Update Magazine - Issue 155

Issue 155

update

Snapshot survey strong Results from CECC’s member survey Succeeding in the ‘new normal’ How local manufacturers are adapting The perils of ‘off the record’ The right way and the wrong way Behind the brand Introducing Ingrid Geldof Growth in the export sector Where is it coming from?

We’re behind you every step of the way.

By becoming a member of the Canterbury Employers’ Chamber of Commerce, you have a team of experts working for you.

• Access to over 100 free resources covering all aspects of business operation • Expert advice across all business areas • 10 free networking events throughout the year • 140 training courses specific to particular areas of business at discounted rates • Access to major discounts from various sponsors (including office stationery, fuel and telecommunications) as well as other discounted offers from fellow members.

Your first source for business advice.

0800 50 50 97 www.cecc.org.nz

32 Growth in the export sector Exports have grown across the majority of manufacturing subsectors. We look at the top 20. Pages 32-33

5 Snapshot survey strong, but issues abound CECC chief executive Peter Townsend shares the results from our recent CECC member survey. Page 5

15 Collaborate Canterbury teaming up companies for the rebuild How a new initiative could benefit your business. Page 15

35 New doors opening for Fudge Cottage Business-building initatives means our city’s iconic fudge manufacturer is now reaching markets further afield. Page 35

41 10 Succeeding in the ‘new normal’ How some local manufacturers are adapting to a challenging business environment.

Pages 10-14

21 The perils of ‘off the record’ Our employment team discusses the right way and the wrong way to conduct ‘off the record’ discussions.

Page 21

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13 The manufacturing ‘crisis’ Manufacturing expert Catherine Beard discusses the ‘crisis’ claims and the outlook for Canterbury.

Pages 13-14

Advertising is dead… actually, no it isn’t Advertising guru Neil Cameron looks at how traditional advertising has changed and what this means for local businesses (as well as advertising agencies). Pages 28-29

Managing growth opportunities In our Small Business section, Nick from our business team looks at how businesses can manage growth opportunities post-earthquakes. Page 41

42 Behind the brand Known for her functional, stylish kitchen designs, Ingrid Geldof discusses the journey of her business namesake. Pages 42-43

Pages 7-9 Business Opinion

Feature Pages 10-14

SUCCEEDING IN THE ‘NEW NORMAL’

Pages 10-14 Feature Pages 15-20 General Business Pages 21-23 Your People Pages 24-27 Events and Training Pages 28-30 Sales and Marketing Pages 31-33 Export and Import Pages 34-37 Member Profiles Pages 38-40 Arts and Culture Pages 41-43 Small Business Pages 44-46 New Members

CEO Comment

Update May 2013

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Opportunities for local manufacturerS

As a manufacturer, we know you’re under pressure from all angles – the high dollar, the global financial crisis, interest rates and the cost to market are just some of the challenges the sector faces. We also know the solution’s not as simple as just raising the price of our products.

Manufacturer’s toolkit We’ve produced a comprehensive manufacturing package to provide members with a dedicated range of resources. To access the Manufacturer's Toolkit, please login to www.cecc.org.nz

Operations

Instead we need to ask ourselves: • How do we increase productivity?

• How do we create a fit and lean business operation?

• How do we maximise staff and reduce staff turnover?

“There are two main ways in which our prosperity can improve over the longer run. The first is if the world is willing to pay more for what we produce. The second is by raising our labour productivity – that is by increasing the level of output per working hour. In the short term, we can generate higher income if we increase labour force participation or work longer hours.”

Graeme Wheeler, Governor of the Reserve Bank

CECC can help.

As a CECC member, you have access to tailored advice, support and unique opportunities to help build your manufacturing business. For more information, please contact Anne on 366 5096, annej@cecc.org.nz

• Manufacturing quick guide • Staying Fit and Lean quick guide • Stock and Inventory Control quick guide • Operations Manual sample • Certificate of Manufacture sample

Employment • Employment Agreements • Health and Safety in Employment quick guide • Drug and Alcohol policy • Managing Hazards in the Workplace quick guide • Recruitment and Retention quick guide • Restructuring and Redundancy quick guide • Employers’ National Wage and Salary Survey

0800 50 50 97 www.cecc.org.nz

CEO Comment

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Snapshot survey strong, but issues abound In February 2013, CECC surveyed its members on the issues currently being faced in the context of a post-earthquake environment. We wanted to know what areas were of greatest concern to the business community of Christchurch and therefore how we could respond to assist our membership to continue to build its business capability.

We sent 1900 survey requests and received a 13 percent response, which was good given the busy and challenging environment. We have tended to look at all business activity through a post-earthquake lens and it is sometimes easy to forget that many businesses are carrying on relatively unaffected by what happened in the months following September 2010. We also run the risk of underestimating the economic impact of the rebuild which, from CECC’s perspective, is “bigger than most of us can imagine”, as we have been saying.

Surprisingly, insurance claim settlements are not seen to be a big issue across the business spectrum. Of course those people who are deeply involved in settlements are expressing major concern but, overall, 52 percent of respondents did not see this as an issue of significance. There is also little concern about supply chains, which seem to be operating well – at least at this stage in our recovery. There was general concern about a lack of productivity in our economy but not a lot of concern about infrastructural constraints or the availability of business premises.

The results of the survey therefore were important in helping to gauge what business owners and managers are thinking about and how they are feeling. The top five issues having the most impact on business are:

Of course, in a survey like this, it’s easy to generalise, which can be dangerous. A small number of businesses are finding it extremely difficult to operate in a post-earthquake environment, which can have a large impact on the rest. However, I do take comfort from the fact that the survey is generally positive and people are optimistic about our future.

1) Insurance premium costs, with concerns about the level of insurance premium increase and ability to pay.

2) Personnel stress, with employers concerned about their own stress levels and the levels of their staff.

3) Skill shortages, seen as an important issue and only going to get worse over time.

4) Concern about a lack of sales. With the delays that have occurred post-earthquake we can expect this to remain a significant concern. As economic activity picks up right across our sector (not just construction and building), we will see pressure coming on all of our resources and a positive impact on sales volumes across the economic spectrum.

We have a lot of work to do with respect to skill shortages, getting some functionality back into the insurance market, making sure we are managing our stress levels appropriately, and taking advantage of the enormous influx of cash and activity that is already starting to be apparent in our community.

We will conduct another survey in six months to see how the issues have changed. Certainly those businesses that are adapting to the new environment seem to be coping and, in fact, doing well.

5) Working capital constraints and managing cash flow. This is a function of an economy where businesses are growing.

We are talking closely with the banking sector about new models of financing in a rapidly growing environment.

The good news from the survey is that business confidence over the next 12 months for Canterbury is positive, with 69 percent of respondents saying they expected their business confidence level to be positive or very positive over this period.

Peter Townsend Chief Executive petert@cecc.org.nz http://petertcecc.blogspot.co.nz/

Business Opinion

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Update May 2013

Business Opinion

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Managing risk in a volatile environment With little relief from the high dollar in sight for manufacturers and exporters – reflecting New Zealand’s relatively strong growth prospects and concerns about global economies – it’s important for local companies to be aware of the risks they face when trading overseas.

Global economic conditions are extremely volatile and changing constantly. And while the local economy is improving, New Zealand is not immune to the volatility in the world. This is most obvious in the movements in the New Zealand dollar exchange rate. While over the longer term, the New Zealand dollar tends to track the main export commodities that New Zealand sells to the rest of the world, in the short term, market sentiment has a major influence on the currency. It is fair to say that markets are very nervous at the moment.

Unfortunately there is no silver bullet to the high and volatile New Zealand dollar and companies should have some form of a Treasury Management Policy (TMP), whether formal or informal depending on the size of the business.

Credit risk is also increased for both buyers (importers) and sellers (exporters). As the banking sector around the world is exposed to increased risk and liquidity issues, banks offshore may find it more difficult to provide working capital facilities to their customers: your suppliers and buyers.

If these companies are constrained in their ability to raise working capital from their banks, they may ask for changes in the terms of trade they offer. For importers, this may be their suppliers insisting on faster and more secure payment instruments. In other words, they may ask to sight Letters of Credit rather than provide open account payment terms.

For exporters, this can result in customers asking for extended payment terms to allow them to match their own cash conversion cycle.

It is very important that importers and exporters understand these risks and have policies in place to manage them. As always, talk to your advisers, accountants, lawyers, bankers, freight forwarders, insurance brokers and underwriters.

Once the risks are understood, plans must be developed and put in place to manage the risks and measure the effectiveness of the management strategy.

New Zealand is well placed to weather the storm. The success of this will involve everyone in the supply chain playing their part.

If you would like to get in touch with me or one of our Foreign Exchange dealers, please drop me a line.

Ross Groves International Business Manager Westpac New Zealand Limited ross_groves@westpac.co.nz

Business Opinion

Update May 2013

8

Is manufacturing in crisis?

It’s not easy being a manufacturer today. For many, the business environment resembles the perfect storm – sluggish demand, low prices and a high dollar.

Manufacturing has never been an easy road. The small size of the New Zealand domestic market is a constraining factor and manufacturers face challenges in building their business to a scale to be able to export. Distance from overseas markets is another significant hurdle.

The economic environment in the wake of the global financial downturn has been tough for some manufacturers.

Unfortunately some have gone out of business, with regrettable job losses. There has been a fair bit of media speculation on this, with some making the claim that manufacturing is actually in a state of crisis. I’d like to take a look at that claim. Is manufacturing really in crisis?

The best measure of the health of manufacturing is the PMI*.

This is a monthly survey of on average 200 manufacturers across New Zealand. The data collected provides an up to date picture of production levels, employment levels, new orders and other aspects of manufacturing in New Zealand.

The New Zealand PMI uses the same methodology as other PMI surveys in the US, Eurozone, China, Japan and Australia.

In those other parts of the world, as here, the PMI shows manufacturing sectors facing significant challenges as the world slowly recovers from the global financial downturn.

The New Zealand PMI shows manufacturing was patchy during 2012 but has expanded since the start of 2013. During 2012, the PMI hovered around the 50 mark (a PMI score above 50 shows the manufacturing sector is expanding, and below 50 that it is declining). But in scores so far in 2013, the PMI has strengthened well, reaching over 55. So, while patchy, these PMI results don’t support the claims of crisis.

If there was a crisis, we would be seeing a very weak PMI at 40 or below (at the lowest point of the global financial crisis in 2008 the PMI surveys in all parts of the world including New Zealand showed scores between 30 and 40).

Growth and revenue data also do not support claims of a crisis.

Our food-based manufacturing sector continues to compete strongly in international markets and is the mainstay of New Zealand’s annual GDP growth which is now up to a respectable 2.5 percent, unlike the negative growth rates of many other countries.

Our technology manufacturing companies, critical for future growth, are performing strongly. Last year the revenue of our top 100 tech companies grew 2.2 percent, while revenue of the next 100-strong tier of tech companies grew 3.6 percent, an outstanding result compared with growth results in tech companies worldwide.

Business Opinion

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Other political suggestions for addressing the high dollar include changing the settings of the Reserve Bank in various ways. However, it is not possible to reduce the strength of the dollar by tinkering with Reserve Bank settings – because the problem lies in the weakness of other economies, not New Zealand’s economy. Unfortunately there are no simple solutions to the problem of a high dollar. If there was a useable course of action, we would do it immediately – if it didn’t have downsides that were even worse.

At BusinessNZ, we are constantly debating this and discussing it with others. While there are no direct levers that can be pulled to bring down the dollar, we believe there are some general changes that could and should be made to help improve manufacturers’ competitiveness.

Manufacturing supporting the construction and infrastructure sector is also well positioned. The Canterbury rebuild, and increased renovation and earthquake strengthening work throughout the country are highly likely to flow through into increased demand for building products and related equipment.

But of course there are challenges along the way. A notable one is the strength of the New Zealand dollar against the US dollar. New Zealand exporters are finding their profitability undercut by the weakness of the internationally denominated US dollar that is pushing other currencies higher.

The exchange rate is obviously a key factor in undermining the profitability of many manufacturers. It is the reason for claims of a crisis, and gives opportunities for politicians to promote favoured initiatives. A good example is the proposal for quantitative easing, the Green Party’s favoured solution for manufacturing. This proposal would see the Reserve Bank printing several billion dollars to buy earthquake bonds from the Government.

