BUSINESS - THE BEATING HEART OF NEW ZEALAND - HOW BUSINESS CONTRIBUTES TO THE PROSPERITY OF OUR COUNTRY - ITS ECONOMY, ITS PEOPLE, AND OUR PLACE ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
BUSINESS –
THE BEATING
HEART OF
NEW ZEALAND
HOW BUSINESS CONTRIBUTES TO THE
PROSPERITY OF OUR COUNTRY – ITS ECONOMY,
ITS PEOPLE, AND OUR PLACE IN THE WORLD.
PHOTO: CHRIS WILLIAMS
CONTENTS
01 Powering the country
02 Innovation opens doors
04 Benefiting the community
06 Making a difference
07 Inspired by success
08 Case studies
08 OPUS
09 Orion Health
10 Hawkins
11 Pacific Aerospace
12 Ngai Tahu Holdings
13 Mesynthes
14 O-I Glass
15 The Warehouse
16 The Tindall Foundation
17 Fujitsu New Zealand
PHOTO: CHRIS WILLIAMS
INTRODUCTION
POWERING
THE COUNTRY
NEW ZEALAND’S BUSINESS IS
EVERYONE’S BUSINESS, BECAUSE IT
AFFECTS ALL NEW ZEALANDERS.
The wider implications of successful business, in However, not all contributions are as tangible
providing high-value goods and services, go beyond or easy to measure. Other ways in which business
generating income growth for business owners and contributes to society and the wealth of the
staff. They generate a ripple effect throughout the nation include:
whole economy, raising prosperity and growth, and
the overall standard of living in New Zealand. › Creating jobs
› Up-skilling, developing and rewarding staff
When business is going well, it affects the wellbeing
› Providing leadership
of our economy, our environment, our communities,
our jobs, our families and our futures. › Translating great ideas into successful businesses
› Harnessing innovation to deliver unique tools
Some of the benefits of business to New Zealand’s and services
economy and society are relatively obvious – such
› Identifying and exploiting new markets
as taxes as a source of government revenue which
can be used to provide facilities and services in our › Delivering profits that are invested and spent in
communities including roads, transport, New Zealand
infrastructure, healthcare and education. Private › Sustainably managing our natural resources
businesses can make direct investments into such › Recognising its wider responsibilities to the
facilities and services as well. community
This publication looks at how business contributes
to the prosperity of our country – its economy,
its people, and our place in the world.
It tells the story of some of New Zealand’s best-
known companies and how they are contributing
to growth and developments in technology,
infrastructure, innovation, exporting, sustainability,
skills, investment and international competitiveness –
and what this all means for New Zealand.
THE BEATING HEART OF NEW ZEALAND
INNOVATION
OPENS DOORS
GREAT IDEAS AND INVENTIVENESS ARE
SOME OF THE ATTRIBUTES OF MANY OF OUR
MOST SUCCESSFUL KIWI FIRMS, AND THE KEY
TO STAYING AHEAD IN THE MARKETPLACE.
Being world class innovators There are many examples of Much of our innovation is left
helps keep Kiwi businesses success. Xero, the Wellington- under-developed and under-
internationally competitive. based software company, has utilised. We need to get better at
This involves identifying broken the $4 billion barrier and commercialisation.
and exploiting new markets, currently tops the 100-strong
Organisations such as the
raising global standards, list of Forbes’ Most Innovative
Callaghan Innovation network
and continually evolving Growth Companies in the world.
are helping with this goal by
to deliver new products However, there are areas where providing R&D support to firms.
and services. Kiwis could do so much more This includes working with
and reap even greater rewards. businesses to develop new
sciences and technologies, and
Sir Ray Avery points out that
turning ideas into new products,
New Zealand’s innovators are
services and new ways of
being held back from global
working.
recognition because they are
isolated and have a tendency CEOs that are orientated
to be understated about their towards growth, externally
success. Despite having proven focused and looking to their
leadership in global innovations employees to serve their
in medicine, technology and customers and markets, are
space explorations, Kiwis tend to most likely to be innovative.
shy away from the spotlight. Most commonly, they’re
delivering new or significantly
improved goods and services,
processes or marketing
methods.
2 BUSINESS – THE BEATING HEART OF NEW ZEALAND
PHOTO: CHRIS WILLIAMS
BEING INNOVATIVE DOES NOT
NECESSARILY REQUIRE
REVOLUTIONARY THINKING.
IT COULD BE ABOUT SMART
THINKING.
PHOTO: CHRIS WILLIAMS
Innovators are more likely Being innovative does not As you’ll see in the case studies,
to perform growth activities necessarily require revolutionary New Zealand businesses have
such as exporting, investing thinking. It could be about smart proven neither size, lack of
in expansion or research and thinking – for example, how to capital, nor a relatively small
development. turn our primary produce into economy are obstacles to
higher value exports through delivering products, service
Asked about their competitive
great ideas, local expertise and and infrastructure to the
advantages, CEOs rated personal
finding viable overseas markets. highest global standards, when
attention, established reputation
innovative thinking is employed.
and responsiveness to client The global financial crisis
needs as their most important. encouraged such smart
The business leaders who put thinking, resulting in many
priority on growth identify four New Zealand companies taking
things as crucial: stock and adjusting their levels
of activity and investment,
• Maximising current and
products, services and the way
future returns
they do business. They got
• Contributing to the wellbeing themselves into a fit state to
of stakeholders survive the difficult times and
• Increasing the value of the ready to invest and expand
business when economic conditions
improved.
• Creating something new
and distinctive
BUSINESSNZ 3
THE BEATING HEART OF NEW ZEALAND
BENEFITING THE
COMMUNITY
SUCCESSFUL BUSINESSES HAVE A SYMBIOTIC
RELATIONSHIP WITH THEIR COMMUNITIES.
STRONG PERFORMANCE HAS A DIRECT IMPACT BY
IMPROVING LIVING STANDARDS FOR INDIVIDUALS
AND SOCIETY.
