Bay of Plenty Business News | April 2020 by Cambridge, King Country & Te Awamutu News, Waikato & Bay of Plenty Business News

bop business locked down but not out

The Bay of Plenty Business News was founded to provide unique, supportive coverage on what has consistently been one of New Zealand’s fastest-growing regions. The Covid-19 lockdown that began in March is unprecedented and scary. But the Bay business community’s response has been steadfast and collaborative. We will continue to provide our readers a fresh perspective, both in print and regular digital updates. – DAVID PORTER, Editor

We’re helping sole traders and small business owners get through.

Zespri gets first shipment of kiwifruit away to Japan

The current Covid-19 disruption has a few bright spots, namely that The Bay remains a key horticultural export of premier food.

March saw the loading and departure from Tauranga of the first of a planned 47 charter vessels carrying new season Zespri kiwifruit to offshore consumers.

The Baltic Pearl, carrying just over 1 million trays of SunGold kiwifruit, was expected to reach Japan by the end of March, docking in Tokyo and Kobe.

The vessel had earlier berthed in Gisborne to pick up over 330,000 trays of SunGold after the region became one of the first to start this season’s kiwifruit harvest.

Zespri chief global supply officer Blair Hamill, said that while there were ongoing challenges associated with Covid19, all ports in Japan, Korea and Europe were functioning well and had labour available.

“We’re continuing to monitor the situation closely and adopting a precautious approach, with our contingency planning taking account of the rapidly changing environment,” said Hamill.

“We’re seeing positive signs in China in terms of the improving consumer metrics, and we expect our

charter reefer vessels to run as planned.”

Harvest underway

Hamill said with the harvest now underway, the industry was working hard to deliver another great tasting crop of kiwifruit, which had benefitted from this season’s warm weather and excellent pollination.

(See our Special Focus on pages 11-14 for an update on Covid-19 impacts on our exports.)

“This season we’re expecting to supply around 155 million trays, or around 600,000 tonnes, of our premium Zespri kiwifruit to our consumers across the world,” he said.

“Our latest estimates show we’re on track to supply over 80 million trays of SunGold, and around 70 million trays of Green this year.

“That’s up from around 74 million trays of SunGold and 73 million trays of Green last year, which marked the first time we’ve supplied more SunGold to the markets.”

In total, Zespri expects to send more than 18,500 con-

We’re continuing to monitor the situation closely and adopting a precautious approach, with our contingency planning taking account of the rapidly changing environment.”

– Blair Hamill.

tainers of kiwifruit this season, with four sailings to North Europe, 11 to Zespri’s Mediterranean markets and 32 to Asia.

“We’ll continue to monitor the developing COVID-19 situation closely, and if we see any change in demand or disruption to a port, we will make adjustments to our fruit alloca-

tions accordingly.

“We’re pleased to be able to get this first shipment of SunGold Kiwifruit away and will continue to be working closely with our partners and in-market teams to ensure we’re continuing to meet our customer and consumer’s strong demand for fresh fruit.”

The Baltic Pearl loading at Port ofTauranga. Photo/Zespri.

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Email: david@bopbusinessnews.co.nz

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As I note on the cover, the Bay of Plenty Business News was founded to provide unique, supportive coverage on what has consistently been one of New Zealand’s fastest-growing regions.

We are fortunate compared to some regions and countries – the Bay has been in a sound position economically and has excellent exporting and food producing resources.

I believe the government has made the correct decision to take immediate action, with its decision to lock down everybody except essential industries for at least a month and offer financial relief.

It seems to be those countries that have delayed acting promptly that are suffering higher infection rates and infection levels.

But the reality is that nobody really knows what is

going to happen next.

And it is the fear of the unknown that has the potential to do us the most long term damage.

As our writers and columnists note in numerous articles in this issue, there will be major challenges ahead.

But we have also seen great positive responses and some excellent examples of the collaborative business spirit the region is known for.

We continue to produce excellent food – and even toilet paper.

That some people continue to stockpile and fight over food and household items is just the unthinking and selfish behaviour we should be avoiding.

I have had the personal misfortune to live through the Global Financial Crisis, the Asian Financial Crisis, SARS, bird flu and sundry other global panics. Our world has survived everything from the plague to the Spanish flu. Unless this really is the big one, Covid-19 will eventually pass. We will continue to publish in print and digital form and are working closely with our service providers. Bay of Plenty Business News will continue to offer our readers a timely and useful perspective as we all adjust our behaviours to deal with Covid-19.

