nz manufacturer december 2010 / january 2011

NZ Manufacturer • December 2010 / January 2011 1

www.nzmanufacturer.co.nz

A roundup of localmanufacturing businessesand opportunities

Embedded technology aids export business

We can catch Australia – by manufacturingour way to success

2011 Rugby World CupThe Year That Was

Page 6 3Page 9

December 2010 / January 2011

The Cup is a chance to dointernational marketing


Reflections from theyear in business

Regional Focus: Hawke’s Bay

By Catherine Beard,Executive Director, Manufacturing,

BusinessNZ

There is only one way we willcatch Australia in wage ratesand standard of living, and thatis by growing our manu-facturing sector.

Various reports have concludedproductivity in New Zealand is lowcompared to other developedcountries and while that is true as anaverage across the whole economy, itis not true in the manufacturing sector.

Professor Paul Callaghan fromVictoria University has calculatedwhat we need to produce peremployee to catch up with Australiaand manufacturing is clearly milesahead of any other sector. By hiscalculation we need to exceed$143,000 of revenue per employee.

Manufacturing revenue peremployee is $240,000 (totalmanufacturing) or $250,000(manufactured exports).

Fonterra comes in at $550,000revenue per employee and Fisher andPaykel healthcare comes in at$400,000. This is clearly the way togo, we need more manufacturerswith high productivity and we needthem to grow their business.

While tourism is a high exportearner for the country and is veryimportant, its productivity peremployee is relatively low.Tourism’s economic contributiondivided by the number of full timeemployees is $77,814 revenue peremployee, well below the $143,000we need to catch Australia.

It is well known that in order tohave a better standard of living, themost important factor is ourproductivity. Productivity, someeconomists say, is not everything,but is nearly everything.Productivity does not mean workingharder, it means working smarter.Making and exporting higher value,higher profit goods and services, perhour worked. I include services inthe definition of manufacturing,because modern manufacturers areincreasingly adding services intotheir business offering.

Temprecord is an R&D-ledtechnology business based inSouth Auckland. The NewZealand owned and operated

company designs and manufacturestemperature and humidity solutionsfor industries where productintegrity is vital, including the food,freight and medical sectors.

Temprecord is continually lookingfor ways to both enhance its existingproduct offering and developinnovative new solutions.

“We’re currently directing ourenergies developing Generation 4Data Logger technology, includingreal-time monitoring and recording

instrumentation,” says HarishKumar, Temprecord TechnicalDirector.

This new product would replacethe inaccurate mechanical recorders,says Harish. This archaic approach todata recording requires replacing thepaper media at regular intervals,extensive results analysis thenmanual entry of key events for recordkeeping.

To realise the full potential of thereal-time recording device, and addsubstantial value to its customers’operations, Temprecord turned toFero, its existing electroniccomponents partner. Following

Continues page 10

Continues page 8

Productivity, someeconomists say, is noteverything, but is nearlyeverything.

2 NZ Manufacturer • December 2010 / January 2011


WantedManufacturers

If your company is looking to expand your manfacturing business then opportunities areeverwhere.

You may find it difficult imagining your company doing business outside your region but thereare plenty of opportunities, big or small, you just need to keep your ear to the ground.

With the Christchurch earthquake deeply affecting so many people, there is an urgent need forassistance (rebuilding, roading, etc). This process will take some time and goodwill may also bea factor in business negotiations.

Success through innovation drives NZ Manufacturer as we look to present manufacturers’stories in our pages to a captive audience – both online and in the printed version.

Success for your company may not be that far away – give it a go!




DEPARTMENTSCONTENTS

Advisors

Bruce GoldsworthyAn advocate for NZ manufacturing for 40years, he was Chief Executive of theAuckland Manufacturers Association forseven years He has been Manager ofEMA’s Advocacy and ManufacturingServices, and lately manager for ExportNew Zealand in the north.

Is the Chief Executive of the New ZealandManufacturers and Exporters Association.John consults to a number of overseascompanies and is a Chartered Engineer, aFellow of the Institute of ProfessionalEngineers NZ, a Fellow of the Institute ofManagement NZ and a Member of theInstitute of Electrical Engineers UK.

John Walley

Vishnu is the founding director ofProductivity Solutions Limited, a Leanand Supply Chain Managementconsulting company aimed at helpingits clients create and sustain World-Class Operations. PSL offers Lean andCompetitive Manufacturing programmesin association with NZTE, CMIConsortium and HERA.

Vishnu Rayapeddi

Chris Whittington

Dr Guy LittlefairMSc PhD CEng MRSNZ is passionateabout New Zealand manufacturing and isconstantly striving to improve trainingmethods for students at AUT. He is Headof Department of Mechanical andManufacturing. Senior Research Lecturer.


THE YEAR THAT WASReflections from the year in business.

THE RUGBY WORLD CUPThe Rugby World Cup is a chance to do internationalmarketing in your own back yard .

BUSINESS NEWSIndustry leader on university council.

New chair at Development West Coast.

BOOKSWar at the Wall Street Journal.

Secrets of the Money Lab.

REGIONAL FOCUS: HAWKE’S BAYBusiness in one of the prime regions of the country.

Stories that could see you relocate your business there.

BUSINESS NEWSBusinessNZ joins major economies business forum.

PRODUCT NEWSLower energy consumption or money back.

New hose collar range.

MANUFACTURING TECHNOLOGYRevolutionary method of building ensembles.

PROJECT MANAGEMENTUpping the game for better project management.

ANALYSISExploring new pathways.

BUSINESS NEWSThe Antarctic apprentice.

New president for BusinessNZ.

REAR VIEWNot strategically (un)important.

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Page 11 – THEINTERVIEW – Bob Carter.What makes him tick?

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30 Page 27 – PROJECTMANAGEMENT – Reversingthe project failure trend: Aquestion of understandingand focus.

Page 28 – BUSINESSNEWS – Wellington womanwins Supreme BusinessAwards.

Hans FrauenlobIs New Zealand Trade and Enterprise’s Director –Specialised Manufacturing, with responsibility forNZTE’s Specialised Manufacturing team.

Technical Director with Camplex NZ Ltd. Anexperienced Graduate Mechanical Engineerwith extensive experience in both ProductDesign and Manufacture. Considerable recentexperience in both rapid prototyping andreverse engineering.

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Email: [email protected] • Web: www.nz.sew-eurodrive.com

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Is Executive Director of Export NZ andManufacturing, divisions of Business NZ,New Zealand’s largest business advocacygroup, representing businesses of all sizes.

Catherine Beard ➡

Page 22 – DEVELOPMENTS– Integrated reporting:Why tomorrow’s winnerswill demonstrate sustainablestrategies.

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You can say that again, with Pike River, Christchurch Earthquake, the TeAroha meatworks fire, financial companies collapsing and a lack ofstimulus being injected into the economy.

Without dwelling on tragedy it is of serious concern that New Zealand’sfuture direction is unclear. Two years into a National government we have notseen any injection of ideas and enthusiasm to grow the manufacturing base ofthe country.

We hear about a trade agreement with Russia in a few years time and how weare getting on better with the Americans.

We have plenty of industry specialists and business consultants whocontinually offer their words of wisdom on what we need to do next to getahead.

We have a government which thinks we can catch up with Australia withoutclearly showing us how this may be possible.

So who is listening to whom? Are the words only posturing without actionbeing seen? To be fair, at least Stephen Joyce recently talked about putting inplace vastly improved broadband services.

Are all the experts not experts after all, who tell us how it is, who don’t havethe clout to make things happen?

So what do we make of 2010? It was a year where our small businesses kepttheir fingers in the dyke, desperately seeking ways to get ahead and to stop anymore financial leaks.

It was a time of acknowledging that our key markets overseas are bestserviced by our export companies themselves. No incentives please, we’reKiwis!

Going through the back issues of NZ Manufacturer for the year, I can read ofsome inspiring developments by some of our innovators. Very creative peoplewho get through on the smell of an oily rag, make a lot of the running forsuccess, who jump on large planes and go into even larger countries to find newmarkets.

The eternal Kiwi spirit of entrepreneurship lives on. And it can go fromstrength to strength with a new breed of business leaders showing the way.Forget the consultants – roll your sleeves up and get stuck in!

It really is time to start a new website called WikiManufacturing – everythingelse has been tried.

Best wishes for a peaceful holiday period and a successful 2011. It will be ayear to see if government really does have it in them to make businessconditions possible. Remember it’s only one year ut from the next election soanything is possible.

EDITORIAL

PUBLISHERMedia Hawke’s Bay Ltd,1/121 Russell Street North,Hastings,New Zealand 4122.

MANAGING EDITORDoug GreenT: +64 6 870 9029E: [email protected]

CONTRIBUTORSPeter Isaac, Guy Littlefair, Nick Inskip, KevinKevany, Michael Henstock, Catherine Beard,Vishnu Rayapeddi

SALES & MARKETINGNZ ADVERTISING MANAGERMax FarndaleT: + 64 6 870 4506E: [email protected]

DESIGN & PRODUCTIONKarl GrantT: + 64 6 870 9028E: [email protected]

WEB MASTERDan BrowneE: [email protected]

PUBLISHING SERVICESOn-Line PublisherMedia Hawke’s Bay Ltd

SUBSCRIPTIONSMedia Hawke’s Bay LtdT: + 64 6 870 4506E: [email protected]

11 issues per year. New Zealand $55. Australiaand Pacific $95. Rest of the World $132.

MEDIA HAWKES BAY LTDT: +64 6 870 4506F: +64 6 878 8150E: [email protected]/121 Russell Street North, HastingsPO Box 1109, Hastings, NZ

Publishers of;NZ Manufacturer, Cape & Bay, The Mirror, AsiaManufacturing News. Plus contracted publishingservices.

ISSN 1179-4992

December 2010/January 2011Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in partwithout the written permission of the publisher. Neither editorial opinions expressed, norfacts stated in the advertisements, are necessarily agreed to by the editor or publisher ofNZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility willbe taken by the publishers for inaccurate information, or for any consequences of relianceon this information. NZ Manufacturer welcomes your contributions which may notnecessarily be used because of the philosophy of the publication.

Doug Green

The herd instinct among forecasters makes sheeplook like independent thinkers.

- Edgar R. Fiedler

It’s beenquitea year!



“

THE YEAR THAT WAS In the business world, everyone is paid in two coins: cash andexperience. Take the experience first; the cash will come later.

- Harold Geneen

No better way to gauge the way business has been in 2010 than to go tothe decisionmakers who want to share with you their observations onhow business has been for them.

We asked people far and wide – in New Zealand, Australia and overseas– and the way they ‘saw it’ may be how you did too and help kick start asuccessful 2011 for you and your company.

-Doug Green

Dave Fastnedge, Techspan Group

2 010 has been another successful year forTechspan Group, but it’s a tougher market, andwe’ve had to work much harder. It’s still a

mixed bag out there. Some of our customers, mainlyin food and medical industries, are growing, othersare not.

Overall the New Zealand market is still strugg-ling to recover from the global economic crisis.Those companies who are resilient, have goodproducts, good business practices in place, willgrow and prosper. Techspan Group has beenextremely busy. We have launched a number of newproducts, and we have strong sales of plastic processing machinery, plasticwelders, and industrial printing systems. Our export sales are growing. Ournew e-commerce website (Version 4) went live several months ago and isvery successful, allowing customers to access, order, and pay for our productson-line 24/7. The key to success in this tough economic climate is simple:quality products, competitive prices, excellent customer service”.

“

Hans Frauenlob, Director SpecialisedManufacturing, New Zealand Trade and Enterprise

T he business year has finished better than itstarted, but is still very mixed. Companies thatstarted the year talking about survival are now

talking again about growth. Companies relying onthe New Zealand domestic market have had areally tough time. We’ve gotten more cost-competitive against Australia which has beenhelpful.”

Richard Higham, Hi-Q ElectronicsThe year has been very busy for us, with record sales.We are selling to a wide range of industries andmanufacturers. As a result of maintaining ourstrong financial position, stock levels, andadvertising during the recession period, ourcustomers have been able to rely on us to maintainsupply and buffer them from longer lead timeswashed up earlier this year from our overseassuppliers as a result of the recession.

The strong demand we are experiencing, is anindication that they are capitalising on this, to makethe most of renewed activity and opportunities through the recovery.

Jessica Acherboim, NZTE Regional Manager,Brazil

In 2010, Brazil continued to build momentum withimpressive economic growth - solidifying itsposition as one of the strongest emerging markets

globally and a market of significant opportunityfor New Zealand companies in a range of sectorsincluding agritech, infrastructure, and consumergoods. Major factors underpinning Brazil’s growthinclude strong public investment, public spendingand domestic consumption. Two areas where wehave been working with New Zealand companiesinclude the consumer goods sector - Brazil’s growing middle and upperincome population makes this a huge opportunity- and in the infrastructuresector where, according to Morgan Stanley, over 4 percent of GDP will beinvested in infrastructure over the next five years in Brazil (NZ$420 billion).Forty five percent of this investment will come from the private sector andforeign investment in the lead-up to the 2014 World Cup and 2016 OlympicGames in Brazil.”

Dr Wolfgang Scholz HERA DirectorA challenging economic outlook requires an activeresponse from industry. First of all, in a constrainedmarket we need to continue working on ourcompetitiveness as a solutions provider and thecurrent steel price is assisting us in this.

We need to recognise that we need to seek workwhere the margins allow companies to invest ininnovation to keep us competitive. We also have tolook at our business mix and seriously investigatehow we can remove the shackle of being the lowestbidder in an increasingly internationallycontestable market.

“

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Fiona Acheson, Trade Commissioner, Malaysia

We’ve had more manufacturing companies visitKuala Lumpur than usual this year. Part ofthe reason is the Malaysia-New Zealand Free

Trade Agreement which clears tariffs onmanufactured goods by 2016. We’ve helped a NewZealand firm research pros and cons of establishingmanufacturing in Jakarta to be closer to a majorcustomer. These developments make me think NewZealand manufacturing is in good heart.”

John Berry Chemz

A rugged year and irrespective of forwardplanning, each month played out differentlythan forecast. Manufacturers, distributors, and

merchants found it difficult to assess trends with eachsector experiencing their own monthly roller coastereffect which resulted in a few highs, but mostlylows.

The last 24 months economic pressure has placedenormous stress on the majority of business’ in NewZealand.

Paul Gestro, Director East America & Consul General,New Zealand Trade and Enterprise

T he latest reports predict the US economy isemerging slowly from a knee-bucklingrecession. There is little doubt however that it

will be a long and slow climb out for the US. Evenwith this backdrop, New Zealand companies haveidentified new opportunities in the US market overthe last year for their technologies - exploiting newpost-recession industries and capitalising on the USGovernment fiscal stimulus programmes. We haveseen increased interest from New Zealand companies in US public sectoropportunities at federal, state and local levels, and a spike in awareness fromthe US integrators about New Zealand’s capabilities and technologies insecurity solutions and public safety products, as well as other breakthroughareas such as health, bio, clean tech and renewables. We see both theopportunities and New Zealand’s ability to access them growing considerablyin 2011 supported by growing collaboration at a government level includingthe signing of a recent Science and Technology Agreement between the USDepartment of Homeland Security and the New Zealand Government.”

“

Tim Green NZTE Director China, Shanghai

China’s annual GDP growth topped eight percent. This was largely due tothe Chinese government’s US$584 billion stimulus package. Despite aserious downturn in international trade activity, our bilateral trade levels

have continued to grow. The Chinese market place is large and dynamic andwhile there are enormous opportunities in the market there are challengesand difficulties for individual companies in developing this market. Key NewZealand industries such as seafood, wine, other safe and high quality foodtypes (esp. dairy, kiwifruit) and agricultural technology have goodopportunities in China, as do niche areas within the high value manufacturingand service sectors (eg Aviation infrastructure and services, nichecommunications technology and services).”

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THE YEAR THAT WASWhat’s the subject of life - to get rich? All of those fellows out theregetting rich could be dancing around the real subject of life.- Paul A. Volcker

John Walley, MEA

2010 was a year of considerable frustration formanufacturers. Markets did not recover aspredicted by many commentators, and as always

the unpredictable NZ Dollar made export returns alottery. Some firms managed to grow but overallconditions have been very difficult. We do notanticipate any significant improvement during 2011without a number of fundamental policy changes.

Alasdair Thompson EMA

The GFC is hanging on, thanks to some of ourmoney lenders and European debt, but theevidence is growing rapidly we’re in for an up

tempo 2011. Manufacturing exports are trackingup, and the worst of the retail slump appears over.Plus, there’s the RWC with its huge range ofactivities. Employment law has been liberalised,and the new Auckland supercity is comingtogether. We’re on the improve.

Justine Tate, NZTE National Manager Manufacturing, Australia

The manufacturing sector in Australia continued to experience strong growthin the year to September 2010 at 5.1 percent, but commentators forecastthis growth to drop back 0.5 percent p.a. in the five years to June 2015, well

below the predicted annual GDP growth rate of 3.4 percent. As Australianmanufacturers struggle with rising costs of production (not least due to ascarcity of skilled labour caused by attractive wages in the mining and othersectors), the removal of government-induced demand and a strong Australiandollar, opportunities exist for high quality manufactured products from NewZealand.”