PHOTO: CHRIS WILLIAMS
The most obvious Companies are also increasingly PwC New Zealand Chief
benefits of business to the recognising the importance of Executive Officer Bruce Hassall
community are the creation their part in creating healthy and says, “The gap between the
of jobs and the payment of safe communities by directing skills of the current workforce
taxes, as well as distribution funds into skills development and the skills businesses need
of profits to shareholders. programmes, local charities and to achieve their growth plans
other good causes. Some have is widening. Despite rising
adopted the view that investing business confidence equating
heavily in both staff and the to more jobs, organisations
wider community is essential to are struggling to find the right
long-term sustainable growth. people to fill these positions.”
Of course, as commerce grows, The demand for employees
so does the need for skills. with high levels of skills is very
evident in the technology
PwC’s report The talent
area. Chief executives say
challenge: Adapting to growth
much more needs to be
surveyed over 1,300 CEOs in
done to demonstrate to high
68 countries, including 43 New
school students the multiple
Zealand CEOs, and showed
opportunities and job gateways
80 percent of New Zealand
open to them. Our education
CEOs saying the availability of
system needs to recognise,
key skills is the biggest threat
for example, that as smart
to their organisation’s growth,
technology companies grow, so
compared to 63 percent
does the demand for computer
globally, with technology and
science students.
engineering firms struggling the
most with the shortage of skilled
employees.
4 BUSINESS – THE BEATING HEART OF NEW ZEALAND
PHOTO: CHRIS WILLIAMS
EMPLOYERS ARE BECOMING
MORE AWARE OF THE PART THEY
HAVE TO PLAY IN ENSURING
YOUNG PEOPLE ACHIEVE THE
SKILLS THEY NEED TO SUCCEED
IN THE WORKFORCE.
PHOTO: CHRIS WILLIAMS
Employers are becoming more The bulk of that revenue comes Overall, more businesses
aware of the part they have to from businesses – including are helping to ensure their
play in ensuring young people company tax, PAYE, GST and communities are physically,
achieve the skills they need to many other fees and levies financially and socially healthy.
succeed in the workforce. They collected by central and local This includes helping to boost
are showing more support government. local charities and other
for education and training, good causes with grants, and
Most years the Government
and collaborating more with encouraging staff and customer
collects over $20 billion in
educational institutions engagement. This movement is
income tax (much of it from
and others. motivated by business leaders
the private sector), $10 billion
recognising the importance of
Along with a growing demand in corporate tax, $15 billion in
the public good aspect of their
for skills, in turn, growing GST, as well as contributions to
roles, and the need to create
commerce also delivers higher superannuation, ACC and more.
outcomes that benefit both
levels of taxation revenue that
Business owners and leaders business and community.
allows governments to maintain
welcome actions that
and enhance public services.
demonstrate recognition that
This includes infrastructure
income needs to be spent
such as roads, bridges and a rail
wisely, with a high degree of
network, building, maintaining
accountability.
and staffing hospitals, schools
and tertiary institutions, and
paying salaries, welfare benefits
and pensions.
BUSINESSNZ 5
THE BEATING HEART OF NEW ZEALAND
COMPANIES
MAKING A THAT TAKE THESE
OBLIGATIONS
DIFFERENCE
SERIOUSLY ARE
MORE LIKELY
TO CAPITALISE
ON IMPROVED
PHOTO: CHRIS WILLIAMS
ECONOMIC
CONDITIONS.
Business today identifies In addition to making profits, For businesses that have Such activities help drive
greater obligations and creating jobs, investing and been running for years these greater employee participation,
responsibilities than at any expanding, companies are requirements can mean big ownership and responsibility,
other time in history. also charged with providing changes to the way they have help reduce waste and cut
safe and healthy workplaces, been operating, putting greater overheads, and help to
using fair and equitable work emphasis on programmes that ensure the best people are
practices, ensuring they are deliver better results. recruited and well treated,
environmentally sustainable and that management is kept
These programmes could
and having sound governance accountable.
include employment diversity
processes.
schemes and policies, structured Companies that take these
These requirements are essential recycling programmes, and obligations seriously are more
for a company’s reputation, health and safety regimes likely to capitalise on improved
the attraction and retention that change workplace economic conditions, delivering
of staff and shareholders, the cultures while ensuring strong better results to all stakeholders.
willingness of business partners governance and oversight is
Likewise, there is an opportunity
to work with it and to enjoy maintained.
for entirely new businesses
the confidence and support of
to be created based on these
the community (also known
new responsibilities and for
as a “social licence to operate”).
more established companies to
They are also reflected in the
capitalise on the momentum.
legal framework under which
businesses operate.
6 BUSINESS – THE BEATING HEART OF NEW ZEALAND
TECHNOLOGY
INSPIRED IS ANOTHER
AREA IN WHICH
BY SUCCESS
BUSINESSES ARE
CONTRIBUTING
WORLD-LEADING
SOLUTIONS.
PHOTO: CHRIS WILLIAMS
PHOTO: CHRIS WILLIAMS
There are many ways that • Taking the lead on recycling Technology is another area To see how this feeds into
business contributes to life and sustainability in which businesses are long term, sustainable growth
in New Zealand: • Helping to fund New contributing world-leading you only need to look at The
Zealand’s economic base solutions, as seen with Orion Warehouse, who have made
• Supplying the infrastructure Health. The next time you visit a investment in community a
through taxes, royalties and
needed for modern transport hospital, here or overseas, there’s key part of their business and
other contributions
and communications a high chance it will be their financial plan.
• Developing new digital A number of New Zealand software that’s being used.
There are many examples of
products that are companies are contributing Also making waves in the global business working to make a
transforming work and leisure in not only one, but many of health sector is Mesynthes, a difference in the environment.
these areas. small business that has created
• Invigorating our primary Some of them have been doing
sector with new business The case studies provided in a high value product to treat so for much longer than we
based on traditional this booklet highlight some and repair wounds. Rapid might imagine, as is evident in the
agricultural strengths of the diverse challenges, growth has seen them grow case study on O-I Glass. They’ve
circumstances and from a staff of one to almost 40, been in business since 1922, and
• Earning export income
achievements of some well- with international partnerships leading recycling initiatives in
from innovative products
and new products already in schools for the last 30.
irresistible to overseas markets known businesses, and the
difference they each make. development.
