New Zealand has a major flaw with its economy and that is it has an anaemic secondary manufacturing sector. NZ does make some things, but not enough of its national income derives from secondary industry. This has a major impact on the environment. To maintain its position as a fully developed OECD economy NZ finds itself having to do two things in the absence of manufacturing; it must flog the land to exhaustion and pollute the rivers.
The intensification of agriculture has got to the breaking point. You will find commentators saying the answer is the service sector and Kiwis doing things smarter. Yes, fine, but NZ is small and isolated, it's hard to get noticed. Its all very well trying to be the next Microsoft or Google but how realistic is that? Not very realistic is my reply, and NZ does not have really big global scale service sectors and I'm thinking banking and insurance. NZ relies on overseas funds from banking and overseas owned insurance companies.
For little NZ, the answer is to extract mineral ores and transform them into metals. Then take those metals and make products from them. Then sell those products worldwide. And if feasible, make those same products in other countries with the design aspect handled in Kiwiland. You may think of Toyota when I say this but I'm thinking Scania. Scania are Swedish heavy trucks and made in factories around the world. But Sweden only has a population of 9 and a bit million. Less than twice the size of NZ. And they have Volvo construction equipment to boot, and on and on. NZ should try to emulate their example.
Will this happen with the current political set-up? Never. The German style of Mixed-member Proportional (MMP) voting introduced in the mid 1990's ensures NZ is stuck with the way it is. The country has professional naysayers in the Greens, refusing to lead or take any responsibility, hogging positions that could be occupied by more able parliamentarians. And contrary to what NZ was promised, the country has rarely had majority governments, instead being led by minority governments hanging on by pleasing the myopic middle ground in order to survive in office. NZ has ended up with the worst of all worlds.
And it will get worse. The day could come where MMP delivers tyranny. One example is where a party receives, say, 60% of the vote but all others fail to get to the 5% threshold. This means all Parliamentary seats would go to the one party making the threshold (in theory but with some seats being won without many party votes, there would be one hell of an overhang in that Parliament). Or how about the ultimate minority party, say one with 35% but the rest unable to garner much more than 10% each, with a large number of votes wasted on parties not making the 5% threshold; meaning the government would rule a country where the overwhelming majority had not voted for it. Incredible, it could actually happen. Who were the fools that foisted this system on the NZ people.
Showing posts with label Extractive Industry. Show all posts
Showing posts with label Extractive Industry. Show all posts
May 03, 2017
June 07, 2016
Bruce Greenwald: Death of Manufacturing
I found the following video from an embedded link on the Columbia University website. Bruce Greenwald describes the death of manufacturing and the global deflation:-
He makes perfectly valid points. But it is interesting to hear that agriculture is finished. New Zealand is a country that relies on agricultural exports. Oh no, are we in trouble or what? Then we have manufacturing, New Zealand is a bit anaemic there, but that too is finished. Again, oh no.
But something he may have overlooked - productivity gains are still achievable in both agriculture and manufacturing. The answer I think lies in automation. Machines making other machines and machines doing the actual farming and manufacturing. Then the next development is machines deciding what to produce and when and in what quantities.
But where Greenwald nails it, is talking about the structure of an economy. Getting the structure right is key, and New Zealand needs to look at it as their structure is weak. NZ is vulnerable, it's just that it dodged the bullet back in 2008/09.
He makes perfectly valid points. But it is interesting to hear that agriculture is finished. New Zealand is a country that relies on agricultural exports. Oh no, are we in trouble or what? Then we have manufacturing, New Zealand is a bit anaemic there, but that too is finished. Again, oh no.
But something he may have overlooked - productivity gains are still achievable in both agriculture and manufacturing. The answer I think lies in automation. Machines making other machines and machines doing the actual farming and manufacturing. Then the next development is machines deciding what to produce and when and in what quantities.
But where Greenwald nails it, is talking about the structure of an economy. Getting the structure right is key, and New Zealand needs to look at it as their structure is weak. NZ is vulnerable, it's just that it dodged the bullet back in 2008/09.
June 12, 2015
Don't Take That Last Fateful Step
I have commented on the statutory safety framework for quarries in New Zealand on LinkedIn.... Please click the embedded link > > Quarry Operators New Zealand << This is in response to the tragic death of Murray Taylor, who died when rock fell on him in a quarry he leased from the local district council.
