Retail News CRM

Tag: Manufacturing

  • Facing Tough Tides: Synlait Milk Anticipates Half-Year Loss Amid Manufacturing Hurdles

    Facing Tough Tides: Synlait Milk Anticipates Half-Year Loss Amid Manufacturing Hurdles

    Synlait Milk, a company based in New Zealand and listed on the Australian Securities Exchange (ASX), anticipates reporting a loss for the six months ending on January 31. The company has attributed this forecast to manufacturing challenges at its Dunsandel facility. Synlait owns Dairyworks, a supplier of cheese, butter, and ice cream to Australian supermarkets.

    Financial Projections

    Synlait anticipates an underlying net loss after tax of NZ$33 million to $38 million, as well as a reported net loss after tax of $77 million to $82 million for the six-month period. This is a significant drop from the previous year, which saw an underlying net profit after tax (NPAT) of $8.7 million and a reported NPAT of $4.8 million.

    The company expects its underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) for the half year to range from breakeven to $5 million, with a projected reported EBITDA loss of $28 million to $33 million.

    Manufacturing Challenges and Cost Impacts

    While Synlait has primarily resolved the manufacturing issues at the Dunsandel site, it is still grappling with related cost and operational effects. The necessity to rebuild inventory across product segments entailed substantial adjustments to Synlait’s manufacturing plans for the current dairy season. To facilitate these adjustments, the company increased its raw milk sales, which negatively affected margins and operating costs.

    Low returns from the commodities portfolio also adversely impacted Synlait’s half-year performance. Furthermore, the company took a cautious approach, choosing not to recognize additional deferred tax assets stemming from unused tax losses beyond those recorded at the end of July.

    Effects on the Company’s Future

    Synlait’s CEO, Richard Wyeth, expressed disappointment with the results and the subsequent slowdown in the company’s recovery. Nevertheless, he affirmed that progress has been made in operations, including the establishment of a revitalized executive leadership team (ELT) in Canterbury and the forthcoming sale of Synlait’s North Island assets.

    This sale, slated for completion on April 1, is expected to substantially reinforce Synlait’s financial position, with the proceeds being used to reduce debt. The sale will also allow Synlait to concentrate its primary operations in Canterbury, with an emphasis on continual operational excellence and customer diversification to bolster long-term profitability.

    However, both Wyeth and Synlait acknowledge that the company’s recovery will take time, with a minimum of 12 months projected. Further details will be provided when Synlait releases its half-year results on March 23.

    Questions & Answers

    What contributed to Synlait’s projected financial loss?
    Manufacturing challenges at its Dunsandel facility, the need to rebuild inventory, increased raw milk sales, and low returns from the commodities portfolio all contributed to Synlait’s projected losses.

    What is the company’s current strategy for recovery and long-term profitability?
    Synlait’s recovery strategy includes the sale of its North Island assets to reduce debt, focusing its core operations on Canterbury, pursuing operational excellence, and diversifying its customer base.

    When does Synlait expect to see a recovery?
    The company anticipates that the recovery will take at least 12 months.

  • Australian Food Industry Shows Resilience With Robust Growth Amid Global Challenges

    Australian Food Industry Shows Resilience With Robust Growth Amid Global Challenges

    The food and grocery manufacturing industry in Australia has demonstrated robust growth, further solidifying its significance as the country’s biggest manufacturing sector and a crucial provider of regional employment opportunities.

    The Australian Food and Grocery Council’s (AFGC) State of the Industry 2023-24 report reveals that the sector’s turnover has experienced a 5.3 per cent growth, equating to a total of $173 billion.

    Employment and Exports

    Employment in the industry has also seen an increase of 4.4 per cent, resulting in almost 300,000 people now being employed in the sector, with over a third of these individuals located in regional Australia.

    Exports within the industry recorded a 5.2 per cent growth, while imports declined by 3.3 per cent. Interestingly, the US has surpassed China as the leading export market for Australia.