• Growing skills and equipping That same commitment
New Zealanders to contribute From the world-class Hawkins provides a strong applies to businesses wanting
to economic life infrastructure that’s being example of the impact business to improve our working
delivered by Opus to the can have on community. They’re environment also. Fujitsu has
• Investing in communities tackling the skills shortage head been described as a shining
massive export potential
through engagement with that’s being tapped into by on in their efforts to develop example of welcoming diversity
young people, charity work the next generation of skilled and creating opportunities for
Pacific Aerospace, it’s clear that
and helping fund start-up workers. Ngai Tahu are working an increasingly wide range of
innovation is still the key to
companies with them, as part of their own New Zealanders.
cementing our highly-regarded
• Demonstrating diversity and position in world trade. initiative to foster high-level talent
inclusion in hiring policies within their own community.
BUSINESSNZ 7OPUS
ACHIEVING GLOBAL GROWTH
IN INFRASTRUCTURE.
DAVID PRENTICE CHIEF EXECUTIVE
The quality of Opus’s work Other recent acquisitions
has received international include Australian-based rail “HIGH PERFORMANCE
recognition. It won an Award engineering consultancy Coffey MEANS NOT BEING SATISFIED
of Merit from the International Rail Pty Ltd and Asia Pacific Rail WITH THE STATUS QUO,
Federation of Consulting Pty Ltd, as well as the North BUT HAVING THE PASSION
Engineers for its work spanning Vancouver-based engineering TO CONTINUOUSLY RAISE
more than 100 years, including consultancy Dayton & Knight. THE BAR.”
special recognition of its work
The key to the acquisitions has David Prentice
on the Britomart Transport
been linking with companies Chief Executive
Centre in Auckland.
that share the same vision and
Leading Opus is Scotsman values as Opus, including a drive
When it comes to a Prentice says Opus has
David Prentice, who joined the for technical excellence.
New Zealand company ambitious plans for growth
company as an engineer in 1997
forging a reputation Opus has developed global that could see the company
in response to a recruitment
for global expertise, expertise in fully integrated asset reach 10,000 staff by the year
drive aimed at securing 100
infrastructure giant Opus development and management 2020. A continuous business
people. The drive only netted 20
International Consultants services. These include concept improvement programme
and the plan was for the young
Ltd is often one of the first development, planning, with a specific focus on high
engineer to work in Malaysia,
to come to mind. detailed design, procurement, performance is delivering good
but plans changed and he
construction, commissioning, results. His leadership and
ended up in New Zealand.
Once a government department operation, maintenance, appetite for fundamental long-
– the old Ministry of Works and On arrival in New Zealand, rehabilitation and upgrading. term improvement is keeping
Development – Opus has grown Prentice found a lot of the momentum going.
In its home country, Opus’s
as a privately owned company similarities in infrastructure
current work includes the “High performance means not
to be a major player in its field. issues between here and the UK,
Government’s Roads of National being satisfied with the status
It’s involved in major asset but affordability was an issue.
Significance programme and quo, but having the passion to
management projects and the
“It was the same except that the rebuilding of Christchurch continuously raise the bar,”
construction of bridges, tunnels,
here we have four million where it has its biggest office, he says.
roads, rail links, managing water
people, not 60 million, and comprising 230 staff.
supplies and other work in Opus’s focus on developing
we still need to provide the
multiple countries. The company forms part of a high performance culture
same roads, ports and other
the Stronger Christchurch encourages leadership
It has a massive 3000 staff infrastructure. The reliance
Infrastructure Rebuild Team behaviours not just among
worldwide based in 91 offices, on the transport network
consortium of five major senior leaders but throughout
with 1200 in New Zealand is even greater than the UK
contractors, and has about 20 the company.
scattered among 40 offices. but without necessarily the
people seconded to that team.
Opus’s international bases economic strength to achieve
They have been working on
can be found in the United all the improvements,” the chief SNAPSHOT
the horizontal infrastructure to
States, Australia, and the United executive says. COMPANY: OPUS
repair and replace so the vertical
Kingdom along with work in INTERNATIONAL
The company has undertaken rebuild can take place.
Mozambique, Liberia and other CONSULTANTS LTD
major growth, organically
countries. Its 12,000 clients are Attracting and retaining BASED: WELLINGTON
and by acquisition. The latter
served by talented engineers, top talent is proving to be WORK: INFRASTRUCTURE
includes the merger with
designers, planners, researchers a problem. Opus has been DEVELOPMENT
Canadian consultancy Stewart
and advisers. recruiting hard in Christchurch CONSULTANCY
Weir which has added 550 staff
to keep up with demand,
Typical Opus projects include: to Opus’s existing numbers in
but there are still significant
a seven-year, multi-million Canada. Stewart Weir is a market
shortages of engineering
pound joint venture contract leader in pipeline, infrastructure
specialties. To address this, the
for management of the and energy projects in the
company is developing a robust
Hertfordshire County Council province of Alberta.
talent attraction system.
in England’s highway network,
and a five-year contract to help
manage highways in Motor City,
Detroit, Michigan.
8 BUSINESS – THE BEATING HEART OF NEW ZEALANDORION HEALTH
KIWI SOFTWARE AT
A HOSPITAL NEAR YOU.
IAN MCRAE CHIEF EXECUTIVE
“Back then we thought that if In a company so reliant on good
we could get a couple of million people to create, implement, “WE ARE PASSIONATE
dollars in turnover that would test, document, analyse ABOUT SHARING OUR
be fantastic. We’re doing $150 and support the company’s SKILLS AND KNOWLEDGE
million this year. products, there is the broader WITH THE NEXT
problem of not having a big GENERATION OF KIWI IT
“As our portfolio grew, we PROFESSIONALS.”
enough skilled workforce.
became a full vendor in the
health area doing most things. McRae points out that Ian McRae
We started off in the New technology is a great space Chief Executive
Zealand market and in two or to be working in – there’s
three years moved on to the no effect on the country’s
One day soon the Consequently, many students
United States, Australia and natural resources and minimal
healthcare system will with a technical bent head for
the UK.” environmental impact.
allow patients to make key physics and biochemistry where
care decisions themselves, The company struggled in the “We have taken a deliberate step there are fewer jobs.