“

Sam Lewis Trade Commissioner, UK & Ireland

T hrough the uncertainty of a coalitiongovernment, a crippling budget deficit andaggressive public sector cuts, the United

Kingdom has traded on this year. We are out ofrecession but there is a way to go yet. There is morescrutiny of spend in the public and private sectors,but this is opening doors as new supply optionsare evaluated and value for money (not just thecheapest option) is key.”

Shane Preston Solidtec Solutions CEO

Whilst in 2010 the economy has been patchy atbest, Solidtec New Zealand has gone fromstrength to strength, rapidly forging a

reputation within the SolidWorks community as thesupplier of choice. The experience of the Solidtecteam has resulted in a rapidly expanding customerbase which shows no sign of slowing in the newyear.

“

I f you export you are in the right market.A good gauge of how various industries are doing

(and indeed industry generally) is whether they areinvesting in their infrastructure - especially BusinessManagement (ERP) software and systems.

2010 has seen positive approach to investmentin companies that export. Examples in 2010 include:

Triodent - export 90% of production. Biggestmarket is the USA

Washtech – Growth in export is essential as theyhave more than 90% of the New Zealand Market

Vidak – has a very strong presence in New Zealand but the big growth iscoming from export.

C-Dax – An obvious presence in the NZ horticultural industry has struckgold with its new Pasture Metre where sales are almost entirely export driven

Temperzone – 70% of production is exported. Expansion is such that a newERP system is required to cater for the demands.

Wayne Mikkelsen NZ Consul General and Trade Commissioner, Middle East

M iddle Eastern economies have generally maintained positive growththrough 2010, with robust oil prices ensuring funding remains availablefor spending in key areas such as education, healthcare and defence. Dubai

continues to play an important role as a trade and logistics hub, while SaudiArabia, Qatar, Syria and markets across North Africa attract increased attention.”

Brent Spillane, XPO ExhibitionsIn March and October of 2010 XPO Exhibitionsorganised NZ trade exhibitions EMEX (Engineering,Machinery and Electronics) and FoodTech Packtech(Food and Packaging Technologies) respectively.

We can share a few survey results which stem froma pool of thousands of trade visitors who attended -many of whom were responsible for millions ofdollars in new capital equipment purchasingdecisions made onsite at these events:• 65% of visitors held direct authority for purchas-

ing products and services in their business.• More than 50% of visitors to the exhibition had

never attended these exhibition before.• 73% of visitors were of the opinion that their business is growing.• 53% thought the economy would improve in 2011.

Against a tide of relatively negative economic data, we take from our surveystats (and general feedback) that the New Zealand buyer of engineering andmachinery (i.e its people) are changing, and that overall there remains somegood positive signs in these industries.

Ziena Jalil Trade Commissioner, Singapore

A s an export led economy Singapore felt theeconomic downturn, but it recovered fast witha growth rate of 18 percent for the first half of

this year making it the fastest growing economy inthe world. Many new initiatives and developmentshave been launched and these offer considerableopportunities to New Zealand businesses includingthe opening of two integrated resorts whichbetween them serve more than 70,000 meals a day,the launch of a clean tech park and an aviation hub,and a renewed commitment to education with the 2010 Singapore budgetallocation for the sector sitting at SG$9.7billion. Not surprising then thatSingapore was New Zealand’s fastest growing export market this year.”

“

Bob Carter The Improve Group

2011 will bring significant change to NZ industrywith some major players introducing leanconcepts to their industries, in some cases

changing these industries forever. Opportunities forexporters should still be strong with the currentexchange rates and astute organisations will takeadvantage of this.

Graeme Solloway Trade Commissioner, South Korea

South Korea has steamed ahead in 2010, expecting over 6 percent annualgrowth on the back of expanding export demand for automotives, consumerelectronics, industrial equipment and petrochemicals. With increasing

regional integration, Korea’s growth is coupled with China’s expansion andless so with the depressed markets of North America and Europe.”

Liam Corkery Director New Zealand Trade Development Centre, Taiwan

Taiwan was hit hard by the global economic crisis, but it has since bouncedback strongly with real GDP growth of 9.8 percent in Quarter 3 2010. TheEconomic Co-operation Framework Agreement between Taiwan and

Mainland China and the resumption of direct flights have had a positiveimpact on business sentiment and seem to have given Taiwanese companiesconfidence to accelerate their investments in China.”

“

Roger Watson Cogita



DEVELOPMENTSK

iwi exporters are upbeat anddetermined to increase theirexports in the year ahead,according to Export New

Zealand’s National Export OutlookSurvey.

The findings from the inauguralExport Outlook survey undertakenmid November are being releasedtoday. (Link here for the report)

“Kiwi exporters are looking forwardto 2011 with confidence borne ofexperience and self belief,” saidCatherine Beard, Executive Director ofExport New Zealand.

“80 per cent of them expect toincrease their orders across all theirmarkets,” she said.

“44 per cent of the sample, 251mainly manufacturing exporters, planto enter new market regions over thenext 12 months.

“Over half expect their profits toimprove next year, with a further 32 percent expecting their profit levels to holdsteady.

“Furthermore, about half of the firmsplan to keep their staff at the same level,with 38 per cent of them saying theywill employ more people in the next 12

months. 13 per cent expect to reducetheir staff.

“These results are extremelyencouraging since we need ourexporters to earn far more if the countryis to recover income levels, and retainour standard of living.

“New Zealand needs trade, since wecan’t grow our economy on the back ofour small domestic market, and this iswhy the TPP negotiations this week inAuckland are so important.

“Both CER with Australia and theChina FTA have delivered hugebenefits to our economy and the TPPhas even bigger potential due to thecountries involved.

“In fact for New Zealand to succeed,exporting must be made the focus ofthe whole economy.

“The main barriers to export growthfrom the survey were reported to beexchange rate volatility, rather than thelevel of the NZ dollar, marketconditions and demand offshore,

followed by the price competitivenessof NZ products and services, and a lackof funds to further develop exportmarkets.

“Other key findings were:* Once established, the big majority

(83 per cent) of exporters keep onexporting.

* Exporters say they could do withmore information about whatgovernment assistance is on offer.

* But 45 per cent of them said theydon’t need government assistance, andthose who do rated New Zealand Tradeand Enterprise as ‘could do better/must do better.’

* Assistance is needed, in order ofimportance, for export marketdevelopment, market intelligence,R&D and venture capital.

* Exporters in the survey earned anaverage of $13.46 million offshore in thepast year representing 47.7 per cent oftheir output.

“The move to enter new overseas

Embedded technology aids export business

Globalization has changed us into a company that searches the world, not just to sell orto source, but to find intellectual capital - the world’s best talents and greatest ideas.

- Jack Welch

Fero’s collaborative design model,Fero and Temprecord workedtogether to develop an embeddedsolution.

This product developmentconversation began earlier this yearwhen Fero Account Manager TasiSamu visited Harish at Temprecordto present Fero’s embeddedtechnology offerings. The pairquickly realised its potential for real-time applications.

From this initial meeting, Tasi leftwith Harish’s concept drawings. Sixweeks later Tasi returned with a fullycustomised – and importantly,rugged – prototype for Temprecord’scurrent project.

“Fero is a solutions provider; theysourced the right hardware for thejob,” says Harish. “Temprecord’sspeciality is making data loggers – wedon’t want to design components liketouch screens, panel PCs and bezels.”

Fero sourced all of the hardwareand electronic components beforedelivering a semi-complete unit toTemprecord. To protect its IP,Temprecord simply fitted its ownproduct with embedded softwareinto the unit to complete the picture.

Today, Temprecord is trialling itsnew real-time monitoring solutionwith an offshore medical company.

applications for embeddedtechnology solutions,” says Tasi. “Themarine, dairy and avionics industriesare just a few that stand to benefitfrom the technology.”

Fero is a New Zealand-ownedbusiness operating two companies:TradeTech and Wire Solutions. Thepair joined forces in 2010 to create thenew brand, Fero. Together they cannow offer manufacturing customersan integrated approach to electronicand wire technology.

TradeTech is an importer anddistributor of electronic parts andcomponents to the manufacturing,audio video and serviceindustries. TradeTech has set theindustry standard for service andquality, winning multiple industryawards.

Wire Solutions is a manufacturerand importer of wire harnesses,control cabinet assembly and low-pressure moulding products.Customers come from right across themanufacturing sector, and includecommunications, automotive,industrial control and agriculturalbusinesses.

Temprecord International Ltdsupplies temperature and humiditymonitoring equipment to nationalblood services, pharmaceutical

The company stores products whichare extremely sensitive to fluctuationsin temperature, humidity and cleanroom pressure.

“With Fero’s input with hardwaresolutions, Temprecord can provide acost-effective, fully networked, real-time, data logging and monitoringsystem to replace existing expensivemechanical systems,” says Harish.

“We like to build flexibility into ourclients’ product developmentprocess,” says Tasi. “Fero prides itselfon providing tailored solutions forSMEs, giving them a straightforwardpath to market rather than a long,drawn out development process.”

One of Fero’s core strengths is itsreach into Asia.

“We take our customers’ wish listsand develop a solution,” says Tasi,“but to do this successfully it’s crucialthat we remain up to speed with thelatest components and hardware onoffer in places like Taiwan andChina.”

Fero regularly visits Asia tomaintain strong relationships with itssuppliers, to stay abreast of newtechnologies and keep an eye onquality.

Embedded technology is the wayof the future, according to Tasi.

“There are many more potential

companies, laboratories andhospitals, amongst a variety ofindustries worldwide. This is mainlydue to the degree of accuracy,precision, reliability and warrantyprovided.

Temprecord has been operatingsince 1993 and is accredited by IANZto ISO/IEC 17025 CalibrationLaboratory Standards as well as ISO9001:2008 Quality ManagementSystems.

Temprecord product ranges:◆ Temperature and humidity Data

Loggers◆ Real Time Monitoring of

temperature, humidity and cleanroom pressure

◆ Cold Chain Transport SystemTemprecord’s unique 3 point

Calibration process creates aproduct that provides accuracy,precision and reliability. Thiscombination contributes to itsreputation for integrity of product.The result is an increasing demandfor Temprecord product both locallyand internationally, while providingcustomised solutions as required andcost savings for its clients.

nextSTEPContact:Tasi Samu, Fero Tel. 09 414 3886Email. [email protected]

From page 1

markets, some as a result of thefinancial crisis, is a positive for NewZealand insofar as it could help spreadour future country risk,” Ms Beard said.

“The regions where exporters havethe biggest growth plans are South EastAsia, Australia and Europe.

“On the other hand, the lowest levelsof export growth are expected in thePacific Islands and North America.These rate lower than Latin Americaand Africa.

“Overall exporters’ expectation forsales growth in various market regionsis most encouraging. They are:• SE Asia (eg, Thailand, Indonesia,

Malaysia, Vietnam, Philippines) -26.82%

• Australia - 25.65%• Europe including UK - 24.35%• North Asia (Japan and Korea) -

23.95%• China including Hong Kong - 22.03%• Middle East - 15.45%• Latin America - 15.15%• Africa - 13.37%• North America - 12.91%• Pacific Islands - 9.41%

Exporters upbeat for 2011Catherine Beard, executive director, Export New Zealand



International marketing in your own back yard

There are no secrets to success. It is the result ofpreparation, hard work, and learning from failure.- Colin Powell 2011 RUGBY WORLD CUP

Contributors

KEVIN KEVANYBusiness Specialist

PETER ISAACBusiness Specialist

STUART NASHis a List MP for Labour and is based in

Napier.

NICK INSKIPis Heavy Engineering Research

Association Industry DevelopmentManager

Rugby is a different gameoutside of New Zealand. Ofcourse the rules are the samebut in other rugby loving

nations not everyone has been aplayer, spectator or supporter.Offshore, those who are passionateabout the game tend to be welleducated, affluent and involved inthe business world, which explainswhy over a third of the world’s 50largest companies have sponsoredor supported rugby.

It’s also the reason hosting the nextRugby World Cup is such a fantasticopportunity for New Zealand’smanufacturing sector.

You will have heard the figure of85,000 people forecast to visit ourshores during September andOctober 2011. Of course those peoplewill be keen to watch great rugby andenjoy a holiday in the South Pacific,but many of them will also be lookingto make connections that willtranslate into business opportunitieson their return home.

That premise is backed up byexperts in the sports businessindustry such as Deloittes. Itsresearch shows a clear link betweenmajor sporting events – and theRugby World Cup ranks third behindonly the Olympics and the SoccerWorld Cup – and business activityand potential inward investment.

You may feel a little jaded by RugbyWorld Cup hype in New Zealand butdon’t let that obscure the anticipationthat is mounting internationallyabout the event. Not only does NewZealand play outstanding rugby, weare a sought after tourist destinationand known as a nation of great hosts.

The world is genuinely excitedabout coming to us in 2011.

New Zealand Trade and Enterprise(NZTE) has been laying thefoundations for Kiwi businesses tocapitalise on the Cup. We’re workingwith NZ2011 to showcase NewZealand capability during the festivaland a number of industries in the

manufacturing sector are amongthose to be highlighted.

Major national trade events, suchas the Auckland International BoatShow, the Flair New ZealandAviation Expose in the Waikato and‘Winning with Wood’ in Rotorua aretimed to coincide with the RugbyWorld Cup.

Regionally, industry players arecombining resources to show thebreadth and depth of Kiwi capability.Open yard tours planned by themarine industry in Christchurch,New Plymouth, Tauranga, Hamiltonand Auckland are an excellentexample. Visitors will be able to joina tour and not only meet the boatbuilders, but also rub shoulders withsuppliers of the various componentsthat go into the finished product.

There are also plenty of initiativesbeing planned by the aviation andagritech industries to add anotherdimension for international visitorsfollowing their team to the regions.

Businesses can have a third bite atthe cherry by inviting and organisingactivities for their own clients orpotential clients. In many places, eachteam will be playing just one rugbygame a week and supportersfollowing them will have plenty oftime for other things. We’re notsuggesting you go in to hard sellmode and we don’t anticipate dealsbeing made on the spot. But invitingvisitors to dinner at a prime locationor taking them for a round of golf orout on one of New Zealand’sbeautiful harbours is a superb

opportunity to tell them what you doand build relationships that will paydividends down the track.

The first step to getting on boardwith the campaign is joining theonline NZ2011 Business Club, whichwill be connecting New Zealandbusiness people with overseascounterparts coming to thetournament.

It’s free and being a membermeans you have the opportunity tobe matched with people in your field.Visit www.nz2011.govt.nz/cms/get-involved/register-your-interest tosign on. To find out more aboutgetting involved in the industryshowcase programme, visitwww.nzte.govt.nz

The Rugby World Cup is a chanceto do international marketing in yourown back yard and show howunique, creative and innovative NewZealand business can be. Make themost of it.

The Rugby WorldCup is a chance todo internationalmarketing in yourown back yard

By Bruce GaddBruce Gadd is NZTE’s Project

Director for Rugby World Cup 2011,responsible for leading NZTE’s work toleverage the Rugby World Cup 2011 for

New Zealand export businesses.

BUSINESS OPPORTUNITIESEXIST FOR NEW ZEALANDMANUFACTURERS!

IN THE YEAR OF THE 2011 RUGBYWORLD CUPBEING HELD IN NEWZEALAND THERE ARE MANY SECTORSBEING ASKED TO PROVIDE PRODUCTS

For further information contact:[email protected]



BUSINESS NEWS To think that the new economy is over is like somebody in London in 1830saying the entire me textile manufacturers in Manchester went broke.

– Alvin Toffler

Take Tait Electronics as an example.They don’t just manufacture and sellhand held communication devices forpolice and other emergency services;they also provide all the necessaryinstallation, training and back upsupport for the equipment.

Manufacturing is increasinglyhighly skilled and more highly paidas a result. Modern manufacturersemploy people with PHD’s, productand package design skills,information communication andtechnology skills, engineering skills,marketing skills, intellectual propertyskills, database skills and the list goeson. When I travel the country,manufacturers tell me one of thebiggest constraints to their growth isbeing able to find and employ enoughskilled people.

This message is echoed in a recentlyreleased report by Deloitte, GlobalManufacturing CompetitivenessIndex 2010. CEO’s of manufacturingcompanies from around the world

were surveyed on what were themost important contributors to theirmanufacturing competitiveness andtop of the list overall was “talentdriven innovation”. In other words,no matter what country you aremanufacturing in talent was seen asa key competitive advantage, unlessyou were in South America where itranked second behind “quality ofphysical infrastructure” which isclearly a weakness for that part of theworld.

The Deloitte report points out thatthe competitiveness of a country’smanufacturing sector is critical to itslong term economic prosperity andgrowth, and indeed if you lookaround the world, there is no countrythat has a high standard of living thatdoes not have a strong andcompetitive manufacturingcapability. The Deloitte report notesthat a globally competitivemanufacturing sector creates asustainable economic ecosystem,

encourages domestic and foreigninvestment and improves a country’sbalance of payments. It creates goodjobs, not just within the sector, butspilling over into areas such asfinancial services, infrastructuredevelopment and maintenance,customer support, logistics,information systems, healthcare,education and training and real estate.

