employment (51.7) experienced its second consecutive increase in expansion, while finished stocks (48.4) continued to slip lower.

Unadjusted results by region showed three of the four main regions in expansion, with the Northern region (55.2) leading the way, followed by the Central region (53.9). The Canterbury/Westland region (53.9) dropped 5.6 points from May, although still remained in expansion. In contrast, the Otago/Southland region (41.3) further contracted during June, with five consecutive months in contraction.

Time to go steady

Business confidence in New Zealand continues to lift after it dipped late last year and is now well ahead of Australia and

sitting comfortably in the upper half of 39 countries surveyed in the latest Grant Thornton International Business Report (IBR).

While internationally recovering levels of business optimism hit a wall in the second quarter of 2011, New Zealand was one of only 15 countries where business optimism grew in this period.

The research reveals that across many countries there has been a dramatic quarter-on-quarter decline in levels of business optimism, led by the ‘Lucky Country’ Australia.

Peter Sherwin, partner, Grant Thornton New Zealand, Wellington, said that Australia’s 44% decline in confidence from 2010 to 2011 was the highest for any country surveyed and was fresh evidence that the declining housing market, exceptional strong dollar that was impacting on tourism and the recently introduced “flood tax” were all starting to weigh heavily on Australians’ minds.

“Australian confidence levels sit at 26 per cent, only 4 per cent above Ireland and well behind New Zealand’s 52 per cent. A recent Australian survey indicated that 40 per cent of Australians believed they were worse off than a year ago and were borrowing to sustain their standard of living,” he said.

Sherwin said that detailed study

of the underlying information that backs these figures also showed a much more positive New Zealand compared with Australia.

“Maybe we are starting to close the gap afterall? Compared with a year ago, a net 12 per cent more New Zealand businesses are looking to invest in plant and machinery, compared with -7 per cent in Australia. When this is matched with the fact the employment intentions of New Zealand companies are increasing, whereas Australia’s are declining, then a growth pattern is starting to emerge. A comparison between the first and second quarters shows a 27 per cent increase in the number of New Zealand companies looking to employ staff compared with a 9 per cent decrease in Australia.

This is further reinforced by the fact that a net 78 per cent of New Zealand businesses expect to increase wages in the next 12 months, which is up from 55 per cent a year ago, compared with 69 per cent in Australia. The Australian figure is down from 78 per cent in 2010.

The survey also indicated that growth in New Zealand will be underpinned by support from banks. Fifty-four per cent of New Zealand businesses think that the banks are very supportive with another 24 per cent believing them to be supportive, an impressive 78 per cent, one of the highest rates of the countries surveyed.

NZ business optimism surges past Australia



Made in Germany, Techspan automatic plastic welders are reliable, high quality machines,

designed for precise, efficient welding of thermoplastics, including tarpaulins, covers, banners, liners, structural fabrics, and water-proofing membranes.

Techspan Planon Overlap Welder

40mm

Tarpon and Planon automatic overlap welders feature inter-changeable overlap kits, enabling the weld seam width to be easily

PRODUCT NEWS Achievement seems to be connected with action. Successful men and women keep moving. They make mistakes, but they don’t quit.

– Conrad Hilton

www.baskiville.com [email protected]

Second generation Sonatest Sitescan D+ Ultrasonic Flaw

Detectors have within them the newest tech-nology of the tactile scroll wheel, keypad, new software “Persistence”, and many other features to produce

Second generation flaw detectors

changed, without having to purchase different machines for different widths. The overlap kits consist of four parts, and can be easily changed by the operator, with an allen-key, in less than 5 minutes.

A hem kit also enables the welding of hems, which can be quickly and easily adjusted for hem widths of 20, 25, 30, 35, or 40mm.

Welding speed, welding temperature, and airflow volume are all infinitely adjustable.

The Techspan automatic welding machines are robust, practical and easy to use. Quality materials and workmanship, and intelligent engineering design ensure that these welding machines stand up to the toughest working conditions, virtually anywhere on the planet.

nextSTEPVisit:www.techspanonline.com

Did you know that most petrol engines only use 20% and diesels only use 40% of the fuel - and

waste the rest as noxious exhaust fumes?

Cleanfuelz has been developing a solution to the problem of the inefficient burning of fuel in vehicle engines since 2008.

Their initial plan was to become the NZ distributor for American designed ‘Hydrogen On Demand’ products. However it was quickly established that the sample units were simply not robust enough and used a large amount of energy and often required major engine modifications to make them work.

Cleanfuelz decided to take a totally different approach, and after numerous designs, a university test confirmed that Catalyser produced gasses had a catalytic effect on the combustion of the fuel.

That is, introducing hydrogen into the fuel mixture increases the rate of combustion and means that nearly all the fuel is combusted.

This results in lower noxious exhaust emissions (up to 90% reductions), while using only a small amount of energy.