The Greens say this would reduce overseas borrowing, fund the Christchurch rebuild, refinance the Earthquake Commission, bring down the New Zealand dollar and ‘save manufacturing’. But would printing money do this? Hardly.

Printing money would bring severe economic problems, not least inflation.

If the Reserve Bank started printing money in this way, the real value of wages would plummet, and so would the value of people’s savings. Meanwhile, the price of petrol and other imports would soar upwards. Lower income earners, with declining wages and declining purchasing power, would be the losers. New Zealand would lose its reputation for prudent monetary policy, our valued asset in attracting investment for development and growth. This is not the kind of economic environment in which manufacturing could flourish. Printing money is not a credible response to manufacturing issues.

*The BNZ – BusinessNZ Performance of Manufacturing Index

Changes to help achieve more investment for development, more firm-based innovation, greater uptake of needed skills, and a freer international trading environment less hampered by tariffs and other barriers – such changes, strongly promoted by BusinessNZ, could make a big difference to enhancing the profitability of manufacturing.

We could also be doing more to take advantage of changes in the manufacturing sector itself. One such change is the greater dominance of supply chains. Manufactured goods are now often created using components and processes from different locations, often in different countries. Many New Zealand manufacturers have been quick to exploit this trend and are suppliers of components to some of the world’s larger supply chains, and there is the opportunity for much more involvement in this area.

Another change is the increased blurring of the line between services and manufacturing, especially in higher technology products – the ability to gain revenue from the service aspect of high value manufactured products is likely to grow along with the growing importance of such products.

Procurement reform in central and local government is another area that offers increased opportunity for New Zealand manufacturers.

There is a lot of opportunity in the manufacturing sector, and we should focus on exploiting that rather than shouting ‘crisis’. The manufacturing sector is too important to be used for political purposes. Manufacturing is facing a tough international environment, requiring resilience, innovation and good management to cope – and most New Zealand manufacturers are demonstrating just that. Claims of crisis are unhelpful and simply incorrect.

Phil O’Reilly Chief Executive BusinessNZ www.businessnz.org.nz

Feature

Update May 2013

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Succeeding in the ‘new normal’ Manufacturers face a challenging operating environment. A sluggish global economy, low consumer demand, and a high New Zealand dollar are just some of the pressures currently impacting the sector.

Feature

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Exchange rates have become a number one concern, p a rti c u l a rl y fo r export manufacturer s, with some businesses moving production offshore to reduce costs.

With speculation that the high dollar is here to stay, where does that leave those that choose to stay local – and how are they adapting to the ‘new normal’?

Given the size of our domestic market and distance from major trading partners, for many manufacturers success in the global marketplace is vital to remain competitive.

Daiken New Zealand is the company behind the nation’s most recognised medium density fibreboard (MDF) range, Customwood. All production is local, with a processing plant in North Canterbury. Primarily an export manufacturer, Daiken exports approximately 80 percent of its product, predominantly into Asia, with a significant proportion of this destined for Japan. Sales into the domestic market are approximately 20 percent of total sales.

Daiken financial controller Geoff Shea says the international economy is challenging, but their main concern at the moment is exchange rates. “Exchange rates are a challenge for us as we deal a lot in US dollars and the Japanese Yen,” says Geoff. “On top of the general appreciation of the New Zealand dollar, we’ve also had to deal with a mammoth depreciation of the Japanese Yen in recent times.”

A significant proportion of Daiken exports are traded on forward exchange contracts, a strategy that has helped to ease some of the pressure from current exchange rate movement. “However, ultimately you come back to market rates at some stage,” says Geoff. “In the interim, we need to take counter measures, like exploring new markets and opportunities, to help mitigate that pressure.”

For those focused on the domestic market, the high dollar is receiving a warmer welcome and shifting general opinion on the current business environment.

Local electronic manufacturer Streat Instruments’ niche market is moisture measurement and control systems – both domestic and international. One market sector they are active in is the domestic agricultural sector, where they have seen a strong increase in sales over the last few years. This has ensured they are not significantly impacted by fluctuations in the dollar in this area of their business, apart from the indirect effect it has on their customers.

Managing director Jim Herbison describes the current manufacturing environment as “neutral”. “Exchange rates have hurt us in some regards – especially in our export markets, and the high dollar has had a slightly negative effect internally, but overall we haven’t largely been impacted.

Because we – and our suppliers – import a lot of our materials from overseas, the exchange rate has actually worked in our favour in this regard, and enabled us to keep prices for our domestic customers down.

“For our export sales, we take out forward cover wherever possible as we often sell in US dollars and Euros, which have been very volatile over the last few years. There are instances where this is not always possible, which can easily cost us five to ten percent of the sale value.

“Exports are still a significant part of our business, with Streat systems in over 60 countries around the world, but due to a change in legislation within the New Zealand agricultural industry a couple of years ago, our domestic market has overtaken our export sales. Our strong domestic market has insulated us from the worst of the global recession.”

Similarly to Streat Instruments, precision engineering company Shamrock Industries predominantly manufactures products for the domestic market. Shamrock Industries chief executive Pat Fogarty says establishing a value-based business model has enabled the company to thrive in spite of challenging external factors.

“We broke into our current niche market in the early 2000s,” says Pat. “We moved away from being machinists and became ‘solution-ists’ – and in doing so we created a niche market for ourselves.

Feature

Update May 2013

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“This shift has brought us an increase in sale revenues and has definitely helped to offset competition. It has not only created new opportunities and engagements for Shamrock, but also positioned us well for the future of our business.” Pat says this has “undoubtedly” supported the company through the recession.

While exports only equate to roughly ten percent of all sales, Shamrock Industries has been adversely affected by the exchange rate due to the fluctuating dollar over the length of some of their contracts. However, Pat says the company takes a proactive approach to overcoming challenges.

“We’ve had a Brazilian project in the works for 15 months, but today is a very different story than it was back then,” says Pat. “The current exchange rate could jeopardise business.

“But, ultimately, it’s something that we have no control over. New Zealand operates on a global scale and those things happen – we just have to do what we can to continue operating. For example, in the last financial year, we made a significant investment in establishing a leaner operation, so we can become more efficient.

“We are also struggling to find suitably skilled staff. We have been looking for a high-end skilled CNC programmer and machinist for well over a year now. Increasingly we find ourselves having to turn to an immigrant workforce to satisfy our staffing requirements, but happily they typically come with excellent skills and a great work ethic.”

1Economic Survey of Manufacturing: December 2012 quarter, www.stats.govt.nz 2BNZ BusinessNZ PMI report, www.businessnz.org.nz

As manufacturers look to diversify their product range, build a stronger local clientele, or streamline efficiencies, the underlying sentiment is that the industry needs support to maintain local production. Geoff says more can be done to “open new doors, opportunities and introductions so that local manufacturers can establish sales in new markets”.

Jim echoes this opinion, saying “extra funding should be reinstated to agencies offering support and trade advice for SMEs”.

Despite the pressures they are facing, the New Zealand manufacturing industry is beginning a turn-around. According to the latest statistics from Statistics New Zealand, total manufacturing volumes rose by 1.5 percent in the last quarter of 2012 . Of the 12 manufacturing industries seven of those saw an increase in volume.

BusinessNZ has also indicated that the February 2013 BNZ – BusinessNZ PMI manufacturing index was 56.3, which saw an increase of 1.1 points on January and the highest monthly result since the same time last year. These figures are a bright light for an industry that has largely been – and continues to be – at the mercy of significant external factors.

As we adapt to a ‘new normal’, it is those companies that continue to look at new ways of working that will thrive in this environment – whether it’s through innovation, new markets, new staffing initiatives or the implementation of lean manufacturing efficiencies that have never been more relevant than now. And while New Zealand business owners are known for their resilience, there is more that can be done to help support local businesses to ensure the manufacturing sector remains competitive and viable. As a key driver of our regional economy, it is vital that we do everything we can to support local manufacturers to keep local production local.

Feature

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Opinion

The manufacturing ‘crisis’ and the outlook for Canterbury There’s no denying New Zealand manufacturing has been through some challenging times since the recession and the Global Financial Crisis dampened domestic and international demand. But to keep it in perspective, it has been tough in most of the world when you look at the global Performance of Manufacturing Indexes (PMI), regardless of where a country’s currency has been sitting or whether they are a high-cost or low-cost manufacturing country.

Those that tell us we are in a manufacturing ‘crisis’ are picking up on the fact that some individual manufacturers are struggling, while overlooking the data that shows manufacturing overall seems to be on the comeback trail.

Food and Beverage manufacturing has been in expansion for some time and 2011 saw a surge in growth in exports of processed foods (driven by infant formula nutraceuticals and innovative foods) and high-tech manufacturing. Food manufacturing has trended up in output by 6.6 percent since 2009 according to Statistics New Zealand.

Positive outlook for Canterbury The fact that 60 percent of Kiwi manufacturing is sold domestically, with much of it supplying the domestic construction sector, bodes well for the region and for manufacturing growth. We should start to see some of the estimated $40 billion rebuild generating this growth as insurance and reinsurance money starts to be converted into building activity.

Pent up demand in the Auckland market is also starting to see a lift in new building permits and people seem ready to unlock their wallets and start renovating as well.

Let’s look at what manufacturers themselves are saying, by looking at the BNZ-BusinessNZ PMI survey. This is a monthly survey of manufacturers throughout the country, and part of a growing range of manufacturing index measures released in a range of major economies. The survey already has a high level of recognition internationally. Its results are part of the JPMorgan Global PMI, which collects monthly manufacturing data from 32 countries, making up an estimated 89 percent of global manufacturing output.

The survey provides an early indicator of activity levels, along with a way of comparing ourselves against other countries.

The BNZ-BusinessNZ PMI is closely based on the existing Australian and US PMI that have been running for some years. In Australia and the US, the survey has been found to be a reliable and useful tool for signaling turning points in their countries’ growth cycles.

BNZ senior economist Craig Ebert said the latest PMI, released on 15 March, reinforces the bank’s view that manufacturing is not ‘in crisis’.

“The figures speak for themselves,” said Craig. “The way some people are talking, we should be witnessing a very weak, to plunging, PMI. In fact, it's improved to a more positive level.

While employment is still lagging, with production being the fastest growing in more than eight years, we have good reason to expect a pick-up in jobs to follow, especially with new orders picking up as well as they are."

While the manufacturing recovery has been a bit mixed, we have now had two good months of manufacturing expansion in the New Zealand PMI, and we believe there is good reason to be more optimistic about the overall future of our manufacturing industry.

Feature

Update May 2013

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Changing face of manufacturing Manufacturing is important to the New Zealand economy; it is still the second largest employer and it is where all the innovation and R&D typically occurs. Like all things, with time it must change and adapt to survive. While there is a decline in some types of manufacturing (as there is worldwide), there is growth in others.

With the quickening pace of developments in technology, the way things are made, and what is made, is changing.

As modern manufacturing moves away from low-value low-tech products (such as wool and logs), towards more high-value, high-tech products (such as eHealth and IT management products), New Zealand has the chance to really capitalise on what Kiwis are good at – innovation.

Despite the relatively high Kiwi dollar and most of the developed world still in recession, our top technology companies are still growing. The TIN100 report shows that its 200 top technology export companies are remaining competitive through innovation. For example, Datacom is well on its way to growing into a $1billion business – currently at $788million. Orion Health and Christchurch appliance manufacturer Skope Industries both grew past the $100million revenue milestone.

The big A’s Australia and Asia are another important consideration in our manufacturing picture. Australia barely learnt the meaning of the word ‘recession’ and remains our number one trading nation. It is our highest growth market and accounted for 30 percent of TIN100 revenue and is the main destination of our elaborately transformed manufactured products. It is good to see that Australia recently reported unexpectedly high growth in employment, indicating an underlying strength in the economy.

With the shifting of world economic power to Asia, the fact that most of our processed food products – which make up over a third of New Zealand’s manufacturing output – goes to Asia also bodes well for the future.

Manufacturing does have a vital part to play in our economy, it just has a changing face. The challenge and the opportunity lie in leveraging our Kiwi innovation, and keeping up with the tide of change in both market demand and global economic power shifts.