David Porter

Bay company makes the cut in global agri-tech list

Making the cut in a list of the top 50 global agri-tech companies is likely to pay big dividends for Bay of Plenty company Robotics Plus.

By RICHARD RENNIE

The company has been named in the THRIVE Top 50 list, an annual ranking of leading global agritech companies, and is the only New Zealand company to make the list.

The Silicon Valley-based THRIVE SVG Ventures enterprise is a platform for global agri-food investment and innovation that works with investors, entrepreneurs and corporates to help commercialise new technology.

Based in Te Puna, Robotics Plus has become well known for developing a prototype robotic kiwifruit picker and two years ago received a $10 million funding injection from Yamaha Group to help commercialise its technology.

Founded in 2013 by Steve Saunders and Dr Alistair Scarfe the business has since also developed ground breaking apple packing technology and log volume assessment equipment.

Getting on the radar

Robotics Plus chief executive Matt Glenn said the recognition the company gained by making the Top 50 list was invaluable for putting the company on the radar of other potential investors.

“It’s a huge deal for us for attracting the attention of large investors and we have already had some big fish approach us,” he said.

Yamaha’s focus on robotics stepped into the agri-tech sector with its investment in Robotics Plus, the first and largest the company had made outside of full merger and acquisition deals.

Glenn said while the robotic kiwifruit picker had been good for raising the company’s profile, making the leap from a proof of concept prototype to full commercially scaled production was a big one.

From its initial intention to be a dedicated kiwifruit picker the robot was adapted to become more of an autonomous

platform, with multiple applications including picking, pollinating and spraying.

The technology developed with the robot today forms one of three planks in the business, known as unmanned vehicles. Alongside this sits forestry logistics and produce packing technology.

Apple packer successfully commercialised

The company’s Aporo apple packers have been successfully commercialised in the last two years with 50 in place around the world. The machine is capable of identifying and placing 120 apples a minute in display trays, and is marketed by Global Pac Technologies globally.

Here in the Bay of Plenty, log marshalling company ISO was the first to install Robotic Plus’s log scaling machines, which scan logging truck loads for accurate volume calculations of log loads. Seven other units have been installed around New Zealand, with export opportunities beckoning.

Glenn said the company remains focused on being a company committed to growth and development, rather than only seeking organic growth over time through existing commercialised technology.

With that comes significant funding demands, and an ongoing need for highly skilled engineers and developers.

“We have worked closely with Waikato University’s head of robotics Professor Mike Duke, and we would have about 25 percent of our staff coming from Waikato,” said Glenn.

Many staff at Robotics Plus are completing a Masters or PhD in areas of computing and robotics. Glenn said the challenge is often to source staff who have those skills, tempered with some commercial experience.

“We have 65 staff now, and aim to be close to 80 by the end of the year.”

He said much of the compa-

It’s a huge deal for us for attracting the attention of large investors and we have already had some big fish approach us.” –Matt Glenn

ny’s technology is now highly valued IP and kept secure from prying eyes. However, he expected to be able to make a significant announcement later this year about another major commercial development.

With its pool of talented staff built up in the Bay, Glenn was confident Robotics Plus would remain a local company. But it would maintain a global focus on the many opportunities that existed beyond New Zealand to develop broad acre robotic equipment that would help deal with the growing labour shortages faced by primary producers all over the globe.

Robotics Plus chief executive Matt Glenn:global focus. Photo/Supplied.

Young professionals bring fresh governance perspective

The traditional image of the boardroom table being surrounded by people in middleage and older, is increasingly becoming outdated. The modern boardroom is about bringing diversity to the fore – not just in terms of age and ethnicity, but in diversity of thought, says Priority One.

DBy DAVID PORTER

iversity is seen as bringing positive, lasting results to organisations. Boards all over the world are taking notice of younger voices that bring new perspectives and fresh experiences. Locally, Priority One, is leading the way with the appointment of two Young Professional Board Members who have been co-opted onto the governance board.

Jack Christianson from Zespri and Kelly Williams from Cucumber have joined the Priority One board. Chair Brett Hewlett said bringing in Young Professional Members reflects the broader company culture, which values mixing young professionals with generations of local knowledge and experience.

“There are positive and lasting results in organisations governed by diverse boards,” he said.

“While years of experience often translates to effective board service, so too can the ground-level perspective that young professionals bring.”