This can also result in fuel savings and less wear and tear on the engine. However, the company found that fuel savings for every vehicle are often different depending on a number of factors including the condition of the engine and how it is tuned or programmed.

The Catalyser can be installed on any type of vehicle using any type of hydrocarbon fuel. On bigger engines above six litres it is suggested to instal two units.

The company has seen remarkable improvements on petrol and diesel engines of 1500 CC up to 220HP in tractors. Vehicles can be the normal car or truck, or any off road vehicle such as farm tractors, forklifts, heavy equipment, bulldozers, graders, diggers etc.

The Catalyser is believed to have a life expectancy of at least 100,000 Km; however no Catalysers that have run for this distance yet. The accelerated bench tests are very promising so far.

The only maintenance required is to top up the Electrolyte every 3000-5000Km.

The results of fuel savings are attractive, but the biggest benefit may well be the cleaner emissions. Cleanfuelz has done tests before and after fitting a catalyser brought the status from non-compliance to well below the EU compliance level.

Exhaust emission testing in NZ is not mandatory - yet this may be changing soon. It was on the previous government’s agenda. Most of Europe, North America and many Asian countries already have mandatory testing so it is just a matter of when, not if it happens in NZ.

Failing the emission test means your vehicle is off the road till it is fixed. In comparison, catalytic convertors can lose their effectiveness and replacing them with an original part is very expensive.

Cleanfuelz is now moving from early development and production phase into marketing and sales. Creating a sales and installation network in NZ with help from software and marketing company, Woogloo, provides a powerful and sophisticated marketing tool with an impressive back-office system.

When the NZ market is up and running the plan is to move sales overseas.

Cleanfuelz wants to keep production here in NZ; at present imported materials are CNC machined and hand assembled methods.

New automatic plastic welding machines

Tim Parker, founder and managing director of Cleanfuelz with the latest

experimental model.

A new approach to engine efficiency

Furniture manufacturers, Accent Group, recently installed a new Dust Extraction System in their new

Wellsford factory. Accent Group have a long

experience in the industry and were looking to combine operations from two separate locations to one central factory. A large selection of machinery and work processes were evaluated so an Extraction System could be specified to provide optimum extraction for varying work processes.

The system has an Eco-power device which provides live monitoring of the airflow requirements and automatically adjusts the fan suction to suit the machinery operating at any one time. This initiative provides a significant power saving and reduction in power consumption.

The system features a large 800mmØ main-duct, Modular filter unit with discharge conveyor & rotary-valve feeding a bin-loading

fan. Dusts are collected in a hook-bin which allows easy removal & disposal of waste.

Also important to Accent Group was the on-going maintenance of the extraction unit. The system features an automatic filter-sleeve cleaning function which maintains the filters in optimum working condition. A ‘Post-clean’ sequence also occurs at each shut-down to ensure the filters are ready for next work shift and provides a guarantee for longevity & reliability of the system.

Live monitoring of air flow

an excellent, compact, lightweight Flaw De-tector.

Custom Menus, ad-vanced thickness logging and 12 hour battery life make the new D+ Series Flaw Detectors a

powerful tool in your arsenal.



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 NewsAppointmentsAround New ZealandAustralian ReportNew to the MarketLean ManufacturingEquipment for SaleRecruitmentEnvironmental TechnologyManufacturing Processes

NZ MANUFACTURER • August 2011 Issue • Features

Roboticss

Manufacturing Technology

Christchurch Rebuild

Manufacturing Heroes


Advertising Booking Deadline –12th August 2011Advertising Copy Deadline – 12th August 2011Editorial Copy Deadline – 12th August 2011Advertising material is to be sent to:Max Farndale,P O Box 1109, Hastings 4156, Hawke’s BayEmail: [email protected]: 06 870 4506 / Mobile 027 628 2033

Editorial material to be sent to :Doug Green,P O Box 1109, Hastings 4156, Hawke’s BayEmail: [email protected]: 06 870 9029Fax: 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.

It is often hard to distinguish between the hard knocks in life and those of opportunity.– Frederick Philipse PRODUCT NEWSThe Mate ValuGrind is a tool

grinding system that regrinds punches and dies to maintain

optimum condition for the highest quality punch press fabrication.

Apart from being compact in size, ValuGrind has a sturdy construction to stop it from moving or tipping when in use.

Its grinding wheel has minimal exposure, it comes with a safety-stop button, tinted polycarbonate safety shield and diffuser-lined tub walls keep coolant splatter to a minimum.

ValuGrind accommodates thick turret A-E station, MultiTool and Trumpf-style Size 1 and 2 tooling, plus it is customised to specific requirements as the user can select the required model based on fixtures, style and electrical wiring needs.

What the machine does is provide a superior grinding finish on ground surface flatness with its belt drive that ensures optimum wheel rpm, a large diamond grinding wheel with inner-cooled cup style design that keeps coolant exactly where it’s required to prevent burning or discoloration; plus it has a rigid and robust design for Australian industry.