Catherine Beard Executive Director ManufacturingNZ and ExportNZ

The TIN100 report is an analysis of the performance of the top 100 New Zealand-founded high-tech companies. www.tinetwork.co.nz

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General Business

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Collaborate Canterbury teaming up companies for the rebuild Hundreds of organisations across New Zealand have signed up to the Collaborate Canterbury initiative, with hopes of building scale and capacity by teaming up. Since its launch in midFebruary, the project website has been integral in connecting businesses interested in exploring the opportunities that collaboration could bring.

Teaming up and rebuilding together provides opportunities not only for individual businesses to build scale and capacity, but for New Zealand and its growth as a nation.

Ross Galt Lock and Alarm – a long established Canterbury business – is already reaping the benefits of a joint venture with Auckland based Wilson and Macindoe, an architectural hardware specialist. The joint venture between the two companies came into effect in October last year. Geoff Kidd, Ross Galt’s general manager, says the longer they work together, the more benefits each is discovering.

Geoff ’s advice to other Canterbury companies considering collaboration is the necessity for each business within the relationship to remain solidly focused on their core strengths, allowing each team of highly trained professionals to continue Collaborate Canterbury helps established local businesses connect with companies across New Zealand who want to play a part in the rebuild and have the excess capacity to do so. Local companies looking for staff and additional resources can register on the Collaborate Canterbury website, which can then match them with potential businesses who have the skill, labour or resource they need to upscale.

Employing people is not the only way for Christchurch businesses to grow and meet the demands of the rebuild.

Collaborate Canterbury spokesperson Peter Townsend says it is critical for Christchurch, and the rest of the country, that companies work together and combine resources. This could be through supply agreements, joint ventures, secondments, partnerships, outsourcing, acquisitions or sub-contracts.

“By working together, the company inside Christchurch can unlock the door to the rebuild opportunities, while the external company allows the local business to build scale and increase its capacity,” says Peter.

doing what they are best at.

What about the business arrangement? He believes a successful joint venture, or any business arrangement for that matter, is more about the people than the actual deal.

“From the very beginning, both of our companies had great respect for each other, and we had many open and frank discussions where every potential problem and threat was explored,” says Geoff. “There cannot be any hidden agendas or game playing. All conversations have to be unguarded, with no surprises.”

Among the deal making was a very clear set of rules which kick-started the formal arrangement. Since then, both companies are thriving and looking to the future with confidence. “And we are having plenty of fun too,” concludes Geoff.

The Collaborate Canterbury website features many case studies of businesses that have entered into a variety of collaborative relationships – these offer up examples, benefits and tips on how to make a business relationship work for both parties.

To register your business online, visit www.collaboratecanterbury.org.nz

General Business

Update May 2013

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‘Being good’ with cashflow BNZ can support Canterbury businesses through innovative alternative finance options that show how to ‘be good with money’.

Innovative finance solutions allow cash to be made available when you need it to match your trade cycle, so it can be quickly reinvested back into your business to grow and prosper. You and your business need the support of a bank that is committed to the Christchurch and wider Canterbury communities, understands your business and is innovative.

Demand and pressure continues to be placed on the cashflows of smaller to medium-size businesses underpinning Canterbury’s rebuild. Access to cash is critical to cover when you have slow paying debtors, are growing or where there are extended payment terms. You need to look beyond traditional overdraft and term funding.

Do any of these cashflow problems sound familiar?

You provide products or services and get paid on terms such as 20th of the month following, but: •

You’re growing and can’t collect your debtors in quick enough

• You have plenty of new forward work, but no cash to take on new workers or buy supplies •

You are up to your overdraft and the bank has said no more because of lack of security.

The solution – innovative cashflow finance Your customers (debtors) are a valuable business asset and BNZ can leverage them through innovative cashflow finance.

BNZ is the only main bank providing this type of funding – here’s how it can help your business: •

Our product, Invoice Finance, lets you access up to 80 percent of the face value of your BNZ approved invoices for up to 90 days, immediately through Internet Banking for Business

•

Online access to funds from the moment you invoice

• Confidential – you maintain control of your debtor relationships •

Your invoices form the security – your personal property is not required

•

Grow your business when you want to without worrying about your cashflow.

General Business

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How can we help you?

Case study A: Products manufactured or supplied Company ‘A’ supplies pipes and fittings to construction companies to rebuild broken lines.

Case study B: Services supplied Company ‘B’ supplies labour to companies to fill part- or full-time positions.

Issue: Company ‘A’ manufactures pipe and sources fittings locally. It needs to hold three months stock of pipe and fittings to fund forward work. Construction companies’ payment terms are 60 days.

Issue: Company ‘B’ has to pay its labour staff weekly, but doesn’t get paid by the hiring company for a minimum of 14 days and usually on the 20th month following. It is growing rapidly.

Problem: The cashflow cycle doesn’t match, leaving Company ‘A’ to source and pay for material on 20th month following manufacture and incur labour and overheads but not receive payment for a further 30-40 days. It has no security left in its personal house (which the bank has a mortgage over) to fund the business.

Problem: The cashflow cycle doesn’t match, leaving Company ‘B’ to pay up to 50 days of labour costs before being paid by the hirer. It has ‘stretched’ overdraft facilities.

Solution: Upon delivery and invoicing of pipe to sites for confirmed orders, BNZ funds up to 80 percent of each invoice for up to 90 days. This can mean Company ‘A’ has cashflow to purchase new materials, manufacture pipes and pay their staff for supplied orders. BNZ could remove the personal home as security for the working capital funding of the business.

Could suit: Companies supplying products where there is a proof of delivery.

Examples: Manufacturers, transport operators, import wholesalers, distributors, printers and more.

Solution: Upon weekly pay sheets being completed and billed to the hirer for staff hired, BNZ funds up to 80 percent of each invoice on the same day, for up to 60 days. This can mean Company “B” has cashflow to pay its hired staff weekly and can take on new contracts and keep growing.

Similar options: Could apply to a company providing a service that can prove the work has been completed.

Examples: Consulting, media placements, commercial laundry, scaffolding hire and more.

If you want to know more about how BNZ can help you ‘be good with money’, call 0800 273 916. For local specialist advice on BNZ Invoice Finance, please contact me on 03 353 2911.

David Beckingsale Cashflow Solutions Partner BNZ www.bnz.co.nz

The information and recommendations contained in this article are provided for general information purposes only. To the extent that any such information or recommendations constitute financial advice, they do not take into account any person’s particular financial situation or goals. We recommend that you seek advice specific to your circumstances from your financial adviser.

1.

Subject to the terms and conditions of the Facility Agreement and Lending criteria.

2. Internet Banking for Business terms and conditions apply.

3. Maintenance is required from time to time.

General Business

18

Update May 2013

Inspire Canterbury CECC is proud to have partnered again with Kea, New Zealand’s Global Network, to host Inspire Canterbury. The event aimed to inspire, educate and motivate Canterbury business people and entrepreneurs to think differently and internationally, jump out of their comfort zones and start exploring the next stage of growth.

The line-up of speakers for the 2013 event, which featured a mix of dynamic, internationally successful Kiwi business people and local business heroes did just that. Those lucky enough to attend this year’s event received an insight into

what drives these extremely successful and innovative business people, the strategies they used to bounce back from failure, and how they maintain the drive and energy to think globally and achieve more in business.

General Business

19

We are very proud to work with the following organisations that have made this event possible.

National sponsor: Telecom Platinum sponsor: IAG Major sponsor: Lane Neave Design partner: Plato Design Agency Media partners: The Press, Newstalk ZB Supporters: Multi Media, The University of Canterbury

>> www.inspirecanterbury.co.nz

General Business

Update May 2013

20

YOUR solution PARTNER

From little acorns…

The expression “From little acorns do mighty Oak trees grow” captures the essence of business – the desire for healthy (profitable) growth. But it also underlines one of the key challenges for business, which is managing that growth.

All businesses progress through well defined stages of maturity, commencing as a start-up based in the garage or at the dining-room table, taking on the first full-time employee, moving into ‘proper ’ premises, the first bookkeeper, accounting package and so on. But as an organisation matures and grows, the first cracks often start to appear.

Are stress fractures appearing as your company grows?

The entrepreneurial skills that drove initial success become stretched. More formal human resource procedures, audits, regulatory compliance and banking covenants take owner managers into unfamiliar territory and away from running the business. At the same time, rapidly growing volumes and diversification of the business mean that proprietors no longer have personal knowledge of every business deal or visibility of cash flow, new prospects, the order pipeline and processing backlogs.

The tell-tale signs Following are signs that you should consider m ovin g yo ur bus ine ss to a fully fle d g e d management system.

•

Growth in transaction volumes

•

A compelling need for process automation

• Wo r k - a ro u n d s a n d s p re a d s h e e t s a re mushrooming • Lack of integration is becoming costly and disruptive •

Your IT team (or staff member) can’t keep up

•

You no longer have your finger on the pulse

•

Your auditors are asking more questions

•

Staff are regularly burning the midnight oil

•

Your accounting system is causing frustration, holding the business back.

Errors start to creep in. Some purchase invoices may have been paid twice in error and the company’s auditor expresses concerns for the first time about controls. Gaping holes in processes start to appear as the company’s systems struggle to keep up with the demands.

The business is showing signs of distress and is running faster to stand still. With every advance in growth, your managers ask for more staff to increase capacity. Most critically of all, nobody seems to have the time to introduce better systems and processes. Ironically, the business probably planned when and who it was going to hire, its new premises, the products and the markets it was going to attack – but it didn’t consider fully the systems and processes it needed to underpin and sustain scalable growth.

So how do you avoid chaos? Invest in a business management system.

Manage your business the smart way Most early-stage companies start trading with a bookkeeping or accounting package. There are a number of justifiably popular low cost, entry level systems for small businesses, which typically perform an excellent job of keeping the books straight. They enable a small business to maintain records of who owes money and how much the business owes creditors; to generate sales invoices and essential reports such as a profit and loss account and balance sheet.

But there comes a point when a company needs more than an entry level bookkeeping system. Companies that are well established need a business management system – one that supports the full range of its activities, such as how the business operates in practice, not just in conventional bookkeeping.

A good business management system, in conjunction with a trusted financial advisor, can save time, stress and money in the long run – enabling you to work smarter, not harder.

Richard Williams General Manager MBS Richard@mbs.co.nz www.mbs.co.nz

Your People

21

The perils of ‘off the record’ or ‘without prejudice’ discussions Dysfunctional employment relationships rarely occur as a result of a single adverse event – there is usually a history of concerns and tensions over a period of time.

Many managers and business owners are reluctant to tackle issues, believing – often misguidedly – that things will somehow get better by their own accord.

When they don’t, employers can be attracted by the notion of negotiating the employee’s departure – via an agreed ‘exit package’ – established in discussions that the parties have agreed should be conducted on a ‘without prejudice’ basis. By doing so it is hoped that all the discomfort and stress associated with a structured disciplinary process can be avoided. The only problem is that, if not handled correctly, this situation can easily set up an employer for a ‘constructive dismissal’ grievance.

The safest place for these discussions – in relation to employment relationship problems – is within formal mediation, conducted with the assistance of a mediator from the Ministry of Business, Innovation and Employment acting under the Employment Relations Act. This is a free service and under the terms of the Act, mediation proceedings are expressly provided to be ‘without prejudice’. In any event it is recommended that such discussions be commenced only after initiating a structured disciplinary process – not as a prelude to them.

‘Without prejudice’ discussions have their place, but it needs to be clearly understood that very strict requirements must be met before a party can reliably claim that evidence of the discussion cannot be admitted in any subsequent proceedings.

Firstly, a dispute must exist – and be acknowledged to exist by both parties. It is not legitimate that one party attempt to initiate discussions of a ‘without prejudice’ nature in anticipation of a probable dispute. Secondly, ‘without prejudice’ discussions must be conducted for the purpose of resolving that dispute in a constructive manner. Simply conveying a threat of disciplinary action unless the employee resigns, for example, will not be protected and is likely to result in a claim of constructive dismissal.

Commencing ‘without prejudice’ discussions can be fraught with difficulty and their success will largely depend upon both parties’ genuine willingness to engage in such conversations.

We

recommend…

For advice on any employment issues, contact Keith Woodroof on 03 366 5096 or keithw@cecc.org.nz.

