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message from the executive director

As this newsletter arrives with you, top of mind is the COVID19 virus and what kind of impact it is having on global supply chains, particularly out of China. If you are being seriously impacted please let us know, as the Government is keen to hear how businesses are faring (we want the good and the bad news). We are collating the information and anonymising it, so they get a better understanding as to the degree of impact, and what in turn they will need to do to ensure our economy continues to tick along.

Catherine Beard

027 463 3212 or cbeard@businessnz.org.nz

Sluggish start to the year – PMI

New Zealand's manufacturing sector experienced a second consecutive month in contraction, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 49.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was up 0.4 points from December, the sector remains in contraction.

BusinessNZ's executive director for manufacturing Catherine Beard said that the mixed results for 2019 have continued to spill over into 2020.

"Looking at the key sub-index values, new orders (50.6) is still only just managing to keep its head above water, while production (49.9) has now been in contraction for three consecutive months.  Employment (46.9) also took a hit to reach its lowest mark since July 2019."

More information ->>

How robust are your supply chains?

The current Corona Virus spreading around the world is helping put a spot light on the resilience (or lack of) when it comes to supply chains.  According to Scion Research’s previous studies, New Zealand supply chains could be operating a lot more efficiently than they are. They would like manufacturers to full in the survey below to understand and assess the current supply chain capabilities including visibility, agility, and flexibility in New Zealand. This project would help them to identify some key supply chain problems and provide alternative reconfigurations to integrate supply chain systems, e.g. improving collaboration, information sharing, etc.   

Your responses will be strictly confidential. The data collected through the survey will be analysed and the results will be shared with you and publicly as a tool for learning. The results will be reported in a manner that does not enable you and your organisation to be identified. The expected outcome would contribute to business management and supply chain optimisation.

Click here to take the survey->>

Employers and coronavirus – it’s serious for business

So you think you’re good employer and that of course you’ll do the right thing if coronavirus takes hold in New Zealand?

Sorry.

Not good enough.

Under the Health and Safety at Work Act, your instincts for being ‘one of the good guys’ don’t even start to cut it.

You are required, by law, to make sure you do everything practicable to prevent your staff from getting it.

In theory, you are already supposed to take all steps to prevent them catching one another’s colds, flu, and any other communicable disease.

But as the covid-19 outbreak grips the world and heads towards pandemic status, you can bet your boots your staff are going to take your efforts on this issue far more seriously than the blind eye so often turned to the perennial office sniffler.

More ->>

New Zealand medical supplier’s ambitious US entry

The Challenge: How to finance six-months of manufacturing costs after securing a significant US contract

The Solution: New Zealand Export Credit’s short-term trade credit insurance underwrote the US buyer’s repayment obligations

The Benefit: This insurance policy was assigned to Chitogel’s bank, which supported working capital to fund their first US order

Lean and world-leading medical device company Chitogel had huge ambitions from the start. Beginning in the chemistry laboratories at the University of Otago, it identified an alternative to gauzes for sinus surgery.

Its researchers developed a hydrogel to be used after sinus surgery to stop bleeding. This gel effectively replaces gauzes (which can remain in a patient’s sinus cavity for weeks and can stick to the wound, which then requires more surgery).

More information ->>

Reform of RoVE

As you may be aware, there are significant changes planned for the way New Zealand trains the workforce.  The Reform of Vocational Education (RoVE) will come in to effect on 1 April.  Part of the change programme will include the establishment of Workforce Development Councils, with wide scopes of industry coverage, that will be responsible for setting the standards and qualifications.  BusinessNZ has been asked by some in industry to facilitate discussions with major companies to discuss what kind of training is being undertaken, as a way of sharing knowledge and to ensure that there can be a strong industry voice.

You may have been invited to one of the consultation sessions from TEC or your ITO.  The focus of this discussion will be to get companies in the room to discuss:

• What kind of training is your company doing (regardless of what kind of training provider you work with)?
• What works best for your business? (how, when and why do you train)?
• What do you see needs to change over the coming years in terms of how you attract and/or build the skill base of the workforce?
• What is the wish list for what you need from the training system (this could be existing barriers, disconnect in the services you need, or opportunities that you may like to implement in your business, e.g building capability for training).

Pending interest, we’ll look to do this meeting in Wellington or Auckland and use this as an opportunity to connect businesses and anchor the discussion in the practical insights of what works.  BusinessNZ is aware of the good work being undertaken in businesses to develop their people, and are keen to feed this in to the RoVE programme to make sure the training system can be more responsive to the needs of the business.

Please email Rachel for more information.

Study of Inclusion in Manufacturing

I am Chris Griffiths; I am a PhD student at AUT University's Business School. I am also working as a Senior Project Manager for a manufacturing division within New Zealand Post. While recently gaining my MBA at AUT, drawing on over 35 years of experience within manufacturing industries, I have developed a fascination for understanding the influence that quiet leaders have on creating an inclusive work environment. This fascination has led me to undertake a new study that calls for a greater understanding of individuals working less-visibly to foster inclusion. This study will include production staff, front-line supervisors, as well as management and senior leadership.

I am particularly focused on individuals who enjoy their work, respects organisational objectives and yet identify as being different in values or identity to the dominant practice or culture within their organisation. These individuals understand the experience of being different and are likely to adopt subtle yet determined approaches to transform their workplace.

From this study, I aim to develop a practical inclusion framework to illustrate how these individuals foster inclusion in the manufacturing workplace, for the primary benefit of New Zealand manufacturing.

Over the next few months (April to August), I will be conducting interviews, and I seek your help to access potential participants within your organisation. If you would like to discuss further, if you have participants in mind or would allow me to advertise for participants within your organisation, then please do contact me via email 

Government procurement feedback survey

Getting government procurement right is important. You spend a lot of time and money bidding for and managing government contracts.

New Zealand Government Procurement (NZGP) want to know what’s working and what needs improving in procurement planning and sourcing. Your feedback will help shape and grow procurement capability in the Public Sector.

Your individual responses will be held confidentially by the Capability Services Team and the Business Information and Analysis Team within New Zealand Government Procurement.These are not procurement teams: they work to help improve procurement practice across government.

More info here

Take the survey here

Contract Manufacturers

Don’t forget to check out our contract manufacturers directory if you are looking for contract manufacturing support or you are wanting to advertise your services.

More ->>

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