Building the case for manufacturing automation to drive business growth

By Shermine Gotfredsen, General Manager SEA & Oceania, Universal Robots New Zealand’s manufacturing industry has continued to expand almost every month since October 2012, based on the Bank of New Zealand-Business NZ performance of manufacturing index[1]. The sector was lifted by a construction boom that started during the rebuild of Christchurch post-earthquake. However, manufacturing as a percentage of the economy has declined in the long-term, from about 26 percent of gross domestic production (GDP) 40 years ago to about 13 percent in 2009[2]. To ensure manufacturing momentum continues, New Zealand manufacturers must look to innovative new ways to achieve business growth and expansion into regional and international markets. Recent research from Universal Robots, which surveyed the Australian and New Zealand manufacturing community indicates a growing emphasis on automation and particularly robotics as a way to increase competitive advantage. Almost half of ANZ manufacturers have invested in automation in the past year. Meanwhile, a vast majority of manufacturers plan to invest in automation in the coming year, with more than half of those respondents planning to install robotics solutions. This growth in automation investment has no doubt been driven by an increased focus on business innovation. Due to New Zealand’s geographical isolation creating higher freight overheads, and greater labour costs compared to countries such as China, many local manufacturers have felt pressure to consider automation as a way to increase productivity and profits. The decision to automate is typically based on a number of factors, namely the need to improve business performance, reduce production time and improve the quantity and quality of output. One such company exploring the use of automation to enable greater production flexibility and output is Auckland based injection moulding company TCI New Zealand, which deployed Universal Robots cobots to help automate specific production processes, such as labelling […]