A strong manufacturing sectorboosts a country’s intellectual capitaland innovativeness, underwritingresearch and development, pushingthe technological envelope anddriving growth in demand for highlyskilled workers and scientists.

There have been many high profileleaders in New Zealand in past yearspredict that manufacturing is a sunsetindustry, that we can’t compete withChina and that the new economy willbe a weightless services economy.They were wrong thankfully, since asthe Deloitte report points out,economies built primarily on services

will be second tier. Manufacturing isthe biggest employer in the Aucklandregion and the second largest employerin the country, and contributes toaround 50% of our exports.

It is time we all got behindmanufacturing and celebrated it forthe success story it is and put somethought into how we get this sectorto double in size? The Deloitte reportpoints out manufacturers cannot goit alone and governments must playtheir part by developing policy andnational manufacturing strategiesthat are collaborative, integrated,focused and effective. Public policythat has had a positive impact onother countries manufacturingcompetitiveness has included a focuson science, technology andinnovation, technology transfer andadoption, intellectual propertyprotection, having a skilled welleducated workforce and a cohesivenational policy on manufacturingcompetitiveness.

We can catch Australia – by manufacturing our way to successFrom page 1

Well known West Coastcommunity leader JohnSturgeon has beenappointed chairman of

Development West Coast.Mr Sturgeon was unanimously

voted chair at the Trust’s meeting onFriday 3 December. He is the WestCoast Councils’ appointee on the Trust.

Robert Buchanan was reappointedas deputy chair. Mr Buchanan is anindependent trustee appointed by theNew Zealand Law Society. He hasbeen the deputy chairman since 2009and was re-elected unopposed.

A new Ngai Tahu trustee, HelenRasmussen of Haast, was alsowelcomed. She replaces retiringtrustee Barry Wilson of Hokitika.

This is the first time since theOctober election that the new Trusteeshave met as Mr Sturgeon has beenoverseas in his role as President of theNZ Rugby Union.

Mr Sturgeon says he is “keen to gethis teeth stuck into his new role” andhas now met with the Trustees,Advisory Body and staff ofDevelopment West Coast. “I amcommitted to the Coast and will beworking for the entire region as wemove forward”, he says.

He says the Trust faces a newchallenge in the wake of the Pike RiverMine disaster.

Mr Sturgeon, along withDevelopment West Coast CEO, DrJohn Chang, and local mayors willsoon meet with Minister of Energy andResources, Gerry Brownlee, to discussthe economic impact of the disaster.

“The disaster touches so many WestCoasters - builders, engineers,retailers, as well as the hearts of thepeople involved directly in mining.Development West Coast needs toprovide support to local businesses

and to make sure people will stay onthe coast”, says Mr Sturgeon.

Mr Sturgeon has a long associationwith the Coast, he is a Runangaresident and retired coal miner. He isa trustee of the West Coast CommunityTrust, the Halberg Trust, and the SolidEnergy Sports Trust. He was made anMBE in 1991 for his services to sportand is due to step down as Presidentof the NZRU in April 2011.

John Sturgeon

Michael Daniell, ManagingDirector and Chief ExecutiveOfficer of Fisher & PaykelHealthcare, has joined The

University of Auckland Council.He has been appointed by the

Minister for Tertiary Education for aperiod of four years.

Fisher & Paykel Healthcareemploys more than 2000 peopleworld-wide, including manyUniversity of Auckland graduates,and is a leading designer,manufacturer and marketer ofinnovative medical devices. Itsproducts and systems are sold inmore than 120 countries, earningrevenue of around $500 millionannually.

Mr Daniell received his Bachelorof Engineering degree in electricalengineering with honours from theUniversity in 1979.

He joined Fisher & Paykel as aproduct design engineer. He servedas technical manager and generalmanager before being appointed tohis current position in 2001.

In 2009 the New Zealand Herald

New chair at Development West Coast

Michael Daniell

Industry leader on university council

made him its New Zealander of theYear in Business.

The University’s Chancellor,Roger France, said: “Mr Daniell’sbackground and experience as theChief Executive Officer of one of thecountry’s great international hightech success stories, itself a majoremployer of graduates, will beenormously valuable to Council andthe University.”

In a world of currency mani-pulation in other countries, theargument that we can do nothingwith our currency is

disingenuous at best, say the NewZealand Manufacturers andExporters Association (NZMEA). Thesimple fact is our politicians andReserve Bank officials are choosing todo nothing. That choice threatens ourvery future which is built aroundexport success.

NZMEA Chief Executive JohnWalley says, “A distinction must bemade between currency interventionat the top and bottom of the exchangerate cycle. Bill English hascommented that New Zealand wouldneed $200 billion US ‘in the bank’ toeffectively manage the exchange rate;extensive currency reserves are onlyreally needed to hold up the value ofa currency.”

“The fact is there is no limit to the

intervention possible if it is aimed atdevaluing the currency. Selling NewZealand dollars to foreigners expandsour foreign currency reserves and weshould make money if successful.Intervention aimed at holding up thevalue of the currency is limited byforeign currency holdings; thatshould not be used as a justificationfor not intervening to devalue.”

“We can do nothing about gravity;monetary and fiscal policy is not an

Currency management and rebalancing

➛



IRL invests $19 million in research leaders

INTERVIEWA leader is someone who steps back from the entire system and tries to build amore collaborative, more innovative system that will work over the long term.- Robert Reich

immutable, it is a matter of choice.Singapore has recognised it is an ex-port dependent economy and hasstrategically aligned its policy andinstitutions behind that export depend-ence; New Zealand policy makershave chosen to bias the economytowards consumption and debt.”

“The argument that we can donothing makes a mockery of the talkaround economic rebalancing, jobexpansion and an export ledrecovery.”

➛

What made you take on the roleyou are currently doing?

A passion for the manufacturingindustry and a realization that wehave to be better than we are tosucceed in business. I love challengesand seeing others grow as a result.

If you hadn’t taken this career pathwhat would you like to be doing?

A high performance sports coachand motivational speaker.

What would you say has been yourfinest hour – career wise orpersonally?

Seeing the cultures of companieschange as a result of our programs –Frucor, Westland Dairy, NDAEngineering, Silverfern Farms andmore. Helping Honeywell win theAustralian Quality Award.

Bob Carter, managing directorof The Improve Group

I LOVE CHALLENGESWhat would you like to achieve

now?We’re currently working on a series

of Virtual Factory and Supply Chainsimulations for industry using 3Dsimulation software, I lookingforward to seeing this being taken upby industry as an alternative totraditional training, and also beingused as a business simulation modelfor developing manufacturing andproduction managers capabilitiesworldwide.

What is your greatest quality?Entrepreneurial flair – it’s also my

greatest challenge!

How do you relax?I don’t know how to, as my passion

is also my work – I completed a speedreading course many years ago and

have had to learn to slow down againto enjoy the odd novel! OccasionallyI fill in at the local Hockey club if theyare short – it’s great to be able to playsport and legally carry a weapon atthe same time.

I RL is investing $19 million tofoster New Zealand’s science andengineering talent.Initially IRL will offer five Industry

Research and Outreach Fellowshipsfor talented scientists and engineersto work with industry to conductresearch and technology transferactivities.

Chief Executive Shaun Coffey saidthat linking world-class science andengineering with the needs of NewZealand firms is the hallmark of theinitiative.

IRL will offer annual remunerationup to $200,000 to successfulcandidates, and $2.5 million inoperating funds for investment overa five year period.

The Fellows will have theopportunity to draw widely on IRLstaff and expertise and will beexpected to foster enduringpartnerships with firms and R&Dpersonnel in the private sector.

“These are exciting andchallenging roles aimed atencouraging a new mindset – onein which speed of industry uptakeof new knowledge is pre-eminentbut also emphasises science quality.

“As industry and IRL get closer,the importance of high qualityR&D as a means to improveproductivity and profitability willbecome better understood. Theseroles will not be easy but they’ll bewell rewarded and rewarding!”says Shaun Coffey.

He says IRL will continue itssearch as long as it takes to findappropriate candidates and interest

is already being expressed fromwithin IRL, New Zealand industryand from overseas.

Expressions of interest are beingcalled for in the following areas ofopportunity for New Zealandeconomic and social growth:

• Technologies for green growth

• Maori economic and industrialdevelopment

• Materials for a low carbon future

• Re-design of the builtenvironment

• Nano-enabled biomaterials

• Next generation manufacturingprocesses

• Transformational energy, powersystems and grids

• Digital futures for industrialprocesses. IRL expects to begin assessing

expressions of interest in lateNovember, 2010, and is alreadywell advanced in discussions withsome candidates.

Too many leaksThe world has had its fair share of

drama in the past few years.Tsunamis’, flooding in Pakistan,

Iraq and Afghanistan wars, 9/11 andthe financial crashes of 1987 and2008. They’re enough to make anypeace-minded person want tochange planets and live a little morepeacefully.

And just when we didn’t knowwhat to expect next comes – you’veguessed it! –WikiLeaks. I thought itmight have been the infiltration ofthe World Wide Web so that afinancial and social catastrophe on aworldwide scale took us back tosquare one and allowed us to tidyup our act and put more care intolooking after the planet.

What do we make of WikiLeaks?Well, its leader, Julian Assange ispossibly both a hero and a villain. Heand his followers have orchestrateda deliberate campaign to expose tothe world the fallacies of our leadersand our systems.

Is he a kind of Robin Hood, find-ing ways to rid the world of the evildoers; by exposing them they areforced to clean up their act?

But this still isn’t the real story.WikiLeaks is going to be like OsamaBin Laden. Mention the nameWikiLeaks and for years to come itwill remind people of the scandalousbehavior of Assange and hisbuddies. WikiLeaks will keep peopleon edge and make us all morecautious as to what we release on theweb.

It is behavior which is both nobleand irresponsible. For example, Idon’t want to see the military inAfghanistan put into positions ofmore danger. But I am interested inwhat he has – what he is going torelease on the Bank of America earlyin 2011.

The release of hundreds ofthousands of classified documentson the web by WikiLeaks may wellbe saying “we say too much inemails, we need to consider what wesay, we need to be more responsible.

And Julian Assange? He is foreverlodged in folklore. He may beassassinated, he may be locked upfor 20 years, he may be set free.

And because of WikiLeaks life willnever be the same again.

-Doug Green



BOOKS Global capital markets pose the same kinds of problems that jet planes do. They are faster, morecomfortable, and they get you where you are going better. But the crashes are much more spectacular.

- Larry Summers

Sensational books likeFreakonomics have shownhow human behaviourfollows predictable patterns.

But how do you take these radicalideas and apply them to yourbusiness? How do you make moneyfrom them?

Secrets of the Moneylab sets outwhat business can learn from thefindings of the new economics andsocial psychology. It shows how youcan shape desires, use incentives andreduce risks to consistently improvethe bottom line.

In his experimental lab at Hewlett-Packard, chief economist Kay-YutChen is running groundbreakingresearch into human behaviour. Hepacks Moneylab with insights intothe invisible forces controlling theworld of business.

These findings, which defyconventional wisdom and traditionaleconomic theory, will help youengineer your business for success.

‘What can playing games in a labtell us about risk management orcompensation plans? A lot, as it turnsout.

Using science, field experiments,and examples from well-knowncompanies, Chen and Krakovskyreveal the secrets of how to apply thescientific method to your businesspractices.

For Rupert Murdoch, buying theWall Street Journal wasn’t justbusiness; it was personal. That’sbecause with the Journal under

his control, Murdoch could finallyrealize his dream of destroying theNew York Times. Murdoch, whostarted his multibillion-dollarmedia empire with a couple ofAustralian papers, has long foughtagainst what he’s pegged as themonolithic media establishment—aself-important, liberal elite, bred inthe Ivy League and at top journalismschools on the coasts.

And believing that inheritedwealth can lead to complacency inbusiness and in the newsroom,Murdoch has always been wary ofthose who have inherited theirfortunes (i.e. New York Times scionArthur Sulzberger, Jr.).

So the swashbuckling septua-genarian finally got his chance tochip away at the Times on its hometurf, by staffing up and pumpingmillions into a New York edition ofthe Journal, which he hopes willsoon be Manhattan’s first read andthe nation’s paper of record.

On the evening of the newsection’s launch, Murdoch boastedabout the paper’s increased depthat a party filled with local powerplayers, such as mayor MichaelBloomberg and financier HenryKravis. The Journal, Murdoch said,will be “New Yorkers’ essentialsource of news and information.”Even Murdoch’s detractors—perhaps nostalgic for a CitizenKane-style street fight for readers—praise his passion for print in thedigital age.

Who else would launch an old-fashioned newspaper war in 2010?

Former Journal reporter SarahEllison’s War at the Wall StreetJournal—a detailed and fast-moving account of Murdoch’s 2007deal to acquire Journal-parentcompany Dow Jones—couldn’thave come at a better time, just asMurdoch begins his battle with theTimes.

While there was plenty ofcontemporaneous reporting, alongwith Michael Wolff’s probing 2008book on Murdoch, The Man WhoOwns the News, and a lengthy GQpost-mortem, Ellison’s bookprovides not just a deeplyinvestigated back-story of the deal,but also an insider’s perspective.

When reports of rifts within theBancroft family (the paper’s long-time stewards) appeared in theJourrnal’s pages, it was often underEllison’s byline.

Covering one’s employer is nevereasy: reporters need to avoidlooking like they’re carrying waterfor the company brass or being anewsroom snitch.

During the summer of 2007,Ellison walked that line deftly,breaking plenty of news as the dealunfolded day by day. In her newvolume, she’s mined her contactsfor great fly-on-the-wall quotes

from inside the paper, l ikeMurdoch bellowing: “We’re goingto build a fucking great paper andI do not give a fuck what New Yorkor the media has to say about it!We’ll build the world’s best paper!”

Unlike Wolff, who spent anunprecedented fifty hours withMurdoch, Ellison doesn’t try to getinto the mogul’s head. Instead, shedetails precisely how he plotted theDow deal years before dropping anunsolicited five-billion dollar bidon the Bancrofts—many of whomwere horrified at the idea ofMurdoch getting his hands on thepaper.

The newsroom’s fear ofMurdoch’s meddling led to an“editorial independence”agreement, which anyone who hasfollowed Murdoch’s career doesn’tput much stock in. Notsurprisingly, Journal managingeditor Marcus Brauchli wassqueezed out about four monthsafter the deal closed, with Murdochfavorite Robert Thomson taking thetop newsroom job.

Still, from a business standpoint,purchasing Dow Jones may havebeen a mistake.

Indeed, Murdoch’s NewsCorporation took a three-billion-dollar write-down on the paper,leading one current seniorexecutive to tell New Yorkmagazine that it “was the worstdeal [Murdoch] ever did.” Ofcourse, it’s unlikely that anyonecould have stopped Murdoch, whoexplained his ambition to Brauchli:“The New York Times sets thenational agenda, and we should.”

It remains to be seen whetherMurdoch will succeed, but eitherway, the Journal–Times battleshould provide Ellison with plentyof material for an intriguing sequel.

Secrets of theMoneyLab:

How UnderstandingPeople Will Increase

Your ProfitsBy Chen Kay-Yut &Krakovsky MarinaPenguin BooksRRP $42.00

Who else would launchan old-fashionednewspaper war in2010?

War at the Wall Street Journal:Inside the Struggle To Control an American Business Empire

By Sarah Ellison

FEBRUARY 2011 ISSUE FEATURES

• Manufacturing Technology• Food Processing• Business Services

For further information contact:Managing Editor: Doug Green Sales Manager: Max Farndale

P: 06 870 9029 P: 06 870 4506E: [email protected] E: [email protected]

Editorial & Advertising Deadline 25TH

January 2011



Manufacturing in Hawke’s BayREGIONAL FOCUS: HAWKE’S BAYThe incestuous relationship between government

and big business thrives in the dark.- Jack Anderson

The manufacturing sector inHawke’s Bay is defined byStatistics NZ to include thefollowing different broadcategories of industrial

activity in New Zealand:◆ The processing of food and

beverage related products◆ The processing of textile related

products◆ The processing of wood related

products◆ The printing industry◆ The manufacturing of petrol and

coal products◆ Chemical related industries◆ The manufacturing of rubber

products◆ Non-metallic mineral products◆ Metal product manufacturing◆ Fabricated metal products◆ Manufacturing of transport

equipment◆ Machinery and equipment

manufacturing◆ Furniture and other manufac-

turingThe main indicators of the overall

economic size and contribution ofthe Hawkes Bay manufacturingsector are as follows:◆ Total annual GDP (Gross

Domestic Product) of some $1311million in current dollar terms,accounting for 22% of total HB all-sector GDP and 6% of total NewZealand manufacturing sectorGDP

◆ Total manufacturing enterprisenumbers of 859, representing 5%of the Hawkes Bay all-enterprisetotal and 4% of the New Zealandmanufacturing sector total

◆ Total sector employment of10,200, accounting for 14% of totalHawkes Bay industry employ-ment and 5% of the nationalmanufacturing employment total

In February 2010, total enterprisenumbers and employment for theabove listed manufacturingindustries in Hawkes Bay were asfollows:◆ Food & Beverage processing

................................. 184 and 5820◆ Textile processing ..... 70 and 890◆ Wood processing .... 89 and 1060◆ Printing ...................... 30 and 150◆ Petroleum and coal

manufacturing ................ 1 and 0◆ Chemical manufacturing

..................................... 14 and 150◆ Rubber products ....... 22 and 140◆ Non metallic mineral products .