The reason it can rapidly and accurately grind larger tools is that it comes with a large motor that can accommodate up to thick Turret E-station dies and a large grinding wheel (165mm).

The overall size is 820 mm length, 520mm width and 675 mm high. With simple and safe operation, it provides superior finishes on ground surfaces, has low maintenance and operating costs, and allows easy tool set-up and installation.

ValuGrind uses diamond grinding wheels that do not need to be dressed, is manufactured with quality components such as Siemens electric motors, plus it has coolant screens that greatly reduce the amount of grinding swarth and allows for easy cleaning.

Simple quality punch and die grindingThe Veo 16:64 Phased Array

instrument is highly capable with multi-technique functionality,

including TOFD; fast data recording, a simple to use interface and rugged housing. Veo is ideal for Pipeline Weld Inspection, Corrosion Mapping, Aerospace and Composite Testing.

Veo’s design has made simple controls and menu workflow of paramount importance.

The display features full 3D views of the user’s test set up including probes, wedges, the weld and geometry, with phased array beams. On-board probe and wedge databases are incorporated in the Veo for fast setups.

The Veo Phased Array instrument has TCG and ACG, a superior encoding speed with fast A-scan recording and excellent reporting functionality.

Two separate conventional channels provide simultaneous Phased Array and TOFD scanning to speed inspection and ensure correct data referencing for improved defect characterization. Real Time Focal Law calculations allow the user to change scanning parameters instantly, reducing the time spent on

setup and defect investigation.The Veo enclosure has been

designed to withstand the tough environments in which NDT inspections are carried out, achieving IP65 standard for water and dust ingress and employing internal shock mounts to withstand impacts. The market sectors largest sunlight readable screen is on the Veo. This is a great advantage with complex inspections and multiple probe configurations. The Veo batteries give up to 6 hours use, and are hot swappable for continuous use.

Flaw detector highly capable

Connection Technologies, leading distributor of electrical connectors, tools and accessories is the New

Zealand distributor for a prominent european manufacturer of conduit systems used in harsh and adverse environments.

They are widely used internationally as the preferred product in the rail industry and are also found in industrial and transportation applications calling for the utmost protection of cabling

against UV, abrasion and other damage.

Demand is also growing for the ATEX Certified product for use in “Ex” applications.

Highlights include:Polyamide cable protection;

30 years of experience, ATEX 95 certified

Products for the protection of cables, wires and hoses against not only mechanical damage but also the influences of UV radiation,

weathering and chemicals.Products made of specially

modified, load discharging Polyamide materials (PA11, PA12) for use in explosion endangered zones 1/ 21 (gas / dust) ATEX marking; Identical in function to the PMAFIX/FLEX standard range (a product of PMA the cable protection specialist in railway, machinery and automation applications).

nextSTEPEmail: [email protected]

Conduit systems for harsh environments NZ Manufacturerllll

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SUPPLY CHAIN 1500 to 2000 people who will be required by this time next year.

– Transfield Services Chief executive Philip Aldridge re UFB.

Visit www.konecranes.com.au

Smarton is designed as a cus-tomised, intelligent, and en-vironmentally sustainable sol-ution for demanding maintenance

and heavy process use. The high performance modular

crane system is designed to maximise safety while minimising energy consumption and downtime.

Applications for the cranes, in capacities initially up to 160 ton and progressively extending to 500, include steel and paper plants, automotive and general manufacturing, energy plants, waste-to-energy, automatic storage systems, workshops and mining and resources facilities.

The compact Smarton crane system can save building and building services costs by fitting into smaller structures. The design enables new industrial halls, for example, to be smaller than before, so the product pays back in the form of lower construction and heating expenses.

Their compact structure also allows the user to put the load down much closer to the wall.

The result of 3.5 years of intensive development work, Smarton is an evolutionary, not revolutionary, technology that combines time-tested components with innovative refinements.Adapts to customer needs

A key driver of the design is modularity, meaning that customers can select exactly the features they need for their process, both now and in the future. Thanks to standardised modules, products can be customised reliably and faster than ever before to suit the special needs of individual customer processes in widely differing fields of the process industry.

There is no need to equip Smarton with everything a user might expect to use in the future. The product can easily be updated with additional features, such as automated positioning, defined working areas, maintenance monitoring, or remote diagnostics. This is enabled by the crane’s intelligent control system based on programmable logic, which can be adjusted according to the control need.

In addition to being more compact (reducing space, construction and heating needs), the product is also designed to meet or exceed environmental standards for some time to come.

The feedback of braking energy, a standard feature in Smarton, can save up-to one-third in energy consumption. And that feature not only lowers the energy bill, but also saves the environment.

