Mark Taylor: Fighting to stay ahead of the game

As a firm believer that the health of the New Zealand economy is reflected in the health of its manufacturing for export sector, it was of comfort to see that people outside the sector are finally waking up to the reality of how the New Zealand industry is being undermined. (Herald September 12, Michael Barnett, Chamber of Commerce: "Metalwork migration will hurt large firms".)

The metals sector is a good example of the hit New Zealand manufacturers are taking from lower wage economies, dumping of imports below world market prices and a lack of quality/safety standards applied to imports at our borders. In recent years we have seen other countries pirating and counterfeiting New Zealand-made products and avoiding compliance costs in areas of health and safety and environment, (so much for a "level playing field").

All of these issues have contributed to New Zealand metals manufacturers downsizing, closing or relocating overseas.

Michael Barnett is correct when he says: "It is easy to say we need to define our vision and then action it with ruthless dedication and energy. The problem is that words are easy; turning them into action is where we have traditionally run into problems."

Fortunately, this challenge has been taken up by some manufacturing associations in New Zealand, including Light Alloy Manufacturing New Zealand.

LAM-NZ is an industry group formed in 2003 to provide export-oriented companies in the sector with a network for disseminating information, discussing business strategy and obtaining advice, direct and timely R & D support and technology leverage in the market.

LAM-NZ is working towards creating wealth through manufacturing and exporting high-value goods, training manufacturing engineers and researchers for New Zealand, and through rapid improvement in industry skill levels, enhancing New Zealand's reputation as a manufacturer of highest-quality, innovative products. Its work is attracting young people into technical education and training, leading to advanced industry capability and community sustainability.

In 2003 foundation member companies (Ullrich Aluminium, Axiam Diecasting, HERA, ION Automotive, Titanbond and Titanox), together with R & D providers (Auckland University, AUT, Waikato University, and Canterbury University) successfully bid for funding from the Foundation for Research Science and Technology to allow much needed research in areas where shortfalls existed in industry knowledge and capability.

The resulting research programme, which is led by the Light Metals Research Centre at Auckland University, has enabled a critical mass of researchers and senior industry professionals to address issues of importance with a broad range of manufacturers who are building the export market.

With the help of other government funding schemes we are seeing growth in LAM membership as further companies are collaborating with R & D providers to solve manufacturing challenges.

A "Who's Who" of the industry, totalling more than 280 New Zealand companies involved in manufacturing in light metals, has been grouped by sector and with funding assistance from Trade and Enterprise most have been surveyed to get an understanding of their core business, capabilities and concerns. From this feedback a roadmap has been developed for the industry.

The threats are common and the majority of companies recognise that the only viable strategy is to collaborate and concentrate resources in order to survive and have a chance of expanding globally.

A highly successful approach taken overseas has been the establishment of "technology" or "rapid prototyping" centres. These centres are industry led and driven, but well supported by governments because of the export returns they generate for communities and for whole countries - for example Taiwan's Technology Parks. LAM-NZ is at present gathering industry feedback to determine the level of interest in this concept, as a method of concentrating New Zealand's productive resources for rapid design and prototyping of export products, integrated with global marketing and supply chain logistics.

To minimise the time between an R & D finding and a product application, it is essential that rapid product design and prototyping facilities exist through the full manufacturing chain: from recognition of market need, to design of product shape/material properties, machine tooling, casting, extrusion, and fabrication testing and surface finishing.

LAM-NZ is already working on heavily focused industry projects in molten metal supply for specialised alloys, new fabrication techniques such as friction stir welding, modified casting and solidification technology for superior product strength and light weighting semi solid casting, leading edge simulation "virtual casting technology" capability, and specialised heat treating and surface finishing for corrosion prevention. All of these projects will deliver products faster if industry and researchers focus their design and manufacturing skills together within a rapid prototyping centre.

Through LAM-NZ, such a centre would also provide specialist training in business and managerial system development to elevate member companies to "world's best practice", give access to latest, international metals research and provide market intelligence.

Michael Barnett hits the nail on the head when he says: "Businesses which decide to stay in NZ need to be supported to the hilt. We need to start a campaign to praise and encourage wealth-creators."

* Professor Mark Taylor, LAM-NZ executive, is also the director of Light Metals Research Centre - Auckland UniServices Limited, a commercial arm of Auckland University which collaborates with major research centres and institutions around the world.