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WESTERN SYDNEY

FEBRUARY 2019 • ISSUE 94

B U S I NESS | COMMU N I T Y | L I F ESTYLE

Farming needs disruption PAGE 3

OTH ER STORIES INSIDE

RESIDENTS CREATE S UP E R B LO C K

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T EC H NO LO GY P R E D I C T I O NS FO R 20 1 9 PAGE 16

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Celebrating 19 Years

The Ultimate Fine Dining Experience Biviano’s Italian and Seafood restaurant in Dural is the fine dining jewel of The Hills and surrounds. Celebrating 19 years in 2019, Biviano’s continues to exceed expectations with landscaped gardens, private parking, beautiful scenery and surrounds, private dining facilities and an impeccably designed building and interiors. Dining at Biviano’s is an indulgence of the senses. Guests are treated to dishes that are planned and prepared with meticulous care and passion. Biviano’s offers an intimate and contemporary atmosphere with precise and welcoming service, ensuring every customer has a grand and memorable experience where hospitality is at the center. Biviano’s is located 44 minutes (M2) , from Sydney CBD and 15 minutes from Castle Hill. Taking pride in offering the ultimate dining experience, Biviano’s 2013 relocation signaled the beginning of a new era in a bespoke venue with polished service, elegant tableware and a celebration of food melding the classic with the contemporary.

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Disruptive farming models needed

BRIEFLY Markets return for 2019 FOOD lovers can rejoice with the return of Blacktown City Council’s Fresh Food Fair and Blacktown Night Market. The Fresh Food Fair returns from February 3 and will run on the first Sunday of every month from 9 am to noon at the Village Green, 62 Flushcombe Rd, Blacktown. The Blacktown Night Market will be held on the last Friday of every month from 4 pm to 10 pm at the Village Green from February 22.

„ RED DWYER HE “paving over” of productive agricultural land from Hawkesbury to Campbelltown is detrimental to the availability of fresh food for Sydney’s residents and restaurateurs. Vertical farming, a way of producing food or crops stacked on top of one another indoors – think a glasshouse or warehouse – could be an answer to the problem of the relentless urban sprawl. “Sydney’s loss of agricultural capacity will put strains on the accessibility and affordability of fresh food,” said Matt Brand, CEO, NSW Farmers’ Association. Studies have found that if urbanisation continues in the Sydney Basin to “pave over” the production of fresh produce, Western Sydney would be the most affected area. “If we continue along the [urbanisation] path we’re on, Sydney stands to lose more than 90 per cent of its current fresh vegetable production,” The Conversation, an on-line publication, reported.

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Alternatives needed This path could include a demand for an additional 184,500 dwellings over the next 20 years in the Western City District, according to the Greater Sydney Commission. Alternative means of production have been in the works for some time. Green Camel, a certified organic food producer partnered in 2012 with the University of Sydney to build an industry-based research and development facility at Cobbitty

Kolas to be discussed

The objective was “to disrupt traditional farming methods and find a better way to grow commercial scale aquaculture and horticulture [as an example] of sustainable organic glasshouse farming”, according to the company’s website. The facility has successfully grown basil, coriander, various baby leaf lettuce, parsley, baby leaf spinach, rocket and a variety of Asian greens. “We have the capacity to produce over 180,000 kilograms of leafy greens and 16,000 kilograms of tomatoes per year.” according to its website The Department of Primary Industries is undertaking a feasibility study of an agribusiness precinct in the Western Sydney Aerotropolis, including, research into indoor food production and processing. NSW Farmers’ Association aims to assist Sydneysiders’ access to affordable fresh food linking the precinct to the Central West, one of the state’s premier agricultural regions Local entrepreneurs could consider Vertical Farm Systems’ production of fresh produce operational in a novel setting on the Sunshine Coast.– in a warehouse in an industrial space.

THE preservation of koalas in the Greater Macarthur Priority Growth Area will be the topic of discussion between government, landowners and conservation experts at a workshop to be held in March. In October, Council resolved to initiate the Greater Macarthur Koala Partnership Forum to bring together stakeholders involved in the planning and management of the area identified for future development to consider ways to support the local koala population.

Gene therapy funding THE NSW government has awarded $2 million in funding to support the production of gene and cell therapies by researchers at Sydney Children’s Hospitals Network (SCHN) and the Children’s Medical Research Institute (CMRI), at Westmead.

Views east and west THE highest restaurant in Parramatta is Nick & Nora’s, which sits atop the 26-storey V by Crown hotel /in Macquarie Street, in the CBD, with views to the Sydney CBD and the Blue Mountains. It is license for 330 patrons.

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Cover: disruptive farming measures are recommended to counter increasing urbinisation.

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$4M MOUNTAINS UPGRADE $4

POP-UP LIQUOR LICENCES

CHANGES TO AUTO INDUSTRY

Scenic world upgrades to compete S

Boost for night-time economies

Perfect storm of uncertainty

Family Business Page 11.

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FEBRUARY 2019 9 Western Sydney Business Access (WSBA) ACCESS NEWS AUSTRALIA PTY LTD ABN 39 600 436 799 Publisher/editor: Michael Walls M: 0407 783 413. E: michael@wsba.com.au Journalists: Red Dwyer, Iliana Stillitano, Terry Collins. Photographer: Sebastian Giunta Associate Editor: Dallas Sherringham Account Managers: Julie Jackson: julie@accessnews.com.au; Graham Maughan: 0431 557 791 Contributors: David Pring, Geoff Lee MP, Darryl McAllister. Printer: Spotpress Design: Design2pro.com, MBE Parramatta, PSD Brand Design Website: www.wsba.com.au General enquiries: info@wsba.com.au Phone: 02 4572 2336 Fax: 02 4572 2340

he publisher, authors and contributors co DISCLAIMER: The reserve their rights in respect off the copyrigh copyright of their work. No part of this work may be reproduced or copied in any form without the written consent of the publisher. No person or organisation should in any way act on the information and content of Western Sydney Business Access or www. wsba.com.au without first seeking professional advice. The publisher, contributors and agents accept no responsibility for any actions that may arise from the contents of this newspaper or website www.wsba.com.au. The opinions and views expressed by contributors are not necessarily those of the publisher. Advertisements are published in accordance with WSBA terms and conditions published in the media kit downloadable at www.wsba.com.au. Advertisers agree to indemnify the publisher and his agents for any actions that may arise as a result of published advertisements or contributions. Advertisers agree to abide by the terms of trade outlined by the publisher.

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

FOOD ECONOMY CHALLENGES

CREATIVE KIDS VOUCHERS

Can we find extra capacity?

Which suburbs download most

Connect with us HOW to get ACCESS facebook.com/AccessNewsAustralia WSBA is available free at 270 youtube.com/AccessNewsAustralia strategic distribution points linkedin.com/company/3278807 and online at www.wsba.com.au twitter.com/AccessNewsAus See website for distribution locations.

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Regional Round-Up

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by RED DWYER

Total transformation The $117M transformation by Cabra-Vale Diggers of a 32,000-square-metre site, in Canley Vale, includes an eight-storey, four-star, 120eoom Novotel hotel and entertainment complex. The site is the former Cabramatta Police Station.

Business park project THE proposed Nexus Business Park development is able to go-ahead following the rezoning of land the home of the Franciscans and Poor Clare nuns on Narellan Road, Campbelltown. The park site is opposite the TAFE campus.

Cakemakers sells HANDY Foods has bought a two-hectare industrial asset, at 312 Horsey Road, Milperra, from Cakemakers, for $13.55M.

CENTRAL WEST Crystal Radiology leases $4M Mountains upgrade THE Blue Mountains tourist attraction, Scenic World, has carried out a $4M upgrade of venue’s fleet of cable cars to help retain is leading position in a competitive market. Images above show Anthea and David Hammond at their iconic Scenic World.

NORTH WEST

race, Riverstone, for $2.8 million to a private developer.

PENRITH is growing an increasing reputation as a foodie destination attracting renowned chefs from Sydney and abroad, who together with local talent run several award-winning cafes, restaurants, pubs and clubs, according to Penrith City Council.

Granite Property sells GRANITE Property Group has sold a development approved land holding on a 6751-square-metre site, at 96 Railway Ter-

Parramatta tower GPT Group has purchased the 23-storey Eclipse tower, at 60 Station Street, in the Parramatta CBD, for $277.6M. The major tenant of the A-Grade office building is Deloitte.

SOUTH WEST

Planning reviews reduced Foodie destination

CRYSTAL Radiology Group has leased a 133-square-metre property, at 65 Harris Street, Harris Park, for five years, at $384 a square metre gross.

BLACKTOWN City Council has received $2.5M in state government funding to accelerate planning reviews. The funds will be used to reduce the time needed to complete the review from three years to two.

Restaurant wins

Decorator Centres leases

REVESBY Workers’ Bel Cibo Italian Restaurant won the NSW Restaurant in a pub/ club/tavern category in the Savour Australia 2018 Awards for Excellence.

Centre’s new managers

TRI leases site

DECORATOR Centres (NSW) Pty Ltd has leased a 1104-square-metr site at 25 Loyalty Road, North Rocks, at $85 a square metre, for five years with a three-year option.to The Good Collective Pty Ltd.

US-based Management and Training Organisation and Australian company Broadspectrum will operate the Parklea Corrections Centre on a joint venture. The companies will take over in April 2019.

TRI Underground has leased a 4035-square-metre site, at 2 Percival Road, Smithfield, at $102.50 a square metre gross, from a private investor for five years.

Macquarie Technology Park STOCKLAND proposes to redevelop Macquarie Technology Park with a masterplan for a $500 million state-of-the-art technology hub at Macquarie Park.

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WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019


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Pop-up liquor licences trialled P ARRAMATTA and Liverpool are among seven Sydney precincts to benefit from investment of $1.5M from the NSW Government aimed at stimulating night-time economies. A new type of pop-up liquor licence, which will be trialled in the precincts, will be introduced from March and help diversify the social, cultural and business offerings in the night-time economy “Sydney is one of the great world cities and has a long tradition of music and entertainment that’s to be celebrated,� Minister for Racing Paul Toole and Minister for the Arts Don Harwin has announced. “We’ve developed a package with two major elements. Firstly, we’re putting $1.5M towards boosting night-time events, live music, and secondly we’re cutting red tape and introducing innovative trading arrangements to enable businesses to thrive.� Mr Toole said a one-off $500,000 grants program for seven Sydney based precincts

aims to help individuals and organisations run street festivals, events, arts and entertainment. The seven precincts supported through the Activate Sydney@Night initiative are Darlinghurst, Haymarket and George Street,

Parramatta, Liverpool, Newtown, Opera House to Walsh Bay, and Pyrmont. “This funding could support the late-night opening of cultural institutions, including galleries and museums, pop-up venues and instal-

Metro Northwest completes driverless trial

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USTRALIA’S first driverless metro train has completed its first journey along the entire length of Sydney’s new $8.3B Metro Northwest railway line. The train arrived at Chatswood Station’s Metro platforms recently, having travelled 36km from the new Tallawong Station in Sydney’s northwest as part of the intensive testing process. Premier Gladys Berejiklian welcomed the milestone. “When this Government makes a

promise, it delivers and today’s milestone shows Australia’s first Metro, the Northwest rail line, is around the corner,� Ms Berejiklian said. “When this line opens, there will be turn-up-and-go services every four minutes, massively improving the experience for residents throughout Sydney’s northwest.� Over the past three months, major upgrade work inside the existing railway tunnels between Epping and Chatswood has been underway.

Platform screen doors have now been installed at all Sydney Metro platforms, including between Epping and Chatswood. About 19,000km of train testing has taken place so far on the Sydney Metro system, with 17 of the fleet of 22 trains delivered. Onboard train systems will be tested over the coming months as well as signalling, braking and acceleration at different speeds in the tunnel.

lations, along with food and drink options and community events,� Mr Toole said. An expert advisory panel will be established to advise Government of ways to integrate liquor and planning approvals. The panel will look at opportunities to remove duplication, reduce red tape and make it easier to start and grow licensed businesses in NSW. Experts will also look at ways to encourage more roof top bars across Sydney. “Sydney has some great roof-top bars, enjoyed by locals and visitors alike. Let’s take full advantage of the best cityscape and outlook in the world – if you’ve got it, flaunt it,� Mr Toole said. Mr Harwin said live music across Sydney and NSW will be supported through a new oneoff $1M Music NOW fund that will support the presentation of contemporary acts and increase participation in live music events across the State. More information at https://www.nsw. gov.au/nighttimeeconomy

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Penrith’s river vison realised ENRITH’S vision for better access to the beautiful Nepean River is a step closer, following today’s $24M funding announcement for upgrades to Regatta Park. Minister for Cities, Urban Infrastructure and Population, Alan Tudge and Minister for Western Sydney, Stuart Ayres confirmed $15M in Government funding at Regatta Park. Council will also contribute $9M to the project. The funding follows Council’s successful application to the Western Sydney City Deal’s Liveability Program. Penrith Mayor Ross Fowler said this is an example of the Western Sydney City Deal delivering for the people of Penrith. “This is the City Deal in action – three levels of Government working together to deliver the most important projects for each community in Western Sydney,� said Cr Fowler.

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The design of Regatta Park is the result of community consultation over several years, which was formalised in the Our River Masterplan. The new park will feature event and festival areas, picnic spaces, river terraces, a regional playground for children and a potential future dining precinct with expansive river views. “Our community called for greater access to the Nepean River and more opportunities to enjoy this special natural asset, which is central to our city’s lifestyle and identity.â€? The development of the ďŹ nal Regatta Park precinct designs, together with further community and stakeholder engagement, will start in 2019. Following this process, construction is expected to start 2020 with completion by 2022. For information visit www.penrithcity. nsw.gov.auÂ

Penrith Mayor Ross Fowler with an artist impression of the project.

Jobs surge for Western Sydney

Next phase of SOP masterplan approved

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RIVATE investment in Sydney Olympic Park is expected to increase with the approval of the next stage of the precinct’s Masterplan 2030 The biggest ever revitalisation of the precinct – once regarded as a white elephant after the 2000 Olympics – is the latest development underling the strength of the 12-kilometre long Greater Parramatta and Olympic Peninsula (GPOP) economic corridor. “[Review of] Master Plan 2030 is the most significant planning announcement since the Sydney 2000 Olympic and Paralympic Games,� said Charles Moore, CEO, Sydney Olympic Park Authority

ESTERN Sydney is experiencing a jobs bonanza with the region adding more jobs since 2011 than all of Queensland. The latest Australian Bureau of Statistics data reveals employment has grown for Western Sydney residents by more than 212,000 over the past seven and a half years. The Western Sydney unemployment rate currently sits at 5.0 per cent, just above last month’s record lows.

„ RED DWYER

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“It provides certainty for private sector capital investment to benefit the park and its entire region.� The Minister for Planning, Anthony Roberts, has approved the next stage of the blueprint guiding the growth and sustainable development of the precinct. “The plan is a significant initiative that will ensure Sydney Olympic Park continues to deliver outstanding social, economic and environmental benefits,� he said. Sydney Olympic Park is at the eastern end of the Greater Parramatta and Olympic Peninsula (GPOP), which is evolving as a major economic corridor. GPOP, an area of approximately 4000 hectares spanning a corridor a dozen or so kilometres long from Westmead to Sydney Olympic Park, is

at the geographic centre of Greater Sydney. The Greater Sydney Commission said the corridor has a strong foundation and significant assets. “We envisage four distinct quarters within GPOP: Westmead Health and Education Super Precinct and Parramatta CBD; Next Generation Living from Camellia to Carlingford; essential urban services, advanced technology and knowledge sectors in Camellia, Rydalmere, Silverwater and Auburn; and Olympic Park Lifestyle Super Precinct.� Greater Sydney currently has two economic corridors, both running east-to west, Sydney Airport, through the Sydney CBD, to Macquarie Park, and the evolving GPOP; a third corridor, north-to-south, is proposed based on Western Sydney Airport.

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Residents partner to sell super block „ DALLAS SHERRINGHAM LARGE of Baulkham Hills residents could win the “lottery of a lifetime” soon, but they haven’t bought a ticket. More than two dozen neighbours in the leafy “typical Hill suburb” have joined forces with the plan to grab around $60m for their homes. Amazingly, they will average double the market valuation of their homes had they sold individually. The news spread like wildfire through the media with leading agent Colliers confirming the “superb block” was on the market. And it had people chatting to their neighbours over the fence all over Western Sydney, dreaming up similar projects to make their fortune. However there is far more to than just coming up with a great idea around the kitchen table and then hammering in a For Sale sign. It started out as idea between several neighbors and it just grew from there, according to the consortium. Then it took a year to work through the pros and cons and red tape. The 26 homeowners ended up creating a 2ha “superblock” in the hope it can be rezoned for high-density living. “I don’t think we’re greedy, we just believe it will probably give us the best opportunity,” homeowner Ann Papas told leading property site Domain.