supported by research, early years but in recent years back to our origins by putting
As part of its push in this area,
educational materials and growth has ranged between entrepreneurship and ideas at
Orion is providing Raspberry
a guidance network of 10 and 50 percent a year. The the head of our priorities. When
Pi mini computers for
healthcare professionals growth is reflected in staffing we first started we had 20-30
schoolchildren. The idea is to
and their families. with more than 400 new staff people who came up with new
inspire and motivate children to
taken on recently. ideas. Then we got bigger and
think about computer science as
The company proposing that had to support customers, and
The medical and pharmaceutical a viable subject.
exciting future is Orion Health, so innovation slowed down.
industry is intensely competitive.
a New Zealand health software We want to pursue ideas “We are passionate about
Orion’s strongest competitors
company that is a world leader because innovation is the core sharing our skills and knowledge
are large American companies
in its field with 300,000 clinicians of our business. with the next generation of Kiwi
with deep pockets, including
in 35 countries using their IT professionals. We recognise
Cerner and Intersystems. “Health is going to go through
intuitive products to improve that high school students are
more massive change –
clinical workflow, decision So are we talking about an not simply users of computers,
within the next decade the
making and patient care. accidental empire like Apple in but producers of digital content.
use of mobile devices will be
the health industry? We want to support them in
Orion Health, an independently phenomenal and we will soon
becoming the creators of digital
owned global software “No we’re not like that. It’s taken be able to give patients access
tools for the future,” McRae says.
company that interconnects 21 years of pretty slow and to their medical records. The
a wide variety of healthcare deliberate growth to get to products we have today will McRae says the industry has
information systems, was where we are. We went from be superseded twice in the done a poor job in telling
founded in 1993 by Chief turnover of $100,000 to half a next decade.” students and parents about the
Executive Ian McCrae. He million, to a million, then two, opportunities in the field. The
Asked if Orion adopts Google-
remains the largest shareholder, and we keep resetting our goals. image is of everyone working
type half or full days for creative
with 60 percent of the company. Our next goal is to achieve the in code cutting, but in fact only
thinking, McRae says they
$200 million mark.” 20-30 percent of jobs are in
“We provide a range of health run a Scratcharama Week (he
writing code.
software – including patient McRae attributes the growth doesn’t know why it’s called
records, laboratory results, to the company’s preparedness that) three times a year, where
pharmacy, medical records, to change and to restructure the developers get to focus SNAPSHOT
scanning, clinical work flow, as staff numbers climb. on things they want to do and COMPANY: ORION HEALTH
and invoicing,” McRae says. some crazy ideas come out. BASED: AUCKLAND
“One of the things that holds
“When I started the firm we us back is getting enough Orion is working hard to lift the WORK: HEALTH SOFTWARE
were IT developers with one people with the right leadership profile of computer sciences in AND CONNECTIVITY
simple product that did health experience and talent. They’re schools and to get universities
messaging. We did come in short supply. We have limited to give the subject greater
up with other products, but numbers of such people in prominence. McRae says that
focused on health. New Zealand and it’s quite currently computer science is
critical to our growth. A few lumped in with other optional
come out of the ranks but we’re trades such as metalwork and
always looking both locally and woodwork.
internationally.”
BUSINESSNZ 9HAWKINS
COLLABORATION IMPROVES
EMPLOYEE SKILLS.
NANCY McCONNELL GROUP MANAGER COMMUNICATIONS
Nancy McConnell, Group “Construction offers fantastic
Manager Communications, opportunities for students to run “CONSTRUCTION OFFERS
Brand & Community, says their own businesses. We need FANTASTIC OPPORTUNITIES
playing a role in construction to help teachers and parents FOR STUDENTS TO RUN
industry skills development is understand that a pathway to THEIR OWN BUSINESSES.”
a big priority for Hawkins. She a trades career is a great one
is at the forefront of an eight- and is career enhancing, not Nancy McConnell
Group Manager Communications
year Hawkins partnership with career limiting. We also need
Papakura High School aimed at to ensure schools deliver what
improving student achievement, students need to become great Several hundred Maori each
focusing on why 47 percent of tradespeople and business year are now being given the
Hawkins Group is a family- students leave without NCEA people.” opportunity to be involved in
owned construction business Level One and identifying how the trades through He Toki.
Prompted by predictions
founded by builder and this could be changed.
of a labour shortage for the McConnell says: “Supporting and
entrepreneur Fred T Hawkins
Through working with the Canterbury Earthquake recovery, celebrating Maori success in our
more than 65 years ago.
school, employers and tertiary coupled with the desire to foster industry is essential, because
It directly employs 650 people, education providers, a pathways employment opportunities for Maori success is New Zealand’s
but uses the services of hundreds model has been developed local Maori in the Canterbury success in terms of the economy
of subcontractors across the through which students can region, Hawkins signed a and social achievement.
sub-trades on every project the choose a number of flexible memorandum of understanding
“He Toki has 250-300
company is working on. vocational pathway streams, with the largest South Island
enrolments each year and it’s
Hawkins Construction, one of as well as traditional academic iwi, Ngai Tahu. Its aim is to build
had a big impact on the Maori
three subsidiaries, has recently streams at the equivalent Maori capability and leadership
achievement rate. It’s about
completed the design and of NCEA Level 2 learning – in the trade workforce for the
preparing Maori for employment
construction of New Zealand’s construction and infrastructure, Christchurch rebuild.
through pre-trades courses in
first private-public-partnership hospitality, health and sports
This has resulted in Hawkins’ carpentry, plumbing, plastering,
(PPP), Hobsonville schools project science and the services. involvement with He Toki ki te painting, electrical, welding and
in Auckland, plus substantial “It is still in its infancy, but we are Rika (He Toki), a collaborative, iwi- also extending support during
buildings at Middlemore learning that students need to led, Maori trade training initiative their employment journey.
and Waikato Hospitals, and be introduced to this approach with Christchurch Polytechnic,
redevelopment of Christchurch’s in their first year of secondary “He Toki focuses on learning,
focused on building Maori
international airport. employability, building trust
school so they are aware of capability and leadership within
and a collective sense of
Hawkins Infrastructure’s planned career options that suit their the trades workforce for the New
belonging. Our next steps are
work includes the $100m natural talents, motivations, Zealand construction industry.