..................................... 30 and 160

Founder of spectacularly successful Future Products Group, Robert Darroch.

Sean Bevin, EconomicSolutions Ltd, Napier

◆ Metal product manufacturing......................................... 6 and 12

◆ Fabricated metal products................................... 136 and 640

◆ Transport equipmentmanufacturing .......... 37 and 150

◆ Machinery and equipmentmanufacturing ........ 156 and 680

◆ Furniture and othermanufacturing .......... 84 and 330

Therefore the largest manufac-turing industries in Hawkes Bay inenterprise number terms are, in order,food and beverage processing,machinery and equipment manufac-turing, fabricated metal products andwood manufacturing.

The largest in terms of employmentnumbers are food and beverageprocessing (five times employment inthe next largest industry-woodprocessing), wood, textiles, machin-

ery/equipment and fabricated metalproducts.

Across all the various manufac-turing enterprises in Hawkes Bay, thelargest in terms of individualbusiness numbers are, in order,machinery and equipment manufac-turing, wine processing, fabricatedmetal product manufacturing,wooden furniture manufacturing,wooden component manufacturingand the making of bakery products.

The largest in employment termsare meat processing, fruit andvegetable processing, wine making,leather tanning, pulp and paperproduction, bakeries, wood products,structural steel products andsawmilling.

The processing part of the HawkesBay manufacturing sector accountsfor 40% of all manufacturing enter-prises in the region and for 8250 or81% of total manufacturing employ-ment in the region.

The HB processing sector accountsfor 7% of all processing employmentin New Zealand and 8% of all foodprocessing employment in thecountry. The region also accounts for10% of all meat processing in NewZealand, 38% of all fruit andvegetable processing in the country,17% of all wine-making employmentnationally, 32% of national leathertanning employment and 18% ofpulp and paper manufacturingemployment in New Zealand.

Continues page 14

Creating an innovative and rewarding working environment is key to expanding ourbusiness expertise for the manufacturing sector in Hawke’s Bay.

Employers in this region are looking for opportunities that provide ongoing research,development, and challenges that continue to see their businesses grow.

The global reach of NZ Manufacturer provides an ideal platform to reach and createinterest in what the region has to offer. Especially for those contemplating moving toHawke’s Bay.

Forming industry sector clusters is a way of gaining opportunities to successfullytender for projects that will benefit all parties.

Using a specific industry skill base to combine their expertise, enables both SME’sand large corporates in Hawke’s Bay to tender for contracts that may have been out oftheir reach if they attempted it alone.

Part of this process is the recruitment of effective staff who will add value to thecompany.

Using today’s technology very sophisticated interviewing is possible without havingto do a face to face interview initially. Technical questioning can be asked and drawings

provided to provide the employer with the reassurance that this is the person they wantwho can provide the solutions needed to grow their business.

However, less than a third of jobs are advertised as managers often use their ownnetworks or agencies to headhunt the best people available.

Immigration processes can also be effective and timely as long as appropriatedocumentation is submitted to the appropriate Government authorities.

Staff from overseas provide vitality to a workplace and in many cases their ownglobal contacts bring benefits and provide efficiencies that may not have previouslybeen possible.

Innovative working environmentimportant for manufacturing sector

Contact: Lynne Gibson, Managing Director, Dynamics3Recruitment, Vero House, 70 Tennyson Street, P.O. Box 971, Napier,New Zealand T: 64 6 8343533 M: 021 596 637E: [email protected] www.dynamics3.co.nz

nextSTEP



Growing the Bay

The secret of business is to knowsomething that nobody else knows.

- Aristotle OnassisREGIONAL FOCUS: HAWKE’S BAY

Economic growth, within theconstraints of our environment,must be the focus for theHawke’s Bay economy. A higher

standard of living, more jobs, andhigher incomes will result from suchgrowth.

Modern infrastructure for ourregion is a key driver of economicgrowth.

The Airport extension, theSouthern Expressway extension, thebridge at the Matahoura Gorge andthe roll out of fibre around our regionare all excellent examples of currentinvestments into the Bay.

The key sector drivers of growth inthe Bay will be primary production,tourism, and niche manufacturing.There are huge opportunities forbetter yields from our land if we areable to manage our resources moreintensively, recognising our differentsoil types and need for water storage.

Excess water takes have influencedwater flows in the Tuki Tuki and otherrivers which has had an impact onbiodiversity and other amenityvalues.

The efforts of the Hawke’s BayRegional Council to develop waterstorage facilities are to be applaudedand will make many of our landbased businesses more attractive tofurther investment.

Tourism will continue to grow inour region with a combination ofmore focussed marketing, increasedCruise Ship visits and increasedevents/attractions.

For example, just a few weeks agothe new ‘City Showcase” brought 40

bands to Napier City for theweekend. The opportunities to fill thetourism calendar with events such asthis are huge.

The roll out and completion of theNational Cycleway project, togetherwith a bid for the Cycle Velodrome,will increase the reasons to visit ourwonderful province.

Manufacturing is the realopportunity for the Bay. Both inadded value of our primary produceand in niche light manufacturing.Companies such as Heinz/Wattiesand McCains have employed largenumbers over many years. Newentrants such as Kaweka Foods arereally making their mark.

In the light manufacturing areacompanies such as Future Productsand Furnware are experiencingexport growth in very competitivemarkets.

Central Government plays a keypart in setting the over aching policydirections to allow growth across thecountry and in our region. To this endthere have been significant changesto tax rates and other business driversin the last year.

In addition to wider macro policythere are opportunities for businessesthat aren’t already workingintensively with New Zealand Tradeand Enterprise (NZTE) through theRegional Business PartnerProgramme.

The average employment size of allprocessing industries in Hawkes Bayis 24. The average size of all pro-cessing and manufacturing industriestogether in the region is 12.

Over the past decade, the followingHB processing/manufacturing sectortrends have occurred:◆ The total number of sector

enterprises has increased overallby 16%, compared to the -0.3% fallnationally

◆ Since 2008 though and the startof the latest major economicdownturn, the number ofmanufacturing businesses in theregion has fallen by -4.1%,compared to -4.6% nationally

◆ Total HB employment in thesector has fallen overall by -2.1%since Year 2000 and by -2100 or -17.1% since 2005. Nationally,sector employment has fallenoverall by -8.8% since Year 2000and by -15.4% since 2005

◆ Food and beverage processingemployment in the region hasfallen by -3% over the past decadewith, however, wine processing

employment increasing by 310 or111%

◆ Textile manufacturing employ-ment in the region has fallen by20% since Year 2000, whilst woodmanufacturing employment hasrisen by 14%

◆ Employment in fabricated metalproduct, machinery/equipmentand furniture/other manufacturinghas increased overall since Year 2000and remained stable in transportequipment manufacturing

◆ Employment in the printing,chemical and non-metallicmineral product manufacturingindustries has fallen since hasover the past decade.

The NZ Institute of EconomicResearch is forecasting annualaverage growth over the next fiveyears of 0.9% for the food processingindustry nationally, -0.9% for textiles,1.5% for wood processing, -1% forprinting, 0.2% for chemicals, 0.9% fornon-metallic mineral products, 3.6%for machinery and equipmentmanufacturing and -0.6% forfurniture manufacturing.

From page 13

Manufacturing in Hawke’s Bay

By Chris Tremain,National MP Napier

Chris Tremain (left) with fellow National MP Craig Foss

The deterioration in the Govern-ment’s accounts because of loweconomic growth and some one-off problems is not surprising,

says BusinessNZ.Chief Executive Phil O’Reilly says

it increases the urgency for actionsthat will create a more dynamiceconomy.

“Government spending should beaimed at getting the right funding inthe right places and better using allpotential sources of equity.

“For example, the economy wouldbenefit from greater use of the valueheld in Crown-held assets, byallowing mum and dad investors toplay a part.

“Viewing SOEs as ‘sources ofequity’ could unlock much economicgrowth.”

Mr. O’Reilly said a fresh look at no-go areas in the economy would alsohelp boost the economy.

“BusinessNZ and otherorganisations have stressed theimportance of taking action toconstrain costs and get moredynamism in the economy, includingincreasing the entitlement age forsuperannuation, reducing the cost ofKiwiSaver and making changes tointerest-free student loans.

“The Government also needs tomove on introducing a RegulatoryResponsibility Act to help improvethe quality of regulation andconstrain wasteful spending.

“A fresh look at assets andspending could help achieve a moredynamic economy,” Mr. O’Reillysaid.

Rethink the economy toimprove prospects -

BusinessNZ



World Travellers co-op going places

The way to get things done is not to mindwho gets the credit for doing them.- Benjamin Jowett REGIONAL FOCUS: HAWKE’S BAY

Travel agencies, like businesses inmost sectors, have had a fewchallenges to contend with overrecent times with the airlines

actively trying to cut travel agentsfrom their distribution channels andthe internet spawning massive B2Cconnections.

It meant that some innovativeplanning, that drew on soundbusiness practices, was required;enter the World Travellers travelagency cooperative.

Bill Sheppard, owner of awardwinning Best Travel in Hastings, wasone of the originators of the WorldTravellers Cooperative concept backin late 2009. Starting with just twooutlets, Hastings and Rotorua, thereare now 14 outlets throughout thecountry. Financially, the co-opmanagement services unit hasalready achieved break even at thesame time delivering $70,000 to$150,000 a year extra profit to eachnew retail shop.

The World Travellers cooperativemodel is –• Aimed at high-end, experienced

travel store owner-operators who

Christine Sheppard, Bill Sheppard and Frazer Best

Pic

ture

cou

rtes

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have well-established profitablebusinesses with high levels ofrepeat customers (80-90%).

• All profits are returned to co-opmember stores.

• Total transparency and member-driven strategy and business plans.

• Very lean overheads.• Extensive use of cloud-based IT

solutions delivering connectivitybetween co-op members andsuppliers.

• Trade supply services contractedout to like-minded partners whodeliver ‘freemium’ services.

Bill Sheppard was oneof the originators of theWorld TravellersCooperative conceptback in late 2009

At the core of their activities is theindividual World Travellerconsultant; they have considerableknowledge, combined with a skillbase that is continually being built on,providing customers with a number

of benefits that will see them extractthe maximum benefit from theirbusiness trips.

-NZ Coop Association newsletterand to Graeme Moore MD, WorldTravellers supplied the information.



You never pull the trigger until you knowyou can win.

- Roger AilesREGIONAL FOCUS: HAWKE’S BAY

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Hawke’s Bay with its Mediter-ranean style climate andrelaxed pace of life is comingonto the radar not just for new

settlers but as a great place to dobusiness.

The region, which is strategicallylocated on the east coast of the NorthIsland, has a thriving port and a greatestablished base of local businesses.

Simon Dunn, a Commercial andIndustrial expert from Moriceproperty valuers in Napier explains:”The benefits of Hawke’s Bay wererecognised by national furnitureretailer Big Save who have their headoffice in Napier. This is also theirnational distribution centre, havingrelocated from Wellington a few yearsago. They have cut their operationaloverheads significantly by relocating.

“The Bay has good infrastructureand industrial rents of between $65per square metre to $140 per squaremetre, depending on the quality andlocation of the property.”

Investors are also consideringHawke’s Bay property, attracted bythe stable returns on offer.

Morice recently hosted a group of15 property professionals fromDenver, USA who spent the daylooking at the property markets ofNapier and Hastings.

They were looking at newopportunities and diversificationaway from the United States due tothe low returns there.

Mr. Dunn said that the commercialand industrial property markets inHawke’s Bay do not have as a high avolatility in returns as the propertymarkets in the larger cities such asAuckland.

In fact, the shift in the Morice allproperty prime yield indicator, which

is produced six monthly, shows onlya marginal easing during the recentdifficult economic times.

The total return for commercial andindustrial property in Napier andHastings has been positive over a one,three and five year time horizons.

Rental growth, as in any marketcurrently is negative, with a declineof -3.7% for the year to June 2010 inNapier. However, well managedproperties are able to retain their

The propertymarkets here arenot as volatile.

A great place todo business

tenants, who are customers, andlandlords who are treating tenants assuch are doing well.

The group from Denver leftHawke’s Bay impressed by theopportunities for business growthand investment potential. Others arealso likely to shortly discover thegreat opportunities that Hawke’s Bayoffers.

nextSTEPVisit: www.morice.co.nz



An expert knows all the answers - ifyou ask the right questions.- Levi Strauss REGIONAL FOCUS: HAWKE’S BAY

Indelible is a high-qualitycreative film and videoproduction company located inHawke’s Bay. Originating fromthe UK, Indelible produce

television commercials, corporatevideo, and online advertising, aswell as designing and constructingwebsites.

Their full production facilities inOnekawa, Napier, include a greenscreen studio, high-definitioncameras, lights, a track & dollysystem and steadicam.

They also have editing and post-production facilities including 2&3danimation plus full audio postproduction. Every element of thecompany’s work, from concept tofinalising post-production, audioand graphics is done in-house.

Indelible recently produced a 30-second television commercial forHukarere Girls’ College. The conceptfor the advertisement centred aroundthe school’s ability to prepare youngwomen for the future. The advertise-ment originally aired on Maori TV,and within just four weeks of itsinitial airing the school hadconfirmed the enrolment of 14students, resulting in a 600% returnon their investment.

Due to its success, the school madethe decision to move it to mainstreamtelevision in the North Island

(TVNZ), which the school feelsconfident will result in even moreenrollments.

Another recent project was thetelevision commercial for TheNational Aquarium of New Zealandin Napier.

In the past the aquarium wouldhave had to have turned to a film

Indelible making their mark

Indelible filming at Napier’s Aquarium

company in Auckland or Wellingtonto get the quality of advertisementthey desired. With a quality filmproduction company just around thecorner, they turned to Indelible.

The end result is available forviewing at indelible.co.nz (as well ascurrently airing on television) anddisplays the high production values,top storytelling and beautiful visualsthat characterise Indelible’s work.

Film can be used in a multitude ofways. A video about your businessor product can be put on yourwebsite and on YouTube, thusoptimising your web presence andpotentially increasing your web andsearch engine profile. Indelible can

also create a DVD for clients or re-edit it to become a televisioncommercial.

Using a video to convey yourmessage brings with it personality -text and images can only show alimited amount of emotion, puttingvideo up sooner rather than later willput you a step ahead of yourcompetitors.

Internationally experienced, theteam at Indelible includes Director ofPhotography Dan Browne, Writer/Editor Kelli Greene Caldwell, andDirector of Moving Image, MarkRadley.

They are dedicated to stayingrelaxed, having fun and be approach-able while creating work that catersto client’s specific needs.

They look forward to working withmore businesses. Traditionally, afacility such as this would only befound in Wellington or Auckland sothey are proud to be a supplyinghigh-quality creative work inHawke’s Bay.

nextSTEPVisit: www. indelible.co.nz,

Venture Hawke’s Bay and Hawke’sBay Chamber of Commerce havebeen jointly-appointed as one of14 Regional Business Partners,

under a new business investmentscheme by New Zealand Trade andEnterprise (NZTE) and the Foundationfor Research, Science and Technology(FRST).

NZTE and the Foundation’sbusiness investment programmeTechNZ will work through this localpartnership to support businessgrowth and innovation.

The regional Partners will be thefirst point of contact for businessesseeking advice, funding and expertiseto grow their businesses, and toundertake research and developmentactivities.

Hamish Campbell, theFoundation’s Manager of InvestmentServices said of the scheme, “OurPartners have helped companiesaround New Zealand undertake

innovative projects to develop newproducts, employ undergraduate andMaster ’s students, and engageexperts to assess their R&D strategyand provide advice.”

NZTE Acting Director ofPerformance Improvement EuanPurdie added, “It provides anexcellent opportunity for the keyentities in each region to worktogether to determine their economicstrategies and help them identifybusinesses in their region that willdeliver on those.”

Sam Wood of ATI Engineering Ltdrecently accessed TechNZ funding forsome of their research anddevelopment projects, and said, “Itreally was invaluable havingsomeone on our doorstep to talk usthrough the funding available and tohelp us with the application process.I was amazed at how straightforwardand quick the whole process actuallywas; painless really.”

Hawke’s Bay becomes aregional business partner



REGIONAL FOCUS: HAWKE’S BAY I hire people brighter than me andthen I get out of their way.

- Lee Iacocca

The Prowler HDX 700 series isnow available in New Zealandfrom Hawke’s Bay company

Agre.As seen by the picture the

Prowler HDX 700 series is madevery efficient by their trays whichcan be removed and providedouble carrying capacity. It alsohas a three passenger seat with

plenty of room to keep peoplecomfortable and happy.

Other features include:adjustable Fox Float coil over rearshocks, a large rear cargo box,power steering with tilt steeringwheel and dashboard shift.