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Long-time resident Mrs Papas has been a long-time resident of the area has seen the Hills district “extensively changed” by development down through the years. She decided it was time to sell just over 12 months ago. While Ms Papas was initially looking to

The super size block.

sell individually, she thought some neighbours may also be interested including family members who lived next door. And she was right.

“There was already a medium density zoning and as soon as a walkway was put in, took just five minutes to walk to Stockland

Baulkham Hills Shopping Centre, so we knew if it wasn’t us, eventually an amalgamation of sites would happen.” Neighbour Matthew Burrell told Domain he had already been contemplating selling his three-bedroom house when he was approached by the family. “I was on board, and it snowballed from there,” he said. “It was a lot of work and it is exciting to get it to this stage and to have kept everyone together.” Only two homeowners in the area decided not to sell. Colliers investment services manager Tom Appleby said homeowners would pocket well above the suburb’s median house price of $1.15m, with the 26 homes expected to sell for in excess of $60m. “Just how much they make depends on whether a developer thinks they can get the land rezoned and the height limit raised from 9m and that will take time. “It will vary between 12 or 24 months give or take,” Mr Appleby said of the sales process. “Collective sales generally take a considerable amount of time to formalise.”

Big win for netball, tennis fans

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ETBALL and tennis players and fans will benefit from a major upgrade to create an international level facility for both sports in Western Sydney. The State Government has a $50.5M upgrade to the Tennis Centre at Sydney Olympic Park. As part of the upgrade, a new roof will be installed over Ken Rosewall Arena and Show Court 1 to create an all-weather high-performance environment for both

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

sports. A timber sprung floor will also be installed at the Arena, capable of hosting major netball events. The upgrade will improve players’ facilities, lighting, ventilation, seating and public amenities. Netball NSW CEO Carolyn Campbell supported the announcement and said that by providing access to a purposebuilt facility, netball will continue to see strong growth.

“Netball is one of the top sports in NSW when it comes to participation and is the market leader for women and young girls. Sydney requires a fit for purpose indoor venue to accommodate our professional franchises, the NSW Swifts and GIANTS Netball.” Tennis NSW CEO Lawrence Robertson welcomed the news, stating that the upgrade will allow tennis to attract new events and the best international talent.

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New corporate hotel for Parramatta NEW four-star hotel targeted at business travellers to be built in Parramatta by private equity investment company Pro-Invest Group with support of the NSW Government. The Holiday Inn Express will be the fourth hotel developed in NSW by the company in agreement with InterContinental Hotels Group. The NSW Government through the Department of Industry has worked with ProInvest Group to help facilitate and secure the investments in NSW with advice on regulatory processes, site selection and introductions to potential investors. “This investment is great news for Parramatta and also for Sydney’s wider tourism and business and accommodation sector,” Department of Industry Executive Director of Industry Trade and Investment Kylie Bell said. Pro-Invest Group Managing Director Dr Sabine Schaffer said the Parramatta hotel would be the fourth hotel investment for the company in NSW together with other Holiday Inn Express hotels in Newcastle, Sydney Airport and Macquarie Park. Dr Schaffer said the Group is also already developing an additional seven hotels in other main cities of Australia and New Zealand as Pro-

A

invest looks to penetrate the ANZ market with its hospitality assets. “Pro-Invest’s current hotel portfolio equals about 3,000 hotel rooms. The four hotels in NSW with their combined 850 rooms are supporting a total investment of some $280M creating approximately 150 construction jobs and about 100 ongoing jobs to operate the hotels,” Dr Schaffer said. “In NSW, we have built a 193 room Holiday Inn Express at Macquarie Park which was named Best Mid-Range Hotel by Tourism Accommodation Australia two years in a row in 2017 and 2018. This clearly demonstrates that our hotels have been well received in the market as corporates are looking for smart, modern hotel solutions for their employees. “We are also building a 220 room Holiday Inn Express at Sydney Airport due to be finished at the start of 2020, and in Newcastle we’re building a 170 room Holiday Inn Express due to open in March this year. “With the new Parramatta hotel, we are hoping to start construction pending development approvals in 2019 and open the project in 2021.” Dr Schaffer said Pro-Invest Group Sydney office has grown to become one of the largest hotel investment platforms in Australasia.

Pro-Invest Group Managing Director Dr Sabine Schaffer

Holiday Inn Express at Macquarie Park.

Capify secures $135M credit facility with Goldman Sachs CAPIFY, a leading Australian alternative SME finance provider has secured a $135M credit facility from Goldman Sachs Private Capital (“Goldman Sachs”) to support its future growth plans and provide working capital to Australian SMEs. The Western Sydney based fintech company will use the new facility to accelerate the growth of its lending business to Australia

SMEs through its business loan and merchant cash advance (MCA) products. Capify has been active in Australia since 2008, executing over 7,500 transactions for Australian SMEs seeking business financing and most recently celebrated its ten-year anniversary. “This is a landmark achievement for Capify and we are very pleased that we have

secured this financing with Goldman Sachs, one of the premiere capital providers in the world.” said David Goldin, Founder and CEO of Capify. “This new multi-year credit facility allows us to deliver on our own growth plans, whilst providing much needed access to capital for Australian SMEs to help them to grow, to boost the economy and to create jobs.”

“We are extremely excited about our future relationship with Goldman Sachs,” said John DeBree, managing director – Capify Australia. “The credit facility will enable us to continue on our growth trajectory while offering even more attractive and innovative solutions to thousands of small businesses in need of capital.”

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BUSINESS

WESTERN SYDNEY

With David Pring

Welcome Automotive Industry enters ‘perfect storm’ of CHANGE and uncertainty

WELCOME to KPMG Family Business articles or how KPMG can help with your feature articles, which I hope you enjoy business, please feel free to contact me on reading. If you would like to discuss these 9455 9996 or davidpring@kpmg.com.au

„ STEVE BRAGG OU don’t need to be a motor industry specialist to know that the Australian and global automotive industries are facing major challenges. In Australia, this year is likely to see lower new car sales, higher interest rates (barring a recession), decreasing vehicle affordability and continued margin pressure forcing original equipment manufacturers (OEMs) to make radical changes, as evidenced by General Motors, Jaguar Land Rover and Ford, in their product lines and business models. Such changes are global in their ramifications for dealers as detailed in the 20th KPMG Global Automotive Executive Survey (link: https://automotive-institute.kpmg.de/?m=0). Globally, and in Australia, dealers are sharpening their focus on expenses, reducing both new and used inventory and honing in on backend gross opportunities. Some are even considering selling their business. Other factors, such as autonomous or electric vehicles, are all expensive gambles for automakers and potentially major disruptors for car dealers. In the past six months, the stock prices of major automakers, retailers, and almost any company with close ties to the industry have significantly underperformed the broader market averages. There is also the possible negative impact of a looming general election, which traditionally sees consumers putting off significant purchases such as new cars. Nevertheless, despite

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eroding industry conditions and the poor stock performance of the entire sector, there are opportunities which dealers must seize. The biggest opportunity dealerships can exploit is a more seamless retail experience. That means offering a sales process similar to Google and Amazon – the way many of today’s consumers prefer to shop. Consumers expect 24/7 online availability, the ability to transact online and have their vehicle delivered when and where is most convenient, or click and collect from a delivery centre.

Dealers must also offer transparency in vehicle pricing and financing upfront. So no haggling and negotiating a deal. Consumers also want options to return the vehicle (e.g. within 7 days and limited by 100 kilometres), similar to their interactions with other online retailers. This has some significant challenges as car isn’t really ‘new’ with 100 kilometres on the clock. But the concept is certainly worth considering. They should also maximise customer opportunities using their CRM database. Targeting current customers whose cars are coming out of warranty, in for 30,000 km service, or driving the previous model and ripe for an up-grade. Lastly, dealerships should consider adapting their business model to participate in the profit from car loan financing following new ASIC changes put in place last year banning flex commissions between financial institutions and car dealerships. If the dealer becomes the lender, they can set the rate and then discount at the dealership. This allows more control over the process, greater transparency for the customer and dealerships can participate in the profits from financing a vehicle. All of which contributes to a one stop shop for purchase. Without changes to dealerships operating model and everyday interactions with customers they may well collapse under the disruption seen in other traditional retail sector. To learn more, please contact David Pring on 9455 9996 or davidpring@kpmg.com.au. First published by Steve Bragg, National Leader, Motor Industry Services, KPMG Enterprise

Global analysis of venture funding „ AMANDA PRICE ENTURE Pulse is a quarterly global venture capital (VC) trends report published by KPMG Enterprise and KPMG's Global Network for Innovative Startups. The report analyses the latest global trends in venture capital investment data and provides insights from both a global and Australian perspective.

V

Australian trends Venture capital invested in Australia hit a record US$899 million in 2018, up from US$659.9 million in 2017, according to the Venture Pulse Q4 2018 report.

During the last quarter of 2018, US$147.1 million of startup investment was recorded in Australia. Major funding deals included: • Deputy’s US$81 million Series B round. • Nura’s US$21 million Series A round. • Gilmour Space Technologies US$13.9M Series B round. In the last quarter of 2018, 15 deals were made which is significantly less than in Q3 when 41 deals were made with an investment of US$325.16M into the ecosystem. However, as Amanda Price, Head of High Growth Ventures comments, "2018 was the biggest year ever for VC investment into Australian startups. For the first time we are starting to see a steady flow of major funding rounds over US$10M aimed at helping locally founded businesses take on global markets. In Australia the diversity

of the start-ups being funded is testament to the scale of the economy and opportunity."

Global trends Globally, the final quarter of 2018 saw nearly US$64 billion in VC investment globally, led by a $12.8 billion funding round to US-based e-cigarette manufacturer Juul. The VC deal, second only to the $14 billion raised by China’s Ant Financial in Q2’18, helped propel annual VC investment globally from $175 billion in 2017 to $255 billion in 2018. You can read the full report at www.kpmg.com.au First published by Amanda Price, Head of High Growth Ventures, KPMG Enterprise

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Success

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How Ian REFINED customer service to stunning new levels

National Office asked me to talk to other franchisees about increasing sales. This went so well that after a while, I was asked to re-locate to Adelaide and roll out a national customer service program. In September, 2003, we rolled it out to 300 Wendy’s stores.” - Ian Gallagher.

„ DALLAS SHERRINGHAM AN Gallagher’s story of triumph over adversity is a beacon of hope to every person struggling to overcome a lack of education in starting and running a business. You see, Ian has reached the top of the corporate tree in Australia despite the fact that he has had a major obstacle to overcome – he can’t read or write. It is a story that needs to be told to every young kid struggling to get through school and living with the fear that they will never get anywhere because they don’t have an education or a tertiary qualification. I met Ian quite by chance. One of his businesses is a franchise of the Max Healthcare Equipment organisation and he provided me with an automatic bed after I was recently released from hospital. Now Ian wasn’t your typical delivery guy who barges in, throws the bed in a corner and disappears in a huff. He took the time to install it properly, explain how it worked and was the most amenable supplier I ever met...and I told him so. That’s when Ian began to tell me his amazing story. Ian’s struggle started at school when

I

My wife said: You don’t know anything about business! You’re the dumbest person I know - how can you possibly run a business?” - IAN Gallagher. 12

customer service program. “In September, 2003, we rolled it out to 300 Wendy’s stores and Wendy’s was four per cent down on profits at that stage. It worked. We finished the financial year at eight per cent up. “I stayed with Wendy’s for the next six years, telling anyone who would listen, ‘It doesn’t matter about the product, it’s about how you treat your customers and staff ’.” “I got headhunted by Allied Brands, who owned Baskin Robbins, Cookie Man and Kenny’s Cardiology. This was an opportunity to show that my customer service culture could work in any business, not just food.... and it did.

he was nicknamed “Mumbles” because of a speech impediment. Instead of hiding away, Ian eventually embraced the name and it became his calling card and he now uses it for the name of his corporate speaking company. However try has he may, he never learnt to read or write and admits he drifted through school in Western Sydney.

Lots of money “Like everyone, I went to school, but didn’t learn to read and write. I left school at 15 to become a bricklayer. “One of the things I loved about bricklaying was that I didn’t have to read or write, I just had to work really hard to make money. I made lots of money, because I worked really hard. “I also loved the camaraderie of a building site. But after 20 years, all my bricklaying mates were broken down: bad backs, bad knees, burnt out and old before their time. “I was still pretty OK, but I didn’t want to end up like them, so, one day I had the bright idea to buy a business. I went home and said to my wife Gillian: ‘I’m going to buy a business!’ “You don’t know anything about business! You’re the dumbest person I know - how can you possibly run a business?” she said, which was hardly inspiring. “And anyway, what kind of business would you buy? Well, I thought about it and said: ‘I take the kids to Wendy’s all the time - I want to buy a Wendy’s’.” “Now, my wife is a lot brighter than I am. She said: ‘OK’, but she insisted I couldn’t buy a Wendy’s because I loved it, but because it was the best business to buy. “She made me look at the business model and compare it to other food franchises like Baskin Robbins, Donut King and Michel’s. I kept coming back to Wendy’s. “You’re going to buy a Wendy’s, aren’t you?” said my wife. “Yes, I am,” I replied. “I love Wendy’s and I’m going to buy a business I love. So, I started looking around at Wendy’s stores.” Ian, Gillian and their three children lived in Wentworthville at that stage, but the idea of a “Wenty Wendy’s” wasn’t that appealing.

Life on the road

Ian Gallagher.

“Why are you looking around here?” Gillian said. “If you want a lifestyle change, we need to move away.” Ian takes up the story: “The next weekend, there was a Wendy’s store advertised for sale at Lake Haven on the beautiful Central Coast, a world away from Wentworthville in Western Sydney. “We went for a look and ended up buying it. We paid way over the odds for it, but that didn’t matter. “That Wendy’s store had been in the centre for 15 years, with 4 or 5 different owners. “In the first 12 months, we doubled the turnover. So we bought a second store with a similar history and we doubled that turnover in 12 months, as well. “Wendy’s National Office started asking questions about what we were doing? The CEO and the COO came to have a look at the store to see what was different about it.

Customer service “I also started looking at the other retailers to see how I was different. It turned out, when customers walked past a retailer, they were just walking past for a reason. “You see, when the customer came to the counter the retailer was just polite. When customers walked past my counter, they got a wave and a greeting. Actually, truth be told, most of the morning was very quiet and I was bored and going crazy with no one to talk to. “When they came to the counter, I treated them like they were important. After a while, they wanted to come to see me and have a talk. And they always bought something. “National Office asked me to talk to other franchisees about increasing sales. This went so well that after a while, I was asked to re-locate to Adelaide and roll out a national

“However, the whole family had eventually relocated to Adelaide to join me and we were all homesick for the Central Coast. I'd managed to develop a nationwide program called Mumbles Customer Culture that I could run from anywhere so we moved back home. I spent literally years on the road: at first it wasn't so bad, just a week or two at a time. “But it wasn't long before I was travelling Monday to Friday and having weekends at home, especially when I went out on my own and formed the consulting business. My focus in the Mumbles Customer Culture was always on the franchisee/store manager and forming personal as well as business relationships. I was working with national brands so travel was unavoidable: phone and email just didn't cut it. “I felt I was missing a lot - we had moved to the Coast from Wentworthville for a sea change and I wasn't seeing a lot of the beach or the family, so when the opportunity came up to own and operate a local healthcare business last year I jumped at it. “The Max Healthcare service works in perfectly with my consultancy. Mumbles is designed to help businesses develop and maintain a customer service culture that changes people’s lives. I provide goals and opportunities for people, and, most importantly, I get people involved in productive and respectful relationships “I think the idea of a breakout into healthcare is a good one. Max will be run as an independent, locally owned and operated business. I've already built excellent relationships with Gosford Private, Berkeley Vale Private and some of the major OT companies on the coast. I asked what Ian’s best business tip was? “It's all about forming a relationship with the customer,” he said. “It might be only a minute or two, but in that time, the customer should be the whole focus of your attention. Invite them in, have a conversation, offer them something and make a genuine farewell.”

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019


Balance brings success At KPMG Enterprise we believe that in a rapidly changing world, supporting family business is more important than ever.

The power of open communication, embracing the wisdom of all generations, and planning for the future can unlock your competitive advantage. To ďŹ nd out how, talk to us today. David Pring Partner, KPMG Enterprise davidpring@kpmg.com.au 02 9455 9996

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Viewpoint

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Five indicators for healthy boards „ LILA D’SOZA O the Directors of your organisation display the signs of a healthy organisational culture or is the atmosphere at best chaotic, personality driven, unpredictable and tense, and at worst toxic? We all know that directors’ duties are onerous and, likely, increasing. No longer is it possible to just rubber-stamp advice received (if indeed it ever was), or to take a head in the sand approach to complex issues and just rely on management to fix them. We all know the buck stops with the board. Here are five basic questions to get the conversation rolling as you do your board health check: 1. Are directors up to date and do they understand their obligations under the law, as well as the heavy penalties that can ensue if it cannot be demonstrated that those duties have been fulfilled? 2. Are the directors involved in proper independent and balanced decision making based on all available information? 3. Is your board cognisant of its risk appetite and managing its risks using an ethical, transparent, responsive and compliant governance framework? 4. Is your board strategic in its decision making? We all know resources are finite and without a dynamic strategic plan valuable opportunity may be wasted or missed entirely, at great direct and indirect costs to the organisation and its shareholders/beneficiaries 5. Does your board foster an environment where directors feel respected and able to speak their minds, and where diversity is viewed as a strength, or is it a prisoner to group think?