towards a group apprenticeship
joint venture electrification of interests and aspirations, and
It’s available for all Maori, not scheme to enhance leadership
the Auckland rail network, a can make the right choices.”
just Ngai Tahu, and the focus development and pathway
roading flyover in Port Moresby,
McConnell says her company is on working with Maori who opportunities to other
Papua New Guinea, and with
identified the need to foster are keen for work in the trades, construction career openings
international partner OHL is the
a greater understanding of all providing practical pre-trades in construction management
preferred bidder for the $250m
the pathways the construction skill-based modules, a distinctly and supervision, or quantity
Ruataniwha water storage
project in Hawke’s Bay. industry offers from pre- Maori flavour reflecting culture surveying.”
construction to completion. and values, work readiness
The company is proud of its skills and pastoral care (pre-
green star reputation, including “Each commercial construction SNAPSHOT
enrolment, during courses, and
building the first six-star green project is a small business in COMPANY: HAWKINS
at a job stage). It’s also about
star rated building in New itself and includes construction, GROUP (INCLUDING
identifying and helping those
Zealand, the Christchurch Civic management, and business CONSTRUCTION,
with leadership potential to
Building. This involved the skills. Hawkins is like the overall INFRASTRUCTURE AND
move forward.
redevelopment of the 1970s project manager, managing HARKER UNDERGROUND
purpose-built former NZ Post relationships and expectations Eru Tarena of Ngai Tahu says the CONSTRUCTION)
building for 1250 council staff. with consultants and sub- tribe’s Treaty of Waitangi claim BASED: AUCKLAND
contractors from architects to was about re-establishing an WORK: SECOND LARGEST
Hawkins’ collaborative approach
structural engineers, carpenters, economic base and overcoming CONSTRUCTION COMPANY
to skills training and education
plumbers, services engineers inequality. IN NEW ZEALAND
has won strong plaudits inside
and fit-out specialists.
and outside the industry.
10 BUSINESS – THE BEATING HEART OF NEW ZEALANDPACIFIC AEROSPACE
CONQUERING
OVERSEAS SKIES.
DAMIAN CAMP CHIEF EXECUTIVE
The P-750 sets a benchmark for Securing the joint venture with
10-seater utility aircraft. Its claim Beijing Automotive took two “WE WANTED TO IDENTIFY
to fame is that it can take off years and many visits by Camp WHO WOULD BE A GOOD
and land in less than 244 metres and his directors, meeting with PARTNER FOR US. IT
even in hot conditions; has low representatives of regional NEEDED TO BE A STRONG
maintenance requirements; government, private companies PARTNER – THE DEAL
can operate off semi-prepared and state owned enterprises. NEEDED TO HAVE A
airstrips in all types of terrain; PROPORTION OF CHINESE
“We wanted to identify who CONTENT, INCLUDING
and can carry a load of 2000kg
would be a good partner for us. MANUFACTURING, BUT
even in warm and high
It needed to be a strong partner MORE IMPORTANTLY HAD
conditions.
– the deal needed to have a TO HAVE A STRONG SALES
An exciting commercial
The aircraft can carry proportion of Chinese content, FOCUS.”
venture into China comes in
passengers on one flight and including manufacturing, but
the form of the P-750XSTOL
30 minutes after have the seats more importantly had to have a Damian Camp
XL 154 – or the P-750
removed and stored in a rear strong sales focus. Chief Executive
for short. compartment, making the full
“You have to have good
The numbers and letters stand cabin and cargo pod available
connections and strong Staff numbers have increased
for Pacific Aerospace’s multi-use for carrying freight on the
relationships to access a broader from 100 to 120 in the last 12
aircraft, and while they don’t return leg. Its versatility is such
market. Fortunately our board months as the opportunities
resonate quite like a 737, the that it can be changed quickly
chairman has been going to beckon in Russia, Indonesia, and
Hamilton company has made between 10 different roles
China six to eight times a year other countries. Competition is
a $75 million breakthrough including passenger, freight,
over the last 23 years. Another tough, though, from the likes of
into the fledgling Chinese skydiving, ambulance duties,
director is Chinese born, American giant Cessna
aviation market. aerial surveying, crop dusting/
understands both cultures and and others.
spraying and firefighting.
The company, which traces is able to help us interpret the
Pacific Aerospace adopted a
its roots back to 1949 and the The joint venture in China is the Chinese market, ensuring we’re
lean manufacturing programme
early aircraft it manufactured fruition of two years of work. not going in blind.
six years ago and the results
for topdressing, has had a “China is coming off a low base “We didn’t have to do this for are impressive – increasing
rollercoaster ride over the years. in aircraft ownership and use. the certification programme production capacity by 40
This includes seeing out the There are opportunities for – they came to us. Our travel percent without large capital
purchasing slowdown caused by aviation. This will be the largest to China has been for business outlays, reducing waste,
the global financial crisis, during growth market. We recognised development.” continuous improvement, and
which time it scaled down staff that some time ago and started staff who are engaged and
and sought to ride out a tough Camp says Pacific Aerospace is
preparing for it,” Camp says. important contributors to
financial period. made up of design engineers,
the business.
Pacific Aerospace has to go technicians and fitters, skilled
Less than a month after through a certification process metal workers and a network
disclosing the Chinese joint with civil aviation authorities of sub-contractors, but at its SNAPSHOT:
venture deal, Chief Executive whenever it wants to do core is its closely guarded COMPANY: PACIFIC
Damian Camp was proudly business with another country, intellectual capital. AEROSPACE
showing HRH Prince William so it needs to prove its aircraft’s BASED: HAMILTON
around the Pacific Aerospace airworthiness through a WORK: AIRCRAFT
facility. The Prince, an stringent programme. Fourteen MANUFACTURER
experienced air force pilot, countries have given the P750
showed much interest in the approval.
P-750 as he cut the ribbon on
the brand new Mark III P-750, a
multi-role, quick-change aircraft,
the first of its type in the world.
BUSINESSNZ 11NGAI TAHU HOLDINGS
TRIBE INVESTS
FOR THE FUTURE.