Crafting the future

Priority One was helping to craft the future of Tauranga and the Bay of Plenty, said Hewlett.

“It’s important for us to ensure we have diversity of voice at the boardroom level, and across the business, to keep driving us forward.”

Young professionals brought a different perspective to the board table, often offering new ideas, a deeper understanding of emerging technologies, cultural trends and the increasingly important role of social networks, he said.

“For Priority One in particular we want to know what attracts young people to Tauranga and how to retain those we already have… we need to maximise the opportunities available to young people so they want to stay and grow their careers here, or start their own businesses here.”

Bryan Graham, chair of the Institute of Director’s Bay of Plenty Branch, said the IoD was pleased to see Priority One initiate the programme. .

“Diversity of thought is crucial around the board table,” he said.

“The IoD, which has the Future Directors and Mentoring for Diversity programmes, supports initiatives like this which help develop director talent.”

First-hand experience

Zespri’s Christianson credited the company’s chief global

of our region and to interact with the wider Western Bay of Plenty business community.

While years of experience often translates to effective board service, so too can the ground-level perspective that young professionals bring.” – Brett Hewlett

supply officer Blair Hamil for nominating him for the position.

“This opportunity provides first-hand experience of what is required to shape the stra-

Tauranga Airport wins Canstar Blue top award

As it faces challenging trading conditions in the wake of the virusinduced downturn in business, Tauranga Airport has had some good news. It recently topped the Canstar Blue 2020 Most Satisfied Customers Award for domestic airports.

By DAVID PORTER

The airport – which recently completed a major rebuild and refurbishment – received a five-star rating for overall satisfaction, waiting areas and communication, as well as four stars for facilities, parking and ease of check-in.

Tauranga outscored all other domestic airports including major terminals such as Auckland, Christchurch, Queenstown, Dunedin and Wellington.

Well-received news

Tauranga Airport chief executive Ray Dumble said winning the Customer Satisfaction Award was the best praise the airport could get, and would be well-received by all staff and contractors involved in the recent upgrade.

‘We take great pride in putting our customers first, and to win this award during a year of major construction is testament to the effort our staff put into minimising disruption to travellers.’

The original terminal was constructed in 1967, and although it had served the region well, passenger volume has been increasing and the upgrade was needed to future proof the airport.

The $12.7 million redevelopment was completed last year and doubled the floor area of the terminal, making room for a larger lounge, new check-in area and café space.

The improvements also created a shorter walk from the terminal for boarding.

‘Our focus was to create a

tegic direction of an organisation,” he said.

“I’ll be learning from existing board members; it’s a unique opportunity to get involved in the development

Kelly Williams, a junior software developer at digital services company Cucumber, said she took a broad interest in the economic growth of the wider region, with a particular interest in the hort-tech industry.

“I moved to Tauranga two years ago and have been amazed at the quality of our local tech industry,” said Williams.

“With the passion of our

local industry and the amount of growth we’re experiencing, Tauranga has the potential to be New Zealand’s innovation hub.

“I’m looking forward to being able to use the experience and knowledge I gain through working with the Priority One board to enable me to give back to and support the community in a meaningful and thoughtful way.” Christianson and Williams will hold their Young Professional Memberships on the Board until the end of 2020.

space that both customers and staff enjoyed, and this award is proof we have achieved that’ explained Ray. Although the terminal up-

Although the airport is owned by Tauranga City Council, it is self-funded with

KellyWilliams,Jack Christianson and Brett Hewlett. Photo/Priority One

TaurangaAirport during its recent rebuild. Photo/Supplied

CKL establishes Tauranga office to meet increasing need for land development expertise in the Bay Of Plenty

CKL establish Tauranga office to meet increasing need for land development expertise in the Bay Of Plenty

CKL, a fully integrated planning, surveying, engineering and environmental consultancy well known in Auckland and the Waikato, has opened an office at Level 1, 73 Spring St, Tauranga.

FFounded in Hamilton, CKL has been operating for over 30 years and is at the forefront of the profession, incorporating sustainable design and engineering strategies into big or small land development projects.

ounded in Hamilton, CKL has been operating for over 30 years and is at the forefront of the profession, incorporating sustainable design and engineering strategies into big or small land development projects.

with urban, rural and coastal marine environments.

Tauranga City Council, so knows the region and the regulatory processes inside and out.

He was formerly a Land Development Manager for Tauranga City Council, so knows the region and the regulatory processes inside and out.