Your People

Update May 2013

22

Working too hard and too stressed If you feel you work too hard – you’re not alone.

A health and wellbeing survey of over 2000 New Zealanders

by Southern Cross Health Society has found that half of those surveyed said they felt overworked, while one in five said they spent significantly more time working than they would like. 41 percent said they had the balance just right.

People in the household income bracket of $70,000 to $100,000 per annum were most likely to feel their work-life balance was skewed too far in work’s favour. The good news is that more New Zealanders are feeling they have the balance right than five years ago. 40 percent of females and 33 percent of males said their work-life balance had improved over this time.

Southern Cross Health Society chief executive Peter Tynan said for those lacking balance, a holiday period could provide some welcome breathing space to examine the contributing factors.

“Often life is so busy, we just have to keep going. A break can be a great time to get some perspective, make plans and strategise for how to get that balance right. It could be something like planning a conversation with your boss in regards to flexible hours, or researching options that will allow you to conveniently fit exercise into your life.”

The survey also showed that 30 percent of Kiwis reported being stressed.

•

Women, those aged under 40, and people with children were more likely to be stressed.

•

34 percent of all respondents were more stressed than the previous year, while 19 percent were less stressed.

•

New Zealanders under 30 and people with children were feeling more pressure than in 2011, with 40 percent of both these groups saying they felt more stressed than last year.

•

People from Christchurch reported a higher incidence of stress than other regions.

Peter said New Zealand employers were increasingly recognising the importance of supporting their employees’ overall wellbeing.

“Health or personal issues can’t just be left at the door when we walk into work, and ultimately this impacts our productivity.

So there is a business benefit to workplace-based health initiatives. But, primarily, the employers we work with put them in place because they genuinely want to help their employees.”

Southern Cross is New Zealand’s largest employer group health insurer and also offers other health-related initiatives, such as corporate wellness programmes and Health Management Accounts.

Your People

23

Cultural shift needed A cultural shift at senior executive level is required to address New Zealand’s horror statistics on health and safety, says Helen Mason, CECC health and safety consultant and trainer.

The Safer Workplaces consultation document has recently been published by the Independent Taskforce and the statistics highlighted in the report make for sobering reading: •

100 people die from workplace accidents each year

•

700-1000 people die of work-related diseases

•

6000+ people have a serious harm incident in their workplace

•

190,000 claim medical costs as a result of being harmed at work

•

25,000 are hurt badly enough to be off work for a week

•

$3.5billion is the cost to the nation of all deaths and injuries each year.

Unfortunately, the issues raised by the report are not new.

New Zealanders are killed or injured at work in concerning numbers. So, what can be done to improve this? Participation at all levels of the organisation, from the chief executive and senior managers down to the newest recruit, is vital to create safer and healthier workplaces. Staff participation and engagement in health and safety matters has improved considerably since the Health and Safety in Employment Act 1992 was amended in 2002 to include provision for employee participation in the workplace health and safety.

Engagement at a senior level within organisations in health and safety matters is one of the most important factors in improving our statistics. Senior management training, tailored to an organisation’s specific requirements can be invaluable.

The initial costs involved in setting up health and safety systems and providing training for up-skilling would soon be insignificant if a reduction in workplace injuries was achieved.

ACC’s Workplace Safety Management Programme also offers financial incentives for organisations that actively manage health and safety, and thereby reduce the risks of harm and injury in their workplaces. Of course happy, healthy employees make good business sense and have the potential to save the business a lot of money.

With the re-build gathering speed it will be even more important for business owners to give 100 percent support and commitment to health and safety. Injury rates for the self-employed are twice as high as those employed by others and new employees, migrants and non-English speakers will require robust on the job training to avoid adding to the statistics.

Helen Mason Health and Safety Consultant and Trainer CECC

Since the Christchurch earthquakes, a shift in employees wanting to be more involved with health and safety at their place of work has also been noticeable. This is encouraging.

However in some cases, there is reluctance at senior levels within an organisation to commit the time and budget to implement health and safety measures, particularly in times of economic downturn. There is a perception that health and safety initiatives are a ‘nice to have’, but that they are time consuming and expensive. Organisations often underestimate the level of risk their workplace poses or try relying on ‘common sense’ as a way of managing potential hazards.

Our injury statistics indicate that this approach is failing.

Health and safety needs to be seen as an important part of the day to day business, at all levels of the organisation, not an add on or ‘tick the box’ compliance issue. Of critical importance is that this message is lead from the top. Overall, a cultural shift from senior managers and executives will be imperative to achieve a reduction in our horror injury statistics.

We

recommend…

For more information on the above, or advice on any health and safety issues, including training options, contact Helen Mason on 03 366 5096 or helenm@cecc.org.nz.

Feature Seminar/Event Training

Effective workplace communication 29&30 May • 4&5 September Learn how to communicate clearly, accurately, convincingly and with confidence.

Studies show that the most successful companies are people-centred, where communication is the lifeblood of the workplace. This workshop will give participants the skills to communicate clearly, succinctly and effectively for maximum efficiency and productivity. Disputes arise in any organisation and this workshop will also teach you how to defuse conflicts and create an environment where they are less likely to occur again. Easy to apply formats to create great relationships and defuse conflicts are included.

Benefits

Your business needs you to be an expert.

Our TRAINING

Learn how to: • Create a positive workplace environment • Coach and inspire others • Create positive lasting relationships • Influence and persuade others • Avoid misunderstandings and deal effectively with conflicts as they arise.

Time: 9.00am to 1.00pm Member Price: $348.00 + GST Non-member Price: $609.00 + GST Presenter: Alan Fayter, Optimum Mind Venue: Westpac Business & Community Hub, Jack Hinton Drive, Christchurch

makes it possible. >> T o make a booking or for more information, please visit www.cecc.org.nz or contact the team on 03 366 5096.

Upcoming Training Calendar >> May-July 2013 Make the most of our Early Bird discount of 10% for bookings made 30 days in advance of course date.

Excludes Health and Safety.

May 2013

July 2013

21-22 May

Essential Training for Health & Safety Representatives (Stage 1)

17-18 July

Essential Training for Health and Safety Representatives (Stage 1)

22 May

Analysis & Interpretation

30 July–3 Sep

29-30 May

Effective Workplace Communication

Essential Leadership Skills Programme (6 Modules)

31 July–28 Aug

Essential Supervision Skills Programme (5 Modules)

June 2013 6 June

Improve your Business with LEAN

6 June

Project Management Skills

12 June

The Winner’s Edge

18-19 June

Essential Training for Health & Safety Representatives (Stage 1)

20 June

Online International Marketing

25 June

Introduction to the Exporting Process

25 June

Export Documentation

25 June

Costing and Pricing

25-26 June

Advanced Training for Health & Safety Representatives (Stage 3)

26 June

Event Management

27 June

Employment Law for Supervisors

cebook: Like us on Fa raining k.com/CECCT >> www.faceboo ents k.com/CECCEv oo eb fac >> www.

>> A ll events must be registered for. Email registrations@cecc.org.nz or phone 03 366 5096.

Be recognised for your business achievements!

Nominations are now open for the 2013 Champion Canterbury Business Awards.

The Champion Canterbury Business Awards are a showcase of the region’s business talent and capability and a platform for paying tribute to those building our economy and community.

We’re looking for organisations that contribute jobs and economic activity to this region, are innovative and professionally managed, and are committed to maintaining and developing business in Canterbury.

Entering is easy: • Nominate your own organisation; and/or, • Nominate an organisation you think deserves recognition.

Nominations close Wednesday, 5th June 2013.

All entries must be submitted

by Wednesday, 10th July 2013.

Winners will be revealed at the Awards Ceremony on Wednesday, 2nd October 2013 at CBS Canterbury Arena.

championcanterbury.org.nz

Business Performance

Update May 2013

26

Your Employers’ Chamber membership card delivers exclusive savings The Employers’ Chamber not only offers a full range of assistance, there are also many other ways to make your business dollar go further. Below are updated offers from the New Zealand Chambers of Commerce and Industry’s key national partners and local Canterbury Employers’ Chamber of Commerce supporters – covering banking services, fuel, office supplies, vehicles, telecommunications and health insurance. We also recommend that you check the noticeboard in the member-only area of the website (www.cecc.org.nz), which lists offers from members for members.

Westpac Card Services

Southern Cross Health Society

OfficeMax

Westpac offers special prices to CECC members requesting merchant business facilities, extremely competitive deals on EFTPOS hardware, and other special offers from time to time. For more information on ways to save money with Westpac, please contact the Westpac EFTPOS Solutions Team on 0800 800 066 option 3 or email eftpossolutions@westpac.co.nz.

Did you know that as Southern Cross members, your employees can enjoy many special benefits? To find out more, call 0800 GET COVER (438 268).

Purchase your office supplies from OfficeMax and take advantage of the special pricing available only to Chamber members. For details, email chamber@ officemax.co.nz, freephone 0800 426 473, freefax 0800 226 473, or visit www.officemax.co.nz.

Ford

Telecom Access to the special CECC member mobile calling plan ($25/month and 0.25c/ minute – any network, any time) from Telecom (available regardless of your call volume) – and choose from a range of handsets. For more information, contact Telecom Business Hub on 0800BUSHUB or email info@hubchristchurch.co.nz or info@hubcanterbury.co.nz.

Your CECC membership entitles you to a discount off the recommended retail price of a new Ford vehicle from selected Ford dealerships (Offer excludes FPV range, and retail promotions from time to time).

Contact Avon City Ford, Team Hutchinson Ford, Gluyas Motor Group or GreyFord today. www.ford.co.nz.

Noel Leeming Group Noel Leeming has partnered with the Canterbury Employers’ Chamber of Commerce to bring you fantastic savings on products in its Noel Leeming and Bond+Bond stores nationwide. Use your Chamber membership card or quote your membership number to get Cost+9% storewide at Noel Leeming and Bond+Bond stores. Some exclusions apply.

Please ensure you have your Employers’ Chamber membership number handy when contacting any of the offer providers.

Z Energy (previously Shell) The ‘Shell Card’ is the smart way to minimise your refuelling costs. If you’re a GST registered business, spend more than $150 per month on fuel and are direct debit enabled for account payment, it’s easy to arrange – just call 0800 474 355, or visit http://z.co.nz/keeping-business-on-themove/z-card/ and get smart reporting options AND 5c per litre off the pump price.

SEEK Ltd Get the staff you need, at half the price.

SEEK offers an exclusive price to CECC members to place a standard online job ad for $90 – that’s almost 50% off! Choose SEEK to have your job ad live within hours, in the market live for 30 days, plus enjoy great personal service and access to New Zealand’s largest pool of job seekers.

Contact Chris Squire on 03 343 0370 or chchsales@seek.co.nz.

* Conditions Apply

resources & publications • training & events • advice • consultancy • advocacy www.cecc.org.nz

Sales and Marketing

27

Golf Classic 2013 On Friday, 15 March, CECC hosted the annual Golf Classic at Russley Golf Course. The Golf Classic is a major event on our calendar and has been an annual event since 2004, offering social and serious golfers the opportunity to relax while building business relationships.

Attendance The 2013 tournament saw 114 players take the course.

Results

The players were made up of 24 corporate teams including: Bank of New Zealand, Bartercard, Craigs Investment Partners, Cunningham Taylor, Desktop Imaging, Duncan Cotterill, Enterprise Recruitment, Giera Progressive First National Real Estate, Gen-i/Telecom, HSBC, Lane Neave, Dress-Smart, Maxim Print, OfficeMax, Plato Design Agency, Reliance Recruitment, Rockcote, SEEK, The Building Intelligence Group, World Travellers Christchurch.

Overall winners

The five mixed teams included players from the following businesses: AB Note, Back to Work, Coca Cola Amatil, Connect NZ, Hardy & Hiscoke, Plastech Industries, Recall and Tabak Business Sales.

Attendee feedback “Well organised, relaxed atmosphere, good networking.”

“I thought it was very well run. There were refreshments and snacks at regular intervals, and the meal was lovely. All in all a very well-run event that I really enjoyed.”

“I enjoyed the interaction with business colleagues. Thought the stands at each hole were great and meant the day was more than the just a game of golf.”