MIKE SANG CHIEF EXECUTIVE
Today the tribe has some clear “We look for investments that
objectives: leverage broader benefits for our “WE LOOK AT THE LONG
Ngai Tahu whanui,” Sang says. TERM POTENTIAL OF THE
• Increasing shareholder INVESTMENT. WE LOOK FOR
equity and expanding the “Many of our fishermen are Ngai COMPANIES THAT HAVE A
commercial asset base Tahu and we’re working hard to FUNDAMENTAL UNDERLYING
• Providing annual cash create opportunities for those STRENGTH AND A POSITIVE
returns to marae through interested in farming.” OUTLOOK.”
the tribe’s charitable trust to The investments must be line
facilitate social, cultural and with the tribe’s aspirations Mike Sang
environmental initiatives Chief Executive
and priorities – “for instance,
Even today the public • Growing the businesses for we would not invest in
perception of Treaty of future generations gambling, smoking, or weapons “Ngai Tahu has set itself
Waitangi settlements is manufacture. These would not aspirations and visions to
• Developing future strategy
limited to a resolution of be in line with Ngai Tahu values.” 2025. That’s not too long-term
and assessing opportunities
Maori grievances over land The investment arm provides
but enables a platform to be
and other assets that date Ngai Tahu Holdings Corporation, education scholarships, funds
developed. We have been
back more than 170 years. It the commercial arm of the iwi, going 15 years, but it took seven
a cadet scheme and fosters a
seems little is known about has a diversified portfolio of generations to pass before we
governance programme.
what happens next. investments including seafood, got to that stage. We have to
farming, property and tourism, “We hire the best people but ensure that our programmes are
In the case of Ngai Tahu, the which Chief Executive Mike Sang also aspire to help Ngai Tahu in line with the expectations of
South Island’s biggest tribe has says are performing very well. people take roles on their our members.”
moved on from its historic $170 own merit.”
In property, the company has Sang also acknowledges
million cash settlement in 1996.
strong residential subdivision With total investments now the massive amount of
The focus is on investment to
investments, a quality portfolio reaching one billion dollars, the volunteer work that is done
create jobs, opportunities and
of investment property, and organisation is well placed to within Ngai Tahu.
wealth for its more than 51,000
rural development turning support distributions. To date,
members.
land from forestry to farms. The approximately $300 million has
Ngai Tahu has a proud history of been distributed to support SNAPSHOT
company is a leading fisher and COMPANY: NGAI TAHU
commerce and trade reaching exporter of seafood, particularly educational, environmental,
back hundreds of years. Prior cultural and social programmes HOLDINGS
rock lobster, most of which is BASED: CHRISTCHURCH
to 1840 and the signing of exported to China. The tourism with a record $36 million being
the Treaty of Waitangi, Ngai distributed this year. WORK: OWNS SUBSIDIARIES
sector has had a tougher time IN SEAFOOD, PROPERTY
Tahu underpinned the inter- but growth is evident.
tribal trade in pounamu and AND TOURISM
later embraced international “We have primarily directed
commerce through strong investment into businesses
involvement in New Zealand’s that we own 100 percent. The
early whaling and agricultural exception is Ryman which we
industries. have five percent of. We look
at the long term potential
of the investment. We look
for companies that have a
fundamental underlying
strength and a positive outlook.
12 BUSINESS – THE BEATING HEART OF NEW ZEALANDMESYNTHES
A LOT MORE THAN
A STICKING PLASTER.
BRIAN WARD CHIEF EXECUTIVE
“When I first started, it was just “An ageing population and the
me. I leased some space at what increase in diseases such as “THE DEVELOPMENT WORK
was then Industrial Research and diabetes will fuel demand for AND CLINICAL WORK IS
contracted two of their scientists the product. DONE IN NEW ZEALAND,
to look after the processing. It BUT OUR TARGET WAS
“We started manufacturing and THE MOST SOPHISTICATED
took about six months’ work.
selling in 2013. When our seed OVERSEAS MARKET
Then I employed a PhD student
capital ran out we had a number WITH THE HIGHEST
and a director of science and
of finance-raising rounds – so REGULATORY BARRIERS.”
he expanded the development
for the first years the company
team.”
operated with no income, Brian Ward
In the first three years of surviving on the investor Chief Executive
Using animal tissue to
development Ward relied on funding.”
repair human beings’ body
seed capital from angel investors
wounds is a product that is Over the first four years the Now the company is based
in Auckland and Wellington to
taking the American medical staff built up to 10-12, but has in Auckland.
keep going.
market by storm. recently increased to 35-40 as
“We had a situation where
From the outset the company, sales have taken off. Managing
Mesynthes and its Endoform we had limited space to
while based in New Zealand, has such growth can be a challenge
Dermal Template product, which manufacture and had to expand
focused on the huge US market. but Ward, who has an MBA and
originates from a layer within very rapidly. We had to find new
has worked for corporates in the
the lining of the forestomach of “The development work and premises and build and move
medical and pharmaceutical
sheep, has been approved by clinical work is done in New quickly to meet the timelines
fields, has stayed on top of
the American Food and Drug Zealand, but our target was the of our American partners.
developments.
Administration for the treatment most sophisticated overseas
“We did not find anything
of wounds. market with the highest A second product is now in
suitable in Wellington and so
regulatory barriers. We went development.
The chief executive of the started looking in Auckland.
for FDA approval because we
business, Brian Ward, a “It’s currently going through A lot of our supply and service
wanted to run the business at
veterinary surgeon by trade, the FDA regulatory process. It’s providers are in Auckland, there
the standard necessary for it to
has developed the product a product to be used in serious is a larger pool of talent and
succeed internationally.”
and grown the company since surgical procedures. There is a knowhow there – you are better
founding it in 2008. Once approval was received, large market opportunity.” able to find people with the sort
Ward went looking for a of experience we need.”