D

Lila D’souza is a senior executive and legal practitioner with 20 years’ experience in private practice, government and not for profit organisations. She has significant experience in managing large Aboriginal organisations and has extensive expertise in the areas of property law, native title and land rights. Lila is passionate about Aboriginal social justice and was appointed as Independent Director of the South West Aboriginal Land and Sea Council in 2017 and the Company Secretary of the Aboriginal Legal Service (NSW/ACT) Ltd in 2018. Contact her at lila.dsouza@purpose.group

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Laying foundations for our future

„ GEOFF LEE 019 is an election year. This year we head back to the polls to elect the people that will best represent us at both State and Federal levels. I have been the State Member for Parramatta since 2011 and working hard to make a difference in our community – to help our area reach its full potential. Today, we are all proud to call Parramatta the capital of Western Sydney. Eight years ago, I said great cities provide integrated and convenient public transport systems – fast forward and we have committed $1B for a world-class Light Rail for Parramatta. Eight years ago, I said great cities have vibrant arts and cultural precincts – we are 100 per cent committed to moving the Powerhouse Museum to Parramatta, complete with Planetarium – this is a $640M commitment to arts and culture in Parramatta. An international design competition is well underway to build an iconic museum. This is a once-in-a-generation opportunity to build a world class museum that is the anchor of an arts and culture precinct in Parramatta. Eight years ago, I said we must preserve our historic buildings – today we have developed a Parramatta Heritage Precinct Master Plan, carried out archaeological and geotechnical works and completed $18M in repairs to heritage buildings and supported the Female Factory’s National Heritage Listing. Plans are well underway to create a cultural and creative hub with museums, cafes and more. The NSW Government has committed more than $310M over 10 years for restoration works and infrastructure to make this Australia’s best heritage precinct. Eight years ago, I said I will fight for a greater share of resources for Parramatta – and we now

2

Geoff Lee wityh an artist impression of Parra,atta Light Rail.

more police, doctors and nurses; we have also committed $30M to build a new police station. Parramatta Station now has 1,190 more train services compared to 2011 with 250 express train services every week between Parramatta and Sydney CBD.

Asking for more Eight years ago, I said I would be knocking on Ministers’ doors and asking for more – and we have the $900M upgrade of the Westmead Hospital Precinct well underway, the $360M Western Sydney (Bankwest) Stadium opening in April 2019, more than $385M on new schools, including NSW flagship vertical primary and high school in the heart of Parramatta CBD. We have invested $35M in upgrades to Parramatta Park’s heritage buildings, playgrounds, picnic spots and the transformation of the Crescent - into a world-class open-air event space.

Under our Decade of Decentralisation Strategy, the Department of Education has moved their Headquarters to Parramatta, while a new building at Parramatta Square will accommodate 4,000 government jobs. Eight years ago, I said we would see Sydney’s CBD reach all the way to Parramatta – now Parramatta is recognised as the central city, the Capital of Western Sydney a city that links the Westmead bio medical precinct to the Parramatta CBD and beyond through Camellia into Sydney Olympic Park. Parramatta has always been about potential, a potential that has, in the past, been overlooked. We can capitalise on our great new and existing schools, our universities and world-class health services and our ample sporting, leisure and entertainment options. Realising Parramatta’s true potential remains a priority. My vision is for Parramatta to be NSW’s

An international design competition is well underway to build an iconic museum. This is a once-in-ageneration opportunity to build a world class museum that is the anchor of an arts and culture precinct in Parramatta.” – Geoff Lee. premier city - a vibrant and dynamic destination, seen as the best place in NSW to live work and raise a family, with good jobs close to homes connected by convenient, friendly and reliable transport solutions, so roads, buses, trains and light-rail remain my priority. Parramatta has come a long way, but there is more to do. Eight years of hard work laying the foundations for Parramatta’s future prosperity. For a brighter future for all. It has been an honour and absolute privilege to serve the people of Parramatta over the past eight years. Geoff Lee is State Member for Parramatta.

IS YOUR BUSINESS KEEPING UP WITH WESTERN SYDNEY’S GROWTH?

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Arre Are A re yo yyour our ur goa go g goals oa o als ls w wha wh what ha h at yyou ou o u eexp ex expect xpeect xp ecct ct ot o others ther he h er ers w want ant a an ntt fr n ffrom ro om m you, you yyo ou o u, or or are are re they tth heey your h yo our ou urr own? u ow o wn n?? from fro fr fro rom sshut shutterstock.com hut hu hut utte tter eerrsst sto tto tock occk ck. kk..com .co ccom om o m WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

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Technology Success

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O C W

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My three technology

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„ DARRYL MCALLISTER ELCOME to the first of our articles about technology success. Over future months we will be exploring issues around leveraging technology for business and life success. In December 2018, I attended the CEO Forum hosted by Anthony Moss from Lead Your Industry. I’ve attended previous CEO Forums but this one was the best yet. The panel discussion was especially informative and featured three industry thought leaders - Mark McCrindle, Ashton Bishop and David Pring. Near the end of the forum, the panellists were asked to give their predictions for 2019. Of those predictions, there were three that resonated with me: 1. Pragmatic implementation - rather than the wow factor. 2. Collaboration - solving problems by working together, not just outsourcing; and 3. New opportunities in Western Sydney for all businesses. In addition to considering how I can take advantage of these opportunities at NetCare, I thought I might review each of these three predictions with my Technology Success hat on. In other words, how can Sydney based businesses gain a competitive advantage by viewing these predictions through a technology lens.

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Thought leaders from left: Ashton Bishop, Mark McCrindle and David Pring.

Pragmatic Implementation Being pragmatic means dealing with things sensibly and realistically in a way that is based on practical rather than theoretical considerations. In the context of technology, a good example is the use of software within your business. Rather than finding the latest and greatest piece of software to solve a business problem, its often the case that learning all the features of your current applications may go a long way to overcoming the problem. It’s often better to get a problem 80% fixed quickly and cost-effectively rather than taking extra time, extra cost and extra resource effort to implement a new application that gets you to 90%. A good example of this are the cloudbased accounting applications like Xero and MYOB. Both these applications are continu-

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ously updated with new compliance functionality being added. At NetCare, we use MYOB and over the last 12 months we’ve taken advantage of these improvements to run our business with the same admin resources, even though both our revenue and compliance requirements have increased. All without paying anything more for our existing accounting software. When discussing technology with business leaders, I often find the most under-utilized application is their monthly Office 365 subscription. Sure, they’ve moved their email system to the Office 365 Exchange service and they’re now using the latest version of Office but very few are looking at the services beyond email. Services like SharePoint for file-sharing and Microsoft Teams for collaboration within the business and with external partners are typically not deployed at all.

In addition, some are often considering (or already paying for) other cloud applications to solve business problems that their current Office 365 subscription can provide in a pragmatic fashion.

Collaboration Collaboration is about working with someone to produce something. In the business environment, this is mostly about solving business problems by working together. Sometimes these business problems are internally focussed, but often the biggest rewards are achieved by collaborating on solving problems that customers are experiencing. Traditionally, the provision of technology support services has been provided on an outsourced basis. In 2019 I expect we’ll see Continued on page 17

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predictions for 2019 cinct and the Liverpool Health and Academic Precinct. Positioning our businesses to make the most of these massive growth opportunities sounds to me like a strong priority for 2019. It’s very interesting to note that all the key stakeholders are using phrases like “smart”, “innovative”, world-class excellence” and “transformative”. This suggests that an integral component of this opportunity is to deploy the latest technology in every industry sector involved. The CEO of Western Sydney airport, Graham Millett, is setting the pace by planning for both passenger and freight drones, and the NSW Government has already committed to developing a 5G wireless strategy for the new Western Parkland City.

Artist impression of the Western Sydney Aerotropolis.

Continued from page 16

more businesses involved in collaboration projects with the next generation of IT service providers, that I call “technology success providers”. In 2019, trends like Digital Transformation and the Internet of Things will need to be embraced by businesses that want to retain and extend their market leadership. In line with the concept of pragmatic implementation, a quick way to get on board with these new trends is to collaborate with technology success providers who have a track record in achieving strategic outcomes. Examples include: • Providing data links between accounting applications and customerfacing websites; • Implementing smart warehouse systems;

• Providing real-time updates for project-focussed businesses as well as their partners and customers; and • Adhering to increased regulatory and compliance data security requirements in a way that creates a competitive advantage and new business opportunities.

Opportunities in Western Sydney In the coming years, there’ll be $30B worth of investment in the Western Sydney region. Construction has now started on the Western Sydney Airport – Australia’s first smart airport set to open in 2026. It will be curfew free and surrounded by the Western Sydney Aerotropolis – a thriving industry landscape for defence, aerospace, medical technology and education. In addition, there’s major developments on the way in both the Westmead Health Pre-

Planning for Technology Success in 2019 Whatever your industry sector, I suggest you engage more with your technology providers on how they can add real strategic value to your business in 2019. The three predictions outlined here are some examples about how you can use technology to increase your business success. There are many other technology initiatives your business can take to achieve financial growth and success in 2019. I’d be delighted to hear from you if you’re interested in a deeper discussion about how technology can help your business be more successful. Darryl McAllister is managing director at Netcare. Visit www.netcare.net.au This article is also viewable at www.wsba.com.au

TIP: Rather than finding the latest and greatest piece of software to solve a business problem, its often the case that learning all the features of your current applications may go a long way to overcoming the problem. TIP: It’s often better to get a problem 80% fixed quickly and cost-effectively rather than taking extra time, extra cost and extra resource effort to implement a new application that gets you to 90%. TIP: In line with the concept of pragmatic implementation, a quick way to get on board with these new trends is to collaborate with technology success providers who have a track record in achieving strategic outcomes. TIP: When discussing technology with business leaders, I often find the most under-utilized application is their monthly Office 365 subscription. They’ve moved their email system to the Office 365 Exchange service and they’re now using the latest version of Office but very few are looking at the services beyond email.

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Search for a designer who can create the OPERA HOUSE OF THE WEST „ DALLAS SHERRINGHAM ARRAMATTA’S new Powerhouse Museum could be the "Opera House of the West" with a unique design and so the search is on for a world class architect to provide the perfect concept. The Powerhouse Precinct encompasses an iconic new museum, public space and pedestrian bridge. Minister for the Arts Don Harwin said the international design competition was the next major step in the Powerhouse Museum’s move to the banks of the Parramatta River. Focused on excellence and innovation in applied arts and sciences and with 18,000 sqm of exhibition and public spaces, the new museum represents a major tourism and cultural asset for Western Sydney “I am delighted to open this competition fulfilling our promise to the people of Western Sydney to deliver a major cultural institution

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Artist impression of the Parramatta Powerhouse Museum.

they can be proud of,” Mr Harwin said. “While Labor announced vague plans to build a much smaller ‘institution’ with no collection or operational budget – this Government is getting on with designing and building a museum that will be the envy of the world here in Parramatta. “Western Sydney deserves nothing but the

DVANCED automation technology worth $50M is capable of handling 70 million items annually in a $160M state-ofthe-art distribution centre in Prestons. The Toll Group’s next-generation distribution centre in the Prestons Logistics Estate helps retailers deliver faster and more efficiently to their customers. Chris Pearce, president, of Toll Global Logistics, said the current market was placing aggressive demands on retailers to provide fast fulfilment and delivery, without increasing costs. “Toll’s investment in the new facility is helping our customers adapt to the new retail environment,” he said. The 32,000-square-metre facility, one of the country’s most advanced e-commerce distribution centres, is capable of picking, processing and packing 375,000 items per day, shortening delivery times from days to hours. The facility has been designed to

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best and that’s what we are going to build in Parramatta. Labor has always been opposed to giving Western Sydney its own museum and has only committed to a second-rate white elephant." The new museum will showcase the Museum of Applied Arts and Sciences’ collection, developed during the last 135 years and

$300M hospital for Rouse Hill

Technology to handle 70 million items „ RED DWYER

Sydney Opera House.

accommodate Australia’s largest and most advanced planetarium as well as state-of-the-art galleries to present international exhibitions and museum displays. With more education and learning spaces than Ultimo, the museum will make better use of digital platforms and create significant education and employment pathways for young people into careers across technology, science and arts and culture. “This is a once-in-a-generation opportunity to create a purpose-built Powerhouse Precinct at Parramatta that will welcome people from across the world and NSW. Around 1,000 people have already registered their interest for this project." Minister Harwin encouraged both local and international architects to enter the competition. Designs produced by shortlisted teams will be on public display later this year. Stage One Expressions of Interest are now open and close on March 18.

be flexible so it can be scaled up based on seasonality, business growth, and new customers, and is also capable of 24/7 operations if necessary. It would require 200 operations workers, technicians and engineers that would “boost the local western Sydney economy”. The facility was constructed in collaboration with apparel retailer, Specialty Fashion Group, Toll’s anchor tenant at the new site. “We have a highly specialised supply chain, so we needed a customised solution that would meet our ongoing needs as a retailer,” said Alex Linton, the group’s GM Logistics. The facility operates as a shared, multi-user facility, with capacity to support additional retailers and their supply chain operations. “Staying competitive in a rapidlychanging global market requires vision, determination and an appetite for change, and that’s what Toll’s new facility will provide,” said Melinda Pavey the Minster for Roads, Maritime and Freight. She said the new facility would provide a “great service” to Australian and international consumers.

ESIDNTS across north-west Sydney are closer to having world class health services on their doorstep with the site for the Rouse Hill Hospital announced last week. Minister for Health Brad Hazzard, Riverstone MP, Kevin Conolly, Castle Hill MP, Ray Williams, Baulkham Hills MP, David Elliott and Liberal candidate for Hawkesbury, Robyn Preston were all on site at 768 Windsor Road, Rouse Hill to inspect the site. “We promised a new hospital in Rouse Hill and this site has been selected to ensure easy access for residents across north-west Sydney.” The site is close to the Rouse Hill Town Centre and the new Rouse Hill Metro station, ensuring both staff and the community will be able to access the hospital easily. The acquisition of the site forms part of the NSW Government’s $300M commitment. “Planning, early design works and community consultation will ensure we deliver what the community needs and deserves,” Mr Hazzard said. The new Rouse Hill Hospital will complement Blacktown and

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Mt Druitt Hospitals and Westmead Hospital to ensure comprehensive health care throughout the north west. The investment in the new Rouse Hill Hospital will add to the billions of dollars already funded for new health facilities in Sydney’s west, including: • Westmead and The Children’s Hospital, Westmead: $1B. • Blacktown and Mount Druitt hospitals: more than $700M.

• Nepean Hospital: more than $1B. • Forensic Medicine and Coroner’s Court Complex, Lidcombe: $91.5M. • Campbelltown Hospital: $800 million • Liverpool Health and Academic Precinct: $740M. • Ronald McDonald House, Westmead: $10M. • Bankstown-Lidcombe Emergency Department: $25M. • Concord Hospital: $341M.

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Lifestyle

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Electric dual cab within three years „ DALLAS SHERRINGHAM ESTERN Sydney businesses and tradies will be able to switch to an electric Dual Cab Ute by 2022 if all goes to plan. But the name on the Ute’s branding won’t be Toyota, Ford or Holden, it will be a little known company from Chicago called Rivian. The Dual Cab stole the show at the recent LA Auto Show and gained instant worldwide attention for its innovative design and construction. Rivian plans a rapid expansion to righthand drive markets including Australia following its public launch in Los Angeles. The little-known firm reveled in the spotlight at the motor show and it debuted two all-new battery-powered production models that have been nine years in development. Rivian has research and development operations in Plymouth, Michigan, San Jose, California and Irvine, California. The firm also has a factory in Normal, Illinois and an engineering facility in the United Kingdom

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The Rivian electric dual cab.

The headline vehicle was the R1T pick-up, an all-electric dual-cab utility and it will be sold alongside the closely related R1S sevenseat SUV touted as a direct Range Rover rival. Rivian’s chief communications officer Ken Schuman said both were intended for release

in Australia, Japan and the UK (all right-hand drive markets). “The goal is to continue to expand; I don’t have any dates for today but we do plan to be in the Australian market in due time,” Mr Schuman said.