    Colm Maguire, CEO of AFGC, expressed his optimism for the sector’s future, emphasizing its “enormous potential”. He highlighted the need for policy and strategic backing as key for continued growth.

    Maguire added, “With the proper policy framework and strategic support, the food and grocery manufacturing sector can further enhance Australia’s economy – fostering regional employment, reinforcing Australia’s standing as a strong manufacturing nation, and securing our food and grocery supply amidst an increasingly complicated global landscape.”

    Challenges and Future Perspectives

    Despite the encouraging figures, the report also drew attention to certain challenges faced by the sector. These include an 11 per cent decline in capital investment, which currently stands at $3.8 billion, and ongoing cost pressures.

    As the Albanese Government progresses with its “Future Made in Australia” agenda, the AFGC argues that the food and grocery manufacturing industry is in a strong position to take the lead. This is reflected in their proposed seven productivity pillars, which concentrate on reducing bureaucracy, building resilient supply chains, and ensuring access to affordable, reliable energy.

    Questions & Answers

    What growth has the Australian food and grocery manufacturing industry seen recently?
    The industry has seen a 5.3 per cent increase in turnover, equating to $173 billion. Employment in the sector has risen by 4.4 per cent, with nearly 300,000 people now employed.

    Who is now Australia’s top export market?
    The US has now overtaken China as Australia’s top export market.

    What challenges does the Australian food and grocery manufacturing industry face?
    The industry faces challenges such as an 11 per cent decrease in capital investment and ongoing cost pressures.

  • Reimagining Australian Manufacturing: Navigating Challenges And Seizing New Opportunities

    Reimagining Australian Manufacturing: Navigating Challenges And Seizing New Opportunities

    The manufacturing sector in Australia is at a critical juncture, contributing approximately 5.9% to the national GDP and employing over 850,000 people this year. Despite rebounding from disruptions caused by the pandemic, the sector is grappling with new challenges. More than 60% of manufacturers are dealing with delays in receiving essential materials, and escalating energy costs and skill shortages are exacerbating operational hurdles.

    Opportunities Amidst Challenges

    However, this uncertain environment is presenting unexpected opportunities for Fast-Moving Consumer Goods (FMCG) manufacturers who are open to reimagining their sourcing tactics. The government’s $15 billion National Reconstruction Fund demonstrates a revitalized commitment to strengthening local manufacturing capabilities. Consequently, the question FMCG firms are grappling with is no longer whether to manufacture domestically or abroad, but rather how to devise intelligent hybrid models that leverage the benefits of both methods.

    The Relevance of Local Production

    It’s time to reconsider the long-standing belief about Australian customers’ allegiance to locally made products. In low-engagement, processed categories like confectionery and chocolate, the origin of the products usually takes a backseat to taste, brand, and value. In contrast, for fresh foods, the origin continues to be a significant factor influencing purchases. Retail buyers prioritize margin, volume, inventory performance, and innovation.

    Nonetheless, this doesn’t mean the end of local manufacturing. The Australian Government’s Modern Manufacturing Strategy is supporting businesses in repatriating operations and diversifying suppliers, thereby creating fresh opportunities for strategic local production.

    Local Manufacturing Advantages

    The vulnerabilities of supply chains exposed during recent global disruptions have fundamentally shifted the risk-reward equation of sourcing from overseas. What were once clear cost savings now include hidden expenses such as inventory buffers, expedited shipping, and lost sales from stockouts. Local manufacturing presents attractive benefits in this context. Shorter lead times enable quicker responsiveness to demand fluctuations and seasonal changes.

    Environmental Considerations

    When it comes to the environmental impact of local versus offshore manufacturing, the situation is more complex than it often appears. Manufactured inputs often account for 40-70% of a company’s carbon footprint, far outweighing transport. While local production may seem like a sustainability benefit, the impact largely depends on the energy mix.

    A Portfolio Approach to Manufacturing

    The most resilient FMCG firms are moving beyond the binary choice between local and offshore production. Instead, they are devising portfolio-based sourcing strategies, optimizing each product line based on specific needs and market dynamics.