Sponsorship

Major sponsor

Supporting Sponsors

Tournament Supporter

First Place AB Note/Back to Work team (score: 53.75) Second Place Cunningham Taylor (score: 54.62) Third Place Reliance Recruitment (score: 55.37) Prize hole winners Nearest the Pin – Sponsored by Rockcote Nick Smithson, Online Distribution – Desktop Imaging team Straightest Drive – Sponsored by Plato Design Agency James Mullins, Giera Progressive First National Real Estate Longest Drive – Sponsored by Cunningham Taylor Jono Brent, Duncan Cotterill

Spot prizes were also awarded by hole sponsors for competitions run on the day.

Sales and Marketing

Update May 2013

28

Advertising is dead… actually, no it isn’t The death of advertising agencies has been foretold for as long as I have been in this business. Yes, the days of ‘Madmen’ are long gone. Nowadays, the workdays are long, the mythical long lunches are a sandwich at the desk, the tasks complex and if it doesn’t sell, your work comes under intense scrutiny. The question is not whether ‘advertising’ is dead. It’s what advertising actually is now.

Not surprisingly, much of the change in what constitutes ‘advertising’ can be directly related to the internet and the acceleration of technology. Advertising has always been about sharing ideas. First TV and now the internet have given people tools to do this faster and cheaper; the current ultimate tool – Youtube! This presents both opportunities and challenges.

So, to marketers and advertisers, what does that mean? It means that a 30 second TV ad, a magazine ad and a radio schedule are no longer enough. Today is about using all the tools at your disposal in the best possible way to achieve the desired outcome. Selling, communicating, and sharing may be the same; but the speed at which you can achieve it, is radically different.

Some advertisers are now buying their own Macs and designing their own material, using web developers overseas to save money, shooting TV on their iPhones and doing many of the marketing functions themselves. Others are not. They see the benefits in working with a full service marketing (advertising) agency, to provide seamless, faster and smarter solutions. Great ideas produced efficiently by imagination and insight are essential for a world that can change in a blink of an eye. Competitive advantage is what business is about. In order to achieve that, you need better thinking in all areas.

There is simply no way an individual or even a small group can stay abreast of the revolution in marketing. Personally, we’re fortunate to have our web partners, E2 Digital, with a staff of 25. Gary Lee, managing director, estimates that his team spend 20 percent of their time staying current with social media trends, software updates for the programmes they use and internet developments. That provides a seamless interface between traditional and ‘new’ media – essential as TV ads now routinely appear on Youtube and the business website as well as any one of the many TV channels, supported by social media and search.

Take one of our clients as an example. Our creative teams create the images and promotions, and produce the TV and radio ads. The web teams at E2 Digital develop the Google adwords campaigns and online advertising. The web developers also use the imagery produced for brochures and magazine to integrate with the visual aspects of the website. All under the one roof. The sum of the parts is greater than… you know the story.

That’s why the full service agencies are not dying in the numbers forecast. In fact, many are thriving, offering a service that enables clients to keep pace with the change. And, better still, take full advantage of it. There is a tangible cost today in being slow out of the blocks.

The argument for a fully integrated marketing communications/ online partner is strong. The pressure lies with the agencies to stay abreast of change and deliver solutions clients could not produce themselves.

“Imagination. It is one of the last remaining legal means you have to gain an unfair advantage over your competition.”

Pat Fallon, co-founder Fallon Worldwide

Neil Cameron Managing Director – Harvey|Cameron Director – E2 Digital www.hca.co.nz

Sales and Marketing

29

Sales and Marketing

Update May 2013

30

The online channel What is ‘the online channel’ and what can it do for my business?

The term ‘channel’ is a marketing concept where every business has avenues to market. Common channels include TV, radio, print advertising, directory listings, trade shows and so on.

The ‘online channel’ relates to how you use the internet to direct business your way. It has a broad context relating to search engines, paid advertising, social media, directories, email marketing and – of course – your website. Many businesses don’t understand the full value of their online channel and are significantly under-utilising what it has to offer, often because it seems like a vast and daunting minefield.

What can the online channel do for me?

The potential of an online channel is commonly misunderstood.

The best way to understand it is to imagine how a prism disburses light – the white light is the ‘visibility’ of your business online, then each colour is how the channel can benefit your business.

Nightmare or opportunity?

Today’s online landscape is complex; the sheer breadth of what you can do is overwhelming. Pressure looms to get involved in channels like social media and e-commerce, but just because you can doesn’t mean you should. The key to finding opportunity is in using the right online channels that suit your business and allow you to achieve your specific goals.

•

Increased reach and awareness of your brand

•

Enhanced trust in your brand

•

Offline and online conversations about your company

•

Increased referrals

•

More and better quality enquiries

•

Perception of value in your products/services

The key thing to understand is that most business owners and managers feel just like you and, the chances are, so do your competitors. While it may feel like a nightmare, there’s real opportunity in your online channel where even getting just the basics right can pay big dividends.

•

Decreased marketing costs.

Benefits of a solid online channel include:

Keep it simple – and stick to it There’s no such thing as a silver bullet in the world of online marketing, but a good start is to have an online strategy that’s straightforward and simple to keep. Some strategies take time to convert new customers, so don’t be put off if you don’t see immediate results.

Take time to get support systems in place for your strategy, and if something hasn’t worked in the past don’t write it off – it may be for other reasons than you think (for example Google Adwords advertising may not have given you return because your landing pages were poorly designed).

The online channel is a complex beast that can be tamed to help any business grow, so long as you keep to a simple formula and do the right things well.

Alan Cox Chief Executive LeftClick www.leftclick.com

Research from Enquiro

Export and Import

31

Export help for manufacturers and exporters With challenging times for business at home and in the international market place, a different approach or some helpful assistance can be invaluable. At CECC we have a comprehensive range of resources plus a great team of business advisers ready to listen and help.

Export mentoring programme Our newest service, the Export Mentoring Programme, is a free, simple, solution orientated programme for all ExportNZ and CECC members who are currently exporting or thinking of exporting. We have mentors who have experience in exporting to Africa, US, China, Europe, and the Middle East to name a few countries.

Our events are held at a variety of venues, cover diverse topics, involve inspirational speakers, real life case studies and discuss some thought-provoking issues. Look out for Global Connections on Wednesday, 31 July – a half-day event with keynote presentations, case studies, ideas and lessons learnt from some of New Zealand’s most successful exporters across four export growth themes:

The benefits:

•

Leadership

•

Independent, impartial suggestions by selected export experts

•

Investment

•

Research and development

Peace of mind, increased confidence, a fresh perspective, inspiration or simply a sounding board to bounce ideas off

•

Marketing

•

•

An empathetic person to listen to your challenges and the difficulties you face – sometimes this alone is all that is needed to identify strategies and opportunities for growth.

Mark in your diary the Export Breakfast on Wednesday 29 May. The topic is research and development, and IP with some great Canterbury case studies. The last breakfast attracted record numbers to an information-packed presentation by Airborne Honey.

Mentoring can challenge you to go further, set new goals and achieve greater results. As always, successful mentoring is dependent on the commitment you make to the mentoring relationship.

Capability building voucher programme Revisiting your business plan? Fine-tuning your marketing?

Exploring e-commerce? Changing the culture in your business?

The NZTE Capability Building Voucher Programme may be able to help you do this. Once your business has registered (it’s simple and easy) you undergo a free business assessment completed by one of our CECC business advisers. This gives you, or your senior managers, the possible option of 50 percent funding for training and/or coaching.

Export training and events We have a great list of training programmes and expert service providers that provide coaching and training. It’s a chance to refresh, focus on new opportunities or just ensure you are getting the most out of your business. Another great way of refreshing your business is by joining us at one of our many targeted export or general events. Get new ideas, and engage in constructive discussion. Discuss possible solutions or just relax with a beverage, nibbles and good company.

ExportNZ canterbury regional partner: Air New Zealand Cargo

We

recommend…

For more information on the above, or advice on any export issues, contact Nick Cimino or Shirley van Waveren on 03 366 5096; or email nickc@cecc. org.nz, shirleyvw@cecc.org.nz.

Export and Import

Update May 2013

32

Growth in the export sector – where is it coming from?

Exports have grown across all manufacturing subsectors, except wood and paper. High tech manufacturing grew by 17 percent compound annual growth rate to 2006, but slowed to two percent CAGR from 2007-11. This was because the sector took a hit from the global slow-down in demand following the global financial crisis; both international and domestic demand has been much flatter.

2011 saw a surge in growth in exports of processed foods (driven by infant formula, nutraceuticals and innovative foods) and high tech manufacturing. In the food and beverage sector, the Ministry of Business Innovation and

Employment (MBIE) undertook a programme of research to predict which sectors (apart from the obvious ones like infant milk formula) had the potential to be the next equivalent of the wine industry.

DOES YOUR MESSAGE NEED AN UPDATE? The Agency Communications is a full service agency providing the skills, expertise and creativity to help shape your message for today's market.

+64 3 341 5841 info@theagencynz.co.nz www.theagencynz.co.nz Marketing | Communications | Graphic Design | website design Proud to support the Canterbury Employers’ Chamber of Commerce.

Export and Import

33

They focused on existing exports showing strong growth and global demand, and which are capital intensive and attract a premium for quality. They identified 20 categories, which can be listed in order of best, better and good:

What is the size of the prize?

If all 20 categories achieved their potential we would be looking at exports worth between US$3.5 and US$5 billion, that is, up to approximately US$4 billion additional exports.

Best: Salmon, honey, spirits, biscuits, pet food, cherries

Commercial services exports In addition to manufactured food and beverage exports, the export of commercial services (a category excluding education services and tourism) has been creating a ripple of excitement in policy circles in Wellington.

This is partly because they now have a better statistical breakdown on what is happening in the area of commercial services exports. Commercial services exporters (computer services, engineering, royalties and licence fees, accounting and legal services, management fees between related parties and merchanting), has grown at an annual average rate of 8.3 percent over the 2005-2011 year period, from NZ$2.5 billion to $4 billion to June 2011. Merchanting, for those that don’t know, is where a New Zealand enterprise buys goods overseas and then on-sells to another overseas party without the goods ever coming to New Zealand. This is increasingly common in global supply chains.

Better: Chocolate, frozen french fries, beer, alcoholic cider, avocados and berries

By firm count (that is, the number of firms exporting services), the top three commercial service exports included computer services; architectural, engineering and other technical services; and advertising, market research and public opinion polling.

These service types accounted for a third of all service exporters.

The dominant way that commercial services are being provided to overseas customers is via the internet, email or phone (85.8 percent). This underlines the importance of fast broadband and competitive provision of providers from New Zealand to the rest of the world.

Where are all these exports going? Unlike goods exports, where Asia is New Zealand’s primary destination, services exports were mainly destined to Australia, North America and the United Kingdom.

Good: Jams and jellies, capsicum, peas, frozen and dried, sugar confectionery, soups and broths, fresh onions, prepared fish and beef jerky

Manufacturing is increasingly inclusive of a service offering, and those firms that do have both streams of income tend to grow faster and be more productive. While we may be able to overcome some of the tyranny of distance from our markets with an increase in our services exports, we could still do with a larger domestic population to grow larger companies with scale and the ability to tackle export markets with a bigger balance sheet.

Catherine Beard Executive Director ExportNZ, a division of BusinessNZ cbeard@exportnz.org.nz www.exportnz.org.nz

Together, New Zealand exports of these 20 categories in 2010 were greater than the wine industry (US$845 million as against US$774 million); and most of these categories are growing faster than all other food and beverage exports.

Seventeen out of 20 of the identified growth segments have already attracted foreign and/or private equity investment, indicating that the market itself has identified that these present strong opportunities for growth.

Member Profile

Update May 2013

34

Pedro’s House of Lamb photo courtesy of Fairfax Media/The Press

Thinking outside the square Pedro’s House of Lamb, the historic Godley House Café, Sotheby’s International Real Estate office at Clearwater and Archibalds new sales office all share two things in common: their original buildings were impacted by the Christchurch earthquakes and they’ve all been provided solutions by Ark Modular.

Ark Modular is delivering instant building solutions with lego-like characteristics that make it suitable for myriad short-term build requirements. The product is relatively new to the New Zealand market, having been evolved and refined by the company directors from the original designs developed in China over the past 50 years.

