Friends and Colleagues,
This month for May, Ai Group’s PMI reported a sharp contraction, not seen since January. This is suspected to be off the back of the parliamentary changes. For May the PMI was 52.4, down from 58.5 for April. The indices to fall into contraction are sales, exports and supplier deliveries. Election uncertainty and supplier deliveries and also sharp energy price rises are said to be the cause.
BusinessNZ Performance of Manufacturing
To date May PMI figures had not been released. For April, the PMI in New Zealand fell a few points to 51.2, down from 53.7. This figure is just below the long-term average of 53.1. The biggest change was seen within the new orders growth, with this dropping t 56 vs 59.7 the previous month. All other indices dropped by one or two points, production (49.1 vs 50.3), employment (49.8 vs 52.2), deliveries (49.5 vs 51.2). This month manufactures reported concerns about skill shortages and supply chain.
Recent events and news at Headland
June 1 not only signifies the first day of winter but also the signing of the 18th new member of staff to Headland since Jan 1, 2022. With the opening of international borders we have been able to attract amazing talent from South Africa, Turkey, India, Hungary and Korea, as well as local talent and a diversity of experiences in a very tight labour market. I am humbled by the attraction many of these new staff members find in our future plans, our vision and our determination to be a thought leader in manufacturing technology and innovation. All whilst continuing to invest in programs which enable our people to continuously learn and grow.
Such a diversity of backgrounds excites me as it will undoubtedly enrich our capabilities and broaden the scope of work we can deliver with confidence. It brings new and fresh ideas to supplement our currently very impressive team.
Our application services team sees two new additions since I wrote to you last, with further expansion in software, automation and smart factory solutions. This function alone has grown to 8 people across Australia and NZ. We look forward to showing you the latest innovations within software and applications at Austech, we’ll be hosting a live demo each day on our stand.
Also on the important topic of people, I am very pleased to announce that we have created a new role at Headland, namely the senior position of “Chief of Staff”, and Samantha Kloe has been promoted to that role, reporting directly to the CEO. This role is specifically focussed on working with the whole leadership team on the implementation of the company strategic plan and the development of our people and culture programs. Samantha will continue to oversee the Marketing department at an executive level, but will empower and entrust Lisa Ruberg to lead the marketing function and the marketing team in the execution of all marketing activities. Congrats to Samantha and Congrats to Lisa.
As some of you are aware, last week, marked yet another successful Intech Exhibition at TRUMPF HQ and next week we look forward to seeing many of you at Austech. Both signifying the return of exhibitions and the opportunity to talk technology and innovation. With EuroBLECH just around the corner, I’m looking forward to continuing the Headland tradition of identifying and bringing the worlds very best technology to our shores for Australian and NZ clients to have the same easy access to these innovations as anyone else in Europe, the USA or anywhere else around the world.
Also since my last writing to you, Andrew Waelen (our GM of Client Experience) has continued his pursuit of client feedback and digging deep into the supply chain aspects of our Parts and consumables business. He has continued with face-face visits to numerous clients across the eastern states in the pursuit of “detail”. The changes he is implementing in stock holding policies have now been extended to include TRUMPF spare parts as well as Makino and multiple other major brands supplied by Headland. We have also identified a few product lines where our supply arrangements were not competitive and we are proceeding to renegotiate those supply arrangements or removal of those lines such that those very few product lines do not tarnish the reputation of “competitiveness” across the vast majority of the others. Thank you to all of you who have shared your feedback and detailed inputs directly with Andrew.
In closing, I would like to also let a small cat out of the bag, which you will soon hear a lot more about, at Austech, we will be revealing the very exciting evolution of the Headland Brand and a slight change in name which reflects our modern portfolio and the increased focus on “Technology”. You will see vibrant new colour, recognisable logo, yet the same values and commitment to innovation, that we have always been passionate about. The world is digital. Technology is at the heart of almost everything we do and smart factory solutions are no longer the point of difference but a mainstream set of solutions which enable businesses to compete. We trust you will see some of these themes reflected in our Rebranding next week and we look forward to the journeys we can take together.
Keep well and keep innovating.