Smarton is at least 98 percent recyclable. Thanks to the compact design, its production also uses up fewer natural resources. Konecranes, moreover, made the crane control more intelligent to reduce the dynamic load on the crane structures.Minimises maintenance shutdowns

One of the main goals in the development of Smarton was to minimise the duration of

Heavy lift system grows with individual needs

X



When in doubt, mumble; when in trouble, delegate; when in charge, ponder. – James H. Boren BUSINESS NEWS

maintenance shutdowns. The Smarton service platform

folds over the trolley to protect the trolley components. The space-saving, foldable platform is a brand new concept, for which Konecranes has sought patent protection.

All service points are located on the same side and are easily accessible, contrary to many other products on the market, which have service points on both sides of the trolley.

The crane monitors its own condition and recommends when and what kind of inspections or preventive maintenance to perform. Among other things, Smarton is designed to continuously monitor the condition of the hoisting motor brake. The service panel, in turn, shows the location of the fault.

Remote maintenance is a standard feature with three support centers located in different time

zones around the world ensure that Konecranes can offer 24/7 support for equipment irrespective of the location.Makes operations easy and efficient

Konecranes designed the functions of the Smarton user interface to be simple and clear so that they can be understood without consulting heavy manuals. The intelligent yet easy to use Human Interface to Machine (HIM) keeps the user continuously up to date on the weight and position of the load.

Smarton also contains productivity-enhancing features. Its precise, stepless-speed control ensures that loads can be lifted, moved, and lowered faster, which reduces the overall load-handling times. Depending on the set-up, the crane can lift weights ranging from 30 tons to more than 500 tons.

nextSTEPVisit: www.konecranes.com

www.irl.cri.nz

Working in partnership with business

X

The B300 Stretch Wrapping Machine has an automatic rotary arm and patented ‘Syncro’ ring guide.The B300 is fast and has an arm

with a patented ring guide that rotates around the load at 45rpm, wrapping 130 pallets per hour with

130 pallets/hr with stretch wrapping machine high degree of pre-stretch.

Technowrapp stretch wrapping machines are designed to keep film usage to a minimum which is achieved by pre-stretching the film by more than 400%. On a pallet measuring 800mm x 1200mm x 1500mm high, using 9 layers of film and a standard film reel of 500mm wide x 23µm: only 96 grams of films is used.

The team of Account Managers at IRL gets a kick out of working with Industry for a number of reasons. Manufacturing

is responsible for a reasonable chunk of New Zealand’s GDP and connecting IRL capability with industry can and does make a huge difference to economic outcomes.

Enabling a manufacturer to create a unique product of high value produces a much greater return than your usual capital investments such as plant, buildings and so on. This return is measured in productivity or revenue/profit per employee and is generated through greater product margins or higher throughput.

Often the biggest competitor to engaging with an R&D provider such as IRL is the decision to do nothing or spend capital on lower value returns, so the Account Manager has to spend significant time with a client to develop the business case for investment in R&D services.

Time may be spent with scientists and engineers consulting over what problem really needs solving before the business case can be developed. Further time can then be spent in

assisting the client find grants to subsidise the cost of investment.

Finally, when a contract is signed and the services delivered, the entire team of scientists, engineers and account managers can take real satisfaction in making a positive contribution to the New Zealand economy.

Often the best way to engage with industry is to explain IRL’s wide range of skill and capability through story telling. These stories, or mini case studies, have been incorporated into a freshly published and bound document entitled “Did You Know” which can be found at online at www.irl.cri.nz/did-you-know-brochures.

Other profile-raising activities IRL is embarking on include a road-show through the smaller centres of New Zealand to highlight IRL capabilities and the Technology Transfer Voucher scheme with MSI. This road-show and other promotional activities with key organisations, like BusinessNZ, use real case studies to engage in dialogue with manufacturers.

nextSTEPVisit: www.irl.cri.nz

IRL working in partnership10 wraps for each pallet. The ring is floor mounted to assist the rotary arm during rotation.

The machine contains an EP-V1 electronic pre-stretch system with a tacho generator adjustable from the HMI touch-screen which enables smooth dispensing of the film and a

The new and patented ‘Syncro’ device enables - clamping, cutting and welding of the film while in motion which saves considerable time as the film is cut and sealed while it is being removed from the wrapping area.

As the pallet / load is static, the stability and integrity of the stack is maintained during the high speed wrapping process.



SOUTH ISLAND MANUFACTURING Confidence is the companion of success.

– Anonymous

Pre September, we had a thriving hardware restoration business on

Colombo Street and we lost all six buildings, including our shop and our stock room containing over 30,000 items of period hardware dating back to 1850.

We relocated and set up an office in Madras Street and we lost that in February.

We have had to reengineer the business and change the name to allow us to specialise in the manufacturing of heritage style rainmaker showers. We have been able to source all the raw materials and services in Canterbury and we are now able to supply a range of showers in copper, chrome and antique finish through a range of plumbing retailers from the north to south of New Zealand.