    Future of Australian FMCG Manufacturing

    The progress of Australian FMCG manufacturing reflects larger shifts in how businesses compete in today’s world. It isn’t just about cost anymore. Speed, trust, sustainability, and adaptability have all emerged as critical competitive factors. The companies that will succeed are not those that choose between local or global production, but those that understand when, how, and why to utilize each method.

    Questions & Answers

    What challenges are the Australian manufacturing sector facing?
    The Australian manufacturing sector is experiencing delays in obtaining essential materials. Rising energy prices and a shortage of skilled labor are further compounding these operational challenges.

    What opportunities are emerging for FMCG manufacturers?
    The turbulent landscape is creating unexpected opportunities for FMCG manufacturers who are willing to rethink their sourcing strategies and develop intelligent hybrid models that combine the benefits of both local and offshore manufacturing.

    How is the future of Australian FMCG manufacturing being shaped?
    The future of Australian FMCG manufacturing is being shaped by a range of factors including speed, trust, sustainability, and adaptability. Government initiatives are also playing a significant role, with measures such as the National Reconstruction Fund helping to rebuild manufacturing capability.

  • Hoshima International Launches Smart Automation Revolutionizing Garment Manufacturing

    Hoshima International Launches Smart Automation Revolutionizing Garment Manufacturing

    Hoshima International, a leader in garment automation technology based in Singapore, is revolutionizing the manufacturing landscape with its innovative solutions. With over two decades of expertise, the company empowers garment producers in various countries, including Vietnam, Indonesia, and Turkey, by integrating smart technology into their production processes.

    Enhancing Operational Efficiency

    Hoshima recently showcased its cutting-edge systems at the Hoshima Operation & Development Center, emphasizing its commitment to developing smart, connected garment factories.

    These advanced solutions address key challenges in the manufacturing sector, offering improved operational efficiency and sustainability. By seamlessly integrating hardware, robotics, and software, Hoshima’s suite of technologies elevates every stage of garment production—from material handling to final packaging.

    Smart Logistics and Warehousing

    State-of-the-art logistics and warehousing technologies are at the forefront of Hoshima’s offerings. By optimizing floor space and streamlining material handling, manufacturers can improve order accuracy and reduce inventory retrieval time.

    These innovations are particularly advantageous in high-mix, high-volume settings, where efficiency and rapid material movement are essential to maintaining a seamless production flow.

    Precision in Pre-Cutting and Cutting

    Automation technologies play a pivotal role early in the manufacturing process. Hoshima’s intelligent fabric relaxing and spreading systems ensure fabrics are uniformly prepared for cutting, significantly minimizing tension-related distortions.

    The integration of automated cutters enhances precision, reduces material waste, and accelerates preparation times, benefiting manufacturers with high-volume production needs.

    Innovations in Sewing

    In the sewing phase, Hoshima introduces advanced solutions like PPA Automation and AI Robotics. These innovations improve stitching accuracy, especially for intricate seams while automated quality control systems boost productivity by minimizing bottlenecks. Such enhancements allow operators to focus on higher-value tasks, positively impacting overall output quality.

    Streamlined Finishing Processes

    Hoshima’s finishing solutions simplify end-of-line operations, ensuring garments adhere to brand standards during folding and packing.

    Automation enhances presentation quality, reduces packing times, and lessens reliance on manual labor. The systems also incorporate dust and thread removal technologies, facilitating smoother delivery preparation to meet time-sensitive order demands.

    Robust Software Solutions

    Central to Hoshima’s automation framework is the Advanced Planning & Scheduling System, designed for comprehensive production management.

    This smart software enables real-time visibility, allowing businesses to efficiently monitor resources, leverage AI and Big Data, and quickly adapt to changing production requirements. The result is a harmonious integration of departments that minimizes downtime and supports informed decision-making.

    The Human Element in Technology

    According to Han Kiong Chong, Founder and Managing Director at Hoshima International, the success of these technologies depends on more than just machines: “Strong partnerships and shared commitment are essential. Our progress over 25 years stems from the trust within our network.”