What I expect to now happen is hand-wringing, politicians grandstanding, but very little done to address the parlous safety culture within NZ's extractive industry.
The current system doesn't work. It is designed for medium to large quarrying operations with a management structure already in place. The smaller operators and farmers, of which there are thousands, are left out in the cold. If they hear about such a thing as a Certificate of Competence, they run a mile.
I have an idea....
The Regulatory Environment
What could be done is scale certification to the size of operation, so with a farm quarry or a sole operator with one or two staff, they attend a one day course on safety, dealing with the key reasons people are injured or killed (see how to create a safety culture below ).
Such a system would reach far more, and would get these guys on record. Then as their businesses grow they can advance further by adding to their competency, finally arriving at the A grade quarry manager certificate. By setting the hurdle so high, with the B grade certificate right from the start, many never try and so they end up expanding and often ignoring safety. Or far more likely, they do some things effectively but others they miss. Get them on board early, then work with them.
Creating A Safe Workplace Culture
Current certification deals mostly with physical things, such as machinery and geology, while in fact most accidents are caused by behavioural considerations - tiredness and sickness, recklessness, poor judgement, pressure to perform and the real biggie which most are simply unaware of - complacency. That's right, those things you get used to are the things that up and bite you on the arse.
Experienced guys get injured or killed when they're no longer scared. Scared is good, it means you'll be careful, watch out, watch others and if you have the right culture, watch each other and talk about things, like hazards and the real biggie - close calls. You need to internalise those close calls as well as have it out in the open.
It takes a big boss to bring this culture to the workplace. It means dis-empowering the manager to a certain extent and empowering the workers. If a guy says to the manager "I don't like the way that guy comes around behind me, he's too close and this morning I nearly backed in to him." What does the manager say in reply?
"Bring it up at smoko, this is something we need to talk about". Or does he say, "Just you do your job and I'll look after safety round here." I've heard the latter said a lot. It's not safe and leads to poor communication, less caring ( warm fuzzies I know) and consequently more accidents. Top down doesn't work, bottom up does when it comes to safety. Most business owners and senior managers reject the notion, because they're scared of the implications, the big gorilla in the room, workplace democracy.
All extractive industry would benefit from my approach - whether it be mining, farming, forestry, fishing or quarrying.
The Last Fateful Step
I can hear my father's voice in my head as I write this, he trained me so well. Just turning up to work, being in a hurry, getting frustrated with something and going at things like a bull at a gate (my biggest crime when young and starting out), doesn't immediately get you injured. It just increases the risk. What gets you injured is taking that last fateful step; slipping, not paying attention, taking your eye off things, and standing right there or moving in the way. Turn up to work having had two hours sleep (yes I've done it when young), then going flat out to catch up (yes me again), then standing right behind a wheel loader while he's backing up? Want to get yourself killed? That last thing I've never done, in fact my father trained me so well to always keep alert and to stay out the way, I've never suffered an injury at work, nor has anyone who's worked for me. Not a single trip to the doctor, and nothing more than a scratch on the hand.
Training isn't about how to be a great machine operator, it's about knowing how to identify the condition you're in, and how to minimise that risk to yourself and others by critically examining the actions of others and by examining your own habits. It's this last step that is noticeably missing and why serious accidents are increasing. Learning how to trigger comes about by talking to one another and the manager being on board and inclusive. It's about training how to think.
Scenario
Two wheel loaders working around the mobile crushing plant, you're in one with your offsider in the other.
Step 1 - You need to acknowledge both machines are very powerful as well as the crushers. You were up late the night before with a crying baby so could be tired.
You notice that your offsider is often jumping out of his cab, running across the ground to clear a blockage from the crusher, and he does so without indicating he's about to do it, either by radio talk and in the absence of a radio by making eye contact followed by hand gestures.
Step 2 - As he scurries over the ground you reflexively move your machine toward him without thinking, he jumps to one side, no problems, and he does his job. Note to self to watch these mistakes of yours.
Step 3 - As the day goes by you note that both of you are not always watching where you're going and there are other close calls. You talk about this at the end of the day and you both resolve to communicate better between operators and to watch where you're going.
Step 4 - Think about your habit of taking off without thinking, correct it over the next few days until your habit changes to one where you check your ground before moving.
It's these steps that are the hardest to achieve.