The business was called Threw the keyhole www.threwthekeyhole.co.nz and we rebranded as Heritage Bathware www.heritagebathware.co.nz

We no longer have a shop and all our business will be done on line or through the retailers.

Michael Brown,Heritage Bathware

Letter to the Editor

A versatile lifting bag used in Australasia to position everything from pipelines to machinery was employed in a

dramatically different role recently when the Kevlar-reinforced product was put to work shifting heavy rocks during clean-up and reconstruction after the Christchurch earthquake.

The bag was used by Geotech ground engineering contractors to dislodge potentially dangerous boulders above the Evans Pass Road that crosses the steep hills between Christchurch and the Port of Lyttelton. Geotech specialises in ground stabilisation and tunnelling, with the ability to work in extreme environments.

The large rocks had been loosened during the devastating February 2011 earthquake, centred near Lyttelton, and threatened to tumble down onto the roadway below.

The road was closed off while Geotech operatives were working on the cliff faces above. Months of work were required to clear away all the loose material.

Geotech powered the lifting bag with a 100 psi air compressor running off a diesel generator. The bag was deflated, positioned behind the boulder to be moved, then

inflated, dislodging the boulder from its surrounding earth.

Nigel Gualter, general manager of Geotech, said: “The airbag is very light and easy to handle, especially on the rockface. Its narrow profile allowed us to address any boulders where there was a gap wider than 28mm or about the thickness of a crowbar.

“We just pushed the airbag into the crevice, slowly inflated the bag, and watched the rock move. If required, we then packed the rock in its new position, deflated the bag and took another bite until it was released.

“We found that even if the bag could only get a corner behind the rock, we could work the rock out very successfully. We could unleash 11.7 tonnes and move anything that was going to shift. The airbag gave us more power than other methods.

“It also kept the guys away from the fall zone. We were able to insert it below a large rock before retreating to a safe position, then inflate the bag and dislodge the rock. This was much safer than grappling with a heavy bar in an awkward position, working from ropes.

There are nine sizes of low clearance lifting bags and their controls for lifting, pushing, pressing

or moving loads safely and smoothly. The bags use compressed air up to 116 psi (8 bar) or water to achieve load capacities ranging from 3.1- 67.2 ton (27-656 kN).

The uniquely designed lifting bags feature the highest friction surface available, providing increased safety for applications including the construction, earthmoving, engineering, manufacturing, mining and energy, quarrying, oil and gas, primary production, heavy transport and machinery, marine, maintenance, materials handling and safety sectors.

Safe and simple rock clearance after earthquake

The September and February earthquakes affected nearly two-thirds of New Zealand businesses, according to the

2011 Grant Thornton International Business Report.

The survey, which was undertaken post the 4 September 2010 and 22 February 2011 earthquakes, indicated that 18% of businesses had suffered long-term effects, 26% suffered a medium term impact and 20% had suffered a short-term hit.

Tim Keenan, partner in the Christchurch office of Grant Thornton New Zealand, said one of the main over-riding problems facing business in the city post the spate of recent earthquakes is the shrinking talent pool for staff and senior management.

“With it being unlikely that people, outside of the construction sector, will move to Christchurch in the medium term, the demand impact for talent and skills is likely to have an inflationary effect on wages and salaries. A critical focus of employers in the region is the retention strategies they are executing in their businesses as this demand for talent rises.”

“While the impact has hit Christchurch the hardest, businesses

across New Zealand have also been affected. The report identifies a decrease in demand as the most significant factor, impacting on 48% of those affected while the destruction of transport routes and other infrastucture affected 26% of the companies, 24% incurred a reduction in staff and management morale while 20% of staff and management suffered destruction of their homes. The destruction of business premises affected 18% of businesses.

“What the earthquakes have done is make businesses focus intently on their own disaster recovery plans and future contingencies,” he said.

Keenan said that initially many businesses in Canterbury were upbeat about the short-to-medium term impact of the earthquakes on their business.

“However, for those businesses who are dependent on local demand, the on-going uncertainty caused by the aftershocks and the interim potential for Christchurch’s population to decrease, means that the health of the business has to be monitored constantly.

“Successful businesses are already reacting to the new environment and showing the necessary agility, making quick

Earthquakes affected a lot of businesses

Tim Keenan

decisions and responding to a changing environment. Potentially those businesses who are focused on international markets will be more confident provided they can reassure their international customers around continuity of the supply chain.

The survey also showed that the Japanese tsunami and subsequent earthquake had an impact on New Zealand business with 28% saying that they were less optimistic following the disasters with 4% being significantly less optimistic.

“On the balance side, 24% were more optimistic,” he said.

A Manufacturers and Exporters Association (MEA) member is looking for stainless steel fabricators/welders who could

work on a sub-contract basis with Christchurch workshops (equipment will be provided). Work will be paid on an agreed hourly rate with an immediate start.

