The latest growth figures from Statistics New Zealand and the latest OECD report review of our economy, published yesterday, show that while our economy keeps growing, we’re lacking in areas that can really make us a wealthier nation, say the New Zealand Manufacturers and Exporters Association.

NZMEA Chief Executive Dieter Adam said, “Our GDP is rising, but on a per capita measure, it is much less impressive – we need to harness our potential and work on growing our high-value productive industries to improve this. Real GDP per capita growth in New Zealand is currently below the OECD average, and remains well below what we achieved for the 20 years up to 2007, as the latest OECD figures show.

“Productivity improvement is the key to improving our economic growth, incomes and wealth over time, however, it continues to lag in New Zealand. For example, the OECD report highlights labour productivity in terms of GDP per hour worked falling consistently behind Australia and the United States over the last 20 years.

“The thing is – as Sir Paul Callaghan told us many times before his untimely death in 2012 – we’re not going to grow the value of what we create every hour from having more tourists and more cows in the country; hence the title of his last book “Get off the Grass”.

“To really grow our economy, we need to produce and export more high-value goods and services, and we need to do so more efficiently, increasing productivity. Manufacturing and ICT, two sectors growing more and more intertwined as digital technologies penetrate our manufacturing businesses, already are key contributors to our economy, and they primarily are the ones to turn to when we look for more high-value products and services.

“The key to growth in manufacturing and ICT is innovation, and in the case of manufacturing, process innovation. There is a raft of new digital technologies coming to manufacturing, often referred to as Industry 4.0 or the Industrial Internet of Things. New Zealand needs to embrace these technologies, while at the same time investing in new and smarter products, services and business models.

“The OECD report provides us with some pointers for how to achieve more innovation and productivity. For example, we need to increase non-residential investment, an area we are low at by international comparison, and we need to invest more in innovation activities - again an area we fare poorly compared to the rest of the OECD.

“The report recommends “More fiscal support for business research and development” – we believe that is best achieved through a general R&D tax credit replacing the cumbersome current grant scheme. But the report also points out that our corporate tax rate still is higher than most of our competitors – again a disincentive for more private investment in R&D.

“It will be interesting to see whether the Government takes any note of the sobering figures and sensible recommendations contained in this OECD report. Let us hope we’re not going to squander another opportunity to really put our economy on a stronger footing.” Said Dieter.

| An NZMEA release  ||  June 16,  2017   |||

As the world of manufacturing becomes more integrated, the role of robotics is changing the shape of the factory floor writes  Steven Impey in today's Australian Manufacturers' Monthly Newsletter as he takes a look at the effect it will have on the Australian workforce.

Depending on which literature the industry insider goes by, the impact that robotics will have on the factory floor of the future often splits its audience.

The rise of robots programmed to do a human worker’s job sounds daunting – the very thought of seeing the livelihoods of Australian manufacturing workers potentially cut from under them is itself a concern. Manufacturing jobs have been in a steady decline for several decades as the industry shifts into a different gear.

Continue to original article  ||  June 16,  2017   |||

Goodman Fielder plans to close two factories in Auckland, consolidating their production to a single site and shifting its pie-making operation to Palmerston North as part of an ongoing efficiency drive in what it calls "a very competitive market".

The diversified manufacturer owned by Singapore-based Wilmar International and Hong Kong-listed investment firm First Pacific Co will close its Irvines bakery at Wiri and its Hot Plate bakery in East Tamaki.

The Irvines line will relocate to Palmerston North while production at Hot Plate will be consolidated to Goodman's larger Quality Bakers Auckland facility.

Some 147 workers are affected by the company's plans, which include automating some warehousing functions in Auckland and Christchurch.

Goodman Fielder New Zealand managing director Tim Deane said the company's new owners "are taking a very long-term view" investing in some plants and closing others.

The net impact on the workforce may be smaller because 60 new jobs would be created at its Ernest Adams plant in Palmerston North and 25 at the expanded Quality Bakers Auckland site, he said.

Goodman Fielder currently has 14 manufacturing sites in New Zealand and employs about 2,000 people, according to its website.