    Hoshima’s investment in localized showrooms and training facilities further illustrates its dedication to supporting garment manufacturers on their automation journeys.

    Conclusion

    Hoshima International’s holistic approach—combining advanced automation technologies with extensive field support—positions the company as a key player in driving sustainable growth in the retail sector and meeting evolving consumer demands.

    Questions & Answers

    1. What is Hoshima International’s focus in garment manufacturing? Hoshima International specializes in providing advanced automation technology to enhance operational efficiency and sustainability in garment manufacturing.
    2. How does Hoshima improve the garment production process? Hoshima integrates hardware, robotics, and software solutions to streamline processes from material handling to packaging, addressing challenges like labor shortages and inconsistent output.
    3. Why is human support crucial in Hoshima’s strategy? Human expertise is essential for creating and maintaining effective automation systems. Partnerships and a commitment to training ensure successful technology adoption in the manufacturing sector.
  • Manufacturing continues recovery

    Manufacturing continues recovery

    Vietnam’s purchasing managers’ index rose to 53.7 in January 2022 from 52.5 in December, marking the highest growth since last April. The new index also points to the fourth straight month of growth, according to a report by U.K. research company IHS Markit. IHS Markit Vietnam Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 400 companies.

    The index is based on five individual indexes with the following weights: new orders (30 percent), output (25 percent), employment (20 percent), supplier delivery times (15 percent) and stock of items purchased (10 percent), with the delivery times index inverted so it moves in a comparable direction.

    A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

    Both output and new orders increased at sharper rates in the opening month of the year as customer demand continued to improve. In each case the rate of expansion was the sharpest in nine months. Total new orders were supported by a further improvement in new business from abroad, with the rate of growth quickening to the fastest since November 2018, IHS Markit stated in its January report for Vietnam.

    Firms were also increasingly confident in the year-ahead outlook for production, although optimism depends to some extent on the pandemic being brought under control. Around 60 percent of respondents predicted a rise in output, with overall optimism the strongest in over three years.

    There were further signs inflationary pressures have become less pronounced than seen through much of 2021. Input costs increased at the second-slowest pace in seven months, while output price inflation eased to the weakest since last September.

    According to respondents, a key factor behind rising input costs was higher charges for freight and international shipping. Problems with shipping and ongoing disruption caused by the pandemic mean supplier delivery times continued to lengthen at the start of the year.

    A second successive rise in employment was recorded in January as firms continued to rebuild workforce numbers following the Delta wave of the pandemic in 2021. The rate of job creation picked up from that seen in December but remained only modest as some staff were off work with Covid and others had yet to return from their hometowns.

    Commenting on the latest survey results, Andrew Harker, Economics director at IHS Markit, said: “Vietnamese manufacturers made a positive start to 2022, with the absence of any widespread restrictions meaning that the sector was able to grow despite relatively high Covid-19 case numbers. Firms were also increasingly confident about the year-ahead outlook.

    “The pandemic continues to impact the sector, however, most notably through staff absences, while the possibility of sharply rising case numbers due to the Omicron variant could lead to even more disruption,” he said. A further headwind remains issues with shipping, which affected deliveries from suppliers and the ability of firms to deliver to customers, as well as adding to cost burdens.”

  • Japan Industrial Production On Tap For Thursday

    Japan Industrial Production On Tap For Thursday

    Japan on Thursday released preliminary October data for industrial production, setting the pace for a busy day in Asia-Pacific economic activity. Industrial output is expected to rise 1.8% on month and 7.2% on year after falling 1.0% on month and gaining 2.6% on year in September.

    Japan also will see October figures for vehicle production, housing starts and construction orders. Housing starts are expected to fall 2.8% on year to 950,000 after sliding 2.9% in September to 952,000.

    Vehicle production was up 1.7% on year in September, while construction orders plummeted 11.6%.