They are also seeking stainless steel manufacturers/sub-contractors who can handle large-scale stainless steel assemblies (up to five metres

in length). Laser cutting and turret punching capabilities are also de-sirable but not essential. Work will be quoted with fixed completion dates.

This request is for companies only, first person responses will not be passed on (i.e. individuals who reply directly as applicants will not be referred on). Alternatively, if you would like more information, please contact Trudy Diggs by phone 03 353 2540 or email [email protected]

Calling stainless steel fabricators



PROFILE Unless you’re willing to have a go, fail miserably, and have another go, success won’t happen.– Phillip Adams

The Commonwealth Bank has announced the appointment of Andrew Lark as Chief Marketing Officer.

The Bank’s Group Executive, Retail Banking Services, Ross McEwan said, “I am delighted to have someone of the capability and experience of Andrew joining our team. He is a high calibre executive with experience leading Global Marketing functions at large international companies in Asia, Europe and most recently the United States”.

Andrew will report to Ross and will commence with the Bank on 1 July 2011.

Andrew joins the Bank from his most recent position of Vice President, Dell, where he is responsible for leading the Global Marketing of its Public and Large Enterprise Group. Prior to Dell, Andrew has held senior marketing, consulting and online roles with start-ups and the world’s leading technology brands.

He has vast marketing and online experience across business to business and consumer sectors, as well as a strong record in emerging technologies and development and use of new media channels, such as online and social media.

Commonwealth Bank appoints Dell’s media guru

Orders are rolling in for Waikato based rml Group, a company delivering production line innovations for some of the

world’s largest global industries.With more than 30 year experience

in machinery manufacture, project management, design and automation, rml Engineering is an industry leader delivering product line automation for the dairy, food, wine meat, horticulture and packaging sectors.

The company recently won a contract to supply a robotic solution for Fletcher Building New Zealand, as well as a significant order from Goodman Fielder New Zealand for a high speed, wrap around case packer.

rml’s Larry Greene said TechNZ and New Zealand Trade and Enterprise have helped grow the company, with NZTE helping foster

relationships with China.“We are currently involved with

a New Zealand group to study China’s current milk collection and testing system so we can propose a system for China modeled on the New Zealand system.”

TechNZ assistance gave the company the knowledge to develop high speed technology required to design and develop Goodman Fielder’s wrap around case packer.

“We have had an outstanding nine months. We believe the financial crisis is over and we are enjoying opportunities to work in Australia, New Zealand and the United States. We are also currently negotiating to enter into partnership with an Indian company.”

rml offers a range of industry-specific turnkey solutions.

The company’s team of multi-

Outstanding growth for Waikato product line developer

Wayne Mills, General Manager of rml Projects which has had significant growth in Australia.

The rml robotic vial sorter. Part of the milk testing system in New Zealand.

disciplinary engineers work in areas such as project engineering and management, specialist plant

and equipment design, packing or materials handling equipment and plant relocations.

The latest National Infrastructure Plan does not yet help businesses see where they can best invest, but it does indicate

significant preparation towards this in the future, says BusinessNZ.

The Government has released the National Infrastructure Plan 2011 which reports currently reasonable outcomes in most areas of infrastructure and, in a Three-Year Action Plan, commits to developing infrastructure performance indicators, publishing a Capital Intentions Plan, debating demand pricing, and improving public access to information on infrastructure performance.

BusinessNZ Chief Executive Phil O’Reilly said at this stage the priorities described in the

Infrastructure Plan are too high-level to provide businesses with specific information to guide investment decisions.

“Business would probably like to have seen more specifics that could lower the risks around decisions about where to locate or whether to invest in additional capacity or release project finance.

“However, some tactical elements of the strategy are being put in place – for example driving greater co-ordination within and between sectors, extending the mixed ownership model, and aligning the Capital Intentions Plan with the planning timeframe of local government. These will help bring together an integrated plan to help unlock co-ordinated investment.

A sounder financial footing for ACC along with lower levies for 2012/13 is good news for premium payers, BusinessNZ says.

Reductions of 17 percent in the Earners Account and 22 percent in the Work Account are proposed in the ACC Levy Consultation papers released today by the ACC Board.

They show a deficit of $7.8 billion across all ACC accounts, an improvement on the nearly $13 billion deficit a couple of years ago, achieved through better health and safety practices, better and more rapid rehabilitation, and improved investment returns.

BusinessNZ Chief Executive Phil

O’Reilly said the reductions would be welcomed by both businesses and employees.

But Mr O’Reilly expressed concern that pre-1999 costs, which include pre-1992 non-work accident costs, would continue to be funded by employers.

“Employers are being required to pay millions of dollars for claims that have no relation to the workplace at all. In the interest of fairness, these residual claims should be met by general taxation.”

BusinessNZ will be making a submission on the ACC levy consultation 2012/13 which closes on 15 August 2011.

Pre-work valuable for infrastructure planning

Positive progress by ACC



MAINTENANCE Success as I see it, is a result, not a goal.