CKL has the knowledge and expertise to assist with infill subdivisions, greenfield residential developments, commercial and industrial developments, and public infrastructure projects.

“We have been providing land development services to clients in the Bay of Plenty for a number of years and with a growing list of clients and development projects in the region, the time was right for us to provide dedicated expertise from a local office,” said CKL Director Bevan Houlbrooke.

“We have appointed two experienced and well respected land development experts to head up the Tauranga office. Alan Wilkinson is CKL Tauranga Branch Manager, and Mark Batchelor is CKL’s Tauranga Planning Manager,” said Houlbrooke.

Alan Wilkinson is a chartered surveyor and qualified planner with over 30 years’ experience. He brings local knowledge as well as broad expertise in surveying, planning, infrastructure management and land development.

Speaking about the needs of local property owners and developers, Alan Wilkinson said, “Tauranga and the Bay of Plenty continue to experience strong population growth, with the Bay of Plenty positioned as the third fastest growing region in the country.

“Local landowners are looking to capitalise on their property investment by increasing built development or by subdivision, and property developers are opening up new estates to accommodate the demand for residential and commercial lots. This has resulted in a steady increase over the last five years in resource consent applications, title conversions, and land development projects across the region.

“Local clients are looking for local knowledge to help them navigate council development application processes and title submissions.

This has resulted in a steady increase over the last five years in resource consent applications, title conversions, and land development projects across the region.

“That’s where CKL comes in. Whether it’s for a residential subdivision or the creation of a new community, we are able to provide end-to-end planning, surveying, engineering and environmental consulting services,” added Wilkinson.

Mark Batchelor carries extensive regional district planning knowledge

Mark Batchelor carries extensive regional district planning knowledge with urban, rural and coastal marine environments. He was formerly a Land Development Manager for

“Local clients are looking for local knowledge to help them navigate council development application processes. That’s where CKL comes in. Whether it is for a residential subdivision or the creation of a new community, we are able to provide end-to-end planning, surveying, engineering and environmental consulting services,” added Wilkinson.

Able to draw on the collective knowledge and expertise of over 100 employees across 4 offices, clients have full access to a team of planners, surveyors, and civil, transportation and environmental engineers to fulfil all of their land development needs.

knowledge and expertise of over 100 employees across 4 offices, clients have full access to a team of planners, surveyors, and civil, transportation and environmental engineers to fulfil all of their land development needs.

“The benefit of working with CKL is our local knowledge and experience navigating council processes for development applications and title submissions,” said Mark Batchelor.

“The benefit of working with CKL is our local knowledge and experience navigating council processes for development applications and title

“When people come to CKL, we take the time to sit with them to understand their needs, their goals, and to help them create a vision for their land. It could be to create an environ ment that

“When people come to CKL, we take the time to sit with them to understand their needs, their goals, and to help them create a vision for their land. It could be to create an environment that provides housing and income for the family for generations to come, or to create parcels of land to be sold off and developed for commercial purposes.

provides housing and income for the family for generations to come, or to create parcels of land to be sold off and developed for commercial purposes.

“Whatever the need, we consider the client, the surrounding environment, and the future. We are just as committed to protecting the beauty and sustainability of this region as our clients,” added Batchelor.

CKL is always mindful of how a development may impact, and be influenced by the surrounding environment, and is committed to ensuring precious land and resources are cared for and protected for future generations to enjoy.

Many of CKL’s land development project incorporate flood and stormwater management plans and stormwater treatment and management

systems. This may include stormwater ponds, wetland reserves, bio detention devices, or filtration trenches.

The goal is to create beautiful, sustainable, communities that enhance the quality of life for residents and is an environment where people love to live.

stormwater management plans and stormwater treatment and management systems. This may include stormwater ponds, wetland reserves, bio detention devices, or filtration trenches. The goal is to create attractive, sustainable, communities that enhance the quality of life for residents and is an environment where people love to live.

“No matter the size or scale of the land development project, we will show you how to maximise development potential, and guide you through the process of resource consent application and title conversion.”

Many of CKL’s land development

“If you are looking to subdivide your property or want advice on a development, we will help you understand what you can achieve in terms of the best subdivision solution for your property,” said Wilkinson. “No matter the size or scale of the land development project, we will show you how to maximise development potential, and guide you through the process.

The CKL office is located at Level 1, 73 Spring St Tauranga.