There are also slide storagecompartments, aluminiumwheels, front and rear 2” receiver,engine 700 HI EFI and aluminiumrims.

A lot of interest is being shownin the Prowler series and Agre isalso looking for investment tofurther grow the Prowler range inNew Zealand.

nextSTEPContact: Graham Houghton on

06 974 8152 06 974 8152 or 021 2465773 or email [email protected]

Port of Napier

The Port of Napier has facilities for both container ships as well as modern day cruise ships.

Prowler series needs investor

While compiling theinformation for this look atmanufacturing in Hawke’sBay it was disappointing to

find that key business sectors thatare integral to manufacturingsuccess in the region were notrepresented.

Regions have their factions, theirgroups who protect their owninterests (and those of their members)and in this case some Hawke’s Bayindustry sector leaders shone like abeacon through their absence.

Unfortunately, this particularattitude resonates throughmanufacturing in New Zealand –from government down who stillhave not painted the picture clearlyof where they see the manufacturing

The Port of Napier Ltd hasreported a solid after tax profitof $7.047million and that it hadhandled a record tonnage in the

financial year of 2010.Port chairman Jim Scotland said the

company’s strong performance was areflection of the effort andcommitment from staff, continuedsupport from shipping lines and cargoowners and an aggressive growthstrategy which had resulted in newbusiness gains.

Port throughput increased by 18 percent with combined cargo tonnagelifting to a new record of 3.416 milliontonnes. This was led by a strong exportrebound which helped eclipse theprevious record of 3.200 milliontonnes set in 2003.

“We can look back at the year justcompleted with a good deal ofsatisfaction and confidence.Combined activity exceeded budgetand that of the prior period, settingnew records in the process. It has beena high impact year for all concerned,”Mr. Scotland said.

Mr. Scotland signaled that as Napierpositions itself as one of NewZealand’s top tier ports it will need togrow to prosper. To achieve this aim,new investment will be necessary.Change is a constant and limited newdredging, reconfiguration of plant andfurther reclamation may be needed.

Exports improved overall to 2.618million tonnes, an increase of 370,000tonnes over 2009.

Solid after taxprofit for Port

of Napier

Log exports were up 21.8 percent to889,000 tonnes while wine, timber,woodchips and dairy all experiencedlarge gains.

Imports grew 23.3 percent as aconsequence of improving fertilizeractivity and a leap in containerisedconsumer goods.

Port of Napier chief executive GarthCowie said the long term growth trendin containers continued, resulting inannualised container throughputincreasing by 8.3 percent to 180,871TEUs (Twenty Foot Equivalent Units).

There was a slight increase in overallship calls, up from 567 last year to 580,which impacted on profitability,resulting in a final net profit after taxof $7.047 million.

sector going for the good of NewZealand.

So, in this instance, I say shame onthose key people in the Hawke’s Bayregion who did not have the visionto share the future picture ofmanufacturing for the good of theirmembers.

-Doug Green

www.alibre.co.nz Email: [email protected]

Lack of vision disappointing



REGIONAL FOCUS: HAWKE’S BAYYou must constantly change and adaptto a new environment.- Jong-yong Yun

The extension of the runway atHawke’s Bay Airport currentlyunderway has had a longgestation.

It has long been recognised that therunway at 1310 metres was too shortand while adequate for the currentAir New Zealand turbo prop fleet, thelength or lack of it was seen as aninhibiting factor for competition andgrowth.

Hawke’s Bay Airport Limited wasincorporated in July 2009. Prior tothat the business operated as anunincorporated joint venturebetween the Crown and the Hastingsand Napier City Councils. This wasan unsatisfactory and cumbersomestructure for decision making and notconducive to taking on majordevelopment projects.

The current corporate structure hasa fifty percent Crown shareholdingwith the balance of shares held by theHastings District Council and theNapier City Council. Importantly, ithas an independent board notconstrained in taking on majordevelopments – business casejustified – and not constrained fromraising capital.

The development philosophy

adopted by the board has a buildingblocks approach; that is, anydevelopments are effectively futureproofed.

In the case of the runway, theextension to 1750 metres will makethe airport domestically jet capable,able to handle any of the jet aircraftcurrently operating domestic routesin New Zealand and Australia.

If an extension to internationallength can be justified in the future,the airport now has control ofsufficient land by way of a perpetuallease from Landcorp Holdings Ltd toenable such a development toproceed without delay.

The major driver here iscompetition. While Air NZ providesan excellent service, customersurveys clearly identify cost of faresas a barrier to travel.

The introduction of an additionalcarrier would provide much neededcompetition and accordinglyconsiderable economic benefit to theregion. Current passengermovements are below the 2008 peakof 450,000 but recovering stronglyfrom the recessionary lows and backup to around 410,000.

The company will be pursuing

opportunities for a second carrier.The ability to handle jet aircraft withthe extension creates an opportunityfor competition in both air fares andfreight charges and significantbenefits to airport users.

Hawke’s Bay Airport is not limitingits development plans to the runway.Plans are being finalised for furtherinfrastructure development withinternal roading and release of

leasehold sections for businesses torelocate to the airport and over timethe development of a fully servicedbusiness park.

Discussions are underway with anumber of interested parties.

The Airport is committed toproviding Hawke’s Bay businessesappropriate infrastructure and acompetitive environment economicgrowth.

Creating a platform for competition and growthJohn Palairet, Chairman,Hawke’s Bay Airport Ltd

Commercial Finance Solutions(HB) Ltd, located in Onekawa,Napier, has been in the NewZealand commercial finance

market for over 10 years with over25 years experience in the financingof motor vehicles, light and heavycommercials, plant, equipment,machinery, and the property market.

Nigel Watkin, director ofCommercial Finance Solutions (HB)Ltd, has spent the majority of hiscareer working in the financeindustry and has previously workedfor two of the biggest financecompanies in NZ. He has worked inmost areas of the business including,credit, collections and sales in thesecompanies so has the knowledge tonot only provide you with the rightsolution for you, but also knows howto present it to the finance company.

Motor Vehicle, Plant, Equipmentand Business Finance for businessesis available to:• purchase new motor vehicles, plant

or equipment.• expand.• buy out or merge with another

business.• refinance or consolidate debt.• raise money against existing assets.• purchase a commercial property.• free up cash flow and working

capital.

• factoring.• invoice Purchasing.

We can help with all of these.We have arranged loans in many

industries, including contracting,agriculture, forestry, transport,engineering, manufacturing,printing, waste recovery and

recycling, aviation and tourism.Whatever the size of your business,

Commercial Finance Solutions cantailor a loan to suit your needs. Theyfinance a range of asset purchases,and offer refinancing on existingassets.

They have sound local knowledgeand years of experience in dealingwith many different business types.You can be confident we’llunderstand what you need.

Our aim is to be a long-term partnerin your success and growth.

The most common finance optionsoffered are:• term loan – the ability to raise

additional funds against existingbusiness assets

• finance lease – on balance sheetfunding for the purchase ofadditional assets

• operating lease – off balance sheetfunding of assets, which providescertain tax advantages

• security agreement - for thepurchase of assets

• rental and leasing of officeequipment, computers, phonesystemsYou will get the best possible

service and tailor a finance solutionto meet your needs.

nextSTEPVisit: www.cfshb.co.nz

Nigel Watkin

Finance available for company development

Local Hawke’s Bay accountantsDave Cheetham, SimonHankins and Kirsten Wise arethe people behind newly-

formed accounting firm, Black &White.

The dynamic trio bring arefreshingly relaxed and pragmatic-yet-professional attitude toaccountancy. Having come fromestablished backgrounds in the field,they not only bring a wealth ofcombined experience, but also a veryreal sense of understanding of whatthe people and businesses of Hawke’sBay need from their accountants.

As existing practitioners, theybring with them a sizeable client baseof individual and business clientswhich, in Dave’s words, “Remainsour single largest priority”, adding,“Significant emphasis went intoensuring that the transition wasseamless, with all client files nowmoved over to the new business”.

It’s all Black& White

Continues page 21

Runway extension will create opportunities for bigger aircraft for the region



The Bay has it all for business successREGIONAL FOCUS: HAWKE’S BAY I cannot sing, dance or act; what else

would I be but a talk show host.- David Letterman

A region that understands itscompetitive advantage and con-stantly communicates this tothe wider business and

manufacturing sector across NewZealand (and, when theopportunities arise, globally), in anongoing drive to attract high valuecompanies to Hawkes Bay.

We have the infrastructure in agreat port, an improving roadingnetwork, an hour ’s flight fromAuckland and 40 minutes fromWellington, a fantastic educationalfacility in EIT, some of the country’stop secondary schools, a ready andwilling work force and, of course, thewonderful lifestyle.

What is the role you seemanufacturing playing in the region’sfuture?

If we want unemployment to dropand the region’s economic wealth toincrease, then a robust manufacturingsector is vital to the region’s economic

and social health and well-being.As mentioned, we have it all except

for some reason we are notcommunicating this in a way that isattracting businesses into the region.

What are the incentives andprograms that Government has toassist Hawke’s Bay manufacturersdevelop overseas markets?

I believe that central governmentalready has some good programmesin place to help companiesinternationalise, and thegovernment-run New Zealand Tradeand Enterprise (NZTE) does havesome innovative and interestinginitiatives.

If companies are interested inexporting they should, in the firstinstance, give NZTE a call todetermine what is available for theirparticular circumstances.

However, I believe that localgovernment has a more importantrole to play in attracting businessesto the region. There are manyinnovative schemes the territorialauthorities could be using to attracthigh quality manufacturers toHawkes Bay.

For example, how about a two yearrates holiday for any manufacturer

relocating to Hawkes Bay whoemploys 10 or more people?

What are the ways thesecompanies can be financially assistedto display their goods at trade fairsaround the world?

Again, it is best to talk to NZTE todetermine the level of funding andassistance available for the particularcircumstance regarding attendance attrade shows, as well as forinternational market development.

In my personal opinion as someonewho was involved in internationalbusiness for eight years, NewZealand Trade and Enterprise doesneed to reprioritise its focus andactivities. As it stands in its currentform, NZTE does some great workaround tradeshows etc, but it needsto become much more focused onhelping NZ companies understandand, if appropriate, manage thesupply chain from point of originthrough to final market.

NZTE also needs to be much moreactive in identifying global marketopportunities and then helping NewZealand companies realise theirinternational potential through arange of different alliances andpartnerships.

What are your observations ofinnovative Hawke’s Bay manufac-turers making their mark?

Location is no barrier to success; infact it can help. Understandcompetitive advantage andconcentrate on being the best in theworld. Treat workers well and theywill reward you with hard work andsuccess. Leadership is important butbuy-in from all staff is vital. Assomeone said, if God gives you alemon, make lemonade.

Stuart Nash MP LabourList, based in Napier

What would your visionbe for economic growthin the region?

Marcus Berry started Pacific Aerosol eighteen months ago.After gaining a science degree, Marcus spent seven yearsthrough the multi-national corporate culture, negotiatingthe supply and production of chemicals to a wide rangeof national companies, establishing and maintaining long-

term partnerships with customers and suppliers alike.Marcus had been considering starting his own aerosol

manufacturing business for some time when he discovered a state-of-the-art indexing plant when he was on holiday in the UK whichhe took ownership of and shipped back to New Zealand.

The company is based at Awatoto near Napier which is an ideallocation for the freighting of their products through the Port ofNapier providing ideal services for national and internationaldelivery.

The ease of setting up the business at Awatoto was a ‘no brainer’because of the support from Napier Council especially withresource consent.

Pacific Aerosol specialises in filling aerosol cans and repackagingfrom bulk. They also provide product and label design, storageand delivery. Low number runs are a specialty starting from 1000units.

Pacific Aerosol believes in working closely with clients, forminga partnership and actively listening to the need and understandingthe business to determine what is required. All on a one to onebasis.

The entire process of advising, assisting and proactively beinginvolved ensures the client receives the product they wantdelivered on time.

Pacific Aerosol specialises in the production phase withcustomers selecting the services they require to lead them toproduction and then from the range of logistical services.

Key to their strengths are Planning, Pre-Planning, Productionand Logistics.

Pacific Aerosol has a team of consultants and recognised leadersin their field to work with customers in designing and formulating.Aerosol label design is a specialist field, both in terms of visualimpact and meeting the various labeling information requirementsrelevant to various product categories.

Contract aerosol filling is the company’s core business. The KPAerofil filling line is designed for industrial household and personalcare products. The line has an extremely high production capacityand the capability of utilising ozone friendly hydrocarbon CO2and Dimethyl/Ether as propellant options giving total flexibility.

nextSTEPEmail: [email protected] or T: 06 833 6373

When opportunity knocks – grab it!

Highly efficient processes result in quality products.

NZ Manufacturer • November 2010 21


BUSINESS NEWSThere are two kinds of companies, those that work to try to chargemore and those that work to charge less. We will be the second.- Jeff Bezos

Such is the Gough Group’s needfor staff, especially heavy dieselmechanics and technicians, it hasrun a series of seven job

seminars throughout the country totry and fill the large number ofvacancies it has on its books.

In November it successfully heldseminars in Auckland, Hamilton,Rotorua, Christchurch, Nelson,Palmerston North and Dunedin but isstill struggling to keep up with the

demands that the booming mining andforestry sectors are having on thebusiness.

Karl Smith, Chief Executive of theGough Group, said that the companyhad 20 vacancies for heavy-dutymechanics and technicians, slightlydown on its peak of 22 before theseminars. In total, the Group has 40vacancies.

“The Goughs Group is well awareof this skill shortage and is doing

everything to both attract and trainstaff to look after our present needs,and also in anticipation of futuregrowth. This is a New Zealand-wideskills issue, and we need to be on thefront foot to ensure we have theappropriate number of qualified staffand apprentices,” he said.

Earlier this year, the Gough Grouphad the two biggest sales in its 81-yearhistory, with the contract to supply 95pieces of Caterpillar machinery, worth$120 million, to Solid Energy’sStockton opencast coking coal minenorth of Westport.

Ben Gough, General Manager,Strategic Development, for the GoughGroup, said that on top of the jobvacancies, the company was alsotaking 20 apprentices into its GoughInstitute of Training early next year.

“We are the largest employers ofheavy diesel apprentices in NewZealand. We took on 13 last year andhave a total of 32 in our present four-year course. We have several adultapprentices in training and we are alsoupgrading a group of petrol mechanicsto become heavy-duty dieselmechanics, an 18-month process.

“A Caterpillar certified dieselmechanic has a passport to the world,and not just to work on Cat heavy

equipment but also generators anddiesel engines for the likes of superyachts. Our mechanics winter over atMcMurdo and the South Pole,” hesaid.

Gough said that one of the advan-tages of working for Goughs was thecareer and development opportun-ities, the culture around family andsafety and the ability for mechanics tokeep up with world leadingtechnology.

“While we do lose qualifiedmechanics to Australia and othercountries, it is surprising the numberthat come back to New Zealand, forwhatever reason, after a periodoverseas. That is why we endeavourto always keep in touch with ourformer staff,” he said.

FootnoteGoughs is a diverse group made up

of five trading subsidiariesincorporating 10 distinct businessesdriving strategic dealerships such asCaterpillar and Hyster equipment;Wabco Braking Systems, SAF-Holland axles and running gear andPalfinger truck and marine cranes,plus aftermarket parts and servicesand finance. It employsapproximately 780 staff in Australiaand New Zealand.

The Goughs yard at Sockburn, Christchurch, is full of heavy Caterpillarequipment being prepared for the Stockton Alliance coal mine on the West

Coast. There are mechanics working on this equipment.

Goughs searches NewZealand for diesel mechanics

Black & White is the result of acombined desire to better meet thechanging needs of their clients.Kirsten explained, “The rate ofindustry, regulatory and technologychange requires accountants to offera level of client connectedness thatwe’ve never had before. Black &White looks forward to being moreresponsive and keeping our clients atthe forefront of technology and bestpractice accounting”.

The three company directors,supported by an accomplished staffaccounting team, bring with them abreadth of experience that covers allfacets of accounting for an array of

industries.When asked where the name came

from, Simon was quick to point outthe relationship with our provincialrugby team, the Magpies. On a moreserious note, Simon went on to say,“Black & White is representative ofour quest as a company to remove theshades of grey and provide clarity toour clients – it’s black and white”.

Black & White operate from newly-renovated premises on Carlyle Streetin Napier.nextSTEPContact: Black and WhiteTelephone 06 834 0771www.bwaccounting.co.nz

It’s all Black & White

Kirsten Wise, Simon Hankin, Dave Cheetham

From page 19

www.camplex.co.nz



DEVELOPMENTS There is only one boss. The customer. And he can fire everybody in the companyfrom the chairman on down, simply by spending his money somewhere else.

- Sam Walton

www.baskiville.com

[email protected]

www.hiq.co.nz

It’s long been said that inbusiness “you do well by beinggood”. While many wouldagree with this, can you alsoflourish if you have been not

been good?With the exponential growth of

today’s social media channels likeYouTube, Facebook and blogging, it’sincreasingly difficult for companies tohide their dirty linen. Bad deeds willget found out.

Welcome to the world of integratedreporting.