Its range of household brands include Meadowlea margarine, Meadow Fresh milk, Vogels, Molenberg, Tararua Dairy, Chesdale, Irvines, Ernest Adams, Olivani and Puhoi Valley.

| A GoodmanFielder release  ||  June 8, 2017   |||

Goodman Fielder today announced proposed changes to optimise its manufacturing network across New Zealand.

Goodman Fielder New Zealand Managing Director, Tim Deane, said the proposed changes were part of the company’s strategy to invest further in its key manufacturing sites across its network to create a more sustainable business.

“These proposals continue the $80 million investment we have made in the company since 2015 and are part of our planned additional investment of nearly $150 million as we continue to create a more sustainable business for the longer term,” he said.

Goodman Fielder is proposing to relocate production of pies from its Irvine’s facility at Wiri, and ice cream cones from its Hot Plate bakery, to its Palmerston North facility, creating over 60 new jobs in the region.

Goodman Fielder is also proposing to relocate production of garlic bread and other baked goods from its Hot Plate bakery, East Tamaki to its larger site, Quality Bakers Auckland, creating 25 new permanent roles.

The proposed changes to relocate production would result in the closure of the Irvines and Hot Plate bakeries in around April 2018.

In a separate proposal, the company is also planning significant capital investments to increase efficiencies at its Quality Bakers Auckland and Meadow Fresh Christchurch sites.

“Today, we have put forward proposals to consolidate and invest further in our manufacturing network which will expand our regional operations, and ultimately create a more sustainable and competitive platform for the future of our business in New Zealand,” said Mr Deane.

“We are working directly with the 147 employees impacted by these proposals. Where possible, employees will be provided the opportunity for redeployment to fill vacancies at other Goodman Fielder sites. Employees who are not able to be redeployed will receive their full entitlements as well as an extensive employee assistance program including outplacement and career support.

“We understand the impact these proposals have on our people and our immediate priority is to ensure that they are supported through this process,” said Mr Deane.

|  A Goodmann Fielder release  ||  June 8, 2017   |||

The New Zealand owners of Formica Group Europe, Fletcher Building, have pledged to plough £40m into the UK sites over the next three years, radically transforming and upgrading its production facilities and offices in a move to drive up its UK market share.

Formica has been a major employer in the North East’s manufacturing sector for more than 70 years, making laminate products for the residential and commercial sectors at its sites in North Shields and Newton Aycliffe, County Durham. 

Peter Rush, president of Formica Group Europe, revealed full details of the investment plans for the first time at a special open day at the Coast Road site, bringing together industry leaders, politicians and directors as the firm cemented its commitment to the North East.

The investment is being made in three phases, the first of which has seen the relocation of around 100 office staff from Cobalt to the Coast Road base, which will now serve as the European headquarters – a decision backed by the New Zealand parent company after the Brexit vote last June.

Mr Rush outlined other significant spending plans which will bring new machinery and upgrades for existing machinery, which could potentially create new jobs.  There are plans to centralise manufacturing activities under one roof in the west factory, located behind the east building, and new products are also being introduced in a bid to grab a greater market share.

Mr Rush said: “In 2015 Formica took a big deep breath and said: ‘What are we going to do with Formica Europe?’.

“If you look back at its performance over the previous five years, it was one of those moments when you either invest and get behind the business, or you might need to find another option.

“They took the view that we’ll get behind the business, put a new leadership business in place, get behind the business and come up with a strategic plan and based on that plan give this a real good go, which is exactly where we are today.

“Flectcher Building has been a fantastic parent company. They are thousands of miles away and they are allowing us to spend £40m over the next three years, and that’s a huge amount.|  A ChronicleLive release  ||  June 6, 2017   |||

A range of New Zealand food and beverage (F&B) brands showcased their products Regent Singapore Hotel yesterday, as part of a strategy to gain a foothold in the regional market,  allowing local chefs, buyers and other industry professionals to taste Kiwi treats such as wine and beer, honey, ice cream and lamb, and to interact with key producers.

About half of the 20 exhibitors at the trade show organised by New Zealand Trade and Enterprise featured young brands looking to expand into Singapore and the region. The remaining exhibitors, such as New Zealand Natural and Moa Brewing Company, are already established here.

Durello, which sells traditional Brazilian snacks, was set up in New Zealand three years ago.

