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Recent key developments in MAKE│NZ
– We haven’t seen the numbers yet, but initial reports from the organisers of SouthMACH, and some exhibitors point to a very positive picture for the show in terms of visitor numbers and sale enquiries. And we certainly had a higher-than-previous level of interest in our won MAKE│NZ booth at we shared with the UC Business School
– With our MAKE│NZ conference, we were proud neighbours to a number of our members who displayed their impressive products next to us: Argus Manutech, Dawn Areospace, ENI and Hamilton Jet
– Our MAKE│NZ Manufacturing Industry Conference itself was well-attended and – based on the feedback we received – very useful to use who attended. The main aim was for attendees to be able to walk away with ideas for what they could try in their own operations straight away when it comes to improving levels of engagement, and it sounds like we achieved that. Over the next few weeks, we’ll put together a summary of key insights and recommendations from the day that we’ll make available to those who attended. At this stage, we’d like to express our appreciation to have of those who contributed to this success: first and foremost our presenters, but also the good people from XPO who helped us organise the event and promote it – as did others. And, last, but not least, the MAKE│NZ team, including our directors. As you’ll be able to imagine, a lot of work goes on for months behind the scenes to organise an event like this. Can’t wait ‘til next time!
Recent key developments in New Zealand
– The government has published its new directions for WorkSafe this morning and immediately came under pressure from some journalists and commentators for shifting its focus away from being the enforcer in workplace health and safety by – in the words of Minister van Velden: “refocus[ing] WorkSafe from an enforcement agency to one that engages early to support businesses and individuals to manage their critical risks.” … further on, the Minister continues: “To address this, I will split WorkSafe’s appropriation into four new categories
- Supporting work health and safety practice
- Enforcing work health and safety compliance
- Authorising and monitoring work health and safety activities, and
- Energy safety
This will ring true and be a welcome change for manufacturers who in the recent past have been failed by WorkSafe inspectors on certain protective measures, e.g. in machine guarding – only to be told when asking what ‘good’ would look like in the eyes of the inspector to be told that “it’s not our job to tell you what the improvements required are. We’re just here to tell you what’s wrong” …
Recent key developments in the World
– Most of you have heard about ‘edge computing’ by now. In manufacturing, it means installing computers for processing operational data close to the source, like on the factory floor, instead of sending it to a central server or the cloud. It reduces latency and improves system responsiveness.
What about bringing AI to the edge? The concept isn’t novel, as this 2022 review article shows. But ‘conventional’ AI would be far too power-hungry, cumbersome and expensive – NVIDIA’s top-level chips go for between USD30k and $40k each, and simple models still cost between $6.5k and 8k. We now have developments that take a new approach to AI, developing more sophisticated software to replace some of the raw computing power of the graphics chips used for AI. Chinese AI companies have used that approach because of their restricted access to advanced chips, and there are now companies that are using the same approach – in combination with semiconductors specifically designed for this application – to offer edge AI. One of those companies is Sima Technologies, and you can see an example of their offer here.
A helpful overview of the technology and where its deployment will be most beneficial in smart manufacturing can be found here. It’s hard to say at this stage when and how this technology will become a meaningful tool to invest in to improve productivity in SME manufacturing in New Zealand, but with the speed (some) things are developing these days …
– It’s one thing to read about “German manufacturing is in decline”. It’s a statement in the abstract. Developments become more tangible when they impact on well-known brand names – and sometimes lesser-known brand names – of manufacturers that often have been in business for many decades. Last year it was Recaro and VARTA, coming very close to bankruptcy. The latter had outstanding loans of €485m it was no longer able to service. After protracted negotiations with interested parties willing to come to the rescue – at a price – VARTA was saved. Not the least, because jointly with Porsche it had developed advanced battery technology that Porsche continued to rely on. The ones losing out on the deal were employees being made redundant, and small investors (VARTA was listed on the stock market), whose shares lost their value.
Two other examples are quite recent. Webasto may not be brand name known to those who don’t own a larger boat or a motorhome, but the company is a major manufacturer of components to the automotive and leisure marine industries. The company was founded in 1901 by two families who are still joint owners today, although this is about to change. It employs just under 17,000 people globally and had sales of €4.6b in 2023. Its debts had mounted to close to €1b, which the owners were struggling to service on declining sales. It now looks like the company has been pulled back from bankruptcy for the time being by a debt-for equity swap organised by a group of investment banks.
Webasto’s difficulties mirror those of other major automotive suppliers in Germany, such as Continental, Bosch, ZF, and Schaeffler, all of which are implementing cost-cutting measures amid the industry’s structural crisis.
– And then there is KTM / Husqvarna, who didn’t quite go under, but came very close. How they got there is an interesting story for another day. Their parent company, Austrian Pierer Mobility AG, had a loan outstanding over €600m that was due on May 23, 2025. Until the last minute – or at least the last couple of days – it was unclear whether anyone would come to their rescue. Expectations were that the Indian motorcycle company Bajaj Auto Limited, already heavily involved, would provide the funding required. In the end they did just that, but not without holding out to the last minute. Bajaj Auto already has a 37.4% stake in Pierer Mobility through a holding company. It is providing the money in the form of a one-year loan. Should Pierer Mobility not be able to repay the loan in a year’s time, it will be converted into equity, which would make Bajaj Auto the majority shareholder in the company.
This highlights something that has been in train for a while – the increasing role of India as a global player in motorcycle manufacturing, next to China.
India is the world’s biggest manufacturer of motorcycles, with double-digit annual growth rates recently. Both KTM/Husqvarna and BMW have had their low-displacement (<500 cc) models manufactured in India for many years now by Baja Auto and TSV, respectively. TSV is India’s second-biggest motorcycle manufacturer; Bajaj Auto come in as a close third.
– And now, as they say, to something completely different. In this newsletter, we stay away from reporting or commenting on political matters or developments that are not directly related to manufacturing. But there will be exceptions, like this one. It is reporting on ‘US politics’ in general, but, as we have seen recently, there can be a close connection between US politics in general – like, who will be their next President – and manufacturing in New Zealand.
What has been amazing is the number of people of influence – leaders in politics and business – in many places, including New Zealand, who are obviously thinking of the current US Presidency as a transitory phenomenon – a ‘nightmare’, a ‘historical aberration’, or like a bout of an infectious disease we shall certainly see the other end of. One leading Germany politician, in an interview the day after President Trump’s inauguration, quoted the number of days until the next US President will be sworn in …
It is human nature to respond to (sudden?) unpleasant developments with an “Oh, that’ll go away again soon” response. But, in this case, is that justified? In spite of some people having expressed a wish for it, a third term of the current President is rather unlikely. Does that mean things will go back to “the way they were before” in 2029? Maybe (not) …
The New York Times recently reported the results from an analysis of voter movements over the past three election cycles, and we’ll leave you with some of the graphs from that report (https://www.nytimes.com/interactive/2025/05/25/us/politics/trump-politics-democrats.html ):
(n.b. in US politics the colour red is usually assigned to the Republican Party)
Most of the counties that ‘went red’ in the last three elections had lower incomes, compared to those that ‘went blue’
Most of the counties that ‘went red’ in the last three elections had lower educational achievements, compared to those that ‘went blue’
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