– Gustave Flaubert

In world class organisations the relationship between maintenance and operations will be a partnership in a joint venture

to produce quality products. Maintenance will deliver equipment reliability and operations will provide process reliability.

An admirable philosophy, but how does this work out in your organisation?

In most organisations we find that operations is very much the customer and maintenance is very much the supplier. Reactive work is recognised and rewarded by operations, where praise is given for a fast response time or a quick fix rather than for reliable plant and machinery. This often reinforces the idea within the maintenance department that they are there to minimise downtime when it occurs rather than prevent the failure in the first place.

There is often a ‘them and us’ attitude, despite the fact that both departments are working towards the same goal of greater reliability and productivity. Without a close working relationship with operations our maintenance efficiency is never going to rise above average at best. So what can we do about it and where do we start?

The first thing is for maintenance and operations to agree on the goal. We have to understand the needs and responsibilities of the other department and agree to work together towards greater reliability and productivity.

Once we are agreed on our objective we must then decide on a relevant way to judge where we are now and how to measure improvement. The obvious measure is Overall Equipment Effectiveness (OEE), which is measured as a

factor of Availability, Performance and Quality and is something into which operations and maintenance have input and by which both can be measured. However, OEE is often measured by department so it’s crucial that the figures are used constructively and not to lay blame or for finger pointing.

If Overall Plant Effectiveness (OPE) is a measure used in your organisation it is better to utilise this, as it gives a much wider perspective of reliability and productivity so avoids the blame laying and finger pointing. Any improvement target you agree on must be SMART – Specific, Measureable, Achievable, Realistic and Targeted.

What you agree on as a SMART objective is going to vary from organisation to organisation depending on industry type, current practices and maintenance maturity but at the outset it’s essential that we know where we are, where we would like to be & when we would like to be there.

The next area to address in this new partnership is maintenance work management. This is often something that operations are left out of but if real improvements are to be made they must be included in planning & scheduling jobs as well as being part of the review when we close out the current maintenance scheduling period. By including operations in planning and scheduling we can get an agreed time to carry out maintenance, whether that means working around planned down times or operations agreeing a time to release the equipment to maintenance for preventative work.

Be realistic about this – don’t

ask for 3 hours if you know the job usually only takes 2? hours. When given a time to start maintenance ensure staff are there, ready to go with all the tools and spares needed to do the job. Nothing will undermine the relationship faster than operations freeing up the equipment on time and maintenance rolling up 10 minutes late and then having to go and get tools and spares. It is equally important that equipment is released by operations for maintenance at the agreed time as this is one of the biggest causes of friction between the two departments.

Engagement between maintenance and operations to execute work should begin with communication between maintenance and operations staff prior to maintenance taking place. There may be some minor preparatory tasks that can be performed by the operators during their daily routine. For example; non-invasive cleaning, spraying fasteners with penetrating oil, moving equipment for access and so on.

Any tasks that can be performed safely while the equipment is still operating will minimise the disruption while maintenance takes place and will minimise downtime. More importantly, this simple collaborative approach is the first step towards fully coordinating maintenance & operations

Once the job is complete ensure maintenance stay around while the plant is run up to speed and the operators are given an opportunity to provide feedback on whether the maintenance performed on their

equipment was at least what they asked for.

Agreeing on shared goals and a way to measure them and including operations in the maintenance work management process is the first step towards full coordination between the departments.

Our ultimate aim is to have operations and maintenance working as a partnership towards greater reliability and productivity. This isn’t going to happen overnight though and we have to work hard at building trust and cooperation between the departments. Maintenance maturity moves through 4 distinct phases from reactive to preventative to predictive and ultimately to pro-active.

If we can’t build that relationship we will struggle to break out of being reactive but if maintenance and operations can work closely & cooperatively then we can reach new heights in reliability and productivity.

nextSTEPContact: Phil Hurford, manager of

Skills4work Maintenance Excellence programme. Tel: 027 488 6446 or [email protected]

Maintenance and Operations Coordination – The way to greater reliability

By Phil Hurford

It is increasingly apparent that difficulties with reading, maths and communication have a significant effect on business performance.

People with gaps in these core skills are often valued employees. Although they have difficulties with core skills, this doesn’t mean they are unintelligent or unmotivated. They may be capable, hardworking and loyal. But their difficulties will make it hard for them to get ahead and hard for your business to achieve best performance.

The core skills of reading, maths and communication are fundamental to almost every task across any business.

Reading, Maths and Communication skills are used in areas such as;•Working with production schedules•Taking phone messages•Using equipment, computers or tools correctly and efficiently•Following instruction manuals•Reading dials and gauges•Complying with health and safety requirements•Estimating lengths, quantities and weights•Completing forms and orders•Making sense of performance and sales graphs•Participating in team meetings•Acting on verbal instructions

Source: Department of Labour

Skills4Work offers a solution to these challenges that businesses in NZ are currently facing through a series of workplace training sessions that assist and support the employee to grow and develop in these skills.