He describes the company The US is the starting point, and
commercial partner that could
as a technical developer and Canada and Europe will be next. The company is recruiting
provide sales and marketing
manufacturer of high value overseas talent as there are
expertise, choosing Hollister, As for selling in his home
products – “It’s about innovation not enough qualified New
a Chicago-based company country, Ward said that
and capturing value. Zealanders available.
that specialises in ostomy and concentrating on New Zealand
“The product I developed was a wound care. would have taken a lot more
medical product for soft tissue resources and would be a SNAPSHOT
repair. It’s for wound care and “We are using an American
distraction when a much larger COMPANY: MESYNTHES
also has a surgical application. partner because it has a sales
market beckoned. BASED: AUCKLAND
force and can concentrate on
“Basically we use animal tissue marketing the product, which “But we will look to sell in New WORK: SOFT TISSUE REPAIR
that is purified so it can be used it does for wound care in Zealand because our product PRODUCTS
for grafting on humans. If you hospital outpatient clinics and can benefit patients here.”
treat it in the right way it will doctors’ clinics.
be well tolerated by people for He says he has a very supportive
tissue repair.” “We see a $200 million board with a great network of
opportunity for that product. We people who have experience in
In his research Ward found there believe our product can be the medical ventures.
were a small number of animal market leader in the category.
based tissues that had shown Being recognised for its
It’s very early in the process but
promise. Finding the right type of it has been really encouraging. pioneering work has been helpful,
tissue was the challenge. “My job with Mesynthes winning the
Our US partners are very excited
was to identify the source material about the growth prospects. Discovering Gold and overall
and to investigate its biological Supreme awards at the annual
composition that would provide Wellington Gold Business Awards.
the right healing properties.
BUSINESSNZ 13O-I GLASS
A RECYCLING
SUCCESS STORY.
PENNY GARLAND SUSTAINABILITY MANAGER
O-I NZ employs 250 people at its The company is investing in
Auckland facility that has three fine and mixed grind processes, “A $US85 MILLION FURNACE
furnaces and six production carbon reduced glass and the TO SUPPORT THE GROWING
lines. A $US85 million furnace to recycling of glass offcuts from BEER AND WINE INDUSTRIES
support the growing beer and windscreen manufacture. It has WAS BUILT AND OPENED IN
wine industries was built and also been experimenting with a 2010.”
opened in 2010, at a time when lightweight wine bottle.
other companies held on to Penny Garland
Garland pays tribute to the plant Sustainability Manager
their investment money during
manager, who is willing to try
the global financial crisis.
new things in order to achieve
At the Environmental Packaging
The company introduced a sustainability gains, and the
O-I Glass is New Zealand’s Awards O-I was a finalist for
major national glass reclamation supply chain management team.
only glass container its environmental fund, was
system in 1973, introducing
manufacturer and is the With staff turnover of less highly commended for the
the “submarine” yellow bottle
country’s largest user of than three percent, Garland development of its lightweight
banks in various locations so
recycled glass. says the wonders of working wine bottles, and Garland won
that consumers had a home
with glass “gets under your the category for driving change.
Not surprisingly, the for their glass waste. This was
skin”, no doubt helped in part O-I also won the supreme
New Zealand branch of a 20 years before local authority
by their sophisticated onsite award.
multinational company that amalgamations and increased
training centre. The company
has 22,500 people working environmental awareness led
has achieved New Zealand
at 77 plants in 21 countries, to more co-ordinated waste SNAPSHOT
Qualifications Authority
is passionate about the management efforts, including COMPANY: O-I GLASS
recognition of its training for
sustainability of glass, which has the introduction of formal NEW ZEALAND
apprenticeships and graduates.
a lower carbon footprint than kerbside schemes which now BASED: AUCKLAND
PET plastic. exist in many urban localities. There are 26 nationalities WORK: GLASS
represented in the workforce, MANUFACTURING
The company achieves an Garland’s job is to educate
the majority from the Pacific
average recycled container decision makers about recycling.
islands, and the importance of
content of 66 percent through She has many success stories.
staff health and wellbeing is
its use of recycled glass, known Many councils contracted recognised through an on-site
in the industry as cullet. out their waste and recycling gymnasium.
Its sustainability drive sees O-I services, and O-I Glass
Garland says that for many years
plants being given 10-year was proactive in building
O-I’s achievements flew under
global sustainability goals relationships with these frontline
the radar, but its record is a
including lowering energy contractors as well as the
proud one.
consumption by 50 percent councils that hand them
and reducing carbon dioxide- the work. For 30 years the company
equivalent emissions by 65 has given schools money
Schemes vary in size and quality.
percent. to implement a range of
Auckland and Christchurch
environmental programmes.
Sustainability Manager Penny have a cheaper, less than ideal
Garland admits she could talk collection scheme where The environmental fund
all day about O-I Glass’s drive households fill wheelie bins with provides $25,000 a year for this
to recover glass from the waste all their recyclables, resulting work and a panel that includes
stream and ensure it can be in huge, painstaking work representatives from the
used again. separating glass from the rest. Ministry of the Environment and
Garland says Wellington has a Ministry of Youth Affairs selects
In New Zealand, the company world best-practice system that the lucky schools. Projects have
has been operating since 1922 ensures the separation of glass included year 13 students at
under the names ACI, AHI and from plastics, paper and Kamo High School in Northland
O-I. During the Second World metal through alternating working on the Whangarei
War, with a shortage of imported collection systems. Harbour Marine Reserve
materials, teams of people Proposal.
would scour the waterways
looking for beer bottles that
could be recycled.
14 BUSINESS – THE BEATING HEART OF NEW ZEALANDTHE WAREHOUSE
INVESTING IN
YOUR COMMUNITY.
MARK POWELL CHIEF EXECUTIVE
Part of that view is how the At the national level, initiatives
company has responded to include a well attended supplier “WE TAKE A BROADER
the campaign for a living wage. dinner which raises hundreds VIEW OF OUR BUSINESS
The Warehouse has introduced of thousands of dollars for the AND ITS IMPACT ON
the career retailer wage, which children’s charity Variety and SOCIETY. HOW WE TREAT
demonstrates a commitment to provides laptop computers for PEOPLE IS IMPORTANT
developing retail as a credible children in low-decile schools. TO US. THIS IS NOT TREE
and exciting career choice. A recent golf day raised more HUGGING STUFF – IT’S
than $50,000 which was used for IMPORTANT THAT WE
“The career retailer wage HAVE COMMITTED,
children to attend an educational
is a major step in the right ENGAGED AND HAPPY
programme at the zoo.
direction in pay rates. Life skills EMPLOYEES WHO ENJOY
Sheer size and scale buys
are important, so we also get The company’s Red Shirts in THEIR WORK.”