What I expect to now happen is hand-wringing, politicians grandstanding, but very little done to address the parlous safety culture within NZ's extractive industry.
The current system doesn't work. It is designed for medium to large quarrying operations with a management structure already in place. The smaller operators and farmers, of which there are thousands, are left out in the cold. If they hear about such a thing as a Certificate of Competence, they run a mile.
I have an idea....
The Regulatory Environment
What could be done is scale certification to the size of operation, so with a farm quarry or a sole operator with one or two staff, they attend a one day course on safety, dealing with the key reasons people are injured or killed (see how to create a safety culture below ).
Such a system would reach far more, and would get these guys on record. Then as their businesses grow they can advance further by adding to their competency, finally arriving at the A grade quarry manager certificate. By setting the hurdle so high, with the B grade certificate right from the start, many never try and so they end up expanding and often ignoring safety. Or far more likely, they do some things effectively but others they miss. Get them on board early, then work with them.
Creating A Safe Workplace Culture
Current certification deals mostly with physical things, such as machinery and geology, while in fact most accidents are caused by behavioural considerations - tiredness and sickness, recklessness, poor judgement, pressure to perform and the real biggie which most are simply unaware of - complacency. That's right, those things you get used to are the things that up and bite you on the arse.
Experienced guys get injured or killed when they're no longer scared. Scared is good, it means you'll be careful, watch out, watch others and if you have the right culture, watch each other and talk about things, like hazards and the real biggie - close calls. You need to internalise those close calls as well as have it out in the open.
It takes a big boss to bring this culture to the workplace. It means dis-empowering the manager to a certain extent and empowering the workers. If a guy says to the manager "I don't like the way that guy comes around behind me, he's too close and this morning I nearly backed in to him." What does the manager say in reply?
"Bring it up at smoko, this is something we need to talk about". Or does he say, "Just you do your job and I'll look after safety round here." I've heard the latter said a lot. It's not safe and leads to poor communication, less caring ( warm fuzzies I know) and consequently more accidents. Top down doesn't work, bottom up does when it comes to safety. Most business owners and senior managers reject the notion, because they're scared of the implications, the big gorilla in the room, workplace democracy.
All extractive industry would benefit from my approach - whether it be mining, farming, forestry, fishing or quarrying.
The Last Fateful Step
I can hear my father's voice in my head as I write this, he trained me so well. Just turning up to work, being in a hurry, getting frustrated with something and going at things like a bull at a gate (my biggest crime when young and starting out), doesn't immediately get you injured. It just increases the risk. What gets you injured is taking that last fateful step; slipping, not paying attention, taking your eye off things, and standing right there or moving in the way. Turn up to work having had two hours sleep (yes I've done it when young), then going flat out to catch up (yes me again), then standing right behind a wheel loader while he's backing up? Want to get yourself killed? That last thing I've never done, in fact my father trained me so well to always keep alert and to stay out the way, I've never suffered an injury at work, nor has anyone who's worked for me. Not a single trip to the doctor, and nothing more than a scratch on the hand.
Training isn't about how to be a great machine operator, it's about knowing how to identify the condition you're in, and how to minimise that risk to yourself and others by critically examining the actions of others and by examining your own habits. It's this last step that is noticeably missing and why serious accidents are increasing. Learning how to trigger comes about by talking to one another and the manager being on board and inclusive. It's about training how to think.
Scenario
Two wheel loaders working around the mobile crushing plant, you're in one with your offsider in the other.
Step 1 - You need to acknowledge both machines are very powerful as well as the crushers. You were up late the night before with a crying baby so could be tired.
You notice that your offsider is often jumping out of his cab, running across the ground to clear a blockage from the crusher, and he does so without indicating he's about to do it, either by radio talk and in the absence of a radio by making eye contact followed by hand gestures.
Step 2 - As he scurries over the ground you reflexively move your machine toward him without thinking, he jumps to one side, no problems, and he does his job. Note to self to watch these mistakes of yours.
Step 3 - As the day goes by you note that both of you are not always watching where you're going and there are other close calls. You talk about this at the end of the day and you both resolve to communicate better between operators and to watch where you're going.
Step 4 - Think about your habit of taking off without thinking, correct it over the next few days until your habit changes to one where you check your ground before moving.
It's these steps that are the hardest to achieve.