Integrated reporting is an ideawhose time has come. New media,the near collapse of global financialsystems, and a host of other socialforces make it critical that companiesaccount for not only their financialperformance, but also theirenvironmental, social andgovernance performance.

A couple of principles are at workhere. One is that when there wereonly a limited number of mediachannels, companies could controlthe “conversation” about them to a

large extent. Those days are gone, asBP will only too sadly attest. Noamount of PR spin can save you fromthe conversation that takes place onthe multiple channels over which youhave no control.

The second principle is thattraditional stakeholders – that is,owners, shareholders and investors –are no longer the only stakeholders.Stakeholders now include the shrimpboat owners whose livelihood isaffected by the amount of oil youhave spilt in their fishing grounds,and the community who judges howquickly and effectively you put thingsright when you’ve messed up – andmakes its purchasing decisions basedon that judgement.

That principle has brought about acritical need for companies to be moretransparent. That is, to tell the truthabout how they’re performingagainst the strategies they havechosen to pursue (financial, social,environmental) – whether the newsis good or bad.

In their 2010 book One Report:

Integrated Reporting for aSustainable Strategy, Robert Ecclesand Grant Thornton Partner MichaelKrzus, call this “undressing forsuccess”. Simply publishingCorporate Social Responsibilitydocuments that focus on the “goodnews” stories will no longer beenough, they argue. Companies whoare interested in running asustainable business must integratesustainable practices into the heart oftheir business processes. When thathappens, “then what is the logic forproducing separate financial andnon-financial reports?” they ask.Stakeholders are wanting both -hence the need for integratedreporting.

In responding to this need, anincreasing number of majorbusinesses around the world areresponding to the challenge ofreporting on how well they aredelivering their strategies. Some ofthe movers and shared are SouthwestAirlines, United Technologies, andAmerican Electric Power from the US,the Dutch healthcare and lightingcompany Philips, Danishpharmaceutical company NovoNordisk, and the Brazilian cosmeticsand fragrances company Natura.

One of those leading the charge inNew Zealand is the AucklandCouncil owned Watercare ServicesLimited, which published its firstintegrated report in 2001.

Watercare’s Chief Financial Officer,Gary Swift, says the benefits ofaccounting for all activities are realand measurable. “When we apply forresource consents – which we dooften – we’re seen as an organisation

that cares about the environment andsustainability. It also helps us attractquality graduate employees. Itprovides them with another factor totake into account when consideringcompetitive job offers.”

One of the less obvious benefits isthe competitive element that itintroduces into what is essentially amonopoly business. “It’s hard for usto benchmark ourselves against otherorganisations,” he says. “Integratedreporting allows us to do that, andthat helps keep us on our toes.”

Finally, he says, with the currentmove to creating the Super City – andthe many concerns that Aucklandresidents have about whether they’llcome out better or worse off as aresult – acting transparently makesfor a far easier relationship withstakeholders than Watercare mightotherwise have.

In South Africa, companies arebeing forced to get the message: Asof June 2010, all 450 companies listedon the Johannesburg Stock Exchangewill be required to publish an“integrated report” or explain whythey are not doing so.

The push for change is comingfrom many directions.

In August this year, theInternational Integrated ReportingCommittee (IIRC) was established by

Mark Hucklesby

“You do well by beinggood”.

Integrated Reporting:Why tomorrow’s winners will

demonstrate sustainable strategies

➚



BusinessNZ joins major economies businessforum

proofing your home because youcan’t predict how big the nextearthquake will be or what thelandscape will look like after it’soccurred.

The time to get to grips withintegrated reporting is now. Doing sowill enable your company to engagepowerfully with its shareholders,staff, customers, media comment-ators, detractors, and the widercommunity – all of whom have a sayin how well your business will farein the future.

Tomorrow’s successful companies,be they large or small, will be thosewith robust business models who canalso demonstrate their commitmentto making a meaningful contributiontowards a sustainable society. The keyword is “tomorrow”. It’s just aroundthe corner.

nextSTEPContact:Mark Hucklesby,Grant Thornton National TechnicalDirector, AuditT +64 09 308 2534E [email protected]

exactly what integrated reporting is,and the precise reasons for adoptingit (or the potential risks of not doingso). That is deliberate. Integratedreporting is new territory. While thereis wide (if not unanimous) agreementthat it’s time has come, there is far lessagreement about exactly what it isand what it looks like! That picturewill emerge over time.

In the meantime, however, thereare two things that can be said withgreat confidence. The first is this:Integrated reporting is not telling abunch of good news stories of the “werecycled xx tons of paper last year”variety. It is measuring the company’sperformance against its own goals. Inother words: we were committed torecycling 90% of our paper waste lastyear, but the actual figure was 65%.We are taking the following steps tobridge that gap this year…

Second, although it is difficult todefine precisely what integratedreporting looks like, that does notmean businesses can safely ignore ituntil a clearer picture emerges. Thatwould be like not earthquake-

Prince Charles’s Accounting forSustainability Project (A4S) and theGlobal Reporting Initiative (GRI). Onthe committee and its 20-strongsupporting working group are nowthree New Zealanders: Alan Teixeira,Director of Technical Activities,International Accounting StandardsBoard, Ian Ball, Chief Executive of theInternational Federation ofAccountants (which represents theinterests of more than two millionaccountants around the world) andJane Diplock, Chair of the NewZealand Securities Commission andthe Executive Committee of IOSCO– the International Organisation ofSecurities Commissions.

One of the main aims of the IIRC isto develop “an integrated reportingframework setting out the scope ofintegrated reporting and its keycomponents” – in other words,establishing some workable, agreedon standards that will enablecomparability.

The careful reader will have noteda lack of hard and fast rules andstatements in this article, defining

At Microsoft there are lots of brilliant ideas but the image is thatthey all come from the top - I’m afraid that’s not quite right.- Bill Gates BUSINESS NEWS

OpinionManufacturing ProfilesLetters to the EditorPolitics of ManufacturingTrade Fair WorldDiary of EventsWorld Market ReportQ/AExport NewsBusiness OpportunitiesCommentaryAs I See ItBusiness NewsAppointmentsAround New ZealandAustralian ReportNew to the MarketLean ManufacturingEquipment for SaleRecruitmentEnvironmental TechnologyManufacturing Processes

NZ MANUFACTURER • February Issue 2011 • Features

Manufacturing Technology

Food Processing

Business Services


Advertising Booking Deadline Wednesday 25 January 2011Advertising Copy Deadline Wednesday 25 January 2011Editorial Copy Deadline Wednesday 25 January 2011

Advertising material is to be sent to:Max Farndale,P O Box 1109, Hastings 4156, Hawke’s BayEmail: [email protected]: 06 870 4506 / Mobile 027 628 2033

Editorial material to be sent to :Doug Green,P O Box 1109, Hastings 4156, Hawke’s BayEmail: [email protected]: 06 870 9029Fax: 06 878 8150

At NZ MANUFACTURER our aim isto keep our readers up to date withthe latest industry news andmanufacturing advances in a tastypaper morsel, ensuring they do notget left behind in the highlycompetitive and rapidly evolvingmanufacturing world.

BusinessNZ has joined theMajor Economies Forum onEnergy Security and ClimateChange (BizMEF), a

partnership of businessorganisations in leading economiesthat work to promote energysecurity and cooperative action onclimate change.

BizMEF was formed a year ago atthe Copenhagen meeting on climatechange and BusinessNZ joined thepartnership following this year’smeeting in Cancun, Mexico.

BizMEF organisations representmore than 25 million businessesworldwide.

➚

BizMEF’s role is to provideresponsible business views as inputto the international climate changediscussions, given that business andindustry will provide most of theinvestment, technology, andinnovation needed to implement newinternational agreements anddomestic responses to climate risks.

Stephen Eule, Vice PresidentClimate & Technology, US Chamberof Commerce, welcomedBusinessNZ’s participation.

“The invitation to join this highlevel group is in recognition of NewZealand’s outstanding workpromoting the role of markets inaddressing climate change, andBusinessNZ’s track history incontributing to global discussion onhow business and governments canwork together to achieve thetransition to a lower carbon intensivefuture,” Mr Eule said. Other BizMEFpartners are the business associationsof Australia, Brazil, Canada, China,the EU, Denmark, France, Germany,India, Italy, Japan, Kenya, Mexico, theUK and USA.

nextSTEPVisit: www.bizmef.com

Elev8, a new approach toapprenticeship training for themechanical engineering sector,is designed to focus on lifting

the quality of apprentices andhelping them to complete theirtraining on time.

Industry Training Organisation forthe Engineering and Manufacturingindustries Competenz, is introducingthe new programme to provideincreased support and mentoring forapprentices, increased value formoney for employers and moreconsistency in the quality of theassessment process in an effort to lifttrade skills nationwide.

Competenz has taken a hard lookat the way apprenticeship trainingwas packaged after researching thestructure of its current apprenticeshipprogrammes. The results of fiveseparate focus group meetings withemployers showed the changes werewelcome, especially the increasedfocus on nurturing to completion.

The research also showed thatmuch of what Competenz developsand delivers is not known and thereis confusion within the industry. TheITO develops the standards andqualifications for the industry as wellas the manuals and resources. Itsubsidises the cost of block coursesand night classes, and pays foraccount managers to visitworkplaces, and also moderates forconsistent training. Competenz alsopays NZQA for credit registrationsand certificates.

Newapprenticeshipprogrammedesigned



Lower energy consumption or money backPRODUCT NEWS Apple’s market share is bigger than BMW’s or Mercedes’s or Porsche’s

in the automotive market. What’s wrong with being BMW or Mercedes?- Steve Jobs

Say goodbye to production bottlenecks.

You need nitrogen on demand to deliver ahygienic and attractive product. Unfortunately,high-pressure cylinders are clumsy and diffi cultto manage. Every time the gas runs low, youhave to halt what you’re doing and deal with thestoppage. Now there’s an alternative thatdelivers the nitrogen you need at the touch of abutton.It’s the new NG range of nitrogen generatorsfrom Atlas Copco. With Atlas Copco expertise incompressed air and purifi cation technology, youcan generate your own nitrogen from 97% to99.999% purity. Operating expenses are low,because there are no ongoing costs such as refills to add to your overheads.Atlas Copco will provide you with a total solution,from design to maintenance, so you have theassurance of dependable supply at a veryattractive price.

To get rid of nitrogen bottlenecks,give ChrisHepworth a call on 09 571 4536or email [email protected]

According to the motto “Facts notpromises” Engel has invitedcustomers to participate in aspectacular energy bet with a

“money back guarantee”. Eachcustomer who purchases a suitableenergy package with a tiebar- lessEngel victory or Engel duo large-scalemachine receives a guarantee thatenergy consumption will be lowerthan for a comparable hydraulicmachine from the competition.

Proof will be provided by way ofenergy measurement. In the event thatthe measurements at the customer’spremises show a higher energyconsumption for the Engel machinewith energy package than for thecompetitor ’s machine, Engel willrefund the costs of the energy package.The promotion is scheduled to runfrom the K 2010 fair until 31 December2010.

There is hardly an issue that is moreemotionally rated and yet somehowevades objective criteria than energyconsumption. EuroMap 60 provides afair, drive-independent method ofcomparing the energy consumption ofinjection moulding machines fromdifferent suppliers.

Until now these figures were only

published by Engel and displayed onfair exhibits. Many injection mouldingmachine manufacturers promotewould-be energy-saving solutionswith strong advertising claims whichthey often fail to bear upon objectiveexamination – for example energymeasurements.

Energy package: ecodrive, injectioncylinder insulation and ecograph

Engel is countering this with a strongargument according to the motto“Facts not promises”. With everypurchase of a machine together with asuitable energy package, Engelguarantees that the customer’s energyconsumption will be reduced. Theenergy package consists of the servo-hydraulic ecodrive, an injectioncylinder insulation and ecograph – theanalysis tool on the Engel control unitwhich enables the user to always keeptrack of current energy consumption.

The promotion applies to the Engelvictory and Engel duo machines fromthe start of the K Fair until 31 December2010. One in three Engel hydraulicmachines is already equipped with theenergy-saving servo-hydraulic Engelecodrive.

nextSTEPVisit : www.techspanonline.com

The ZE series of 700 bar electricpumps is engineered to savepower and increase reliabilityby reducing the number of

moving parts it incorporates,enhancing flow characteristics andreducing friction.

Introduction of the ZE series forindustrial applications followed theglobal success of the ZU series electricpumps for the construction market.

The high-efficiency design of theZE series electric pump has higher oilflow and by-pass pressure, runscooler and requires 18 per cent lesscurrent draw than comparablepumps, says Enerpac.

The totally enclosed, fan-cooledelectric motor supplies extended lifeand stands up to harsh industrialenvironments encountered inAustralia and New Zealand,including mining, oil and gas, energy,manufacturing and metal fabricationapplications.

In the Z-Class range of electricpumps, Enerpac has used the latestmetallurgical, bearing and sealtechnologies to produce pumpswhose features and benefits farsurpass conventional electric pumps.

By reducing the number of movingparts, improving flow dynamics and

decreasing friction, Z-Class pumpswill stay on the job longer, require lessenergy to operate and when needed,have lower service costs.

Different valve and reservoirconfigurations enhance the pumps’versatility, providing application-specific models to best matchparticular industrial applications. Theoptional LCD readout provides anumber of diagnostic and readoutcapabilities never before offered on anindustrial pump.

The ZE pumps are available in fourflow ranges and single and two-stagemodels, to provide the optimumcylinder and tool performance fordifferent industrial applications.

Available in four oil flow groups of0,55 – 0,82 – 1,64 and 2,73 l/min at700 bar. Motor sizes include 0,75 –1,12 - 2,24 and 5,60 kW models.

An extensive list of accessories isavailable, including heat exchanger,roll bars, pressure transducer andlevel and temperature switches toallow complete pump control over awide range of industrial applications.nextSTEPContact: Neville Stuart on0800 ENERPAC (363-772)or email [email protected]

ZE pumps stay cool in action



I want to work for a company that contributes to and is part of the community. Iwant something not just to invest in. I want something to believe in.- Anita Roddick PRODUCT NEWS

A range of Accumulator DieHeads allow for rapid colourand material changes whichresults in substantial cost

savings for manufacturers.Reconfiguring machines with

Graham heads can offer a very fastpayback on the investment as theycan save resin, which is the largestmanufacturing cost component of theprocess. Hundreds of dollars can bewasted while a machine is purged forhours to change colours andmaterials.

With a GEC head, the changeprocess takes only 30 – 60 minutes,compared to other products that takeup to 12 hours to purge from onecolour to another. GEC heads requireno regular purging due to therheologically efficient head design.

The heads are available in a rangeof shot sizes from 2kg to 30kg, to fit awide variety of applications. Theycan also be retrofitted to existing

machines from other suppliers.The heads are suitable for use

whether running olefin resins such asHDPE, HLMIPLE, PP or LDPE orengineering resins such as Noryl ABS,PC/ABS polyurethanes or acrylics.They can even run glass or talc filledresins.

Graham heads utilise a rheo-logically efficient diverter whichprovide wear resistance, throughhardened D2 diverters with highlypolished flow surfaces utilising a ‘firstin, first out’ flow design. With a spiralchannels directing overlapping flow,the result is a uniform parison withno knit line.

The heads are designed to allowoperators to complete a manualcleanout in less than one hour withsimple hand tools, whereastraditional heads require a day or twoto be disassembled and cleaned. Afterremoving lock-down bolts, thehydraulic cylinders on the head areused to lift the diverter and plungerout of the head body for ease of accessand cleaning.

nextSTEPVisit: www.hbm.com.au

New Zealand motorists canincrease their visibility on theroad - thereby boosting safety– by fitting special daytime

running lights.A new daytime light range just

introduced by Australasianautomotive lighting specialistNARVA is designed to be retro-fittedto any vehicle and because they useL.E.D technology, they also consumevery little power.

Available in four styles that aredesigned to complement modernvehicle styling, the new NARVAdaytime running lights utilise high-powered 1-Watt L.E.D bulbs withmulti-voltage circuitry, offering longlife expectancy and low current drawover the extended periods they arelikely to be in operation, thusproviding significant advantagesover Halogen equivalents.

Three models in the rangeautomatically turn on with theignition and off with the park lights,whilst the fourth model incorporatesa park lamp function thatautomatically turns on with theignition and switches to parkfunction with the park lamps.

All lamps are supplied completewith a wiring loom and an adjustablemounting bracket with Lamp No.71940 designed to be built into thebodywork of the vehicle.

Increasingly popular with vehiclemanufacturers in Europe, manyluxury vehicles, coaches and trucksare rolling off the assembly lines withdaytime running lights fitted asoriginal equipment. Such lights arenow compulsory in someScandinavian countries and althoughthey are not mandatory in NewZealand, their usefulness has beenrecognised by inclusion in the latestvehicle design rules under ADR 76/00. All four kits introduced in theNARVA range are ‘E’ marked andADR approved.

The new NARVA L.E.D daytimerunning lights are available fromleading automotive outlets in NewZealand.

nextSTEPContact: Bruce Walker, NARVA

New Zealand Tel 0) 525 4575.