The Rivian R1T/R1S pairing will reach showrooms in the US, Canada and Mexico in late 2020, followed by Europe and China in 2021. Australia will follow shortly thereafter. Rivian stakeholders say the factory will have a capacity of 250,000 vehicles annually, though the initial plan is for “tens of thousands of vehicles for the first few years”. “We’re focused on a brand-new segment called the electric adventure vehicles,” Mr Schuman told media. “We want to disprove a bunch of myths: that electric vehicles can’t go off-road, that electric vehicles can’t deliver performance, that electric vehicles aren’t made to get dirty. That’s what these vehicles are born around, that’s their ethos. “It’s really been built with this adventure segment in mind and opening what we feel is a whole new segment.” One of the keys to the RT1 Ute’s appeal is a massive channel positioned between the cabin and tray — ideal for snowboard and surfboard storage — along with a dearth of regular floor mats through the cabin, because “they’re not made to get dirty and they’re hard to clean”. At its top battery level, the R1T boasts a range of about 645km. It will also be possible to charge 320km of range in 30 minutes using a DC fast-charger. Towing is also well facilitated courtesy of a five-tonne rating, while off-roading capability is assured thanks to the RT1’s four-wheel drive system, which comprises an individual electric motor on each wheel. “We’ll go to 60mph [97km/h] in under three seconds, we’ll go 100mph [160km/h] in under seven seconds. You’ll have sports car performance in an off-road vehicle.” What remains to be seen is the local price of either model. In the US, R1T pricing starts at $US61,500 ($A84,950) and R1S pricing starts at $US65,000 ($A89,750). Australian pricing will be around $100,000 for both models. Rivian secured a $200M loan to begin production and has raised $450M to date.

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019


FEBRUARY 2019 SPONSORED BY KMPG

GROWING THE Finding extra capacity

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The Access News Australia Regional Roundtable is an invitation-only forum of influential people that have an interest in developing business excellence, exchanging ideas and networking. The ANARR meets in a private boardroom setting. Following is an edited transcript of the most recent Round Table session, held at KPMG offices in Parramatta. WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

All images by Looks Fresh Photography.

FOOD ECONOMY 21


THE FOOD ECONOMY

Images all pages show guests at the food services round table.

Challenges of the food econmomy Jim Taggart: A very warm welcome to you all. On behalf of KPMG and Access, I’m delighted to have this round table today. The focus is on what I’m going to call the Food Economy particularly as it relates to Western Sydney, looking at the challenges and opportunities within the food tech industry particularly in manufacturing and from a capital point of view. This is one of the fastest growing areas in Western Sydney. A $4.5 bn economy. When I look around the room I see three or four people who I know well. And I know I can take this with perspectives that’s going to enlighten us and help us in our thinking, about what we want to do. Before I ask Lloyd to make a presentation and set the scene, I’m going to ask each person to briefly introduce themselves: who you are and where you work. I’m going to start with Ben. Ben: I’m Ben from Zammit Ham and Bacon. As the name suggests, we are a ham and bacon manufacturer in Western Sydney, in Pendle Hill Way. We’re a family business operating for the last 60 years. We supply Sydney, Queensland, and Victoria with food service, wholesale and little bit of retail. Jim: Nick. Nick: I’m Nick from Sydney Food Service. We’re not in Western Sydney but we distribute our products to this area. We buy products from Zammit and some products from Kurrajong Kitchen. We’re a medium-sized family business that’s been around since 1980. We have a decent amount of clientele this way, and to be honest, they’re actually doing it pretty tough. Ishan: I run a family business: me, myself and I. I help food manufacturing businesses to grow their business for example: what to do when you start thinking about moving into a factory or looking at implementing automation. I am that person who comes in to say: “you haven’t looked into that big rock of productivity or efficiency in different ways.” I help you unlock that and reduce your cost of manufacture. Lloyd Gilbert: I’ve been here since February 2015. I was one of the founding members of the office. My job is leading clients and markets, focusing on particular industries, industrial markets which the food sector’s an important part of. We’re really focused on growth in Western Sydney and helping businesses become more sophisticated, more successful, export and become global clients etc. My other reason for being here is that I was commissioned by a local council to do some research on the food sector. I’m going to present one slide which shows the outcome of that research. So, I’ve got some investment in the food sector. Jim Taggart: Thank you. Michael? Michael Bryan: My name is Michael Bryan. I work directly with the advisory practices with GWS and it’s my role to form relationships with business like yours. My particular focus is within the food and beverage sectors. Jim Taggart: Thank you.

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Paul: I’m Paul, Partner in the deal advisory team, we focus on Mergers & Acquisitions and we do it across a number of different sectors, but our real line of focus over the last five years has been in food and beverage. We have a number of transactions in that space. Rodd: I’m Rodd. I work with Paul, and Michael and Lloyd. I was one of the founding members of the Parramatta office. I’m involved in the Mergers and Acquisitions team, with a focus on general industrial businesses. I have a background in a family business for 40 years. We were in the packaging side of tobacco and food. So, we were more focused on the packaging side of the food sector. Mars Bars, Maltesers in the box. That sort of area is mine. Mitchell Adermann: Mitchell Adermann from HSBC. Thanks for inviting a banker along. My background is in food and agribusiness. Specifically, I’ve been in the food banking industry for about 25 years. I was a farmer before that. HSBC’s particular interest in food is the massive export industry and also an import industry. As some of you guys know you compete against imported products and it’s also our supply chain from pack to flight, pound to fork, whichever way you describe it and we’re a viable trade bank. Jim Taggart: Thanks for being here. Rod? Rod: Rodney Molla, from Brasserie

Bread, we are also a Western suburbs business, but we do sell here a bit. We also operate in Melbourne and Southeast, Queensland. I’ve lived in Auburn for ten years, so I know Western Sydney well. It only took me two hours to get here but that’s okay, we love coming to Parramatta. Jim Taggart: Thank you, Rod. Karen: Karen, CEO, founding director of Kerrigan Kitchen Lavosh. 25 years this year. We’ve been providing Lavosh flat bread to both retail supermarkets and the food service industry. We do very little export, as we’ve dabbled without a clear strategy. In the next four years we have a very big growth platform to achieve. Jim Taggart: Thanks, Karen. Matt Grigg: Matt Grigg. I’m part of the R&D incentives group of KPMG. I’ve been with the firm for seven years. I split my time between our city office and Parramatta by spending three or four days out here. We have a strong Western Sydney food sector focus. Anthony Bowyer: I’m Anthony Bowyer. I represent KPMG in Asian markets. We have a focus within the firm of working across all disciplines and helping Australian organisations of all sizes and shapes execute internationally, particularly focusing on Asia, and particularly focusing on food. We do a lot of work with clients to help them execute in China and we

really feel that is a massive opportunity for our clients to be successful and grow. Paul Epsimos: I’m Paul from Muscle Meals Direct. We make meals and distribute around Australia. We’re based in Western Sydney, we produce everything in Western Sydney and distribute from there. Keith Rhee: My name is Keith Rhee and I’ve been involved in the sushi business for about 15 years. I was recruited about 15 years ago to set up a franchise for the sushi group. We are at every major shopping centres, in ACT. And the partners decided to go their own separate ways and do their own little things. And we feel the sushi business wasn’t as competitive as today. There are many sushi shops everywhere, it’s making it really tough for a lot of people. But I’ve learned a lot. Made money, lost some money. It’s been a good experience. Jim Taggart: Some practical points: Chatham house rules apply so that means we talk honestly and respectfully about matters. And this might seem obvious. I’m happy for people to have robust discussion but not to be rude. So, I’m just putting that on the table: the importance of intellect and dialogue and direction. The other thing that we give as a gift, and I’m looking at Lloyd is to share Continued on page 23

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019


THE FOOD ECONOMY Continued from page 22

each other’s emails with each other over time because questions will around the table. You may not have the time, you may have to go. Is that okay for everybody? I think, ‘Gee, I really like to talk to Mitch from HSBC I just couldn’t get to him today” or something that’s important because you’re looking or planning your finance arrangements and “I need to talk to Lloyd to get me in contact with that or Anthony.” So, is that okay? Let’s move on. It’s very exciting. We’ll have a little lunch around 11am Jim Taggart: Set the scene for us. Lloyd: As I said earlier, I was engaged by a Western Sydney council to do some research on the food sector. The reason for that was because they did a strategic analysis around some of the key sectors in the region and the food sector came up. Their big concern was the encroachment of residential areas into productive land and they wanted to set strong policy platform, so those manufacturing jobs remained in the area. One of the big concerns in Western Sydney is that everybody travels to the city to work. Against that context I want to show you a couple of slides. So, the summary is it’s a really solid industry but sort of under pressure for various reasons such as regulation etc. But people love this sector, and nobody wants to leave it. Once you’re in the food sector, it’s vibrant, it’s moving fast. I knew 20 sizable businesses with less than 500k and there’s only a couple of those up to billiondollar diversifying corporates, from two staff to hundreds and right across the industry spectrum from fries to confectionary, to beverages, to equipment providers to food services, to packaging. What I found is that a lot of people are working in the business but not necessarily on the business. They’re not actually spending good management on going to that next level or getting advice to help them export, or grow. So that was a bit of a takeaway. The industry is really focused on quality and I think regulation probably drives that, but competition does as well. We’ve got a consumer that’s quite fickle, I guess. But if you have good product they’re loyal. I found them quite resilient, lot of pressure on the sector, but they really maintain a strong foothold in the sector. I want to sort of stress here is that there’s a lot of stakeholders in this sector that are external to the actual production of the product and I think having a more streamlined relationship with regulators is really important, because it takes up too much time. I think some of these businesses were one or two FTEs just controlling the regulation requirements, and it’s almost completely non-productive. So, that was a key message. Lloyd: And the councils really want to help, but there’s tension between economic development and regulation. If you want to help businesses you have got to empathise, you’ve got to stand in their shoes and you’ve got to be supportive. You know, it’s tough doing business. And governments at all levels need to understand that. Anyway, investment intentions looks very strong In terms of equipment purchases. I was very surprised about this: equipment for efficiency and for making new products are all very important. Infrastructure is very important: how do I get my product to the right place, quickly? All these guys, over last 10 years, are leaving two hours before for the first run. Just to beat the traffic. So, the way to tie things I think is a really critical thing. Also, putting more and more stuff on the label, is becoming a challenge for people. Working with margins I think is a big challenge: how do I actually find other markets to actually get premiums, etc. Will the be open to export? So, I think it’s just a very important revenue stream that anybody needs considering, particularly in the food sector. Innovation is just so solid in this. Everyone is fiddling in their formulations, in this sector. It’s just fantastic to watch. These were the key things. Rodd: Lloyd, what about funding? Lloyd: There are some banking facilities out there that help. A lot of the businesses are private, and I mean really private. They just want to stick to themselves and do their thing. If they think about a major growth strategy, they might look outside? But they tend to work with their own network, I find. Rodd: Probably shouldn’t do that Jim Taggart: 15 minutes before we break.

Certainly with finance its just pretty easy stuff. It’s pretty easy to get finance, with pretty decent rates to be paying over five years. Lloyd: Now, let’s talk about the way they operate, what they told me. Jim Taggart: All right. Let’s start: we’re going to break it into two parts. In the first part I want to look at what challenges they’re facing, within Sydney and I then want to move to the opportunities in the industry. Let me start with two points and then I’m going to throw it out to you. I said earlier that I’m calling today’s topic: the Food Economy. In an article on this topic it says Food Economy, which is a generalization, involves the growing, producing, transporting, and the consumption of goods. So, each of us come to the table in one or more of those capacities. So, I want us to think of it like that. But here’s the clean up to me - and I’m not sure if you really realised the magnitude: currently 88% of Australia’s food export are non-value-added bulk commodities. We’re not even rated in the top 15 countries in terms of value-added, in terms of our goods and services, particularly our goods. I thought that is a wonderful opportunity to discuss the question: are we giving away the farm so to speak. Paul, your thoughts? Paul: I’ll leave all of the export comments to Anthony, but I think looking at it from what overseas parties are interested in from Australia and a majority of what we make, obviously is the commodity space, whether that’s proteins whether that’s dairy. But the real hive of activity from overseas parties looking at Australian businesses is around the value-add. Paul: So, if you think about the value chain, what are the world’s hot sectors? Is it anything in between primary retail? Jim Taggart: No… Paul: Everything in between. There is a huge amount of activity and a huge amount of interest from some overseas conglomerates. Jim Taggart: I was in Cambridge just recently and I just want to set the scene here, and the Wagners were talking. Their thesis was simply this: “control the supply chain from beginning to end”. The point that I wanted to make is: that is a challenge! We talk about the world being collaborative, and business is going to be collaborative, yet the bigger animals in the jungle are controlling the production process from start to end. So, the Wagners are very clear: they tried collaboration. They made it clear: we’re out of that game. Right? That’s what they said in front of 400 people. Jim Taggart: What other challenges are there in finance at moment, Rod? What challenges do you see? Rod: The real issue I think in Australia in general is labour cost. Labour cost destroys your competitiveness and the real thing that the drives your cost base is labour. Australia

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

cannot be competitive in the world of food on its current labour model. It just can’t compete with Asian markets, South American markets and African markets on labour, on anything that’s truly value at which is why commodities go so well, because there’s not a lot of labour in commodities. Jim Taggart: So is there an incongruence between the public statement with regards to “jobs, jobs, jobs, jobs”, and what you, the employers, are saying is a constraint. Anthony: You get customers that will literally put down a can of tomatoes for a twocent difference because “I can buy an Italian can that’s two cents less than the Australian can” and consumers will do that day in day out. Yet they’ll say “No, we want to buy Australian, we want the jobs to stay in Australia.” Jim Taggart: One of the things we’re going to talk about is margin erosion because you can be in a business turning over 80 million dollars and still go broke. Rod: Yeah correct. I’ve decided that in my businesses, my prime mission in life is to automate our labour, because labour is killing my margin and I need to take labour costs out of my business, because my customers are demanding it. Lloyd: And how would you do that? Rod: You have to put in good equipment. You’ve got to process automate and simplify your business, your range of things that takes labour cost out. Rod: It’s off the shelf in Europe or North America. It’s not hard to do. It’s just choosing to make that investment. And as you said I could go and get a couple million bucks to buy equipment tomorrow if I really wanted to. But it’s also getting skill to operate that equipment

which is another gap in this drama. But, you know, the real challenge is on totally working against this employment ideology because it’s costing me a fortune. And I don’t know how you feel, Karen? Karen: I have two points there, and one is that employment law has changed the business employment world. So, I have to think about exactly where we’re going. But to add a couple of things about labour costs. And this is at a practical hands-on level i.e. making the product, etc. We are working to improve our outputs and utilise that labour. The thing is that you don’t actually lose those labour costs. They just transfer into the business somewhere else into a higher skill set. What I do find is a challenge, however, is often we bring that knowledge as a higher skill set into our business and we are aided through government grants to bring that learning in, but as soon as I pop somebody into my business to do that, the cost becomes mine, and mine alone. So, whilst I would like to bring that person potentially into business, I’m actually better off by utilising the services that are made through government grants to bring that knowledge into my business and then work out what I actually thought when I’m in the midst of doing that. The second point I had was about transport and waiting time. Freight is the second biggest cost in my business and I am governed by the waiting times at the base of Coles and Woolworths. Lloyd: I just want to clarify. So, you’re bringing in specialist skills for the sort of government support you get. First you find what you want, then then you bring it in? Continued on page 24

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THE FOOD ECONOMY Continued from page 23

Karen: Do you want to know how I bring that in? Karen: So, instead of employing someone. “Look, I need to go, I need to put a high skill or not in my R&D Department.” Okay? So, what I need to do is bring that learning into the business through a government grant. So, the learning comes in the business. Then I can look at what I really need in my business with that investment. Jim Taggart: But where do you get that quality information to make those decisions? Because what I’m feeling is you’re just scratching around on the website, as we all do. Is that a challenge itself? Karen: It has been, totally! Matt: The government is moving somewhat away from this sort of R&D incentives model more towards a discretionary funding model. In early 2017, they established six industry growth centres. And that’s probably only now kind of becoming a hub that everyone needs to tap into. There’s one for food Innovation, there’s one for advanced manufacturing which can apply equally to the food sector. So, there are two really important things to be involved in, and they can actually, aside from having a pot of funding themselves, where their funding projects - I’m not sure if you’ve been involved in those ones yet -but they’ve got funding which is trying to harness collaboration. And exactly like you’re saying, move towards automation, but still with the focus on up-skilled jobs. Does that align with what the government is saying about their funding priorities? Karen: I see this in form of setting the scene. I’ve heard all the “What next?”, “Where do I go?” and “How do I get there?”, and “I need you to help me as a small to medium business. I need somebody to hand-hold me, to take me to that next step” and say “I will work with you because you’re worthy of being worked with. I don’t care if you’re, whatever,” you… Lloyd, your insights came out with that: no one’s got time. But what we’ve done in our business recently is working for us. Part of this has been due to the grant. But what it actually was is: we had somebody hand-holding us to say we’re meeting in three months. We’re meeting in two months. So, we’ve allocated time to actually say we’re working on the business and it’s very clear. Jim Taggart: Ben, you employ 200 people and that’s a large labour force. It puts you in the larger firms in terms of category. Tell us about that story and your challenges. Ben: Definitely. I agree with all the points that you mentioned. Definitely automating is a big area that we’ve improved, and it worked well for us. It’s a double-edged sword though, because we’ve had probably 90% increase in electricity. We contract the machinery for three or four years. We were lucky that we contracted three or four years ago, and it was very cheap and then overnight there was a 90% increase. Jim Taggart: It’s a really significant cost of business for something to go up 90% is amazing. What other challenges do you have? Ben: Well, finding quality people is one. We were lucky enough to have a lot of access. So, we’re quite close to say the M4, we’re very close to the train station. So, we can attract