Call Alan on 07 262 2282 to discuss your development needs, or when business resumes, call in to the office.

The CKL office is located at Level 1, 73 Spring Street, Tauranga and will be officially opened at an event in March.

Tauranga Office

Feel free to drop in to CKL to chat with Alan about your development needs, or call him on 07 262 2282.

Level 1, 73 Spring Street, Tauranga

Tauranga Office

Bronwyn Rhynd (Seated) Mark Gilberd, Campbell Burrows.

AlanWilkinson,CKLTauranga Branch Manager and Mark Batchelor,CKLTauranga Planning Manager.

CKL Director team:(Back L-R) Bevan Houlbrooke,GeoffWebster, Bronwyn Rhynd. (Seated) Mark Gilberd,Campbell Burrows.

Alan Wilkinson

Add value to your property by converting your cross lease to a fee-simple title

For many New Zealanders questioning the value or purpose of their existing cross lease property title, there is an alternative ownership structure available to you which offers more flexibility and freedom – a fee-simple title.

CCross lease ownership places certain restrictions on each owner in relation to the improvements or alterations they may wish to undertake on their property and requires you to obtain written approval from the other cross lease owner or owners. It could be as simple as adding a deck, erecting a carport, or building a pergola near the BBQ.

ross lease ownership places certain restrictions on each owner in relation to the improvements or alterations they may wish to undertake on their property and requires you to obtain written approval from the other cross lease owner or owners. It could be as simple as adding a deck, erecting a carport, or building a pergola near the BBQ.

A fee-simple title provides you with significant benefits when it comes to selling or developing your property as you have full ownership of the land.

In fact, the Property Institute of New Zealand estimates homeowners of fee-simple title properties may achieve a sale price of 7 to 18 per cent above that of a cross lease title.

A fee-simple title provides you with significant benefits when it comes to selling or developing your property as you have full ownership of the land. In fact, the Property Institute of New Zealand estimates homeowners of fee-simple title properties may achieve a sale price of 7 to 18 percent above that of a cross lease title. This

This increase in value may be due to the greater potential for develop ment opportunities, and also to the fact that many New Zealanders pre fer a full ownership structure. There is also a perception that cross leases can be complicated, de terring potential buyers and limiting the buyer market.

Many property owners are opt ing to convert a cross lease title to a fee-simple structure in order to make it easier to sell their property, with a view to recouping the cost of the title conversion with an increased sales figure.

increase in value may be due to the greater potential for development opportunities, and also to the fact that many New Zealanders prefer a full ownership structure. There is also a perception that cross leases can be complicated, deterring potential buyers and limiting the buyer market. Many property owners are opting to convert a cross lease title to a feesimple structure in order to make it easier to sell their property, with a view to recouping the cost of the title conversion with an increased sales figure.

If you currently own a cross lease property and would like to realise the benefits of converting to a fee-simple ownership structure, CKL can help you.

If you currently own a cross lease property and would like to realise the benefits of converting to a fee-simple ownership structure, CKL can help

Corona virus begins to bite in the Bay

The latest statistics on New Zealand’s trade data are stark evidence of the immediate impact Covid-19 has had upon this country’s trading position, even before the government’s lockdown. (See our accompanying Special Focus on pages 11-14 for guidance on approaches to help deal with the impact of Covid-19.)

By RICHARD RENNIE

The virus initially put the brakes on Bay of Plenty tourism, which has seen major job losses, along with the events and hospitality industries.

Key Bay export forestry was also an early casualty and quickly felt the impact as logs stockpiled and wharf space ran short in Chinese ports. However, the kiwifruit industry at time of writing seemed likely to be relatively unscathed.

Released in early March, Statistics NZ data indicates all New Zealand’s exports to China for the January 27-February 23 period were down eight percent compared to that same period in 2019.

Logs and meat were the biggest victims, with meat free-falling to half last year’s amounts, while forestry exports mainly in the form of logs fell to about 1.2 million tonnes, compared to 1.3 million in 2019.

Forestry products by value plummeted by $70 million from $250 million to $180 million.

The Bay of Plenty is the crown in the national forest estate, accounting for 400,000ha or 29 percent of the iwi land resource.

The impact of the extended Chinese New Year as a result of Covid-19 was felt relatively quickly at the shore side end of log exports.

Port signals lowered profits

Port of Tauranga, the country’s largest log export outlet, had already reported a decline of eight percent in log volumes at the end of its first six months to December 31, due to the slump in log prices that hit home in August.