Company directors Kevin Eder and Peter Fowler first encountered the modular system in China several years ago, where its principal use was for cost effective labour accommodation. The Canterbury earthquakes precipitated their decision to bring the Ark Modular construction system to New Zealand. Some initial investment was required in ‘up-spec’ing’ the base product to meet Australasian building codes before securing the licensing rights. Significant investment has also been made in perfecting the design, finetuning the engineering and the careful selection of materials to ensure a quality product.

“One of the biggest misconceptions with product out of China is that the end product is going to be of a poor quality,” says Peter. “This is simply not the case with Ark Modular products. The wall panels are compliant to NZ30604 insulation and fire ratings for residential construction and we have used expert engineering input to ensure that the end product is fit for purpose for the Christchurch rebuild.

>> www.arkmodular.co.nz

“The New Zealand construction sector just won’t tolerate shoddy solutions and there’s a real push for design-led responses to the Christchurch rebuild.”

Imported in what is essentially a flat pack framework, the Ark Modular system is connected together to achieve the desired floor plan. Doors and windows are readily moved around and other components can be added on at any point in time – just like lego.

The Sotheby’s Real Estate building at Clearwater is a great example of modular working at its best. The pitched roof and the way it blends into the landscape suggests anything other than temporary. As one of the first projects completed using the Ark Modular system, the Clearwater building has become a bit of a flagship, yet it is a perfect illustration of the diversity of the product. With a range from 2.4m x 3m to 9m x 3m, this is a construction method that can be used to tackle large commercial projects three storeys high or to showcase the ease and benefits of compact living.

While some of the Ark Modular structures in Christchurch are here for the long-term, others are being leased out as shops, cafés and offices. Consisting of all-recyclable materials and built with environmental considerations in mind, the truest form of recycling will occur when the leases expire.

The structure allows for the framework to be deconfigured, picked up and taken away, and reconfigured in another life – perhaps as a classroom, site offices, or maybe as a quintessential Kiwi bach.

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New doors opening for Fudge Cottage A significant part of Christchurch for over 23 years, Fudge Cottage has not only become a favourite local icon, but also a must-see tourist attraction for international travellers.

Opening its doors in 1990 at the Arts Centre, Fudge Cottage was forced to relocate to Bishopdale Mall after the February 2011 earthquake.

Fudge Cottage owner, Kevin Burns, says despite having to move from their historic location, Fudge Cottage still has the same great staff and trusted recipe. “When we moved to Bishopdale the locals really got behind us and have been very supportive,” says Kevin. “This is something that means a great deal to Fudge Cottage, as we realise that our products are a gift or treat item rather than an everyday necessity.”

In November 2010, Fudge Cottage opened its Dunedin store.

Kevin says they used to get numerous requests from people in Otago and Southland wanting a local Fudge Cottage, so after some research they opened up a kiosk shop in the Golden Centre Mall.

Throughout its 23-year history, Fudge Cottage has always handcrafted its products, from the making of the fudge, right down to the personalisation of gift packs. It’s something that Kevin takes pride in. “All our fudge is handcrafted by our full time confectioners. On average we currently make two 30-kilogram batches a day, but do make up to six batches a day during busy periods such as Christmas. We make our fudge using only the best local and international sourced ingredients, and people are still able see the fudge being made on a Kitchen Tour.”

>> www.fudgecottage.co.nz

Following the earthquakes, Fudge Cottage stepped up their online presence by substantially upgrading their e-commerce website with the help of LeftClick. “After the earthquakes, and having to move out of the CBD, we definitely saw a decline in sales and loss of visitors,” says Kevin. “So we took the approach of reconnecting with our local and national customers via our website. In doing so we also expanded our shipping to Australia, as we found we were receiving lots of emails from Australian visitors after returning home, or Kiwis living in Australia wanting to either get their fudge fix or send gift baskets to family in New Zealand.”

Another adaption that Fudge Cottage undertook after the earthquakes was the introduction of a more café style shop rather than purely a store. “After moving to Bishopdale we decided to add another level to the shop by selling hot chocolate and coffee and providing seats for a more café style experience,” says Kevin. “We wanted to make our customers feel welcome in our new location.”

When the store first opened, Fudge Cottage sold only three flavours of fudge, however over the years the range has expanded and Kevin now makes over 20 different kinds of fudge. The top selling flavours include the Russian, Baileys and Chocolate fudges.

“While we tend to stick to the flavours that we know are popular, we often bring out seasonal flavours like Raspberry and White Chocolate, and Hokey Pokey,” says Kevin. “Hokey Pokey is definitely another favourite among Kiwis.”

Member Profile

Update May 2013

36

Local affection key to success At the heart of the Hurunui District is the alpine village of Hanmer Springs – best known for the Hanmer Springs Thermal Pools and Spa, an extensive alpine spa complex offering thermal mineral and freshwater pools.

The Hanmer Springs Thermal Pools and Spa is a popular South Island destination, particularly for those in the Christchurch and Canterbury region. In the last twelve months, more than 540,000 people passed through their gates – the majority were Cantabrians; 65% were from Christchurch and Canterbury, 25% were international visitors, and 10% were New Zealanders from outside the Canterbury region.

While natural hot pools have been in the area for many, many years, the history of the Hanmer Springs Thermal Pools and Spa can be traced back to 1883 when the Government Lands Department excavated the main bathing springs to create swimming pools. Throughout its history the attraction has built a strong attachment and involvement from the community. In 1960, in response to the pools being sold and closed, a group of dedicated locals rallied together to raise enough money to purchase the pools.

While it is unusual for what is unashamedly a tourist attraction to do so well at attracting locals – many of whom are repeat visitors – general manager Graeme Abbot says the high number of local visitors reflects the strong local affection that can be traced back to these early days. “The group gifted the complex to the local council to not only ensure it remained open, but also to preserve what had become such an iconic experience of Hanmer Springs,” says Graeme. “This created a real sense of ownership that continues for the people of Canterbury today.

“In fact, Cantabrians are also our most powerful ambassadors.

A huge number of people that visit do so on the strength of a personal endorsement. We often get locals introducing their visiting family members to the pools as part of a ‘local experience’.”

The popular destination has recently undergone a major $7.5 million transformation, which includes new hot pools for adults only, a new SuperBowl ride and a new freshwater pool, and an upgraded Gardens House Restaurant all in a restyled and expanded complex. >> www.hanmersprings.co.nz

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In the months following the earthquakes, Hanmer Springs Thermal Pools and Spa, and the alpine village, became something of a sanctuary. “Many people came here to escape and recharge,” says Graeme. “The hot pools offer a very revitalising form of therapy – you are able to soak away your worries amongst beautiful surroundings, which definitely leaves you feeling more relaxed and rejuvenated. I’ve had a lot of people tell me that their experiences here at the pools really helped them through what was a pretty challenging time.

“We’ve also noticed as more people are beginning to venture back into Christchurch, particularly from the wider South Island communities like Nelson and Dunedin, they’ve started to visit us again.”

With the recent upgrade, the complex currently features 21 different pools, including four large rock pools, rainbow and hexagonal pools, three sulphur pools, three aqua therapy pools, six private thermal pools, two freshwater pools, as well as the Lazy River and SuperBowl slide. Upgrades to the sulphur pools are to be undertaken later this year.

One of the key reasons behind the alpine spa’s success is its location – close enough to Christchurch to be able to rely on the support of local ‘short break’ holidaymakers as well as those tourists embarking on a South Island road trip. But it also benefits from the collective tourism push by local operators showcasing the region as ‘the full package’.

So, as well as a soak in the pools, visitors can also try one of the numerous activities in the wider Hanmer Springs area – from mountain biking and hiking, to jet boating down the Waiau Gorge and bungy-jumping from the historic Waiau Ferry Bridge. The accommodation and restaurant options also cater for any budget or occasion.

Graeme says this regional collaboration has been a conscious decision. “While we are away from the central Christchurch tourism attractions, we are able to use this to our advantage, working together to showcase Hanmer as a complete destination package,” says Graeme. “In particular, for international visitors, this strategy is highly successful. We love to host international trade delegations – the response is always really positive.”

And the strategy seems to be working – the complex has not only been the winner of four New Zealand Tourism Industry Association ‘Best Visitor Attraction’ awards, but was also voted AA’s ‘number one must-do for Kiwis’ in 2012. It was also awarded the top Hospitality/Retail for the medium/ large enterprise section of the Champion Canterbury Awards, as well as the ‘Best Natural Bathing Spa’ Award of Excellence by the Australasian Spa Association (ASPA).

As New Zealand’s premier alpine spa destination, there could be a danger of creating an elite resort, however Graeme says their focus is firmly on creating a sustainable tourism experience that will continue to cater to the full spectrum of visitors – from backpackers to international tour groups – as well as locals.

“We recognise the importance of Hanmer Springs for the local region – particularly its role in the recovery of the local tourism sector – so we need to be sure that any investment and growth is sustainable. We have a very unique setting in that we’re surrounded by pristine natural environment, so it is essential that we maintain that balance between development and conservation. We also want to make sure that locals are still able to afford to visit the pool in ten, twenty, fifty years on.

“We owe it to all those who have shaped Hanmer into the great destination it is today.”

Arts and Culture

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International acts key to tourism sector recovery More than two years on from the earthquakes, CBS Canterbury Arena is showing strong signs of regaining its former glory which saw the venue host some of the biggest international names in the entertainment industry. The Vbase-operated Arena has since played host to some world-renowned acts including, Mumford and Sons, Slash, Kenny Rogers, Ringo Starr and Santana amongst others.

Vbase business development manager Turlough Carolan says such events play a significant role in the recovery of the hard-hit tourism sector. “The ability to draw world-class events is critical to the vibrancy of Christchurch. It adds a sense of normality; that there are great events and activities that make Christchurch an even greater place to visit and live.

“It’s absolutely crucial that we re-establish Christchurch as a major destination for overseas acts on so many levels. The benefits to the local economy are exponential – restaurants, bars, hotels, motels, car hire, taxis, retail, local and regional tourism – the list is endless.”

When it comes to securing top international acts, Turlough says there are “some factors” counting against the region.

“There is increasing pressure on suitable availability for CBS Canterbury Arena; there’s a much wider range of events now coming to the Arena as a result of the lack of venues in Christchurch, which traditionally in the past wouldn’t have considered the space. However with the addition of the new event space at Air Force Museum now in the Vbase portfolio, a number of these events are relocating to this venue, assisting the availability of the Arena.

“We’re also facing increasing competition from other regions – more often than not it’s Auckland and Wellington, but we’re also finding Dunedin and New Plymouth have increased their interest in securing events. Primarily, it’s a numbers game. Auckland and the surrounding areas offer the promoters a pool of 1.5 million people to draw from and there are the added costs associated with bringing big events down to the South Island, in particular around freight.

“Insurance is an issue to a degree, but we’re finding this to be less of a problem as time goes by. And there is the ongoing stigma still associated with the earthquakes and the general impact they’ve had on the city and its infrastructure.”

But, for the most part, Turlough says that the response from promoters and performers has been very positive. “On the whole, the reaction we’ve had from the majority of artists who have visited the city and have had time to look around has been fantastic. They completely empathise with us and have vowed to come back. When the city hosted Mumford and Sons in November last year, they went on record as saying that ‘Christchurch was the highlight of their Australia/ New Zealand tour’, which took in all of the main centres in both countries.”

To continue to attract such events requires local support – a message that Turlough is keen to communicate to the event-going public. “We’ve been seeing a somewhat mixed response to events – it really depends on the act, the ticket price, and how much exposure the event receives. We’ve seen full houses for some events you wouldn’t expect and vice versa. What is really important is the promoters feel supported and valued when they bring us events, no matter how big or small, particularly since we’re now seeing an increase in competition from other centres.

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“Coldplay recently played in Auckland and for every dollar invested by Tourism Auckland they saw a $75 return. We would love to work with local businesses to set up a similar ‘fighting fund’ to secure large events for Christchurch. A fighting fund is absolutely crucial to Christchurch securing large events. As a city, we need to show the promoters we’re here to support them and demonstrate that we’re prepared to alleviate some of the risk.”

Fighting fund for Christchurch If you would like to discuss the creation of a fighting fund for Christchurch, please contact Turlough Carolan, phone 03 339 5404, 021 110 0100.