    China will see November numbers for its manufacturing and non-manufacturing PMIs; in October, their scores were 51.6 and 54.3, respectively.

    The central bank in South Korea will wrap up its monetary policy meeting and then announce its decision on interest rates, with the bank widely expected to keep its benchmark lending rate unchanged at 1.25%.

    South Korea also will see October numbers for industrial production and retail sales. Output is expected to add 0.6% on month and 6.1% on year after gaining 0.1% on month and 8.4% on year in September. Retail sales were up 3.1% on month and 8.3% on year in September.

    Australia will provide October numbers for private sector credit and building approvals, plus Q3 data for private capital expenditure.

    Private sector credit is expected to add 0.4% on month and 5.3% on year after gaining 0.3% on month and 5.4% on year in September.

    Building approvals are expected to sink 1.0% on month and surge 14.1% on year after adding 1.5% on month and 0.2% on year in the previous month. Capex is expected to rise 1.0% on quarter after adding 0.8% in Q2.

    New Zealand will see November results of the activity outlook and business confidence indexes from ANZ; in October, their scores were 22.2 and -10.1, respectively.

    Hong Kong will provide October figures for retail sales – which are expected to rise 6.2% on year after gaining 5.5% in September.

    Thailand will release Q3 data for current account and October trade data. In the third quarter, the current account surplus was USD8.32 billion and the financial account deficit was USD6.89 billion. In September, imports were worth USD16.47 billion and exports were at USD21.87 billion for a trade surplus of USD5.40 billion.

    Malaysia will see October numbers for producer prices; in September producer prices were up 1.1% on month and 6.0% on year.

    Lees ook:

    Lees ook:

  • Japan manufacturing output up in January, retail sales fall

    Japan manufacturing output up in January, retail sales fall

    Japan’s industrial production rose in January from the month before, beating forecasts, while retail sales fell, suggesting the recovery of the world’s third-largest economy is still on the ropes.

    January’s increase in factory output was a turnaround from month-on-month declines in November and December. But production was down 3.8 percent from January 2015, and is forecast to fall by 5.2 percent month-on-month in February, partly due to weak demand as the world economy slows.

    Marcel Thieliant of Capital Economics said in a note that the economy would likely remain in the doldrums in this quarter.

    “The rebound in industrial production in January is unlikely to assuage concerns about the health of Japan’s economy as firms are predicting a renewed slump in February,” he said.

    Japan’s central bank recently began a negative interest rate policy aimed at getting banks to lend more to help spur business activity and fend off deflation. Japan’s inflation rate was flat in January, according to data reported earlier.

    Finance ministers and central bank governors of the Group of 20 rich and developing economies called for using all policy tools available to help fend off recession as they wrapped up a meeting in Shanghai over the weekend.

    Data released Monday showed Japan’s manufacturing index was at 99.8 in January compared with a base of 100 in 2010. Prime Minister Shinzo Abe has sought to rekindle growth with a three-pronged approach of monetary stimulus, government spending and reforms.

    Retail sales fell 1.1 percent in January from the month before and were down 4.3 percent from a year earlier. Other key data, such as wages, household spending and the jobless rate, are due Tuesday.

    So far, the “Abenomics” strategy has leaned heavily on the Bank of Japan’s unprecedented barrage of monetary stimulus through massive asset purchases. The injections of trillions of dollars into the economy each year have helped weaken the yen, boosting the profits of corporations and, for a time, pushing share prices higher.

    But since companies have shied away from raising wages or making sizable investments in operations in Japan, growth has remained tepid.

    Lees ook:

    Lees ook:

  • Hermès reports 10pc revenue increase for 2014

    Hermès reports 10pc revenue increase for 2014

    Hermès maintains course in 2014 with a healthy 10 percent increase in its turnover, at constant exchange rates – according to Guillaume de Seynes , managing director manufacturing division & equity investments of the Group of luxury. Interviewed by the German newspaper Handelsblatt , De Seynes said that the House wants to expand in Germany , expanding the spaces in cities where it is already present.