www.autofile.co.nz SEPTEMBER 2018 THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS Industry on high alert Specialised training that’s for stink-bug season proven to increase profits Typhoon hits Japan as importers of used vehicles are being affected by extra biosecurity, transport and cross-rate costs p 11 he automotive supply least seven people and injuring being made at the moment. chain is expected to cope about 200. Traders have been reporting Record with the onset of the high- Logistics companies and lower business activity, the revenue Trisk period for brown marmorated border-inspection organisations dollar’s cross-rate with the yen online stink bugs (BMSBs) – although are now assessing its impact on has tumbled and there’s a lack of teething problems are possible. facilities at Kobe and Osaka and vehicle storage space in Japan. September 1 saw the start of are warning of likely reductions On top of this, extra costs Aston Martin the new season for the are being borne by takes to skies biosecurity threat that importers. Heat- wreaked havoc across treatment surcharges the supply chain earlier currently range from this year. $225-$250 per vehicle p 16 Now heat treatment depending on the of all used vehicles and service provider, land- p 19 machinery from Japan transport prices in New is mandatory, as well as Zealand are rising and approved pathways for the price of shipping – new vehicles, to prevent the High alert – the new or bunker – fuel is rising. stink-bug season bugs getting into New Zealand. has started David Vinsen, VIA’s The measures result from chief executive, says Charge range of 380km the new import health standard in capacity, reports VIA (the despite the short timeframe, with (IHS) released by the Ministry Imported Motor Vehicle Industry the new IHS being released just for Primary Industries (MPI) last Association). three weeks ago, businesses are Autonomous month. Although delays will be well-prepared. world in his Issues facing the supply possible during the stink-bug “It’s still going to be tough, but sights chain have been exacerbated season, which ends on March 30, companies involved say they are by Typhoon Jebi hitting western not as many forward bookings for ready to various degrees,” he told p Japan on September 4, killing at vehicles in Japan as normal are Autofile. “This stink-bug season 22 [continued on page 4] GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE Tel: +64 9 825 0888 www.jacanna.co.nz Call Steve Owens now on 021 947 752 GUEST EDITOriaL Initiatives connect skills to industry DIRECTORS EdITOR Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 Janet Lane says focus is needed on developing JOURNALISTS Darren Wiltshire Sue Brebner-Fox skilled workers for the automotive industry [email protected] [email protected] ph. 021 0284 7428 Lucy Pink n today’s tight And the Mahi in Mana [email protected] DESIGNER labour market where programme provides Adrian Payne MOTORSPORT there aren’t enough funding to employers [email protected] Mark Baker Iqualified technicians to fill to support apprentices [email protected] vacancies, it makes sense aged 18-24, who have Autofile magazine is also available online as a readable file or downloadable as a PDF. that employers reach out to been unemployed for six Subscriptions are available at Autofile Online – www.autofile.co.nz. Back copies are emerging talent. months or more. The pilot also available on the website. The automotive sector is is currently supporting Copyright: Published monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. JANET LANE forecast to need more than Chief executive, MITO 150 people and this will All statements made, although based on information believed to be accurate and 3,400 new workers per year increase to 4,000 in 2019. reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without on average between 2018 and 2022 At MITO, we’re committed to written permission, whether by copying or any other means, is strictly forbidden. to meet new job growth and replace initiatives that focus on engaging All rights reserved. those leaving it. schools and students in the ISSN 0112-3475 (print) ISSN 2350-3181 (online) With only four per cent of industries we support. school leavers going directly into an This year we realigned our apprenticeship or on-the-job training, structure to increase focus on and 40 per cent not progressing to secondary-school engagement, any tertiary education, facilitating and introduced a vocational career pathways for secondary students to adviser to work directly with schools enter the motor-vehicle industry is an in co-ordination with our regionally Vehicle Inspection NZ obvious strategy. based advisory teams. The Got a Trade? Got it Made! We’ve revamped our automotive campaign has gained huge programme StartUp for year 11-13 momentum over the past few years. students. Taking the form of a “mini Entry Certification Designed to raise awareness of the apprenticeship”, it’s a perfect way trades and services industries, it for students to gain valuable work specialists targets secondary-school students, experience along with getting a careers advisers and parents. compelling insight into the industry. Its “earn and learn” message is With just under 25 per cent of supported by BERL research that StartUp students progressing to an shows because apprentices don’t apprenticeship, it works. incur student debt, they’re on an Timing is of the essence with earning pathway immediately. school leavers and their parents This provides them with security currently making critical decisions ahead of their peers at university around earning and learning – and they are in about the same pathways. financial position when they retire. During September, we’re pleased A number of initiatives are in to see a number of automotive progress to help support employers employers getting involved in eight engage school leavers and youth Got a Trade SpeedMeet events, which with apprenticeships. introduce students to prospective The government’s fees-free employers “speed dating” style. • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges initiative provides eligible school We encourage employers to list • Registration & relicencing • Exhaust emission testing leavers and jobseekers two years vacancies on our website without of industry training for free – as delay – it’s free and all entry- opposed to one year for polytechnic level jobs are promoted via our 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 and university study. Facebook page. www.jacanna.co.nz www.autofile.co.nz 3 news [continued from page 1] has come when there are reduced 30-40 minutes with ramp up and said, this is huge volume-based t forward orders because of the way down temperatures included. heat treatment for the first time. the market is here at the moment. Vinsen adds: “That process is “This is huge Given the scale, there are likely to “VIA is monitoring problems fine, but what about downstream be some issues.” when and if they arise, such as effects with about 12,000 units volume-based Willett believes the used- heat-treating electric vehicles a month? This scale-up in import industry from Japan has [EVs] and possible effects on their production is a step-change heat treatment entered a period of significant batteries. We’re working on those overnight. change because of the new IHS. sorts of things. It hasn’t been a case “Whether it goes smoothly for the first “Given issues created by BMSBs of someone dropping a flag when will depend on how time. Given earlier this year, the IHS puts in the season started and it’s all go. companies cope with place measures to ensure no stink- “We’ve had concerns about volumes in Japan the scale, bug threats exist to New Zealand whether shipping companies will and outcomes when from used imports, but even if one allow mixed cargos, and changes vessels arrive, but there are live stink bug is found on-board to sailings and their frequency. the possibility on arrival, a ship will be scrutinised “The industry needs to of delays may be likely to and possibly turned away.” be congratulated, especially mitigated by a be some Willett notes forward bookings biosecurity companies. They have reduction in demand have reduced because “dealers made huge investments without and forward orders. issues” have been reporting sluggish sales knowing what would finally be “The MPI and around the country and this will in the new IHS. They had a good companies based here – Frank Willett, cause cash-flow issues for many”. idea, but that could have changed, have been sending Autohub “Sales have possibly been and millions have been spent more staff to Japan with affected by economic uncertainty designing and building heat- everyone focusing on questions who really and a loss in business confidence. treatment plants.” the job, and there will be knows if the industry is Also not helping is the rate with The new IHS requires vehicles extra costs to be borne by ready for the BMSB season. the yen has slid. Issues are affecting to be exposed to 60 degrees importers.” “We just need to press the market and are resulting in Celsius for at least 10 minutes, Frank Willett, chief the button and hope it about a 30 per cent dip on volumes so the treatment time per unit is executive of Autohub, runs smoothly. That earlier in the year.