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other people from outside the area, but we still have issues finding quality people. Lloyd: This came out of the research group: finding good quality people and holding on to them. Karen: Yes, am in a similar situation trying to find qualified people… Keith: Yes…we pay their transport costs. Because we have our Sushi retailer at the airport, in domestic airport. Lloyd: Oh, you can say its expensive space… Keith: Yeah, very expensive to get in. Whether you’re in a retail or in manufacturing in the food sector, we have different challenges. One of the critical sides that we have, as a retailer, is rent. We had shops in every major shopping centres and we had to get rid of it, the rent was killing us. There are just no regulations on how much these guys can charge. And that’s why you’ll see, if you go over to a new shopping centre anywhere in Australia, you’ll see the same retailers. Because there isn’t anyone else who can afford that kind of rent. So, if a family business wants to lease a space their chances getting a shop in their shopping centres is zero, right? It’s very tough. We had a very successful shop at the Sydney airport terminal, and when we started our rent was just over $200,000. Seven years later, we’re paying half a million! Then when I wanted to renew the lease a couple of years ago they wanted $700,000, right? It’s just unsustainable. And that’s why we usually find at the airport, the quality of food is absolute crap. Because they don’t ever care about the quality of the food, all they want is to meet their rental targets. That’s the same for places like Parramatta Westfields. Jim Taggart: Nick, your challenges? Nick: Well, in no particular order, bluecollar labour recruitment: warehouse staff and drivers are very hard to get and the quality is poor. We haven’t got enough machinery to automate a lot of our operations. So, we rely on a lot of staff and it’s very hard especially if you’re working 24 hours, 7 days. There are compliance costs. That’s a big factor that’s getting worse. I mean there’s chain of responsibility laws and you have to employ people specifically for these tasks. HR, is not a small part of the labour cost. Then you’ve got, the HR function to make sure we handle the postop appropriately, because you don’t want one wrongful dismissal. You don’t want any other claims, you don’t want workers claims. So, our whole cost is getting bigger. Infrastructure roads, parking. That’s not getting any better. I used to think coming out west would be easier. But from what I’ve seen just driving around myself, It’s actually worse out here. And I’m not sure if there’s a lot happening out here. Jim Taggart: The government would argue that they’re spending so much on infrastructure that any criticism of a transport is secondary. I’m just saying what their views are. I agree with you and I come by public transport, which is terrible. Nick: Parking that’s a big one I mean the way we do our business that we’re staying in the city. We do everything early when most of our customers are closed, but that’s the only way we can do it. The city is not really geared for night deliveries. That would be ideal, and I did that in other parts of the world, but we haven’t caught on to that. Then we have utility

costs. Like Ben said electricity’s becoming the big killer. Then we have reinvestment costs and property prices. That’s particularly in the refrigerated warehousing area which is very scarce and very expensive. So, like you said you rents number one, electricity is number two, labour costs. Keith: Insurance… Nick: They are squeezing us. And then we have low cost, law compliance opposition that’s causing a lot of headaches and then that’s squeezing our margins. It’s an intense, tough market. Generally, I think people are not spending as much as they were but at the same time, I mean, people are eating out more. So, I am optimistic about the market. And the other one is that a lot of our products will be competing with the world market, and then a lot of it gets sent out before it comes to us. So, that’s inflating prices on a lot of products. Jim Taggart: So, what’s keeping you in business, in the sense? Nick: Hope! Jim Taggart: Well, that’s very important because as you know any if you’ve done financing and business principles. You have a benchmark and objective that you work towards and you want to return on your investment. You know what your internal rate of return on we can go on all these big things. The thing is I’m hearing there are a lot of challenges but we’re still in the game. Lloyd: Yeah. Nick: You work towards improving your processes and working towards that, where you can make a good living out of it and enough to reinvest and have longevity. Jim Taggart: I was in financial services. So, I sympathise and understand about margins and erosion. Karen? Karen: I’m in a very similar position. What you indicated in this is that passion keeps people in this industry. But added to that, it’s almost like a trading industry where traders come into industry and know what they do, but they don’t know how to run business and they learn, potentially along the way. So, there’s a parallel there in that regards and at one point you start to go: Right, well, where’s my up margin? I’ve looked at all my efficiencies. I’ve bought in technology. I can afford to do this. I’ve done that. I’ve chased my electricity to the lowest degree of investing in solar. I’ve done this I can’t bear this anymore. Where do I bring in investment? These are the sort of things which dilutes my passion as an owner, you know? And the decision I have to make is should I have an exit strategy at some point. Does that mean the business dies? And I’ve seen businesses who’ve die because their exit strategy is to just say “close up shop”, “I can’t do this anymore”. Or does that mean, having a different exit strategy? What does that look like this investment is worth what you’re getting out of, you know? That sort of thing. So, there’s a lot of juggling and forward planning. But again, what you were saying Lloyd before is, we have to have time to be planning forward? We should! We all have to have helicopter views, but we’re so busy working. If we haven’t got that approach of planning and looking forward …that’s why industry and businesses actually just shut the door. Lloyd: Industry needs to come together because it needs some sort of attention, I think. To get new policy settings.

Karen: It’s a very challenging industry in regard to succession. I think children look at their parents and go. Oh my goodness, are you kidding me, do you want me to join this business? Ben: We’ve got a position in the market and we do a lot of stuff back with our own supply chain and we direct grow for us. So, we have food security and providence of supply and we put a lot of stuff in differentiation and we found this niche. And this niche is just amazing for us right now. And if you’re not in a differentiated space, you’ll get destroyed. That’s what I find in the food business. when you come from a more commodity-base in the food industry you’ll get destroyed because prices are your only differentiator. But for us we’ve got a lot of differentiators. And I cannot make enough product right now! Jim Taggart: So how do you stay at that level for the next few years? Ben: You’ve got to create differentiators. You’ve got to keep saying “what is the next thing coming?” and maybe you’ll come up wider and that’s the key thing with differentiating. Right now, it’s provenance of ingredients, travel, and so on… So, the farmer that grows the wheat for me, I know their kids, I know where they go to school, you know? It’s a relationship. We have it right back along the supply chain. We don’t own anything but there’s this integration of the relationships along the supply chain. Jim Taggart: You see them as an asset. Ben: Great, an asset! When I sit in front of one of my big customers like in the transport and accommodation sectors or those sort of guys and I tell them that story they just go “Geez and fantastic. How much is your product again? I’m happy to pay for it” and it works. Jim Taggart: That’s good Can I move to Paul? Paul: Just my pain points? Jim Taggart: Yeah, just your pain points… Paul: It’s just pretty much the same for me. I mean, labour’s the biggest one for me because we do a lot of our processes manually. We’re a young business, been around for about six years. We’ve been working on automating all of our processes because we cook, package and distribute our product and we deal directly to the customers. So that’s the bulk of our business, dealing directly with customers. And we deliver Australia-wide as well. So, logistics is a bit of a pain as well. Because we produce everything in Western Sydney, you know, we just we delivered to Western Australia direct to customers and that’s it for day turn around, for day process. So yeah, they’re the biggest two for us, at the moment. Jim Taggart: So why did you select Western Sydney? Paul: Mainly because of the rent. The rent was cheap at the time. So, in all honesty, that’s why we moved here. Jim Taggart: That’s good. Paul: It’s not too bad. I mean, we’re leasing an older warehouse. We don’t own the building or anything. But in the past five years there’s been new development with new warehouses popping up and as a lot more pop up so does the rent. Continued on page 25

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Jim Taggart: And you see the same problems with regards to labour as many of the colleagues here? Paul: Oh, yeah. Definitely. It’s hard to find good staff. Jim Taggart: I struggle with that because, from an educational point of view, I hear various educational organisations saying that they’re on the cutting edge of developing skills and they’re doing all of these things, and, yet, I hear from business, that the skills levels required aren’t there. Rod: Food manufacturing is a pretty unattractive industry. As a blue-collar worker to go into, its down there. Maybe working at Sushi store might be just above or just below. I came out of Uni, and I went in as a frontline production supervisor and became a trained manufacturing professional and there’s no one doing that now. And, you know, big companies like the nice line process where people do little bits of it, but they won’t really give people the skills, the passion, and the understanding to be able to do things you need to run a food business. Jim Taggart: Okay, so let’s be even a bit blunt. You’re not doing your job. Rod: Correct. I can’t afford to and I can’t find the right people. Jim Taggart: All right, so you’ve got to shift and take in some of the blame. Rod: I am trying to get apprentices in my business in Brisbane, Sydney and Melbourne. They last usually about three months. Then they go back to the local calls of all these bakeries because “it’s just around the corner, it’s easy to get to, they pay me more and you guys made me work too hard in my business. So, I don’t want to do that. See you!”, and they go! And I’ve been through, I don’t know, probably 30 apprentices in the last two years because they just do not want to do the hard work. And you have to work hard! Jim Taggart: That’s a really good point. Rod: I was just going to say the same thing. I mean, most people don’t want to work as hard as they used to. I employ people that are a lot older than me, and people just don’t seem to want to work. They don’t have the passion for the industry. Or maybe it’s not that they don’t want to work, but they don’t have the passion for food manufacturing Karen: Sorry, I wanted to say that I think this in terms of general staff, as a family business, we focus on culture of people that are going into our business. We used to have a revolving door of people, right? And it’s not your answer. Ok, we can train them in the skill set if they want to come and work. So, we approach them from a cultural perspective about what this family business offers and I’ve been challenged in a number of ways. So, at a factory floor level I let my team own their responsibilities and the culture is you engage, you join, you have to give the staff at that level your permission empowering them to do that. At a level where I’m looking for a higher skill set. I’m potentially attracting somebody who wants to build a career. But working in

a family business is different to working in a corporation. And that is actually what we’re talking about, you know, university skilled staff go work for the big corporation. Well my business will offer you something different. That’s what I’m finding. Jim Taggart: We haven’t even talked about blockchain or any of those technological aspects as yet. Ishan can I talk to you because you’ve got most experience. Ishan: Yeah, there are multiple points: cost clearly, employment clearly. We spoke about automation. I always believe that you need to get it effective first and then efficiency. For anything, basically! And I’ll be, you know, ten times running at 3000 biscuits a minute even at the time I was there almost a decade ago. Only had two minutes buffer. So, you better get all your ducks lined up, you’ll get all the stars lined up, because after two minutes of buffers that machine stopped, it’s got nowhere to go and all you’ve got is a dump guy with a big bin that all goes into animal feed. Jim Taggart: And the unit cost of that for one, two minutes, is huge. Ishan: I’m seeing that kind of impact for probably a business of your size. For cash cow products they thought they would automate by putting in the easiest thing which is a case cartoner. And it just killed the efficiency of the line. Why? Because what they didn’t look at was all of the little things. Things like, the cardboard quality they have for the cartoner, before was a lower grade, which you put six casual people they’ll fold it in and make it

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work. But you’ve got to show the robot. It’s very unforgiving and all you have are frustrated operators literally kicking the machine and pressing the stop button, opening and slamming the door and trying to unplug your robot. That’s only one example. We spoke about margin erosion and Karen you mentioned about when you go after, you know, all your P&L line items. You can ask why we tighten each one of those, but often one of the things that we miss is the opportunity loss. So, you’ve got all your people but are they actually getting the best out of them? Are your people learning how to use the equipment? Clearly not. But that’s one of the low-hanging fruit of how do you get the best out of your people and the processes in the traditional productivity efficiency? There’s not a lot happening in that space in lot of these organisations the way the big boys play. So, how do you go after the efficiency? How do you run multiple projects? You’d be familiar with this one from your learning days, very structured in terms of we know where we want to reduce the cost. Because they know by product, by line, by shift perhaps, of what your efficiencies margins are. So, you could pull the right levers as opposed to let’s have a look at the P&L at the end of the month and look at how you want to reduce the cost base. It’s a very different approach. Jim Taggart: Well, that’s really important in terms of the challenges. And I’m going to say that most entrepreneurs don’t have the skills to develop their business. Ishan: True. And with a lot of the clients

that I’ve engaged with over the last two years, it’s traditionally being 30, 40 years, you know. Dad and I started in the garage, we literally and metaphorically came across a great recipe. We then moved into an industrial unit. Now we are in a factory. And again, the top line keeps growing, but you operate on operational managing, all your EBT are not at the rate at the top. Why? We’re still operating like a scaled-up version of the garage we started years ago. You probably have bigger equipment. You probably have more staff, but it’s scaled-up, so I’ve got operational managers who would tell me “Ishan, we improve the business every day”, but it’s the same operations manager who runs to Bunnings office, works together essentially, leaving the machine to break down. Ishan: We’re not solving the problems that we should be. What I mean is, you’ve got CEOs and a leadership team who are solving the problems of middle managers. You’ve got the middle manager solving the problems that the front-line leaders should solve, because we haven’t built the capability to solve the right problems at the right levels. So, you’ve got the whole organisation running in third gear or in second gear because we’re all solving… That’s why when we say that we are running the business day in day out, we are not working on the business. Well and it’s easy to say “oh, it’s the training and it’s the people”, because sometimes it’s not going to give you a twomonth return, perhaps a six-month return, or Continued on page 26

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a twelve-month return, but you’ve got to stay Continued from page 25

at the journey and it’s nothing new here, but I’ve seen it work. Jim Taggart: Many people believe they can do the job but really can’t. That’s my observation in going to a number of manufacturing places and talking to proprietors and different people. Do you support me in that comment? Keith: Yes. The example is if you think about the franchises that are going broke at the moment, it’s a combination of both: the franchisors and the franchisees’ fault. When people see the franchise in glamorous shopping centre and it looks great, you know, everyone’s wearing a nice uniform, the food is well presented, and a lot of people think “I can do it”. They think they can do it but they don’t know the hard labour that goes into setting up a business. So, a lot of people, you know, buy a franchise, because they think it’s safe, right? That they’re going to get a lot of support. But unless you don’t put the towels in yourself, you’re not going to succeed, right? A lot of small businesses fail because of that. Once they start they realise they have to work 12, 16 hours a day, plus do all the paperwork and pay all the bills. You know, it just gets too much for these people. And some people just fall into this kind of small business, without the knowledge, without the experience and without the proper education and that’s why you see a lot of small businesses fail especially in the food sector. Keith Rhee: Gloria Jeans is a good example. When I first started retail, everyone told me about this franchise. It was very big all over the world. And they had a presence in just about every shopping centre, every major location. Then a private equity fund took it over and treated the franchises like crap. Franchisees couldn’t even negotiate their own rent. So, they paid extremely high rent and their margins were getting smaller and smaller and they’ve got to pay staff and the cost of living is going up, right? This way is just like going to a war. So, that’s what’s happening with quite a lot of franchises. This is one of the one of the biggest challenges for a lot of the small businesses in the food sector. Jim Taggart: With that been said, I might have said that the food economy is above and looks at growing, producing, transporting and the consumption. So, what I’m saying to you is each of you brought a different perspective to those various areas. Mitch, you’ve been quiet for a good reason to tell us about the finance. It’s a very important part of the challenge. Mitch: Probably the main thing I was going to mention was the Royal Commission. I think it’s amazing we’ve had a pretty good run with banking, the last 10 years and probably