The Warehouse Group a lot
involved in programmes aimed Schools initiative provides
of influence and prestige,
at lifting literacy and numeracy opportunities for secondary Mark Powell
but it also allows it to
skills and also health. school students to spend time Chief Executive
deliver great benefits to
working in store before they
the communities served “Business has a part to play by
make career choices. This can
by its stores. ensuring frontline staff are being The Warehouse Group has also
see the students gaining credits
paid adequately – it’s about been generous in providing
towards an NCEA qualification.
With 92 Warehouse stores, long-term business growth tents, tarpaulins, soap and
76 Noel Leeming stores, 63 rather than short-term profits.” “We have also worked with other emergency products to
Warehouse Stationery stores, schools to develop an NCEA organisations like World Vision at
The company also has a clear
and online businesses, operated qualification that provides entry times of emergency, for example
strategy of supporting the
by a staff of more than 10,000, level skills for retailing. We’ve in the Solomon Islands floods
community at local, regional
this big business is positioning had good feedback about our and Christchurch earthquakes.
and national levels.
itself for further growth. involvement in school Gateway
At the local level, stores provide programmes, which is usually
Chief Executive Mark Powell SNAPSHOT
facilities for charitable causes the first experience a student
draws a link between long-term COMPANY: THE
to raise money from barbecues has of working. It’s a 12-week
sustainable business growth and WAREHOUSE GROUP
and the proceeds of selling course of working one day
being part of a healthy society. BASED: AUCKLAND
plastic bags for 10c at the a week and is proving very
This means the company follows WORK: RETAIL TRADING
checkout go to store-nominated successful.”
the ethos of looking after its THROUGH THE WAREHOUSE,
charities.
staff and giving back to the STATIONERY WAREHOUSE,
community. At the regional level, store NOEL LEEMING
managers get together and
“While it could be argued we
decide on community projects
are a big enough company
and registered charities that can
to do the things we do, it still
be supported. Customers are
requires a commitment by us to
invited to add a dollar or more
create wealth and employment
to their charge for this cause.
for others.
“For instance, both Wellington
“We take a broader view of
and Christchurch are supporting
our business and its impact on
local children’s hospital projects,”
society. How we treat people is
Powell says.
important to us. This is not tree
hugging stuff – it’s important
that we have committed,
engaged and happy employees
who enjoy their work, and
who live the values that
were first put in place during
[founder] Sir Stephen Tindall’s
time,” Powell says.
BUSINESSNZ 15THE TINDALL FOUNDATION
MORE THAN
A HELPING HAND.
SIR STEPHEN TINDALL CO-FOUNDER
The Tindall family still has 51 While 40 percent of the
percent of The Warehouse group Foundation’s funds go “TOO MANY BUSINESSES
through the couple’s ownership, to charitable causes, the FOUNDER THROUGH LACK
the Foundation (21 percent) and remainder is dedicated to OF FINANCIAL AND OTHER
several family trusts. putting investment funds into SUPPORT AND MY AMBITION
125 start-up companies and IS TO IMPROVE THE RATE OF
The money is being put to THOSE THAT SURVIVE THE
venture capital firms to help
good use but Sir Stephen is CRUCIAL FIRST YEAR AND
them become established and
particularly proud of three THEN GO ON TO BECOME
to think globally. Sir Stephen’s
major efforts: SUCCESSFUL EXPORT
investment company K1W1
• The community foundations Ltd has invested over $100 EARNERS.”
When The Warehouse – a joint venture with the million seed and venture capital.
founder Sir Stephen Counties-Manukau district He says too many businesses Sir Stephen Tindall
Co-founder
Tindall mentioned during health board which seeks to founder through lack of financial
a TV interview that he was reduce youth unemployment and other support and his
looking for causes that his by training young people into ambition is to improve the Sir Stephen recalls that when
charitable foundation could hospital and health jobs rate of those that survive the he established The Warehouse
support, he was overrun • The Youth Connections crucial first year and then go on 33 years ago, he was motivated
with requests. scheme matching employers to become successful export by driving prices down and a
to young people in Auckland earners. determination to offer New
That was in 1994, when his Zealanders goods at more
that has created 500 jobs Sir Stephen puts a high priority
nationwide chain was floated affordable prices. The profits
per year on businesses that survive
on the share market and he came as a result of delivering
• The Red Shirts in Schools long-term by ensuring they
and his wife established the on that goal.
programme run by The are relevant, provide what
Tindall Foundation to handle 21
Warehouse ‘red sheds’, customers want and create “If you’re only profit driven, your
percent of the dividends from
which has driven an attitude value for them. business won’t stand the test
the sale.
change. It helped to transform of time.”
Through the Foundation’s work
At the time Sir Stephen was teenagers who would turn he hears amazing stories of
still CEO of the Warehouse, up late and without any work innovation. The Foundation has SNAPSHOT
and his wife Margaret was ethic, into different people set out to help those with great ORGANISATION: TINDALL
busy with five children. So he in the workplace who enjoy ideas, a sound plan and good FOUNDATION
contracted someone to advise interacting with customers. people. BASED: AUCKLAND
him on where the greatest
needs were and quickly learned The Foundation is helping fund He recalls how he learned on WORK: FUNDING
that already there was some programmes that promote child the job for five years doing both CHARITABLE AND
fantastic work being done welfare and prevent the abuse university study and part-time COMMUNITY
by many organisations. The of children. work. “It makes it cheaper to ORGANISATIONS. INVESTING
Foundation started by providing study because you get paid and IN STARTUP COMPANIES
bulk funding to the faith-based it’s a more practical approach. WITH GLOBAL ASPIRATIONS
organisations doing this work. Unless we move towards this
approach it will be difficult for
The Foundation set about to
many who will get into debt.
fund a community foundation
movement in New Zealand and “Governments need to value
now 14 foundations have been healthy societies, as healthy
formed. From an investment of societies promote better
$2.5M the Tindall Foundation economies.”
has seen these foundations
raise $30 million in cash and
an estimated $250 million in
money promised for local causes
around the country.
16 BUSINESS – THE BEATING HEART OF NEW ZEALANDYou can also read