Founder Marcelo Menoita told The Straits Times: "We are a brand with Brazilian flavour, New Zealand ingredients, mother's recipes.

"Singapore is an ideal location for expansion as it is an entry point to Asia, and it has high-end consumers who value quality products like we do."

The one-day event was held in conjunction with a panel discussion focusing on food sustainability and changing consumer demands in Singapore.

Said panellist Regina Moench-Pfanner, who founded sustainable food consultancy ibn360: "We need to tap research and development for sustainable food while putting ourselves in consumers' shoes.

"There is increasing international pressure for healthy, quality foods, and the food industry should look at how to turn this into opportunities."

Ms Hayley Horan, New Zealand's Trade Commissioner for Singapore, noted that her country is a leader in food safety and product traceability and a trusted supplier of high-quality products to Singapore.

Currently, Singapore is New Zealand's eighth-largest target country for food exports.

Most of the new brands that took part in the trade show are keen to champion sustainability, quality, safety and health. Some firms featured non-genetically modified products, animal welfare-centric business models and carbon-free manufacturing processes.

Mr Trent Brock, who owns New Zealand Kettle Korn, said: "Our popcorn is all natural. We use carefully selected, high-quality New Zealand-made ingredients.

"We are lab-certified gluten-, soy-, dairy- and peanut-free. Having quality and being allergy-friendly cost us a little more, but we plan to keep it that way."

Mr Brock plans to expand his business into Singapore within the next few months.

|  A release from  The Strait Times  ||  May 19, 2017  |||

Chemistry has allowed humans to create a myriad of new inventions and improve on innumerable existing ones. Through research, we've created synthetic materials that are stronger than the metals we've used for centuries. One synthetic fiber invented in the last several decades is being implemented into many protective gear and vehicles because of its sheer strength and durability. Militaries, law enforcement and civilian industries are using the synthetic fiber called Dyneema to protect lives and equipment.

Dyneema is a high-strength synthetic fiber that is capable of protecting an individual or vehicle from threats like an improvised explosive device (IED) or shots from an AK47 [source: Dyneema ]. If you took a block of Dyneema and block of steel, on a weight-for-weight basis the block of Dyneema would be 15 times stronger than the steel block [source: Dyneema]. The lightweight fiber is strong and moldable, yet it can withstand significant explosions and extreme weather conditions. There are other synthetic fibers similar in characteristics, like Kevlar, but only Dyneema is trademarked as the world's strongest fiber [source: Dyneema].

By 2018, high-performance carbon-fiber bike builders will be useing Dyneema to build revolutionary frames that are stronger, lighter, and more impact resistant than ever before.  The applications are limitless for a product that has Green attached to it's name.

| A How Stuff Works release ||  May 17,2017   |||

With its KTS and KTX product families, SICK is presenting new, powerful contrast sensors from a forward-looking, innovative platform. The patented TwinEye technology for improved contrast detection and sensing distance tolerance (+- 5 mm), the specially developed three-color LED with its high-precision, color-mixed light spot, and the jitter that has been minimized to a level never before seen, coupled with absolute high-speed switching frequencies, open up a world of new possibilities when it comes to detecting contrasts and – for the first time in a sensor – colors too.

IO-Link and additional integrated functions such as recipe management ensure maximum versatility, while the innovative, multifunctional 7-segment display guarantees simple yet customized sensor setup, operation, and visualization.

Familiar applications such as the detection of print marks or the control of industrial labeling processes benefit from even greater process stability and performance. The sensors detect high-gloss materials and complex contrasts, even on heavily jittering materials. The integrated color mode also enables reliable detection of even the most minor contrast differences and color features.

More applications, more flexibility

The KTX product family offers compatibility without compromise: Both the hole pattern for mounting the sensors and the electrical connectivity facilitate a 1:1 migration from the SICK product families that are already proven and widespread on the market to the new technology platform. In its space-saving compact housing, the KTS meets all requirements of modern machine concepts. The KTS contrast sensors come in “CORE” and “PRIME” configurations; these offer different levels of functionality, enabling a variety of different automation needs to be met individually and cost-effectively. The even more finely granular grayscale resolution of the KTS and KTX, the integrated color mode, and the large number of other technical innovations in both product families are setting a new standard in the market for contrast sensor technology – and opening up additional areas of application at the same time, such as the detection of wafers, the management of reel changes, or quality control.