A new range of daytime running lights,featuring L.E.D. technology has just

been released by NARVA

NARVA targets road safetywith new light range

Rapid colour changeovergives fast pay back

Adding to its growing productoffering for the hydraulicsmarket, Stockcap hasreleased a new range of Hose

Collars to suit hose-tail sizes ?”,5/16”, 3/8”, ?”, 5/8” & ?” in thepush lock tail range.

Manufactured from LDPE andavailable from stock in red,Stockcap Hose Collars come inconvenient packs of 100, 500 &1,000.

Stockcap Hose Collars aredesigned to finish off the hose endand fitting providing aprofessional finish as well as

Rapid colour andmaterial changes.

New hose collar range forhydraulic hose-tails

Lights are designedto be retro-fitted toany vehicle.

offering protection from dust &moisture.

nextSTEPContact: Richard Higham, Hi-Q

Electronics Ltd Tel: 0800 800 963



MANUFACTURING TECHNOLOGY Effective communication is 20% what you knowand 80% how you feel about what you know.

- Jim Rohn

NI TestStand helps testengineers build a powerfulsoftware framework foraccelerating the development

of test sequences and minimises thetotal cost of ownership ofmaintaining test executive softwaredeployed across many test stations.

The latest version adds many newteam-based development featuresincluding a Sequence Analyser, athree-way file diff-and-merge utility,support for new PC technologies andenhanced integration with NILabVIEW graphical system designsoftware. NI TestStand 2010 is idealfor a variety of automated testapplications withintelecommunications, consumerelectronics, automotive, aerospace/defense and other industries.

With the NI TestStand 2010Sequence Analyser, teams can moreefficiently collaborate on sequencedevelopment without spending timeperforming manual error checking.

For example, after engineers createa test sequence, the SequenceAnalyser checks the code againststandard rules to ensure error-freecode. It includes numerous rules for

common errors and also helpsengineers create their own customrules within the analyzer utility.

A new three-way diff-and-mergeutility complements the SequenceAnalyser and provides teams withimproved functionality forcomparing and easily mergingdifferent files. This is especially usefulfor teams using source-code controlsoftware to manage the revisioncontrol of their test softwaredevelopment.

NI TestStand 2010 also supports thelatest PC technologies with featuresincluding a redesigned .NET Adapterthat takes advantage of chained callswith dot notation and many other.NET Framework improvements.Additionally, it supports 64-bitintegers and pointers, whichsimplifies migration to 64-bit codemodules so engineers can developmore memory-intensive applications.With these enhancements, engineerscan implement the most advancedtechnology in their test systemdesigns.

NI TestStand 2010 is optimised foruse with LabVIEW. It takesadvantage of LabVIEW 2010 packed

project libraries so engineers cancreate more modular testarchitectures. It also integrates withLabVIEW projects and classes to helpteams implement object-orientedprogramming and combatobsolescence by using hardwareabstraction layer architectures.

11Ants Analytics has introducedautomated ensemble building,a new feature in 11Ants ModelBuilder – a powerful data

mining and predictive analytics tool.The new feature allows users toquickly build and evaluatethousands of ensemble permut-ations. Ensembles are recognized toincrease the predictive power ofmodels, and are a valuable tool inany data mining expert’s arsenal.The announcement was made at itsU.K launch at Predictive AnalyticsWorld conference in London.

“The challenge has been thatconstruction of the best performingensembles has required a goodworking knowledge and been anextremely time consuming task –with the final result usuallyrepresenting a compromise betweentime available and predictiveaccuracy achieved,” says Tom Fuyala,Director, Business Development,11Ants Analytics. “With theautomated ensemble building featurein 11Ants Model Builder this problemhas been eliminated.”

Through its revolutionaryapproach, 11Ants Model Builderenables anyone who can use Excelto mine their own data and buildpowerful predictive models; withthe power and automation tobenefit the most advanced analyticresearchers and practitioners. This

assists in providing more accurateinsights to business, governmentand science challenges fromrecommendation systems to faultdiagnosis, and scientific research tofraud detection.

“Users are impressed by theapproaches 11Ants Model Builderoffers, not least the ease of use. Usersparticularly like that they can buildmodels quickly within Excel, withoutthe set up involved in previousgeneration tools,” says Mr. Fuyala.“The addition of this feature makesensembles accessible to people whodon’t even know exactly what anensemble is, let alone understand theinner workings of one. The true valueis that users are empowered toincrease predictive accuracy withouthaving to be schooled on the detailsof the latest research – this is what isimportant.”

11Ants Model Builder openswhole new possibilities for eventhe first time data miner to unlockuseful information from data. Thesoftware’s benefits are not limitedto non-technical users; experienceddata miners are freed up fromtraditionally time consuming andrepetitive tasks with features suchas automated algorithm selection,automated tuning parameteroptimization, automated variableselection, automated modelevaluation and now automated

ensemble building.11Ants Model Builder simplicity is

due to its embedded HyperLearntechnology, which does the complexwork for the user, and is based on alibrary of 11 machine learningalgorithms including decision tree(similar to CART), Gaussianprocesses, logistic regression, logitboost, model tree, naive Bayes,nearest neighbour, partial leastsquares (PLS), random forest, Ridgeregression, and support vectormachine.

The company joined a globalgathering of top predictive analyticsexperts, practitioners, authors andbusiness thought leaders at PredictiveAnalytics World, 15-16 November inLondon.

Key speakers included John F.Elder, CEO and Founder, ElderResearch Inc., Usama Fayyad, CEO,Open Insights, Former Chief DataOfficer, Yahoo!, and Eric Siegel,Conference Chair. Conferencesessions cover business applicationsof predictive analytics including riskmanagement, uplift modeling, opensource analytics, crowdsourcing datamining, campaign targeting, churnmodeling, next-best-offer, selectingmarketing channels, global analyticsdeployment, email marketing, andHR candidate search.

nextSTEPVisit: www.11antsanalytics.com

Revolutionary method of building ensembles in London

TestStand 2010 enhances software development tools

As an added benefit, engineers usingNI TestStand 2010 gain enhancedsupport for symmetric multiprocessingto simplify access to LabVIEWmultithreading for improvedperformance on multicore processors.

nextSTEPVisit: www.ni.com/teststand.

The new featureallows users toquickly build andevaluate thousandsof ensemblepermutations.



The results of quality work last longer than the shockof high prices.- Author Unknown PROJECT MANAGEMENT

New Zealand’s first majornationwide survey intoProject Management hasfound that in the past 12

months, 70 percent of New Zealandcompanies had experienced at leastone major project failure, saysKPMG.

This reflects organisations’ inabilityto translate significant investments inprojects, into real business value.

According to the KPMG NewZealand Project Management Surveywhile 44 percent of surveyparticipants spent more than $ 15million on their projects in the pastyear, most organisations were farfrom being business-like in the waythey conduct projects and for many,embarking on a project appears to bea ‘leap of faith’, in the hope, ratherthan the expectation, of delivering ontime, on budget.

Perry Woolley, a KPMG Directorwho specialises in ProjectManagement says, “The productivity

and profits of New Zealandcompanies are being impacted bytheir inability to consistently deliverprojects that fulfil the expectedobjectives.

“In the current economic environ-ment, value for money is a priority.While many have cut back discret-ionary spend in recent times, we seethat many businesses can no longerhold off essential projects. Companiesmust be inventive and competitive tosurvive, while at the same timeavoiding investments that don’t payoff. Effective project managementpractices help control the added risksthat project activity introduces tonormal business practice.”

The survey also shows that only 13percent of respondents alwaysanalyse the risks involved in projectinvestments.

Gina Barlow, KPMG NewZealand’s Director of ProjectAdvisory Services, and one of theauthors of the report says, “The lack

of benefits management isparticularly concerning – iforganisations do not measure thebenefits of their projects, they cannotunderstand if the investment wasworthwhile”.

The survey finds that nearly 60percent of New Zealand companiesfailed to consistently align theirprojects with corporate strategy.

“Organisations need to realise thatdoing the right project is just asimportant as doing the project right,”says Gina.

Furthermore, 50 percent of surveyparticipants observed that theirprojects do not consistently achievewhat they set out to achieve, andmany projects performed poorly in atleast one of the following areas – lackof timely delivery, cost (project runsover budget), or inability to achievethe stated deliverables.

However, the findings are not allgloomy. The KPMG survey alsoreveals some high-performing

organisations, whose projects share anumber of characteristics. Highperformers may come from both thepublic and private sectors, cover thefull range of organisational sizes, andspend varying amounts of money;however their projects share some ofthe following attributes. Theirprojects:• are aligned with corporate strategy

and have a high-quality business case• use resources with a high level of

project management capability• use programme or portfolio-

management disciplines• are co-ordinated by a Project

Management Office (PMO)• have an effective sponsor who pro-

vides clear direction for the project• manage risks actively• have timely, accurate and up-to-

date reporting• report variations and implement

recovery actions in a timely manner• have project managers that adopt

a formal methodology.

Upping your game for better project management

The first CHAOS Report waspublished in 1994 andcontinues to be published every2 years.

The first issue stated that theproject failure rate was 31%, with53% of projects challenged andestimated that US IT projects alonehad wasted US$140 billion againstUS$250 billion in project spending.

While the current success rate of32% is a significant improvement onthe shockingly low 16% rate of 1994,it remains troublesome especially asIT initiatives become more complexin nature, increased pressures ontimelines and less tolerance for riskyventures.

The positive impact of the projectmanagement profession on projectsover the past 15 years and perhapstechnology innovation has reducedfinancial waste and improved therequirements development processes.

So why are we not seeing continuedimprovement in success rates?

Clearly, the current global economyis impacting progress, but it’s not theonly barrier.

It is possible that project scopecomplexity and business challengesbeing faced today are beyond the skillsand experience capability of thosemanaging or leading the projects?

In a recent CIO Update entitled“Project Management TrainingBenefits Everyone in IT,” Sue

Bergamo suggests that organisationsfalling victim to high failure rates inproject delivery should review howthe organisation is being trained andhow resources are utilising astandard project methodology.

She notes that relying on existingproject managers to train otherproject managers is typically notadequate in relaying valuableinformation regarding the use of amethodology.

And she challenges her CIOcounterparts to take a look at howmany people within theirorganisations are functioning asproject managers without therequisite skill sets – cautioning thatthat they should not assumeeveryone within a given initiativehas a full understanding of projectmanagement methodology and howto use it.

We’re operating in a depressedmarket following the global financialmeltdown, yet research points to agreater volume of project activity,greater complexity and higherbudgets. This leads to higher risk offailure on the organisation. At thispoint, even the most experiencedprogramme and project managersfaces significant obstacles leading toissues that can de-rail project-basedactivity, including;• Misaligned expectations on

outputs and outcomes.

• Lack of executive support(governance)

• Insufficient resources• Inability to properly identify and

communicate with stakeholders• Failure to assess and/or mitigate risks• Lack of standardised processes• Believing a project schedule is a solid

project management plan• Absence of strong project leadership

among all involved parties.There’s a very simple truth to

consider here: Project teams that speakthe same language and followcommon processes are more likely toovercome communications andprocess related challenges for betterperformance and higher success rates.

Across sectors, organisations that areconsistently delivering projects ontime, in scope and within budget sharecommon practices – namely anorganisation-wide commitment tousing a formal project managementmethodology that suits their specificneed.

By establishing a common approachan organisation sets the stage foreffective communication and projectexecution. Our observations suggestthat this, while well understood, is notactually done.

Rather decision makers mayactually be confused by the rhetoricfrom some commentators within theproject management profession thatadvocate for all manner of approaches

and methods. In our view this simplyconfuses those organisational decisionmakers and detracts from gainingstandardisation and downstreamconsistency across all project activity.

Incrementally gaining depththrough training in areas likeleadership, change, cost and risk,planning ability,

emotional intelligence andnegotiation ensures continuousimprovement. Project managers areable to develop the soft skills neededto motivate and engage their teams,and to effectively promote theirprojects and programmes. Over time,processes are streamlined,communications improve, and withmore skilled resources at work,performance raises giving betterresults. The return on investment isgained through better quality, moreefficient execution and increasedproject success rates.

Ian Fraser, Project Plus

Reversing the Project Failure Trend:A Question of Understanding and Focus

Continues page 31



BUSINESS NEWS The thing that we are trying to do at facebook, is just helppeople connect and communicate more efficiently.

- Mark Zuckerberg

Camilla Welch, owner andGeneral Manager of Petone-based label making andprinting business “Label andLitho” has earned the

Supreme Business Award at the HerRegional Wellington Business-woman of the Year Awards, whichwere announced on Friday 3December during a ceremony at theIntercontinental Hotel.

Label and Litho is a 50 year oldbusiness with 41 staff. It specialisesin manufacturing self-adhesive labelsfor a number of domestic andoverseas firms.

Label and Litho increased sales andrevenue during the economicdownturn, which Ms Welch istremendously proud of in light of thenegative environment surroundingmost businesses in Wellington andNew Zealand.

The competition judges were KarenFifield, CEO Wellington Zoo Trust,Adam Cunningham, ManagementDirector, Village Group and LynellTuffery Huria, Senior Associate, AJPark.

They said that Ms Welch is worthyof the Supreme Award because of thecommitment to

service excellence she and her teamdeliver at Label and Litho.

“Camilla was selected by thejudges for her personal drive andoverall business sense. I know a lotof Kiwi businesswomen and mencould learn from Camilla’sprofessionalism and staffappreciation,” said Sally Connell,Franchise Owner/Director of HERBusiness Group Ltd, which includesthe Wellington Her BusinesswomanNetwork.

Judge Lynell Tuffrey Huria addedthat Ms Welch’s focus on her peoplewas a key component of herbusiness’s success, which has enabledthe organisation to stand above therest in a highly competitive market.

Proving that business excellenceand environmental friendliness canbe mutually rewarding, Ms Welchalso received the Sustainability

TRADE SHOWSJanuary 2011Everything about Water, 6-8 January 2011, Bombay Exhibition Centre, NSE Complex

PIMEX- Phuket International Boat Show, 6-9 January, Royal Phuket Marina Exhibition and Conference Centre

Termotec – International Exhibition of Heating,Refrigeration and Air Conditioning Equipment and Installations,Isfahan,6-10 January, Messegelände, Iran

Iran, International Tunnel and Underground Spaces Exhibition,8-11 January, Tehran Permanent Fairgrounds.

February 2011Australasian Oil and Gas Exhibition,23-25 February Perth Convention Exhibition Centre, Perth, Australia

March 2011Asia Pacific Sourcing 9-11 March, Koelnmesse Cologne

Central Districts Field Days 11-19 March, Manfeild Park, Feilding, Wanganui

interzum guangzhou 2011 27-30 March, China Import and Export Fair Pazhou Complex, Guangzhou�

Macao Int’l Environmental Co-operation Forum & Exhibition 2011, 31 March, The Venetian Macao-Resort-Hotel�

April 2011Macao Int’l Environmental Co-operation Forum & Exhibition 2011, 1-2 April,The Venetian®Macao-Resort-Hotel�

5th Metals Industry Conference, 14th-15th April 2011, Wellington

May 2011SouthMach 11-12 May CBS Canterbury Arena, Christchurch(NZ Manufacturer will be previewing SouthMach in April issue)

Australian International Engineering Exhibition (AIEE) 24-27 May, Melbourne Convention and Exhibition Centre.

CHINAPLAS 2011 – The 25th International Exhibition on Plastics and Rubber Industries 17-20 May, ChinaImport & Export Fair Pazhou Complex (Area A & Area B), Guangzhou, PR China

June 2011BuildNZ 26-28 June ASB Showgrounds, Auckland

Designex-Auckland 26-28 June, ASB Showgrounds, Auckland. July 2011

July 2011Speedshow 23-24 July, ASB Showgrounds, Auckland

September 2011Rugby World Cup, New Zealand

Award in recognition of Label andLitho achieving an EnviroMark Goldcertification in 2008. She hadpreviously been a finalist in thesustainability category at this year’sWestpac Hutt Valley Chamber ofCommerce Business Awards. She alsotook home on the night the HerBusinesswoman award for Best Smalland Medium sized Enterprise.

Ms Welch’s future plans for Labeland Litho are to implement ‘leanmanufacturing’ and improve cashflow. Her long-term objective is tobecome the best label printingcompany in New Zealand.

The Her Regional Awards celebratethe success of businesswomen byrecognising those who have excelledin business practice. The winnersfrom the regions will now go forwardto compete in the national HerBusinesswoman Awards later nextyear.

Lynne Le Gros, Head of Business Marketing and Communications at TelecomRetail, Camilla Welch, Label and Litho- Supreme Award winner, Blair Norris- Mini

Mobile Agent, Mini Garage NZ and Tony Hope- Stretton Publishing.

Wellington woman wins Supreme Business Award

Camilla Welch, ownerand General Manager ofPetone-based Label andLitho, a 50 year oldbusiness with 41 staff,wins Supreme BusinessAward.



Exploring new pathways to economic growth

It is unfortunate we can’t buy many business executives for what theyare worth and sell them for what they think they are worth.- Malcolm Forbes ANALYSIS

Three events triggered thiscomment and they all revolvearound a common theme ofsupporting arguments for

growing the economic success of NewZealand industry.