We tailor our programmes to meet the skills needs of the business

and your employees. These programmes can be around workplace health and safety, customer service, communication or relevant workplace needs. Employees will be up-skilled in a workplace applicable environment contributing towards individual and workplace improvements. The programmes a fully funded therefore there is no $ investment required by the company.

Employers have observed:• Increased levels of engagement in the workplace;• Increased interest in higher level jobs and further study; and• Increased confidence of their employees

Employees are able to:• Participate fully in the workplace;• Cope better with rapidly changing workplace demands;• Develop higher-level technical skills; and• Build confidence to engage in everyday life situations and work

If you would like to know more about what we can do for you and the eligibility criteria please contact Tamai Roff on (09) 588 5131.



Or visit: www.filtercorp.biz

The banks are back in the lending game REAR VIEWThe kind of people I look for to fill top management spots are the eager beavers, the

mavericks. These are the guys who try to do more than they’re expecting to do - always reach.– Lee Iacocca

I am often asked if the banks have returned to the market after their exit from the business sales arena once the recession hit.The reason for their exit from

the market were obvious, it was a financial institution-led meltdown after all. Their withdrawal made things very difficult for anybody involved in business to gain finance for anything, let alone a business purchase. To add to this, we had the complete meltdown of the finance company and/or mezzanine finance industry.

The banks went into lock-down mode and leant only, for the most part, to existing customers. If they did look at a new business, they required two clear methods of exiting the loan. In simple terms, the business and its assets, and equal cover in personal property or something similar were needed.

There also become a very clear emphasis on the purchaser, his/her history, his/her suitability for the business and benefits he/she could bring to the business going forward. The credit department of the bank looking to lend on a particular deal almost became like recruitment agents for that transaction.

This was all very problematic for purchasers who were used to being able to finance up to 100 per cent of a transaction on a good solid business that had verifiable future earnings. It didn’t really matter if you had experience, as long as you could pay back the money you were in.

Cash flow lending was the trendy term that was trotted out in the early 2000s. This was where a bank would lend on a transaction based

on its past cash flow and secured by GSA (General Security Agreement) on its future cash flow. There was often no other security required by a purchaser for these loans and, as you can imagine, these were the first to go once we entered recession. A recession impacts all companies’ cash flow because consumers and businesses stop spending, so I would expect that these type of loans were the most at risk of failure over the last couple of years.

Well, great news, the banks are back in the lending game. We have even completed our first cash flow lend transaction in almost two years. It was a significant business where the purchaser had $1m of equity in a $5.8m transaction. The vendors left in about 10 per cent, but the banks (there were two competing for the deal) made up the rest. The purchaser had no other security to offer the banks and their security was a GSA on the business. We have another two underway where finance is approved. One is an offshore party who has $3m of

equity to put into an $8m transaction and the other is a purchaser who has $1m to put into a $4m transaction. On all of these transactions there are at least two banks competing for the deal.

There are two major shifts here. Firstly, the requisite loan to equity ratios have softened dramatically. Last year a purchaser had to put in at least 50 per cent to even be in the game. But in the above examples, we are as low as 80/20 per cent loan to equity ratio. That is a dramatic change. And secondly the banks (plural) are competing again. It was our experience that over the last year there was only one bank that was consistently trying to grow their book and that was the BNZ.

This is obviously great news for brokers, but is even better news for business owners who might be looking to exit or purchasers looking to buy. I have often said that a business is only worth what a bank is willing to finance. A little simplistic,

By David Newport, a director at business

brokers Switch Business

The market seems to be turning and the banks have re-entered the lending game. Halleluiah!

I agree, but a very real phenomenon over the last couple of years. Hopefully this might motivate some business owners to investigate the possibility of exiting their business. The market seems to be turning and the banks have re-entered the lending game. Halleluiah!

AUGUST 2011 ISSUE FEATURES• Robotics• Manufacturing Technology• Christchurch Rebuild• Manufacturing HeroesFor further information contact:Managing Editor: Doug Green Sales Manager: Max FarndaleP: 06 870 9029 P: 06 870 4506E: [email protected] E: [email protected]

Advertising Booking & CopyDeadline – 12th August 2011



Kiwisareinnovatorsandmanufacturemanyfineproductsforlocalandoverseasmarkets.Itisvitallyimportantforthefutureofthecountrythatwecontinuetodoso.TobethebestandshowtheworldthatbyfocusingonwhatwedobestÐbeitdairyproducts,computersoftware,marineproductsorelectricalequipmentÐwepunchwellaboveourweightandsucceed!

NZMANUFACTURERbelieves inourmanufacturersand the levelsofexcellence theyachieve.Butmorecanbedone.Theopportunitiesareoutthere;letÕsgrabthemwithbothhandsforthefuturebenefitofusall.


nz manufacturer july 2011

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