As well as hosting international acts, the CBS Canterbury Arena has seen a surge in bookings for conferences, cultural performances, school concerts, ceremonies and balls – many of which would previously have used the town hall and convention centre. Combined with the ability to be configured to host sports teams, exhibitions, gala dinners and special events – as well as offering 18 corporate suites available for meetings – Turlough says “Christchurch once again has real potential to become a sought after major events destination”.

While there are any number of acts that Turlough would love to see on stage in Christchurch, there is one show that he believes would put the region firmly back on the international circuit. “The Rolling Stones – a New Zealand only show. If any band is going to firmly put Christchurch back on the map, it’s the Stones – and they’re back on the road for what will be their final tour! You never know, stranger things have happened.”

>> www.vbase.co.nz

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Update May 2013

Small Business

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Managing growth opportunities in a post-quake environment Business as usual is not something that Canterbury businesses can rely on post-earthquakes. For those that see growth opportunities, we can help; for those that may have to adjust to new circumstances, we can help.

Depending on your particular industry sector, it is likely that the uncertain environment, where the rebuild with all its ramifications and general trading conditions are concerned, will be very challenging for many years ahead. However, some interesting trends around growth are emerging.

What we are seeing and hearing more of, are businesses experiencing growing pains. Although not restricted to the construction sector alone, there are many in these sectors and in association that are struggling to manage growth.

As an example, trades-based businesses are suddenly faced with myriad issues revolving around managing growth associated with substantial increase in staff levels. This is manifesting itself in areas as diverse as cashflow, employment agreements, HR/payroll and holiday entitlements, immigration, health and safety, terms of trade and contractors obligations.

Many sole operators are facing the biggest challenge and opportunities of their business; to grow their companies and build wealth. However, many are not equipped with the necessary business skills in order to realise their ambitions.

Post-earthquake Canterbury offers the best opportunity to build wealth, create legacies and define careers. This cannot be underestimated. For those who battle on knowing that their skills aren’t up to the necessary standard, their businesses are unlikely to survive, let alone prosper. For those that recognise they must step up – not only for their own purpose, but for the benefit of their staff – need to ask a very important question “who can help me?”

CECC is the South Island’s largest and most progressive business support agency. We have experienced business advisers, many of whom have been involved in owning and running their own businesses, offering practical, helpful, and – where necessary – regulatory, advice and rulings. With membership benefits ranging from advisory services to consultancy engagements, comprehensive training and development programmes, and networking functions we can make a demonstrable difference in order to capture opportunities.

We have helped many thousands of businesses and business people over many years and we have an enviable record.

Let us become a key resource and business partner for you.

Both directly and through organisations such as BusinessNZ and the New Zealand Chambers of Commerce (NZCCI), we lobby local and central government and promote business friendly and conducive policies that will allow Canterbury employers to have their voices heard. This is even more relevant to the many SMEs that are based in Canterbury that don’t have the necessary resources on their own.

CECC exists as the employer’s champion and advocate, and we do this with independence and integrity. In today’s dynamic marketplace, this is more important than ever.

Nick Cimino Consultancy and Advisory Manager CECC

We

recommend…

For more information on the above, or advice on any business issues, contact Nick Cimino on 03 366 5096 or nickc@cecc.org.nz.

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Behind the brand Introducing Ingrid Geldof Design founder, Ingrid Geldof Ingrid Geldof Design specialises in creating highly efficient and stunningly beautiful spaces for people to have easy lives in. Ingrid established the company in 1992 and won the first of her multiple awards that year, projecting her onto the national stage in kitchen design. With her Dutch European parents, she was brought up with efficiency and style in mind, producing results which ensure spaces that are easy to work in and beautiful to look at. The company has one fulltime staff member in Queenstown and one contractor in Wellington, and is completely internet-based.

What were the challenges you faced in the early days and how did you overcome them?

At one stage we were booked out four months in advance, but we were fortunate that our clients were happy to wait.

Eventually we employed staff, but I soon realised that I became a checking machine, as I am a stickler for detail. So, with three staff, my designing ground to a halt and I became an HR person. This was challenging. I learnt many things by going on courses and getting consultants in to set up structures around that, however it all came down to me not designing as much as I liked. When two of the staff left the company to focus on being new mums, I didn’t replace them so I can now focus more of my energy on designing.

How would you define your style – and where do you get your inspiration?

My inspiration comes from a huge variety of places – from architecture to furniture and nature. I take a lot of guidance from the architecture of the home and my clients’ own styles.

As far as my influence goes, I like simplicity, pure form and balance, whether it is a contemporary or traditional style.

What is your number one design tip?

Depending on your knowledge base, get advice from an expert. And when it really gets you excited, ‘go for it’.

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As an established business, what are the challenges you face in maintaining momentum?

We were not severely affected by the global financial crisis, however things were quiet after the earthquakes. Rachel, based in Queenstown, kept things going as she was in a great position to keep clients up to date. Since the beginning of 2012, things have been going rather ballistic. We have plenty of former clients who need house-lots of joinery designed. Then there are those who are taking the opportunity to revamp kitchens and bathrooms. So it is all go.

What do you consider to be key to your success?

Attention to detail, listening to the clients’ needs and continued learning. I attend regular courses in business and personal development, and read a lot of books on the subject.

I travel to Europe and Australia, and occasionally the US, for kitchen and bathroom exhibitions to stay abreast of international trends. I like clarity, so my clients and I understand the scope, time and fees associated with the project, which means there is no confusion. I have high integrity and I stand by my word. Most of all, I love what I do. Creating spaces people love to be in is a great reward.

What are your plans for the future of the company?

I enjoy being part of a lean and slick little business where I can still satisfy my own and my staff’s passions in life. I have no great desire to grow into a bigger company, however this may be on the cards with more rebuilds taking place every month.

What advice would you give to others starting out on their own?

If specifically starting out as a kitchen and bathroom designer, become a member of the National Kitchen and Bathroom Association to immerse yourself in the industry, and train in a joinery factory and on-site for at least six months. Also learn about running a business, marketing, sales and administration to provide a knowledgeable approach to the business.

How do you balance your job and your lifestyle?

I make a point of relaxing – taking time out walking in Sumner and leaving the city once a month for an overnighter somewhere in the country. I enjoy tennis, biking and skiing in the winter. I also enjoy yoga, reading and spending time with family and friends.

What is your vision for Christchurch?

There are many good things happening to this city of ours but there are also many unattractive buildings going up. I would like to see use of some pitched roofs and fewer boxes of glass and steel, and to balance that with efficiency of space and financial return to land owners.

I take a lot of my impressions from Europe which, I believe, has a fabulous atmosphere. There is much less car traffic, more walking, public transport and bike lanes. Plazas where there are no cars but cafés and open spaces where families can gather, kids can play and grandparents can feel safe.

Regular markets for produce and tourists, street buskers playing cool music. We need a good mix of apartments, office, retail, hospitality and green spaces with fewer cars in the inner city. I love the idea of rental bikes (subsidised for residents) within the four avenues with no helmets required due to a 30km/hour driving zone. Cars parked away from where people move around. A city where people love to relax and enjoy the beauty Christchurch has to offer.

>> www.igd.co.nz

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Welcome to new members A key objective of the Employers’ Chamber is to encourage members to do business with other members. This will ensure that membership is successful and additional business is generated for our region. When liaising with fellow members to do business, please act professionally and respect their right to decline your services.

AHeadStart Ltd. Melanie Coker, Director

Benmax NZ Ltd. Geoff Absolom, Director

Courses Direct Katya Johanson, International Channel Manager

PHONE: 03 669 0336 MOBILE: 021 156 9281 PO BOX 28051, CHRISTCHURCH 8242 39A KIDSON TERRACE, CASHMERE, CHRISTCHURCH melanie@aheadstart.co.nz www.aheadstart.co.nz Personalised one-on-one tuition.

PHONE: 0061 2 6122 3808 MOBILE: 0061 404 817 077 PO BOX 1932, QUEANBEYAN, NSW, AUSTRALIA 2620 33 HINCKSMAN STREET, QUEANBEYAN, NSW, AUSTRALIA geoff.absolom@benmax.com.au www.benmax.com.au Provider of mechanical services and climate control systems.

PHONE: 0800 325 277 MOBILE: 021 214 1939 PO BOX 22226, CHRISTCHURCH 8140 UNIT 6, 27 TYNE STREET, ADDINGTON, CHRISTCHURCH katya@iconbusinessgroup.com www.coursesdirect.co.nz An online training college (private training establishment).

Airpark Canterbury Ltd. Phil Garrett, Director PHONE: 0800 24 77 27 MOBILE: 022 183 2618 PO BOX 14233, CHRISTCHURCH 8544 17-25 LOGISTICS DRIVE, HAREWOOD, CHRISTCHURCH sales@airparkcanterbury.co.nz www.airparkcanterbury.co.nz 24-hour fully staffed onsite airport parking. Car valet and servicing available. Free airport shuttle.

Amalgamated Builders Ltd. Peter Corkery, Canterbury Manager PHONE: 03 341 2160 MOBILE: 021 858 583 PO BOX 5658, PAPANUI, CHRISTCHURCH 8542 504 BLENHEIM ROAD, CHRISTCHURCH www.abl.co.nz A commercial and residential construction company.

Ark Modular Peter Fowler, Managing Director MOBILE: 021 712 962 PO BOX 5379, MT MAUNGANUI 3150 466 COLOMBO STREET, SYDENHAM, CHRISTCHURCH peter@arkmodular.co.nz www.arkmodular.co.nz Development and supply of modular buildings.

Balance Accounting Ltd. Michelle Brook, Practice Manager PHONE: 03 339 7260, FAX: 03 339 7269 PO BOX 8758, RICCARTON, CHRISTCHURCH 8440 11 LONGLEY PLACE, ADDINGTON, CHRISTCHURCH michelle@balanceaccounting.co.nz www.balanceaccounting.co.nz Chartered Accountants and business advisers.

Brother International (NZ) Ltd. David Harrow, Business Development Manager (SI) PHONE: 03 372 7283 MOBILE: 027 448 9961 PO BOX 25171, VICTORIA STREET, CHRISTCHURCH 8013 OFFICE 4, LEVEL 1, 137 VICTORIA STREET, CHRISTCHURCH d.harrow@brother.co.nz www.brothercorporate.co.nz Leading supplier of printing and imaging equipment and solutions to the New Zealand corporate market.

Christchurch Budget Service Jane Green, Manager PHONE: 03 366 3422 PO BOX 34013, FENDALTON, CHRISTCHURCH 8540 191 BLENHEIM ROAD, RICCARTON, CHRISTCHURCH chchbudget@gmail.com Provide advice and assistance in budgeting and clearing debt, and community education in these subjects.

ContractAccom Jackie Thomas, Director PHONE: 03 382 1555 MOBILE: 027 375 7461 PO BOX 18909, NEW BRIGHTON, CHRISTCHURCH 8641 11 MOUNTBATTEN STREET, NEW BRIGHTON, CHRISTCHURCH info@contractaccom.co.nz www.contractaccom.co.nz Provision of ‘homestay style’ accommodation for contractors coming to Christchurch for the rebuild.

Custom Picture Framing James Manser, Owner PHONE: 03 960 8564 MOBILE: 021 058 6243 37 EDMOND STREET, WOOLSTON, CHRISTCHURCH 8062 uniqueframing@clear.net,nz www.custompictureframing.co.nz Personalised picture framing customised to individual needs.

Cylinder Head Specialists Christchurch Dave Rosewarne PHONE: 03 366 1729 237 WALTHAM ROAD, WALTHAM, CHRISTCHURCH 8023 heads@heads.co.nz www.heads.co.nz Preparing race engines and full parts supply.

Devon Construction Daniel Broom, Director PHONE: 03 348 3225 MOBILE: 021 836 465 PO BOX 27282, SHIRLEY, CHRISTCHURCH 8640 52A MANDEVILLE STREET, RICCARTON, CHRISTCHURCH danny@devonconstruction.co.nz www.devonconstruction.co.nz Construction of new homes and light commercial fit-outs – design facilities available.