First, I listened to a paper given atthe Bio Energy Association NZ(BANZ) seminar entitled “MovingBioenergy Technologies Through toMarket Maturity”.

The seminar had been built aroundthe visit of Rory Gilsenan fromCanada. Rory is with the CanadianGovernments’ Natural ResourcesCanada, where his current workincludes the development of agovernment decision-making frame-work for moving bioenergy tech-nologies through to market maturity.

For me, the interesting point wasthat in bioenergy - as with all emergingclean energy technologies – there aremany technology options andpathways to commercial success.

The dilemma for any investor, andthis includes innovation-supportinggovernments, is that they have to makedecisions on which technologies tosupport to maximise common benefits.In the Canadian study, new and oldtechnologies were investigated indetailed case studies – 20 or so of them– and were rated in terms of theirpotential Return on Capital (ROC) andalso in terms of employmentgeneration.

Various combinations of benefitswere found, including newtechnologies with high ROC and littleemployment generation and new andold technologies with high ROC andhigh employment opportunity. If youwere part of a New ZealandGovernment willing to pick winnersin a phase of high unemployment inlower skilled jobs – what technologyoptions would you support?

The second event on the same daywas a presentation given by Dr RickBoven of the New Zealand Institute atthe recent Labour Party Congress toparty members and invited industryrepresentatives.

His talk was entitled “Opportunitiesfor Prosperity” which was largelybased on his recent publication “AGoal is Not a Strategy”.

The HERA Executive is currentlyconsidering the adoption of the reportas a HERA policy document. You canview the report on www.nzinstitute.org/index.php/nzeconomy/paper/a_goal_is_not_a_strategy_focusing_efforts_to_improve_nzs_prosperity/ and Iwelcome the industry’s opinions andfeedback.

Essentially, Boven is suggesting thatwe should look at an alternative to theexisting policy of ‘economicliberalisation’.

He suggests that a ‘diagnosticapproach’ is indicated. This approachinvolves identifying the bindingconstraints to growth and establishingpolicies to overcome those constraints.

Some countries of comparative sizeand economic base to New Zealandshow a higher wealth and GDP, mainlybecause of the products theyexport. Says Rick Boven: “Denmark’sfood and agriculture exports per capitaare similar to New Zealand’s andDenmark’s agricultural productivityperformance is similarly low. ButDenmark’s differentiated goods andservices exports are much higher andthat difference explains Denmark’shigh prosperity.

There are many opportunities inagriculture, natural resources, andtourism, and these should be pursuedwhere competitive advantage andhigh value jobs are available.

But information, communicationsand technology (ICT), and niche

manufacturing, along with value-added and differentiated goods andservices based on primary production,are where New Zealand should investmost aggressively.”

In the ensuing debate, it was clearthat somehow for New Zealand toreally move up the GDP scale, it hasto make some decision on whattechnologies are to be supported, andit appeared that the Labour Partypoliticians are ready to drive a moreinterventionist approach.

The third event was the UniversityCommercialisation Offices of NewZealand (UCONZ) presentation on“Energy, Infrastructure and WaterInnovations”. The seven New Zealanduniversities presented their researchand researchers impressively.

I used the opportunity to explorewhat was happening at the differentuniversities to discover an immensedepth of specialist expertise.

It was encouraging to see that someof the research was part of a nationalco-operative and obviously strategicresearch.

However, I also discovered in con-versations around display stands thatthere was often little connectivitybetween players in similar technologyareas. It was obvious that these effortswere independent of a larger NZ Incapproach to high-value niche markets.

I left with the strong impression thatthere is great potential for additionalefficiencies should those Universitiesand their researchers work exclusivelywith industry and other researchproviders in nationally co-ordinatedapproaches to produce those highvalue-added and differentiated goodsand services that would make such adifference to our economy.

For HERA and its membership, theconclusion has to be that we need toadvocate and support the findings ofRick Boven’s ‘A Goal is Not a Strategy’document, which concludes that “NewZealand needs to focus on theinternationalisation of high-value,differentiated export sectors, prioritiselabour productivity improvementefforts on these sectors, and re-allocateresources from low- to high-productivity sectors”.

In my view, our high-skilled, high-value metals engineering sector underthe right leadership and guidancewould benefit from this re-focus andwould make a very strong contributionto increased prosperity.

High-skilled, high-valuemetals engineeringsector under the rightleadership and guidancewould benefit from thisre-focus

Commentary by Heavy EngineeringResearch Association Director

Dr Wolfgang Scholz



Regional business partners being found

BUSINESS NEWS Always read something that will make you lookgood if you die in the middle of it.

- P. J. O’Rourke

Right now you can follow theadventures of 20 year-old JoelMcGregor of Oamaru, who isundertaking one of the most

extreme general engineeringapprenticeship opportunities in theworld – living and working on ScottBase in Antarctica.

The position calls for an apprenticeto work as a ‘Summer Engineer’ atScott Base, to become an integral partof the engineering group supportingNew Zealand’s activities inAntarctica.

The role includes generalfabrication, machining andmechanical fitting work as an integralmember of the maintenance crewonsite at the base, but also requirescreativity to design and build ad-hocitems required by the team.

Joel won the role after being putforward by his Competenz-ATNZaccount manager, Murray Welsh, andhe passed with ‘flying colours’ afterextensive interviews and testing withATNZ and his seconding employers,Antarctica New Zealand.

“I spent three weeks training inChristchurch, and then my first weekdown here on the ice to prepare forthe conditions,” says Joel.

He admits his first impressions ofAntarctica had him totally ‘gob-smacked’.

“I’ve never seen so much snow inmy life, you think you’re in a dreambecause it’s unlike anywhere else inthe world – it’s like I’m on anotherplanet!”

Joel has learnt to brave the -24degree weather and is starting to getinto a good working and learningroutine with his fellow engineers.

“A normal day’s work for me startsat 8.00am with a workshop meetingto plan the day’s activities, and thenwe head off to do our tasks andchecks, and fabricate objects anyonemay want or need.”

nextSTEPVisit: Facebook, log in and search

for ‘The Antarctic Apprentice’ fanpage –click the ‘Like’ button tobecome a fan, and follow Joel’sexperience today!

‘The Antarctic Apprentice’debuts on Facebook!

D unedin businessman PhilipBroughton has been electedPresident of BusinessNZ.

A partner in the Christchurchand Dunedin based businessadvisory and accounting firmPolson Higgs, Mr Broughton isalso President of the Otago-Southland Employers Association.

He replaces outgoingBusinessNZ President TrevorGoodwin.

New Vice-Presidents areGraham Mountford of theEmployers & ManufacturersAssociation (EMA) and PeterMcKee of the Employers’ Chamberof Commerce Central (ECCC).

Opus International Consultantsis to acquire the Canadianbased engineering consultancy,Dayton & Knight Ltd.

The acquisition will add 90 staffand four offices to Opus’ operationin Canada, bringing the total numberof Opus offices in North America toten (one being in Detroit, USA) witha total staff number of 150. Opus nowemployees over 2,300 peopleworldwide.

In announcing the acquisition,Opus Chief Executive and ManagingDirector Dr David Prentice says thatacquiring Dayton & Knight Ltd isstrategically important for thedevelopment of Opus’ business inCanada, and the further developmentof Opus as a global consultancybusiness operating in Australia, NewZealand and the UK.

“Dayton & Knight Ltd is wellknown for its specialist water andwastewater design capability, itscontrol and instrumentation con-sultancy, and electrical designbusinesses in the BC market,” said DrPrentice.

“The company’s business hasgrown substantially over the last nineyears, both in terms of revenue andprofit margins and this has largelybeen the result of increased pro-ductivity and efficient management.

The company was incorporated in1965 and has achieved niche marketstatus. Like Opus, Dayton & Knighthas a reputation for working closelywith its clients and has a thoroughunderstanding of their needs.

Dayton & Knight Ltd has its headoffice in Vancouver and three localoffices, these being in the town ofSmithers and the cities of PrinceGeorge and Abbotsford, and worksprimarily for municipal, provincial,and federal governments.

The merged company will tradeas Opus DaytonKnight Ltd and willwork alongside the other existingOpus offices in Vancouver, Victoria,Kelowna, Calgary, Fredericton andDetroit (USA). The Canadianoperation will continue to be led inCanada by Opus’ President, ChrisHarrison, who is based inVancouver.

Opus gets Canadian consultancy

NZTE and TechNZ (the Found-ation for Research, Science andTechnology’s businessinvestment programme) have

appointed the first organisations tothe new joint net-work of 14Regional Business Partners and areclose to finalising the entire networkof ‘NZTE-TechNZ RegionalBusiness Partners’ who will becomea natural first point of contact forbusinesses around New Zealandseeking government assistance.

The development expands onTechNZ’s previous network of nineRegional Partners who worked withemerging technology businesses tosupport them to undertake researchand development projects. The newRegional Business Partners, based onregional council boundaries, will be

New President for BusinessNZ

funded by NZTE and TechNZ toemploy staff with businessdevelopment skills and research anddevelopment (R&D) expertise.

They will work with localbusinesses and provide a range ofadvice and access to funding andsupport focused on assisting them togrow their business. Supportavailable includes:• An assessment of business needs,

which will help Regional BusinessPartners point businesses toappropriate information, advice,and support.

• NZTE Capability DevelopmentVouchers, which the managers ofeligible small businesses will beable to use as partial payment forthe cost of management capabilitybuilding services.

• R&D funding via the Foundation’sTechNZ programme of funds andservices.Hamish Campbell, the Found-

ation’s Manager of InvestmentServices, said TechNZ had invested$7.1 million in hundreds of com-panies nationwide during the pasttwo years and the success of itsnetwork had contributed to the ideato form a joint network of RegionalBusiness Partners with NZTE.

“The Regional Business Partnermodel is one that small and medium-sized businesses have responded to.Our partners have helped companiesaround New Zealand undertakeinnovative projects to develop newproducts, employ undergraduate andmasters students, and engage expertsto assess their R&D strategy and

provide advice.“The new network builds on what

we’ve learned, and the expertisewe’ve gained, from the TechNZnetwork of Regional BusinessPartners,” Mr Campbell said.

NZTE Acting Director ofPerformance Improvement EuanPurdie said setting up the newnetwork had been a complex processbut he was impressed that businessorganisations had collectivelyapplied to become the RegionalBusiness Partner in many regions.

“They’ve recognised theopportunity this represents in termsof offering local businesses a singlepoint of contact for businessdevelopment support. It provides anexcellent opportunity for the keyentities in each region to work➚



REAR VIEWI had a TV set and a typewriter and that made me think a computer should belaid out like a typewriter with a video screen.- Steve Wozniak

However, the focus should notsolely be on the Project Managerand the methodology.Organisations also need to considerdoing the right projects. If trainingand formal methodology result indoing projects well portfoliomanagement results in doing theright projects. Portfoliomanagement is described as “theselection and management of anorganisations projects,programmes and business-as-usualactivity (BAU) taking into accountresource constraints, prioritisationand strategic objectives”. Linkingprojects to strategic objectivesensures that the right projects arebeing done. Prioritisation ensuresthat an organisation’s l imitedresources are primarily focussingon high value initiatives which will

alleviate the common problem ofan organisation having too manyprojects and too few resources todeliver.

Larger organisations areimplementing programme andproject management offices (PMOs)in growing numbers for strongergovernance of programmes andprojects across their enterprises. Insome organisations PMOs are alsoresponsible for portfoliomanagement i.e. the inclusion ofparcels of business-as-usual workalong with project-based activity.

Consider the Standish Group’sfindings on the top influencers onproject success which could certainlybe considered as 7 Tips for ProjectSuccess in Your Organisation:• Executive management support• Clear business objectives

• Optimising scope• Project management expertise• Skilled resources• Formal methodology• Standard tools and infrastructure

Organisations wishing to gain realadvantage from the use of project-based management should set aboutmaking sure the above pointers arewell established, integrated andworking. It is crucial that plannedprogrammes and projects align withthe organisations strategic andoperational goals and objectives.PMO’s can be the vehicle ormechanism that can add value byshifting and lifting their game tofocus more on alignment and the useof portfolio as well as programmeand project techniques.

nextStepwww.projectplusgroup.com

From page 27

Reversing the Project Failure Trend: A Question of Understanding and Focus

Commentary by HERAIndustry DevelopmentManager Nick Inskip

ExportNZ welcomes the news thatnegotiations on a free tradeagreement between NewZealand and Russia, Belarus and

Kazakhstan will start early next year.Catherine Beard, executive

director at ExportNZ, says that ifsigned, this next agreement due tojoin New Zealand’s suite of FTAsis significant for a number ofreasons.

“Russia is one of the world’semerging powerhouses, offeringopportunities for developing NewZealand’s newer international tradessuch as agri-tech and specialisedmanufacturing.

“As far as New Zealand’s moretraditional exports go, as the world’s

fifth-largest food importer, Russia isa great fit for New Zealand. Forexample, Russia is the world’s largestimporter of butter and cheese, andlast year we provided over 50% of itsimported butter.

“Russia is the 12th largest economyin the world, and a rapidly growingmarket.

“New Zealand looks set to be thefirst country in the world to have anFTA with Russia. Having first moveradvantage is an opportunity not to besquandered.

“I’d urge all Kiwi companies toinvestigate the potential businessthey can gain from this latestdevelopment – FTAs are only worthsomething if they are used.”

together to determine the best wayforward in terms of their economicstrategies and help them identifybusinesses in their region that willdeliver on those.

“I’m sure our Regional BusinessPartners will have the local influenceto encourage businesses to developtheir management capability, to useinformation services, and toundertake research and development– all of which is critical to both theirdevelopment and to the growth ofour economy,” Mr Purdie said.

NZTE-TechNZ Regional BusinessPartners are able to speak thelanguage of business. They areresponsible for the delivery ofspecialist services, support andfunding to enhance businesscapability and grow businessinvestment in research anddevelopment, on behalf of NewZealand Trade and Enterprise(NZTE) and the Foundation forResearch, Science and Technology.

➚

Many countries, and stateswithin countries, considermaintaining certain keyindustrial capabilities as

strategically important to them.The ability to quickly repair a

power station or other powerinfrastructure, keep transportinfrastructure, as well as water andwastewater treatment andreticulation operating can be crucialto maintaining energy security andmeeting the needs of business and thecommunity.

Most people would consider thatsuch measures are prudent andwould quite rightly expect that theirgovernments would likewise treatthem as prudent.

A prime example of a governmenttaking a strategic view of industrialcapability and the flow-on effect onjobs is our near neighbor, theAustralian state of Victoria.

The Victorian Minister for PublicTransport, Martin Pakula, andIndustry and Trade Minister, JacintaAllan, recently announced that“Government procurement contractsfor Melbourne’s A$4.3 billion RegionalRail Link project will require an overall80 percent minimum local contentprovision, boosting local jobs.”

The project has been declared a‘Strategic Project’ under VictorianIndustry Participation Policy. “Thisdecision underlines our Govern-ment’s commitment to protecting jobsby maximising opportunities for localcompanies to participate in majorinfrastructure projects,” Ms Allan said.

The project, which is jointly fundedby the Australian Commonwealthand Victorian Governments, joins3,313 other projects worth A$39.4billion which have been declaredStrategic Projects since 2001 whenIndustry Participation Plans werebrought in.

Over that period more than 32000jobs were created and many timesmore were secured by requiring localcontent.

Clearly, this attention bygovernment, to securing what isstrategically important to them, hascontributed to the strong growth inGDP noted in Australia.

While other countries seem to havelittle difficulty identifying whatindustries and infrastructure arestrategically important enough tomaintain, New Zealand seems to lacksuch a focus.

The recent rail upgrades inAuckland and Wellington madeextensive use of imported content.They were not declared ‘strategicallyimportant’ and in fact New Zealandhas no mechanism to make such adeclaration.

When we consider that we not onlybring in content from foreign sourcesfor our projects but we even sendequipment offshore forrefurbishment rather than utilisingand building our own capability, weshould all begin to worry.

An example of sending equipmentoffshore is the research vesselTangaroa, belonging to State OwnedEnterprise, NIWA which was recently

sent to Singapore for a refit, despitethe fact that it is usually competentlymaintained here by the samecompany that maintains our navalcapability.

It is hard to imagine that manyNew Zealander’s would think thatmaintaining a ship repair capabilitywas not strategically important. It isnot difficult to conclude thatsomething is seriously lacking in thatwe consider so much of our industrialcapability to be so strategicallyunimportant.

Perhaps that’s why our GDPperformance has been so poor. Theleadership and foresight shown bygovernments like that in Victoriaprovide a ready template for whatNew Zealand needs to do.

We just need to find the nerve to

Russian FTA to furtherstrengthen NZ economic growth

Something is seriouslylacking in that weconsider so much of ourindustrial capability tobe so strategicallyunimportant.

Not Strategically (Un)Important

stand up and say that somecapabilities are strategicallyimportant enough to maintain; it’sonly prudent.

nz manufacturer december 2010 / january 2011

Documents

manufacturing sector

productivity peremployee

definition of manufacturing

australiaand manufacturing

temprecord technicaldirector

new product

manufacturingour way

higher value