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20 years. Jim Taggart: Be more specific, “have a good run” what does that mean? Mitch: It’s been a priority sector for most banks. Jim Taggart: Yeah, agree with that. Mitch: They’ve put a lot of resources into it. But the Royal Commission and regulation up to that point has been daunting and it’s not particularly attractive for banks. I’ve talked to my mates around the big four and generally, it’s getting tougher to bank the sector due to credit restrictions stepping up. One of the biggest frustrations is when you get a bank manager, build a relationship, they move on, new guy comes in, or girl, you’ve got to educate them on how to do it. So, if you’ve got a good banker hang on to them as long as you can, Can I just make a couple of comments around the food industry, generally? Jim Taggart: Please… Mitch: Typically, in Australia the food industry has centred around the farming sector and the production of raw materials. Australia has definitely been a commodity market Jim Taggart: Proven. Mitch: If I couple that with what Rod was saying, about Aussies being really bad at buying Australian. Most Australians do not value Australian grown. And many agribusinesses are noting that. There are a few examples: beef still a really a good one, pasta companies, particularly the large pasta companies. But there’s plenty of others who are trying to brand up their own commodity. Because they know if they throw whatever cut of red meat out to the market someone else will get the premium for it and particularly southeast Asia as they just lap up Australian-grown. And it’s not just beef, it’s across the board. Rice growers, Sunrise essentially, its roots were selling a rice commodity to the world. Firstly, its supply shrunk as people are growing less rice. So, they had to reinvent themselves and value-add so that pulled out all these branded items. On a different point, when we talk about power and solar and the like: whilst I’m sure you guys are doing the sums of converting to solar power. It’s more than just the economics of do I save money? It’s the ability to have that on your label, to put that on your product. So, Australian food industry particularly up the supply chain, certainly is more focused on the end customer and what the end customer wants as opposed to producing a commodity that you throw out into the World Market hoping for the best. Nick: At one point you said that Australians are very bad at it supporting Australia. You mean that a supermarket level or do you mean that in, because then you said providence is a way to go … Anthony: Providence it’s a way to go in the future. Anthony: There’s a part of the market that

cares and there’s a part of the market that’s sort of just pays lip service to the idea, but when it comes to dipping into your pocket and paying for it, they don’t. Mitch: So, Australia exports 70% of all that grows, then it imports a real lot. Anthony: A good example on Australian market shelves is canned tomatoes. This company in Victoria makes canned tomatoes. They can do it and really stick with about one dollar/ $1.10, but the ones that come from Naples, in Italy, are being sold in cents. There are people who will only buy the cheaper product. So the Australian company can’t just compete on price. So, this is driven by lots of forces, economic forces also a powerful one because people’s budgets are stretched, and the average family goes to Aldi now because it’s cheaper and they’re saying “Hey, I’m buying the cheapest one.” Mitch: I can use honey as well as an example? Probably Campbell. I know they’ll get far from the Australian grown honey, 100% Australian grown offshore. So that’s why that import honey. That’s because the public won’t pay the premium for the Australian honey. Keith Rhee: You still see honey from Australia overseas. When you go to Korea and go to a supermarket and buy Australian

hundred percent honey. They’re four times the cost, and people will buy because it is straight honey. Jim Taggart:. I just want to ask you this because you’re at the pointy end of lot of these businesses here in the manufacturing industry. What are their challenges? You see, some of these people want to make a million dollars today? What’s the challenge to you right now? Mitch: Having some security. Jim Taggart: Okay Mitch: There is a very distinct difference between asset finance and overdraft or working capital; facilities. It’s much harder lend against these categories and requires a more detailed credit process. Jim Taggart: If you know that’s a challenge for businesses, are you educating them? Mitch: At the banker level, bankers just want to get the money out the door. Jim Taggart: I’m sure, of course. Mitch: 99% want the best for the client. So, yeah, they’ll be educated on how to do a further draft Jim Taggart: So, we can talk a bit more about the second part. There’s a risk taking this as challenge when we’re in business. We use two and a half banks to spread our risk: two primary banks and a secondary one, because from where we sit in our business I couldn’t let one determine how we grew. Karen: Can I make two comments one in relation to risk and growth and one in relations to the supermarket model, if I can? Jim Taggart: Sure! Karen: So, the risk in growth I would say is, for the small business and we’re talking about at small business level not the big guy, right. Jim Taggart: Give me some heads up when you say small business. 20 people? Karen: 25, 10 as you build to 50, and you get to 200, okay? But what stops us growing? One of the next challenges is money. So, with Kurrajong kitchen we nearly did lose our business hook, line and sinker in 2012. We had to rethink, remodel and go back in again. And that was part of our risk in our strategy. So, we sorted our strategies and our thinking on going forward a little bit differently. So, I understand that the only people who get big are the high-risk takers. You know? People who are not high-risk takers don’t get to be this big business. They fail at some point because they haven’t got the support and they don’t understand the finance market, they don’t understand the “two and a half banks”, they don’t understand if we’re talking about food businesses in Western Sydney are growing from family structures. Everybody thinks they can do food from the trading model and might jump in and they might grow. I’d like to challenge two things: I’d like to say to you that Continued on page 27

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supermarket models in Australia are not one model. We have Woolworths, we have Coles, we have Aldi, we have Costco, we have all the new guys, coming into the markets. And they all come with a different model. My own experience in Kurrajong Kitchen in the last 12 months: we sit in every category within a supermarket these days, hence the expensive tomato categories different to my category. Kurrajong Kitchen has been on the supermarket shelves in Coles since 1998 and in Woolworths since 2001. Recently, in the premium entertaining sector, Coles has remodelled itself deciding that by 2024, 40% will be its private label. Okay. What does that do for my brand? It’s been sitting on the supermarket shelf? Okay, so what do I do? I am category leader and was category leader in premium. Coles walked over and didn’t give us enough information, didn’t engage with us sufficiently enough and when we actually want to go to premium, we actually want to go a three-dollar price point. So, my product went from up here to down there. Really down, okay? They sent us down and they now decide that, as category leader, we do in fact have enough loyalty to survive their decision, their model change. Because with their model change, Coles is going to compete with Aldi. That’s where they’re going. Woolworths is a different animal in itself. So, in regard to imports that was where I was going. Every single one of those products sitting in that three-dollar price point, right? If your turnover is an imported product and it’s got dumped to the bottom. Tucker’s got dumped to the bottom, ABE’s Bagels got dumped to the bottom, Always Fresh is it somewhere in there because they played the game. So now we sit and we wait and then we have to strategize as a business what do with Coles in our business? And how big of a factor is Coles in our business? Jim Taggart: That’s a very good summary reflection of the business. Lloyd: Did you change the bank when you restructured? Back in 2012, when you were in trouble? Karen: We couldn’t at that point. We’re now at a point where we can. Lloyd: Just to clarify do you see yourself as having some multiple channels opportunities now? With other people coming to the market? So, you’ve got some choices now? Karen: There are always choices. It’s about where you’ve actually put your risk in the business. And with supermarkets I guess what I would say just once is to stay aligned, as manufacturing is different to brand building and I think that’s where we have yet recognised this will be treated as one of the two different approaches. Jim Taggart: I agree. Ben: 10% in bacon, some of the bacon.

And we offer the Aussie stuff as well, but the main things aren’t there because it’s more expensive, and touching on what you’ve said it gets more expensive because grain prices are a lot higher here. Lloyd: But you have a problem with supply don’t you? Ben That’s another issue for us as well. Jim Taggart: Michael I want give you the opportunity to comment about an article you and I read, in regard to the challenges of Amazon coming into the country. Michael: It was just general talk. Amazon has a lot of money. They will spend a lot of money to try and dominate the Australian marketplace because it is monopolised, I would say. So, Amazon will compete in wholefoods. Rod: Well to me like I have 2000 customers across the eastern seaboard every day, seven days a week, every year. And my biggest competitive advantage apart from my brand positioning is that I can deliver to every cafe and restaurant on the eastern seaboard for five to six in the morning, every day and no one else does that. And that’s a really good competitive advantage on Amazon as much as I can try to be there, I am always on calls or home delivering. I cannot do that. Trainees

can’t do it. They can’t try and they won’t try. Jim Taggart: Thank you for that. Let me leave you with this reflection. It’s just on 11 o’clock. We’ll have about 15 minutes for networking. I’ve tried to say as a theme running through that it depends where you are and what you’re trying to control in the production process, because we come with a different perspective at least. Let me read you this paragraph: about Amazon: “Amazon has established a one-day delivery service in select areas in Australia prompting Woolworths and Coles, which dominate online food retailing in Australia” - and Western Sydney as well – “to start testing express delivery in two hours for supermarkets and alcohol”. So, what I’m saying is that the implication of its strategy is disruptive. And businesses, manufacturing, in particular, needs to respond to that. That’s really critical. In the second part we’re going to deal with the opportunities. How do we get the best from the system and the governments and other organisations and stakeholders? How do we partner with advisors to become better in your business? END OF PART ONE

Jim Taggart: Guys, thanks very much for the first part. The first part was about the challenges. Hearing about the challenges is very important because if we don’t know what the challenges are, we can’t fix them. I really want to talk to Anthony and Matt in looking at exports and Lloyd. These are entrepreneurial people. They’re looking for quality advice, is what Karen was saying. What can you do for them? Matt: My speciality is more of a broader advisory approach. Specifically, it’s about making sure you know what is available. And making sure that where there is an opportunity, it’s being taken advantage of. So, I guess the main things are to think about the export strategy and the export market development program which is run through Australia. It’s an entitlement program that people still don’t seem to know enough about. So, it will give your money back by export commissions. So, when you’ve decided that export is where you need to be, you should be looking at export market development. And if it’s not something that you can do in-house, you need to seek some guidance on it because you have to meet qualifying criteria and you have to know what to look for, and that sort of stuff. The next one is about a lesser known government division call EFIC - Export Finance Insurance Corporation. So, to the extent that you’ve got a great export opportunity, got a contract that is either in discussion, or in place and then you have, you know, capital climate on the domestic side or a facility that needs to go to your customer overseas, EFIC can have a really broad conversation, bring a bank to the table and have someone to pass the facility onto other side of the world. Jim Taggart: I am sorry, Matt, are you saying that for these guys, that there’s opportunities offsite, that no one knows about? So, do they come you? Matt: We love people coming to us. Jim Taggart: Absolutely, I do. Matt: But also, with EFIC it’s going to be an introduction, and can we help facilitate this further. But then it might be Anthony talking about an advisory piece, you know, the broader strategy overcoming some of the other hurdles in there and incentive instructions is what I’m talking about. Jim Taggart: I’m sorry to interrupt but there is a lot of brain food around us here. The issue for me is, these guys either need to get more emphasis through the doors into the global village, right? And I’m saying to broker the deal, we’ve got to go to someone who can hold my hand and then walk beside me, and that’s really what? Matt: If we talk more broadly if you’re going for any other grant, the first thing that Continued on page 28

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THE FOOD ECONOMY Continued from page 27

they’re going to ask is if there is an export opportunity? And you’ll go to position yourself at the top of their list if you have export focus. Because they’re looking exactly, as Paul mentioned earlier, at the hot portion which is in between primary and retail. It doesn’t have to be raw materials, it has to be Australian Intelligence, it has to be like the IP layer going in there and then you’re selling that product overseas. That’s where the money is coming from for a government incentive Jim Taggart: That’s a key takeaway for me. But colleagues, do you understand what Matt is saying, in relation to that? Because that’s important what you’re saying is it’s not the product. Anthony: Mitchell mentioned a big company on the ASX. Their business plan is around branded beef, with tremendous IP into the Asian consumer market so they’re not selling as a commodity. They’re are selling as a higher consumer good, as a brand. Jim Taggart: And I think this was what Robert was saying that for these guys the price is irrelevant. Lloyd: I just wanted to make a point there are lot of concerns. We’ve got such a strong brand yet collectively I just don’t think there’s not enough of the focus on the Asian market. Anthony: The marketplace is so significant, so you can’t ignore what’s happening. The propension to pay more commences with brand quality and provenance and is going up every day. So, this is where prices become less of an issue and there are 600 or 700 million people who are in that place. Right? The market channel the way you get your goods to Coles and Woolies’, or might you get your goods to a supermarket or a wholesaler in Asia is just another pillar of that business plan. And the way you do it is becoming easier, it’s becoming easy to get finance and help and it’s becoming more digitised as well. So that supply chain is being improved by technology: technology on the phone, the ability to scan or even track the goods, the ability to get financed by HSBC or Citi Group, all through the system. All of that happens pretty quickly. And the end-consumer is prepared to pay a higher price. So, we’re in a very good position if you think about that sequence of events. The other thing that we bring up often is the Australian dollar. The Australian dollar has a very unique position, gladly, it fluctuates a lot. That means the Australian dollar is, at the moment, very cheap relative to other currencies, not just the US dollar. That means the goods that you’re making are very wellpriced. So, you have an opportunity to create more margin in these foreign markets. Jim Taggart: And even from a very practical point of view. Lloyd was talking about,

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people get to think I’ve got a premise here or hang up where do you sit in the production process, you know? Can I outsource that? Have you ever thought about where your business is in 2018? That’s really where my mind is. What is it that is relevant? What is not relevant? I’m saying looking at what is available, what’s not available, and what about products? The strategies about really thinking about your business are extremely important. Matt: One of the team’s advanced manufacturing growth centre really latched onto is the concept of micro factories. And they’re saying, well rather than this idea that you have to ship, you can reinvent yourself using a micro factory concept. If you’ve got a product and you if you want to get into that market and want to do it relatively quickly and easily, then you take a snapshot of your factory, stick it in a container and an operation that can operate from a container. Throw it over there, test the market and you don’t have to spend millions of dollars because you can send a micro factory. I can be the start of your footprint there. Jim Taggart: Let me tell you the story of colleague. He closes out his business in Australia. Makes some overseas and get some

shipped here. He doesn’t even own a place to store them. Anthony: Yeah, but with food it’s different. Because food is in here, the provenance is here, you can’t ship the soil. So, in some areas of the food chain what the big players are doing is they’re taking those finished products in a bag and then putting it in a container in China. So, the packaging and labelling is done in a very advanced facility in China whilst the product is from Australia. Anthony This is the same for exporting wine and shipping to China. So, I put the wine in a big bag, send to China, bottle and label it there. It’s cheaper. Anthony: There are many other examples where they’re doing everything: slimming formulas, baby formulas, teenage formulas, nutraceutical. Most of it is done here. And that’s what the consumer wants. A made in Australia package. Jim Taggart: Thank you Anthony. Any other really significant grants people should be aware of? Matt: I think they’re actually the main ones that are focused on exports. There are others around the place. The R&D scheme is changing face at the moment so that’s been

something on the landscapes since the 80’s, and there’s some legislation changes at the moment, but I won’t go too much into the details. Just say that the treasury is trying to save some money with the changes. EFIC and MDJ are the main things that directly impact export markets. What we hear back are mixed results depending on who you speak to. Lloyd: My view is everybody in the food industry needs to have a business plan. You don’t have to dream about it. Just think about it. I’m learning more and more about this sector, I really love the sector. There are fantastic people in it. I think there needs to be a major push in promoting the sector. And we need to promote upskilling in the sector with a huge focus on using a strong brand and taking it off shore. I think it’s critical. Jim Taggart: In terms of KPMG, are you going to be on the forefront, I mean I know you are personally, but you’ve got to put resources and time? Lloyd: Well it’s a sector that we’re interested in because it’s under-serviced. And you go to areas where they’re under-serviced like, you know, taking food into Asia is under-serviced, and there are opportunities there. So, we think there’s an enormous opportunity to take this industry to the next level. We can help whether it is basic partnering organisations, like EFIC, to find them a working capital, or getting greater efficiencies. We are across the whole industrial markets space. I’ve heard a statement that says that we don’t know anything, that we wait for ideas to come from you guys. So, that’s real honest, right? And I think it’s incumbent on us to start to push this really hard, particularly in industrial markets, because there are a lot of employers and a lot of employment there, with a lot of value add. Jim Taggart: Well Lloyd, I see you as advisors who give advice and information. What we do with it is up to ourselves. I’m just saying about learning, you cannot learn too much. That’s the take out for me today, from this opportunity. 50% of the world’s population will come from India, the Asian belt and Africa over 50% of that. And in my humble opinion is if you’re kind of not in that market, somewhere, it is going to die. Jim Taggart: Read that article: 5 trends. Think about where your business speaks under that. KPMG will be doing exactly the same, thinking about where it goes. That’s not a crime, that’s smart and intelligent. So, if you’re not thinking about your business, you’ve got problems. On behalf of KPMG and Access, thank you very much. I hope you walk away with at least one or two things to reflect on in your business. We hope we are able to work together and help you grow. Thanks very much for a lovely morning.

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Travel

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Multi-generational cruising is something completely different „ WORDS AND IMAGES BY SHARON MICALLEF S a travel writer and photographer, I love cruising, but recently I had the chance to undertake a cruise that was completely different, a cruise our family had talked about for years. It was the adventure of a lifetime for us. We had discussed it over and over around the family dining table for years: “We should go on a family cruise together.” Finally it happened. We booked a 10-day cruise on Carnival Spirit and I set off with my granddaughter Laylah, 7, and my parents John and Marie Kelly of Shoal Bay, NSW. The first thing I noticed at breakfast on the first day at sea was a lot of other families had decided to do exactly what we were doing. There were grandparents and grandkids everywhere: more than I had seen on any other cruise. Multigenerational cruising, where three or four generations sign up for a voyage together is the new buzz word of the cruising world. In fact, it has been voted by experts as the number one trend in world travel in 2018 – 2019. We booked a balcony cabin which it a bit more roomy for the four of us, but I would recommend you book separate cabins if you have the funds.

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Continued on page 31

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Carnival Spirit means fun in the sun.

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Travel

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Sharon and Layla.

Continued from page 30

On the first day we set off with Laylah to explore the kids’ facilities and I was quite frankly astounded at how good they were. I had cruised on Carnival Spirit before, but the kids’ facilities are something you really don’t notice until you have a child in tow.

Alive with atmosphere Laylah loved the kid’s facilities right from the start. She was in the 6 to 8 years group and was designated as a Stingray and received a special backpack with Stingray gear inside. Camp Ocean is Carnival Spirit’s children’s facility and it was alive with atmosphere and carefully chaperoned activities in a safe and secure environment. At Camp Ocean, 2–11 year-olds stay busy, keep active and have fun as they enjoy all new ocean-themed activities and entertainment made for kids. The professionally supervised, age-based groups and with their “cool” marine-life themes allow the kids to make friends easily. The littlest little ones, ages 2 to 5, join the Penguin colony and engage in activities like

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Great grandfather John with Laylah.