Fielden and Sons Ltd. Nigel Maxey, Managing Director PHONE: 03 349 0000 MOBILE: 027 2895 589 PO BOX 16450, HORNBY, CHRISTCHURCH 8441 23 COLUMBIA AVENUE, HORNBY, CHRISTCHURCH 8042 nigel@fielden.co.nz www.fielden.co.nz Contract sheetmetal manufacturers with in-house powder coating. Home of Maxim filing systems – filing and storage products.

Five Star Paints Maree Dallon

Lyttelton Bakery Limited Ian Scott, Owner

New Zealand Home Loans (CBC) Ltd. Richard Hopkins, Owner

PHONE: 03 349 6514 PO BOX 16017, HORNBY, CHRISTCHURCH 8441 3 CHINOOK PLACE, HORNBY, CHRISTCHURCH info@5starpaints.com Paint manufacturer specialists in art, face paints, textile inks, glitter paints, metallic paints, body gels, liquid and powder dyes, printing inks, oil paints, driveway sealers/coatings.

PHONE: 03 328 9004 8 NORWICH QUAY, LYTTELTON, CHRISTCHURCH 8082 liannandfamily@xtra.co.nz Retail bakery.

PHONE: 03 335 3513 MOBILE: 021 767 637 PO BOX 76216, CHRISTCHURCH 8548 5/93 MAIN SOUTH ROAD, UPPER RICCARTON, CHRISTCHURCH richard.hopkins@nzhomeloans.co.nz www.nzhomeloans.co.nz A dedicated home loan provider committed to helping families become debt free faster.

Flagstaff Recruitment Ltd. Jason Turner, Managing Director PHONE: 03 961 3060 MOBILE: 027 351 1155 PO BOX 29347, CHRISTCHURCH 8540 35C RICCARTON ROAD, RICCARTON, CHRISTCHURCH jason.turner@fsr.co.nz www.flagstaffrecruitment.co.nz Labour hire and recruitment.

Go Wireless NZ Ltd. Dale Roberts, Director PHONE: 03 741 1339 MOBILE: 027 201 6211 PO BOX 183, KAIAPOI 7644 6/5 STONE STREET, KAIAPOI dale@gowifi.co.nz www.gowifi.co.nz Online distributor of long range wireless network equipment for system integrators and internet service providers.

Greenwood Roche Chisnall Lauren Semple, Partner PHONE: 03 365 0800 MOBILE: 021 771 340 PO BOX 139, CHRISTCHURCH 8011 5/7 BURDALE STREET, RICCARTON, CHRISTCHURCH lauren@grclegal.com www.grclegal.com Law firm.

Gunac Christchurch (2004) Ltd. Pauline Grant, Administration PHONE: 03 337 5900 MOBILE: 027 554 4497 PO BOX 7819, CHRISTCHURCH 8240 34A CURRIES ROAD, HILLSBOROUGH, CHRISTCHRUCH info@gunac-christchurch.co.nz www.gunac-christchurch.co.nz Construction waterproofing including tanking, fibreglass systems, highbuild coatings, torch-on, sealants, crack injection.

Manteena Construction Ross Williams, Projects Coordinator PHONE: 03 365 9509 MOBILE: 027 519 8585 r.williams@manteenaconstruction.co.nz www.manteenaconstruction.co.nz Building and construction.

Men at Work Kurt Allan, Business Development Manager MOBILE: 027 422 5687 9 THE STABLES, WOODEND, KAIAPOI 7610 kurt@menatworkltd.co.nz www.menatwork.co.nz Men at Work is a traffic management company providing a wide range of traffic management solutions in and around Christchurch.

New Zealand Best Kept Secret Ltd. Robin Bautista, CEO PHONE: 03 348 1796 MOBILE: 021 234 7035 robin.bautista@nzdream.com www.facebook.com/NewZealandDream NZ Dream is a page that connects you to employers, schools and information on how to migrate to New Zealand. Recruiting skilled Filipinos and other nationalities from around the world.

New Zealand Chinese Liquor Limited Sam Lu, CEO

Nicholas Myers Ltd. Nicholas Myers, Owner PHONE: 027 789 2425 PO BOX 33509, BARRINGTON, CHRISTCHURCH 8244 nicholas@nicholasmyers.co.nz

Partners Asset Leasing Anna Winsley, Compliance Manager PHONE: 03 982 7004 PO BOX 1413, CHRISTCHURCH 8140 21-23 HUMPHREYS DRIVE, FERRYMEAD, CHRISTCHURCH 8140 anna@partnersfinance.co.nz www.partnersfinance.co.nz Asset leasing and finance business.

Prestantia Consulting Ltd. Jo Birnie, Principal Consultant MOBILE: 021 757 822 PO BOX 200, HOKITIKA, WEST COAST 7842 KEOGANS ROAD, HOKITIKA, WEST COAST www.prestantia-consulting.co.nz Management and HR consultancy firm specialising in HR, employment relations, LEAN manufacturing, continuous improvement, project management and productivity intiatives.

PHONE: 03 358 8798 MOBILE: 021 832 733 samlu@nzchineseliquor.co.nz www.nzchineseliquor.co.nz Purchase distilled spirits in Canterbury and intend to export to China.

SECURE INFORMATION MANAGEMENT

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Initiative Engineering Peter Lochead, Director PHONE: 03 332 5440 MOBILE: 022 0730 720 17 DACRE STREET, LINWOOD, CHRISTCHRUCH 8062 peter@ineng.co.nz www.ineng.co.nz Pipe fitting and coded welding.

Heavy fabrication/steelwork.

Jennian Homes Canterbury Rob Sloan, General Manager PHONE: 03 338 5812 MOBILE: 021 912 844 PO BOX 79009, AVONHEAD, CHRISTCHURCH 8446 6 MONCUR PLACE, ADDINGTON, CHRISTCHURCH rob.sloan@jennian.co.nz www.jennian.co.nz Large volume new residential home building company.

Kate Sheppard House and Garden Julia Burbury, Owner PHONE: 03 348 0597 MOBILE: 027 467 0044 83 CLYDE ROAD, ILAM, CHRISTCHURCH 8041 jusgarden@gmail.com Private function venue ideal for corporate events, gala dinners, family celebrations and so on.

Life Style Solutions Richard Sewak, Director MOBILE: 021 773 925 38 STUDHOLME STREET, SOMMERFIELD, CHRISTCHURCH 8024 richard@lifestylesolutions.co.nz www.lifestylesolutions.co.nz A specialist risk management financial advisory company.

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Sales and Marketing

Update May 2013

46

Recall New Zealand Craig Walker, Business Development Executive PHONE: 03 357 5660 MOBILE: 021 719 397 PO BOX 11-217, SOCKBURN, CHRISTCHURCH 8443 craig.walker@recall.com Global leader in information management.

Uniting best practices in document management (physical and digital), secure destruction and data protection.

Red Carpet Relocations Helen McLeod, CEO MOBILE: 027 562 2772 PO BOX 1199, CHRISTCHURCH 8140 7 STONEYHURST STREET, ST ALBANS, CHRISTCHURCH helen.mcleod@gmail.com A personalised executive relocation service for individuals and families moving within Christchurch and Canterbury.

Renner Logging Limited Wendy-Lee Renner, Company Administrator PHONE: 03 313 2227 MOBILE: 027 483 7866 PO BOX 344, RANGIORA 7440 127 MAIRAKI ROAD, RD 1, RANGIORA renner.logging@xtra.co.nz Forest harvesting in the Canterbury region.

Silver Delta Melissa Davies, Director

Zoo Creative Kirsten Vaughan, Client Services Director

MOBILE: 022 079 9107 46 JACOBS STREET, ST ALBANS, CHRISTCHURCH 8014 melissa@silverdelta.co.nz www.silverdelta.co.nz Consulting, coaching and workplace training.

PHONE: 03 365 1430 MOBILE: 021 904 903 PO BOX 22266, CHRISTCHURCH 8140 LEVEL 1, 168 ST ASAPH STREET, CHRISTCHURCH alf@zoocreative.co.nz www.zoocreative.co.nz Design studio.

The Lighthouse Performance Consulting Dianne Hadlee, Director MOBILE: 021 0538 619 PO BOX 78061, PEGASUS, WAIMAKARIRI 7648 lighthouselifecoaching@gmail.com Empowering individuals and companies to maximise their potential and results.

Tradepower Building Networks Hare Hep, Owner and CEO PHONE: 03 963 8040, FAX: 03 963 8050 MOBILE: 021 027 53101 PO BOX 24128, LINWOOD, CHRISTCHURCH 8642 tradepower@windowslive.com We build in timber, concrete and steel. We have depots in Christchurch, Darfield and Rangiora. We supply trades and services, and our own products.

Our products include kitset buildings, dolls houses and play huts, wooden toys, recycled paint, kitchens, baths, insulation and garden pots.

Sales and Marketing

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Contact us Lobbying, advocacy, business strategy & policy Chief Executive Peter Townsend petert@cecc.org.nz General Manager Leeann Watson leeannw@cecc.org.nz EA to Chief Executive/General Manager Anne McKee annem@cecc.org.nz Communications, ICT, membership, marketing, sector support Marketing and ICT Kate Trolove katet@cecc.org.nz Business Development Manager Lorraine Rouse lorrainer@cecc.org.nz Business advice, export & import, grants & funding, manufacturing and sector support Technology & Marketing Development Rob Lawrence robl@cecc.org.nz Technology Support Coordinator Carly Wheeler carlyw@cecc.org.nz Technology & Business Adviser Susan Cooke susanc@cecc.org.nz Business Adviser Shirley van Waveren shirleyvw@cecc.org.nz

Training, networking and events Business Capability Manager Richard Holstein richardh@cecc.org.nz Training & Events Coordinators Kelly Mackintosh kellym@cecc.org.nz Holly Andrews hollya@cecc.org.nz Training & Events Assistants Alexia Ferguson-Lees alexiaf@cecc.org.nz Mary Botting maryb@cecc.org.nz

Employment law, employment relations advice, health & safety, wage & salary information, human resources, seeking skilled staff Consultancy & Advisory Manager Nick Cimino nickc@cecc.org.nz Employment Relations Adviser Keith Woodroof keithw@cecc.org.nz Health and Safety Consultants Helen Mason helenm@cecc.org.nz Sandy de Vries sandydv@cecc.org.nz Migrant Employment Coordinator Jude Ryan-O’Dea juder@cecc.org.nz Settlement Support Coordinator Lana Hart lanah@cecc.org.nz Youth Coach Coordinator Bridgette Smith bridgettes@cecc.org.nz

Finance, membership support, event & training registrations, certificates of origin services, reception Finance Manager Steve Woodside stevew@cecc.org.nz Accounts & Membership Liaison Anne Jamieson annej@cecc.org.nz Mambership Liaison Kellee Berry kelleeb@cecc.org.nz Executive Office Assistants Shirley Page shirleyp@cecc.org.nz Sinead Purchase sineadp@cecc.org.nz Ballantyne Haines ballantyneh@cecc.org.nz External relationships External Relationship Manager Anna Johnstone annaj@cecc.org.nz

Behind you every step of the way.

Westpac Business Community Hub 55 Jack Hinton Drive Addington PO Box 359 Christchurch 8140 Ph 03 366 5096 Freephone 0800 50 50 97 www.cecc.org.nz info@cecc.org.nz

Affiliated to: The Canterbury Employers’ Chamber of Commerce is a membership-based organisation providing assistance at all levels and in all areas of business. The current organisation is a combination of the local Chamber of Commerce and Employers’ Association. This enables members to access both traditional Chamber assistance – international trade, lobbying, networking, commerce advice – and Employers’ Association assistance – employment law, employment relations, advocacy and HR – through one membership.

www.cecc.org.nz

Next issue September 2013 (156)

The Canterbury Employers’ Chamber of Commerce would like to acknowledge the support of our sponsors, who contribute to this organisation to ensure that membership subscriptions can be kept as low as possible. Each of these companies assists us to bring more services and better value to our members.

Deadline Booking: 14 June 2013 Copy/Adverts: 28 June 2013 Editor Kate Trolove katet@cecc.org.nz 03 366 5096

Major Sponsors

Update magazine is produced quarterly and has a distribution of 3,200 copies to business and other recipients. Employers’ Chamber members are welcome to advertise in Update magazine – see www.cecc.org.nz or contact the editor for details.

Principal Sponsor

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update Canterbury Employers’ Chamber of Commerce Official Magazine