SICK is one of the world’s leading producers of sensors and sensor solutions for industrial applications. Founded in 1946 by Dr.-Ing. e. h. Erwin Sick, the company with headquarters in Waldkirch im Breisgau near Freiburg ranks among the technological market leaders. With more than 50 subsidiaries and equity investments as well as numerous agencies, SICK maintains a presence around the globe. In the fiscal year 2016, SICK had more than 8,000 employees worldwide and achieved Group sales of just under EUR 1.4 billion.

|  A SICK release  ||  May 16, 2017   |||

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions, completed during April 2017, shows total sales in March 2017 increased 2.93% (year on year export sales decreased by 8.10% with domestic sales increasing by 17.95%) on March 2016.

In the 3 months to March, export sales decreased an average of 9.4%, and domestic sales increased 7.1% on average.

The NZMEA survey sample this month covered NZ$360m in annualised sales, with an export content of 51%.

Net confidence rose to 23, up from 0 in February.

The current performance index (a combination of profitability and cash flow) is at 97, down from 98.3 last month, the change index (capacity utilisation, staff levels, orders and inventories) was at 102, up from 100 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 105.33, down on the last result of 106.33. Anything over 100 indicates expansion.

Constraints reported were 78% markets, 11% skilled staff and 11% capital.

A net 38% of respondents reported a productivity increase in March.

Staff numbers increased 4.31% year on year in March.

Supervisors, tradespersons, managers, professional/scientists and operators/labourers reported a moderate shortage.

“Domestic sales lead growth for manufactures in March, increasing an impressive 17.95% on March 2016. Average monthly growth for domestic sales over the last three months was 7.1%. Staff numbers have also picked up, increasing 4.31% on the same month last year, a break from a recent trend of staff number decreases.” Said NZMEA Chief Executive Dieter Adam.

“In contrast, export sales have continued to struggle, falling 8.10% on March 2016, resulting in an average decrease of 9.4% in the past three months. Exports experienced a monthly average decrease of 4.8% in the last 12 months, compared to the same months in the previous year.

“Net confidence rose from the neutral position of 0 in February, to a more positive 23, while two out of three index measure (performance and forecast) experienced a slight decrease on last month. Market conditions remained the highest reported barrier to growth, significantly higher at 78% than skilled staff and capital, both at 11%.

“The challenges in export sales in this survey was reflected in the recent Overseas Merchandise Trade release by Statistics New Zealand. Mechanical machinery and equipment export values felt a fall of 6.13% in March on the same month last year, while electrical machinery and equipment experienced a 1.61% decrease in the same period.

“Exports are an indispensable part of the path to a more prosperous New Zealand. However, the backward movement in exports over the last year presents a real challenge that needs addressing. As the election approaches, we need to see all political parties put ideas forward on how to create an environment where our high value exports can grow and thrive.” Said Dieter Adam.

The New Zealand Manufacturers and Exporters Association survey gathers results from members around New Zealand. It provides a monthly snapshot of manufacturers and exporters’ sales and sentiment.

For results tables and graphs, click here.

| An NZMEA release  ||  May 15, 2017   |||

Ross Eathorne runs SWF Distribution the Solar Gard protective films master agent in New Zealand.  The Solar Gard product is one that many of us will look at every day and not even know it’s there!  The  film has been applied to thousands of surfaces that are in the public eye, examples being solar control, safety and security graffiti protection and decorative situations.

Recently Solar Gard introduced a film that focuses on protecting the painted surfaces of motor vehicles from the likes of damage from the elements, shopping trolley damage and bird droppings.

Called Clearshield Pro Ross believes this protective film could be very effective in a factory and manufacturing environment.  For example for the protection of painted surfaces from surrounding factory floor activity and abrasive actions or to protect finished surfaces of manufactured product.

It’s worth asking the question about your situation after all you won’t see the film all while the extending the life of your or equipment. Click on the image below to view the video.

You can reach Ross on:

Phone- +64 9 441 0040Fax-      +64 9 444 2788Cell-       021 245 5135Email-This email address is being protected from spambots. You need JavaScript enabled to view it.