Musical Icebergs and Ocean Bingo. Then the 6 to 8 group is the Stingrays, who enjoy events like Pirate Game Night, making sea salt art or even designing their own aquarium. The big fish are the Sharks, aged 9 to 11, who have activities like Marine Life Trivia and creating a giant ocean mural, Night Owls opened at 5pm and was free until 9pm. From 9pm to midnight it was $8 an hour. Some nights from 5.30pm the kids could dine independently. Pizza, Burgers, chips and donuts were served for those who decided to dine there. We decided to book a table at 5.30pm in the grand dining room and have our evening meal together. It was a chance to allow Laylah to learn all about reading a menu, talking to waiters about the dishes and selecting her courses. This was a lifetime experience for her, something she could take with her though life. Laylah loved the Cat in the Hat breakfast in the dining room with green scrambled eggs and ham. The characters from the movie and the book kept the kids entertained. Lots of laughing and smiles all round!

Laylah dressed up for Island Night.

Amusement arcade The ship had an amusement arcade which was fun and you could use your cruise card to pay for the games. There was also a studio, actually beautiful big sunny room, exclusively set aside for arts and crafts. I found most families tend to meet at breakfast, decide what they're going to do that day and then head off in all different directions. There was a deckchair with my name on it while my father went to the gym (he’s 85) and mum went off to buy our bingo tickets for the 11am draw. The cruise was extra special for my mum and dad because they celebrated their 65th wedding anniversary on board. Kids' menus are provided in the main dining rooms and buffets and special meals are laid on to keep the kids entertained. If you are travelling in a large family group, booking dining tables in advance is highly recommended by, to make sure you can all be seated at adjoining tables throughout the cruise. We set times each day to meet up for breakfast, lunch and dinner. Advance planning is the key to success as

The kids’ slides.

well when going ashore at stunning places like Mystery Island, Isle of Pines and Mare. We set up a base as soon as we went ashore and everyone knew where to meet. Laylah went snorkeling each day while we found a shady spot to settle down. Dad went off exploring on foot. It pays to book your shore tours before you go because they tend to sell out quickly, especially the morning tours. The Waterworks is great for kids of all ages and is the number reason kids want to cruise with carnival. I’ll leave the final word with Laylah on multigenerational cruising: “Nan, when can we go again”? Find the cruise for your family: https:// www.carnival.com.au/ Feature supplied by: www.wtfmedia.com.au

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Strategy

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Benefits of a corporate board • Ensure your business has a well thought through strategy and execution methodology that is appropriately resourced. • Receive fresh perspective and innovative new thinking to your organisation. • Mentoring for you and or your leadership team. • Implement a governance structure and accountability for you and your leadership team. • Receive access to qualified networks and resources around the world.

„ ANTHONY MOSS EADERS of private companies can benefit significantly from external leverage in order to springboard to their next level of growth. When public companies are developing their expansion strategies, they have the benefit of the corporate board governance model to access the industry expertise, knowledge, wise counsel, international connections to formulate effective strategies, execute plans and to monitor performance along the way. Private businesses committed to expansion, be it nationally or internationally, often don’t share this structure and can face the dilemma of where to get the right advice and how to go about it. If you have experienced this dilemma yourself, you are not alone. Without a corporate board governance model CEOs often struggle to find the right advice from the right people when the business really needs it. Establishing an Advisory Board can fill this knowledge gap, providing many of the benefits of a corporate board without the elements that private business owners may see as constraints. Imagine your own Advisory Board consisting of members with the right industry or global commercial experience, available to meet when you need them, coupled with the flexibility to re-configure your team of advisors when necessary. An Advisory Board is not for the fainthearted. It is only relevant for business leaders ready to embrace growth, who are willing to acknowledge what they don’t know, and are open to learn from experts, are willing to

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Establishing E stablishing an Advisory Board can fill a knowledge gap, providing many of the benefits of a corporate board without the elements that private business owners may see as constraints.” – Anthony Moss be held accountable and are ready to apply resources to make it happen. Lead Your Industry’s Global Advisory Board program provides a uniquely tailored, structured approach for medium to large private businesses seeking to expand, to make a mark in their industry globally with a welldesigned growth strategy and execution plan in place and sound advice throughout the process. When needed, clients also have the potential to access to an unlimited range of industry experts around the globe, so they can tap into

Is the Global Advisory Board the right solution for my business? the right knowledge and practical advice they need. Of course, to act globally you need to think globally and our program uses the latest online meeting technology, allowing multiple stakeholders to meet in multiple locations all around the globe without the limitations of location.

What are the benefits of the Global Advisory Board program for my business? Unlike peer to peer advisory groups your Global Advisory Board is tailored to suit the specific dynamics and needs of your business and is structured to evolve as your business expands. Here are just some of the benefits you’ll enjoy with the program: • Access to advisory board members with many years of practical experience in strategy innovation and execution.

This program is right for you if most of the following statements apply to your business and your aspirations. • You seek to be a bold leader in your industry? • You’re prepared to acknowledge your limitations, accept accountability and willing to receive constructive feedback on your existing ideas? • Your turnover is in the region of $5 $50 million per annum; • You are motivated to expand internationally; • You’re willing to take on a growth mindse’, to be open to new ideas from industry experts. If you agree with most of these statements, then the Global Advisory Board program is the perfect fit for your business and will provide you with the help and advice you need to expand your business globally. Anthony Moss is CEO of Lead Your Industry. Contact support@leadyourindustry.com

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Northwest Metro

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Parking facilities at the Northwest Metro take shape.

4,000 new commuter car spaces HOUSANDS of new commuter car parking spaces have been completed along the Northwest Metro rail line, which will open to customers from Rouse Hill to Chatswood within months. Premier Gladys Berejiklian said it is another major milestone on the $8.3B Metro project. “Sydney Metro will provide turn-up-and-go train services up to every two minutes and revolutionise the way we get around our great city,” Ms Berejiklian said. “As part of the major investment we are providing 4000 new commuter car spaces to make it as easy as possible for commuters using the Metro. “This is the first time 4000 new commuter spaces have been opened at once in Sydney and it is 1000 more than we originally proposed.” The capacity of the Sydney Metro Northwest car parks is:

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• Tallawong -1000 spaces; • Bella Vista – 800; • Hills Showground – 600; • Cherrybrook – 400; • Kellyville – 1360 Minister for Transport and Infrastructure Andrew Constance said all the new commuter car parks will open at the same time as the Metro Northwest rail line. “The Metro Northwest rail line is being delivered by the NSW Government on time and more than $500M under budget,” Mr Constance said. There are more than 340 spaces for bikes, 16 new bus stops, 52 taxi spaces and provisions for more than 100 kiss and ride spaces across the Sydney Metro Northwest line Sydney Metro is being extended from the north west into the CBD, with services to start in 2024 – when Sydney will have 31 metro station and a new 66km standalone metro railway.

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Products

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How some new products succeed while others flop Look for the secret in the interaction of form and function HE Ford Edsel, the Apple Newton and New Coke are all well-known examples of product launch failures. But, in fact, most of the consumer products launched each year fail to win enough sales. Tania Bucic, an associate professor and deputy head of the school of marketing at UNSW Business School, says the percentage of successful new product launches is in the single digits. "That's problematic because companies invest a fortune in resources to foster innovation and create new products," Bucic says. The reasons for innovation are clear – to provide better solutions to problems and to achieve organic business growth. But what is less clear is what makes consumers respond favourably to one new product, but not to another. It's a question Bucic and her school of marketing colleagues, Liem Viet Ngo and Obaid Gill, examine in a new paper, Deciphering successful new product launch: Finding balance between design form and function, and consumer innovativeness. Existing research has established that consumers evaluate new products based on two factors: form, or its visual appeal; and function, the product's utility. "When form and function interact, it affects how people perceive the value of the new offering and their perceptions about how effectively it will be able to deliver a better solution," Bucic says. "Of course, if a business can understand which aspects of the product – form or function – and the combination that appeals to consumers, they will be able to better manage how they balance investments into developing each set of attributes. "By meeting the needs of consumers, they will achieve their organic business growth. So, it becomes a positive outcome for the business and consumers," she adds.

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Often companies think that innovators are the target market because a product is new.” - TANIA BUCIC. where to focus their marketing efforts to maximise their chance of success. The co-authors' work is in the context of durable goods such as electrical goods or motor cars. Innovation also applies to simpler products, such as snack foods, though they lie in a different context – that of fast-moving consumer goods. Bucic notes that innovation and diffusion rules may not be the same across these categories. Seb Brandt, marketing director at Red Bull Australia, agrees that innovators are predisposed to try new products, more than others. "Where you really, really make significant strides with innovators is where you launch potentially a cracker or a completely new shape of chip, or a chip that has a different function," Brandt says. But he also identifies another factor – consumers who are already heavy users of a brand. They are also predisposed to try anything new the brand releases. Brandt says the two factors came together with the US launch of a new shape of corn chip by PepsiCo brand Tostitos. "They come in a little shell shape which you can actually fill with dip and it will stand up," he says.

The Ford Edsel and below, the Apple Newton.

Better solutions The researchers set out to understand what level of newness – in form and in function – consumers would respond to. "The reason this is important is because when people make decisions about new products they use different psychological evaluation mechanisms to ascribe different weights to the cost and benefits that are associated with that new product. "How risky is it? How valuable is it? How worthwhile is it? How good will it be at solving my problem?" Bucic explains. The researchers divided new products into four categories – those with a continuous form and a continuous function (looked much the same and did the same sorts of things as existing products); products with a discontinuous form and a continuous function (looked new but did the same sorts of things); a continuous form and a discontinuous function (looked the same but did new things); and finally a discontinuous form and discontinuous function (all new). Test subjects were shown pictures and text descriptions of digital cameras in each of the four categories. The first was a digital camera that looked and operated like other digital cameras already on the market. Next was a camera that looked the same as the cameras we are used to, but could do more, such as capturing 3D images and taking pictures with a much higher resolution. The remaining two cameras had a discontinuous form – they didn't look much like today's cameras and instead had an all-white body that was mostly grip and viewfinder and a large black lens.

The researchers divided their test subjects into two categories – innovators and adaptors. Innovators like the radically new and enjoy being first to trial products. Forty years ago they would have been the first consumers in Australia to buy a colour television and a decade ago they would have been first to buy an iPhone. Adaptors make up most of the market. While they like better solutions, they are also more cautious and more aware of the risks when they evaluate and adopt new products.

The adoption curve The researchers found innovators responded well to new products with any sort of discontinuity – either in form or in function. "Out of all of the combinations, if discontinuous or the radically new pops up in any dimension of form or function, innovators should be the target because they will be less likely to resist it and more likely to welcome it," says Bucic. "For targeting adaptors, who are essentially the majority of the rest of the market, it should be continuous in form and function." When companies launch a new product they often segment the market using demographic variables and historic consumer usage behaviour for related categories to infer how the product will evolve along what Bucic calls the adoption curve. However, what is not known is the specific detail about how people vary in their adoption

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

If you make the jump too incremental, you’re only going to get that 5% or 10% of innovators pick it up.” - SEB BRANDT. decisions along the curve – what levers make people adopt the product, or not. Bucic and her colleagues' research provides a new level of granularity about how consumers evaluate the radically new compared with the 'just new' in terms of form or function or both. "Often companies think that innovators are the target market because a product is new, but this research shows that the level of newness is important when deciding who to target," says Bucic. Product launches only have a small window of opportunity – a failed product usually doesn't get a second chance – and Bucic says the research can help guide companies on

Market acceptance For snack foods, Brandt isn't convinced about specific targeting of either adaptors or innovators in a new product launch, saying he tries for both. "You want innovators and adaptors to pick up everything. And so, any time that you try and go too niche, if you make the jump too incremental, you're only going to get that 5% or 10% of innovators pick it up and the commercial return is going to be lower," he says. However, Bucic says a product successfully launched to innovators will have high chances of making its way along the adoption curve into a broader market. "If all goes well, the innovators will evaluate the product positively. If they choose to purchase the product, they will be converted from consumers into customers. That product then becomes accepted by the market and it travels through the diffusion curve which means that it does move into the adaptor category," she says. "The entry point is very different for the very new – radical innovation – compared with the 'just new' – incremental innovation – for durable goods." Tania Bucic is Associate Professor, Deputy Head of School, Scientia Education Fellow at the UNSW Business School.

This article was first published at BUSINESSTHINK, the online journal of UNSW Business School.

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Entertainment

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An exhilarating ride this March UCKLE up for an exhilarating ride this March! Riverside’s National Theatre of Parramatta (NTofP) will present George Brant’s powerful psychological thriller, Grounded, from March 14th to 23. Engaging, fast paced and emotionally charged, Grounded follows the story of a female pilot who matches her male colleagues flight for flight, drink for drink, and drives down the freeway blasting AC/DC. The pilot’s world takes a drastic turn when she is forced to stop flying and become a drone operator. The vastness of flying military jets over deserts and being at one with the blue has now been replaced with drones. Death delivered by remote control. A virtual battlefield. Grounded is directed by Dom Mercer (Old 505 Theatre’s Little Borders and The Block Universe (Or So It Goes), and Sydney Fringe’s Silent Theatre); and stars stage and screen regular, Emily Havea (Bell Shakespeare’s Julius Caesar, Griffin Theatre’s Kill Climate Deniers; and TV’s Wentworth and Sisters). Mercer said, “Timely, pointed and unflinching, Brant’s script is a rare and brilliant gift for an actor, and Emily Havea is primed to give a tremendous and memorable performance.”  Brant’s celebrated play is an Edinburgh Festival Fringe First award winner, a Lucille Lortel Award winner and has a screenplay in development starring Anne Hathaway. NTofP Executive Producer Joanne Kee said, “NTofP is thrilled to present Grounded as our first show in 2019, it’s a stand out script having won numerous awards around the globe. In a world where fiction can become fact and fake news is all around us, this story is really important and relevant as it questions our beliefs in the institutions in which we are supposed to trust.”

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Playwright: George Brant Director: Dom Mercer Cast: Emily Havea Set and Costume Designer: Jonathon Hindmarsh Lighting Designer: Alexander Berlage Sound Designer: Mary Rapp

DATES & TIMES Thursday 14th March at 7.45pm. Friday 15th March at 7.45pm. Saturday 16th March at 7.45pm. Tuesday 19th March at 7.45pm. Wednesday 20th March at 7.45pm. Thursday 21st March at 7.45pm. Friday 22nd March at 7.45pm. Saturday 23rd March at 2.15pm and 7.45pm. Tickets: Adult $49, Concession $44 From the Box Office (02) 8839 3399 or www. riversideparramatta.com.au. Transaction fees: phone $4.60, web $3.60 and counter $2.60. Discounts available for Riverside Theatres’ Members. “With rapid advances in technology and virtual reality, it also questions how they are becoming so ubiquitous in our lives, that there

may come a time when it is hard to tell which world we inhabit, and do we want to live in that world?”

Venue: Riverside Theatres – Corner of Church and Market Streets, Parramatta

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FORM Dance Projects | Dance Bites 2019

By Harold Pinter

With music by Andrew Lloyd Webber and lyrics by Tim Rice, Packemin presents a staggering new production of the world’s first rock musical. Starring Toby Francis, Bridgette Shipway and Joe Kalou, the show has one of the most stirring and iconic musical theatre scores ever written.

Aston lives in a junk filled room in personal and emotional isolation, tinkering with gadgets and dreaming of building a shed out in the yard. His brother, Mick, inhabits his own world of aspirations but is held back by having to care for his vulnerable brother. It is winter. Into this derelict household Aston gives shelter to Davies – a tramp he has rescued off the street – who has his own dreams and delusions.

An unusual presentation of how movement sounds, and how sound moves. APRA Art Music Award winning percussionist, Claire Edwardes and Helpmann Award-winning contemporary dancer, Richard Cilli, unite their distinct virtuosic talents to create a unique double-act directed by acclaimed choreographer Gideon Obarzanek.

8 – 23 FEB

21 – 23 FEB

28 FEB – 2 MAR

PLUSAWAY BY MICHAEL GOW,COMEDY AT RIVERSIDE, BEHIND THE LINES – THE YEAR’S BEST POLITICAL CARTOONS OF 2018, NT LIVE: ANTONY AND CLEOPATRA, MET OPERA: MARNIE AND STACKS OF GREAT FILMS.

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Entertainment

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The new Pioneer Theatre at Castle Hill.

Joseph and the Amazing Technicolor Dreamcoat HE Pioneer Theatre and Community Centre is a cultural asset co-located with The Hills Shire Council library on the ground floor of the Castle Grand building at Castle Hill. In May the theatre presents a new production of Joseph and the Amazing Technicolor Dreamcoat. The Pioneer Theatre features a flat floor 350-plus seat configurable performance space designed for theatrical works, acoustic and contemporary music, cabaret, large corporate functions, school events, conferences, and social usage including weddings, family gatherings, film screenings and parties. It is an intimate and versatile ‘lack box style theatre, with configurable seating, staging and layout options enabling it to provide a range of experiences to audiences. The story of Joseph and the Amazing Technicolor Dreamcoat is a tale that follows the journey of a dreamer. Joseph is the son of Jacob and one of twelve brothers.

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He is given a coat of many colors by his father, which is symbolic of his favor and an object of his brothers’ jealousy. The brothers decide to sell Joseph into slavery after initially plotting to have him killed. Convincing their father that his favorite son has died, they reveal his tattered coat and believe that they are rid of him once and for all. From his homeland of Canaan, Joseph is taken to Egypt where he becomes the slave of Egyptian millionaire Potiphar and earns his trust. Managing his household, he soon must ward off the affections of Potiphar’s wife. Enraged and unwilling to assess the situation, Potiphar has Joseph thrown into jail where he interprets the dreams of his cellmates. The prisoners are awed by his hidden talents of interpretation and encourage Joseph to pursue dreams of his own. More details visit: www.pioneertheatre. com.au

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Childscene

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70,000 creative kids vouchers downloaded AMILIES have given the NSW Government’s new $100 Creative Kids vouchers a strong endorsement, with more than 70,000 vouchers downloaded since the program went live three weeks ago, with Western Sydney well represented. More than 830 providers have also registered with Service NSW.

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The following suburbs are among those that have downloaded the most vouchers: Postcode Suburb 2155 2153 2145 2250 2170 2154 2259 2077 2570 2560

Kellyville Baulkham Hills Westmead Erina Liverpool Castle Hill Tuggerah Hornsby Camden Appin

Vouchers Downloaded 960 673 541 455 448 447 440 422 422 400

Parents can use one voucher for every school-age child per year to help meet the cost of structured creative and cultural activities, such as music lessons, languages, coding, drama and theatre, photography and graphic design. Minister for Finance, Services released the figures. “The figures speak for themselves – parents simply love the new voucher and have given it the thumbs up,� Mr Dominello said.

“The voucher is helping to unlock the creative abilities of young people, with parents in Kellyville, Castle Hill, Liverpool and Camden among those who have claimed the most vouchers so far. Among registered providers, performing arts and visual arts groups are the most represented. “This program has been made possible due to our strong economic management –we’ve slashed the debt, balanced the books and put the State back in pole position.�

Mr Notley-Smith said: “Creative Kids complements the hugely popular Active Kids voucher, and that Creative and Active Kids vouchers combined will save a family with two children $400 a year.� “The new school year starts next week and this voucher will help parents plan for creative and cultural activities. It is critical that providers register with Service NSW, so that parents can claim their vouchers with them.�

Creative Kids is one of a raft of NSW Government initiatives helping to ease cost of living pressure for households. Others include cheaper Green Slips and refunds, free car registration for regular toll users and the FuelCheck app. Further information on how to register as a provider and the program is at www.service.nsw.gov.au/campaign/ creative-kids

Your future is awaiting you! COMMENCE YOUR STUDIES THIS APRIL SCHOOL HOLIDAYS! &HUWL´FDWH,,,LQ(DUO\&KLOGKRRG(GXFDWLRQDQG &DUHIRU+LJK6FKRRO6WXGHQWV6WXG\WKURXJK \RXUKROLGD\V We are very pleased to announce A-GRADE Pre-Uni Education DQG7UDLQLQJZLOOEHRIIHULQJ&HUWL´FDWH,,,LQ(DUO\&KLOGKRRGWR EHIROORZHGE\D'LSORPDLQ(DUO\&KLOGKRRGWRDOO<HDUDQG VWXGHQWVUHVSHFWLYHO\

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$*UDGH6WULYHVWR0DNHD3RVLWLYH&RQWULEXWLRQ WRWKH1H[W*HQHUDWLRQ :KHQ\RXHPEDUNRQDFDUHHULQ(DUO\&KLOGKRRG(GXFDWLRQ \RX OOEHUHZDUGHGHYHU\GD\ZLWKWKHNQRZOHGJHWKDW\RX UH PDNLQJDSRVLWLYHGLIIHUHQFHLQWKHIXWXUHRIRWKHUV 2XU&HUWL´FDWH,,,ZLOOTXDOLI\\RXWRZRUNLQ(DUO\&KLOGKRRG (GXFDWLRQDWWKHOHYHORIDQ(GXFDWRUDVZHOODVSUHSDULQJ\RX IRURXU'LSORPDRUIXUWKHU7HUWLDU\VWXGLHVLWFDQHYHQSURYLGH\RX employment RSSRUWXQLWLHVLI\RXZLVKWRZRUNLQDQ\&KLOGKRRG ´HOGZKLOHVWXG\LQJDQRWKHU'HJUHHTXDOL´FDWLRQVXFKDV/DZ 0HGLFLQHRU(QJLQHHULQJ,I\RXFRPSOHWHRXUDiploma in Early &KLOGKRRGLWZLOOVWDQGDVDWKLUGRID'HJUHHVKRXOG\RXZLVK to follow a career LQ7HDFKLQJWKLVWKHQRIIHUVFRXQWOHVV&DUHHU RSSRUWXQLWLHV

COMMENCE YOUR STUDIES THIS SCHOOL HOLIDAYS!!!

Tel: 1300 885 508 Email: training@agradetraining.nsw.edu.au

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Childscene

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Five easy ways to boost children’s spatial skills „ KYM SIMONCINI „ TRACY LOGAN HEN we read maps, pack the car for holidays, assemble flatpack furniture or cut cake into equal slices, we use spatial reasoning skills. These allow us to mentally manipulate objects or think in a way that relates to space and the position, area, and size of things within it. Not only is spatial reasoning an important skill in everyday life, it is important in science, technology, engineering and mathematics (STEM) related careers. And it is never too early for children to develop and enhance their spatial skills.

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Spatial skills are linked to future success Spatial reasoning is the best predictor of whether children will end up in a STEMrelated career. These skills are especially important in jobs where people need to, for example, create or read X-ray and ultrasound imaging, engineering and architectural designs, or cross-sections of heating and plumbing systems. Good spatial reasoning skills are linked to good maths skills. In fact, children’s early maths skills are a better predictor of their later school success than either early reading or social-emotional skills. Perhaps the best news about spatial reasoning skills is that they are malleable. In other words, we can improve them with practice. There are lots of fun and easy things parents and other caregivers can do to boost children’s spatial reasoning skills. Here are our top five evidence-based ways.

1. Play with blocks While many people know that playing with blocks develops skills including fine motor, social, language and cognitive skills, fewer people realise the connection between playing with blocks and spatial skills. Children who play with blocks have better spatial skills than children who don’t. Block play involves lots of rotating, moving and positioning pieces. In particular, structured block play where children build a given structure from a spatial representation (instructions) develops their spatial skills. When we play with blocks we also use a lot of spatial language - like next to, on top of, under - and spatial language is important in building spatial skills (see also point 2). In fact, children and adults use more spatial language when they play together with blocks compared to other types of play, including pretend play (shops, zoo, cooking and school), playing with toy animals and throwing a ball.

2. Use spatial language Spatial language is a powerful tool for spatial reasoning. The more spatial language children hear the more spatial language they use. Children with greater spatial vocabulary are also more likely to have better spatial reasoning skills at a later age. Parents can model spatial language, especially words that describe object: • dimensions (for example, tall, short, wide, narrow) • shape (circle, square, triangle, oval, rectangle) or • spatial properties (round, straight, pointy, curved, sharp). When asking children to put things away, be as specific as you can about the position. For example, you can say “put the box in the recycling bin”, “put the books on the

bookshelf” or “put the playdough next to the microwave”.

3. Play with jigsaws Like blocks, there is a positive relationship between jigsaw play and spatial skills. Children who play jigsaws have better spatial skills than children who don’t. Similar to block play, when you try to fit a jigsaw together, you rotate and move pieces a lot. Doing jigsaws involves a lot of rotating and moving pieces, great for developing spatial skills. from www.shutterstock.com We can encourage children to persist with jigsaws and help them imagine what pieces might fit by either shape (we need a piece with a flat edge) or visualising the missing image (leaves that are a light shade of green). We can also ensure the jigsaw is the right fit for their ability - not too easy but not too hard. How many of us have given up on a 1000-piece jigsaw with 800 pieces of sky or water?

4. Use and create maps Maps are all around us. They show the spatial relationships between objects in our world. Children enjoy looking at and creating maps. Research with preschool-aged children shows exposure to and use of maps helps children to navigate objects through a maze. Games such as treasure hunts using a map and directional symbols (such as left, right, up, down, north and south) are a fun way to help children think spatially. Exploring and creating different types of maps, such as world maps, shopping centre maps and street maps, show how things in our world can be represented spatially in different ways and at varying scales. Paper maps and digital maps like Google Maps and Google Earth are also wonderful resources.

5. Encourage children to gesture Many people use gestures when they talk and this is especially true when we use spatial language, such as giving directions. Other research also suggests that many STEM professions use gestures when working with spatial problems and that students who are exposed to gestures during instruction perform better on problem solving tasks. Children should be encouraged to use their hands to show how things move, when pointing to different locations and objects and when using spatial language. Parents can model these gestures. Kym Simoncini is Assistant Professor in Early Childhood and Primary Education, University of Canberra. Tracy Logan is Assistant Professor, University of Canberra

This article was first published at www. theconversation.com.au

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Online

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How construction companies leverage SEO „ LOUIE RAMOS HERE has never been a more exciting time to leverage SEO to get noticed in the building and construction industries. With the boom in infrastructure investment that’s currently happening in Australia, there’s a flux of new contracts coming in. The companies who are leveraging their online presence through impactful SEO strategy will be the ones who thrive and win the best business.

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Is Your Website SEO Optimized? Making sure your website is targeting the right demographic through keywords and back-end optimization is integral to being found when your next client is searching for a contractor. Not only will using an intentional digital content strategy help to demonstrate your credibility and educate potential clients about what you do – but it will also help your website to move up the rankings on Google.

Thrive Locally Have you thought about listing your company on local directories? Is your company visible on Google Maps? This is an important aspect of SEO strategy that can make it easier for you to be found, along with increasing your credibility and making it more likely for potential clients to reach you.

SEO Can Connect You With Your Next Contract It’s important to build brand recognition by ranking higher on Google and establishing a clearly thought out digital presence. Having a keyword strategy that helps you to target specific potential clients while they’re searching is a powerful and effective way to leverage

your online presence. You can tailor how you rank based on your specific service area and target customers.

The Power of a Digital Content Strategy Sharing authoritative industry resources is a powerful way to demonstrate your expertise at a glance for interested clients. You can tailor your digital content according to the platform and prospect, so you’re speaking directly to the kinds of clients you most want to attract business from.

The Digital Advantage Simply put, if you are leveraging the abundance of digital tools and strategies that

can support your business to generate more clients, you’ll be securing the success of your company, despite the growth or intensity of the competition. From mobile-optimising your website, to generating some online customer reviews, adding video, up-leveling your content, being present on social media and so much more – it’s never been easier to reach your ideal customers.

Secure a Profitable Future Hiring the right SEO vendor will bring you the peace of mind that you are capable of being found by target customers. Implementing a long-term SEO strategy that builds organic visibility will bring your company the exposure it deserves.

Now is the ideal time to be thinking about your long-term success, and how to leverage digital marketing to stand out above the competition as the boom in opportunities for Australian construction and building business increases.

Don’t get left behind online Digital Presence offers high-performing SEO services tailored to the needs of construction and building businesses. Give us a call today to discuss SEO possibilities for your business. Louie Ramos is a Digital Marketing Expert and the cofounder and Director, Digital Strategy at Digital Presence. Visit: www.digitalpresence.com.au

Life is Beautiful at • Set on 15 acres of natural bushland and native gardens. • Just two kilometres from popular Avoca Beach and rock pool. • 42 self-contained options and 36 motel style rooms. • Two pools, tennis court, BBQ areas, a hotel and restaurants. • 7 mins drive from Terrigal and 11 mins drive to Erina Fair. • Saltwater Bistro and The Sports Bar are within the Avoca Beach Hotel with dining option inside or with alfresco dining. • Live entertainment every weekend. • The Sports Bar has a media wall covering all the best sporting channels together with TAB and Keno facilities. • Drive -through Bottle-mart • Avoca Beach Hotel & Resort has 3 Conference and Function rooms to suit all your conference, wedding or function needs catering for 5-200 guests, for a meeting of 5, a conference for 50 or a cocktail function for 200 with your own private bar, lounge and balcony.

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www.facebook.com/AccessNewsAustralia/ helping chamber members connect with one another.” – Simon Gould, president, Penrith Valley Chamber of Commerce, on his election to the position. “This is the most significant leap forward for Liverpool since the city was first designed and the Hoddle Grid was laid down in 1827.” – Wendy Waller, Mayor of Liverpool, on the rezoning of 25 hectares in the CBD to allow mix-use development. “At Oran Park, entrepreneurs have access to a 3D printer, an advisory service and links to local business contacts such as manufacturing, construction, aged care and agro-business.” – Don Wright, at the opening on the WSU’s Launch Pad, at the Oran Park Smart Work Hub.

“It is a great honour and a true testament to the hard work and commitment that Featherdale puts in to be a valuable member of the western Sydney community.” – Tony Chiefari, GM, Featherdale Wildlife Park, which won three awards at the 2018 Western Sydney Awards for Business Excellence. “I'm very excited with this opportunity to work with council and look forward to working closely with the team in business development and job creation. An exciting future we have." – David Waudby, economic development officer, Camden Council.

innovate and evolve to meet the changing needs of our guests and retain our leading position in a competitive market.” – Anthea Hammon, MD, Scenic World, on the $4 million upgrade of venue’s fleet of Blue Mountains cable cars.

the region’s aspirations.” – Christopher Brown, chairman, Western Sydney Leadership Dialogue, on four universities collaborating on a university at the Western Sydney Aerotropolis.

“We are, on any measure, a driving force in the future of Sydney, and a key part of its social and economic success” – Karl Astour, Mayor Canterbury-Bankstown Council, speaking on the future of the city.

“Sydney’s loss of agricultural capacity will put strains on the accessibility and affordability of fresh food particularly within Western Sydney.” – Matt Brand, CEO, NSW Farmers’ Association, on steps to secure the supply of fresh food.

“It is the best job in the world.” – Ronald Tanner, who has spent 40 years as an employee working in the garbage services sector at Canterbury-Bankstown Council.

“It is a privilege to be part of a thriving NSW tourism economy but we recognise the need to

“It’s great to see the NSW government and the tertiary education sector get on board with

WESTERN SYDNEY BUSINESS ACCESS FEBRUARY 2019

“There’s going to be some quantum shifts in what we have been doing here. I want to build the work that’s been done but we want to look for a certain view, more contemporary ways of

“Campbelltown is one of Australia’s fastest growing cities and will be less than 30 minutes from the Western Sydney Airport, providing significant economic stimulus, Overseas investment interest continues to grow in this region and is expected to accelerate when the airport arrives.’’ – Lindy Deitz, GM, Campbelltown City Council, on the city’s future in SouthWest Sydney. “We’ve developed a package with two major elements. Firstly, we’re putting $1.5M towards boosting night-time events, in particular live music, and secondly we’re cutting red tape and introducing innovative trading arrangements to enable businesses to thrive.” – Minister for Racing Paul Toole and Minister for the Arts Don Harwin. “When discussing technology with business leaders, I often find the most under-utilized application is their monthly Office 365 subscription. They’ve moved their email system to the Office 365 Exchange service and they’re now using the latest version of Office but very few are looking at the services beyond email.” – Netcare MD Darryl McAllister.

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Honoured to have been a WSABE WINNER in the 'Excellence in Innovation & Excellence in a Traditional Trade' categories! Precision Metal Group Australia was founded by Managing Director Jason Elias & is a family owned and run Mechanical & Structural engineering services company with industry experience in excess of 50 years under our belt. The company came about after a jump in work across our home country Australia and ventures in overseas markets. We have been committed for years to provide the best possible service for the best price to our clients. Due to difficult economic conditions we are all working with, this has put Precision Metal Group in the view of many companies to engage our services and help them reduce costs and remain viable. We have had many new companies approach us to be certified with our facilities that offer 24/7 support all under one roof in a cost effective solution.

MANUFACTURING WELD INSPECTION & NDT Machinery to assist your Our recent addition of welding production needs, inspection and supervision will including onsite machining, deliver high quality standards profile cutting, and and support client needs. specialised welding.

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ENGINEERING Award-winning engineering and experience in mechanical, electrical, structural and welding.

REBUILDS & REPAIRS From day-to-day maintenance to any size shutdown or any machinery repairs, we can provide coverage for your organisation.

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Profile for Access News Australia

Western Sydney Business Access - February 2019  

Western Sydney Business Access (WSBA) is the news-magazine that promotes why we live in Greater Western Sydney - home of the world's newest...

Western Sydney Business Access - February 2019  

Western Sydney Business Access (WSBA) is the news-magazine that promotes why we live in Greater Western Sydney - home of the world's newest...