The port has reduced its full year profit guidance due to Covid-19’s impact on log volumes, with revised full year profit now expected to be $94$99 million compared to the previous $96-$110 million.

Prue Younger, chief executive of the Forest Industry Contractors Association has welcomed the government’s announcement of regional support for forestry through a relief package.

Some operators have been shut down for weeks and more were expected, she said.

“Wharf space has only got tighter, and even if China got back to business as usual now, it will be three to four months until ports have released enough stock for operators to feel confident about putting logs on the water.”

Fortunately, the Rotorua region is a key supplier for higher grade domestic supply for timber used in New Zealand houses and for packing processes.

In contrast the East Coast region exports almost all its harvested logs.

However, even in the Rotorua district, in order to harvest the higher quality content of the tree, lower grade export logs are the inevitable result.

Ross Davis, chairman of the Forest Industry Contractors Association says this makes it complex to calculate the full impact of the virus on local logging operators’ incomes.

“You have to chop the tree down in order to get the quality timber, but that [also] generates the poorer quality log. For most operators it has meant they are still working, but sometimes on reduced hours, and if you are not earning as much, you are not spending as much.”

Times are tightening

As a result he is already getting reports of forestry supply businesses, most which are based in Rotorua, facing tighter times.

Brent Whitby, chief executive of Patchell Industries in Rotorua, which manufactures logging trailers and weigh systems, said the effects were starting to bite.

“We have clients all over New Zealand, and it hit the likes of Gisborne early on, with operators losing work and being laid off. We now have customers we have completed work for who can’t uplift it, or with equipment ordered that they have asked to have put on hold.”

New Zealand exporters have no-where else to send the industrial grade logs they harvest, but this is starting to change.”

– Peter Weir

“And on the other side we are monitoring very closely the delivery of all the supplies we use from overseas, things like tyres.”

Whitby said he was surprised at the rapidity of Covid19’s impact and expected things will get worse before getting better as backlogs of goods and demand for them grew into April and May.

Scott Downs, director of sales for Rotorua based forestry company PF Olsen said in his latest update that log inventories on Chinese wharves was rising at a rate of 35,000 cubic meters a day.

He expects that to continue until China’s production gets fully back on its feet.

Nowhere else to go

“Many Chinese sawmills are yet to get back to work,” said Peter Weir, president of the Forest Owners Association.

“New Zealand exporters have no-where else to send the industrial grade logs they harvest, but this is starting to change. More domestic mills are accepting reallocated export logs of poorer quality.

“And there is still good demand in the region from the

Logging smaller farm woodlots has ceased as association members do what they can to retain skilled labour by sending better logs to domestic sawmills to make up for the shortfall.

Work hours are also being maintained by continuing to invest in silvicultural work including pruning, thinning and preparation of land for replanting from winter through to spring.

But Weir cautions that it may be some months before markets recover fully from the sharp impact of Covid-19 virus.

He said members were not looking for handouts, but sought some equitable ways for working with government to assist various harvesting crews.

“They are the ones who need help.”

big players like Red Stag, and Oji’s two mills at Kawerau and Kinleith.”

Logging has taken a big hit from Covid-19. Photo/Supplied.

Port activity is down,but key overseas export markets are still open. Photo/Supplied.

meeting the challenges of working from home

These are challenging times as we all struggle to come to terms with the deaths and the ongoing mental, physical and financial stresses that our families and colleagues may yet suffer.

With the spread of Covid-19, remote work is suddenly an overnight requirement for many. It is realistic to assume that shifting to the “home office” will become the new normal for many of us for some time. We are being forced into the world’s largest work from home (WFH) experiment. And it may not be easy for many to implement in a short time frame.

According to a 2019 merchantsavvy global survey, 61 percent of companies currently have some sort of remote working policy for their staff, but not necessarily the data and IT policies to match this.

HR and health and safety requirements aside, the biggest challenge may stem from the lack of technology infrastructure and lack of comfort with new ways of working.

This may not be an option for everybody due to home lives, work types and activities. And some may be engaging in WFH for the first time, which means figuring out how to stay on task in a new environment that may not lend itself to productivity.

So what are the key considerations?

The workspace

Having a dedicated space at home helps. It is best to put on work clothes and set up a desk, or location that is not the sofa, kitchen bench or bedroom.

This also advises those living with you that “I am now at work”. A desk and comfortable office chair are desir-

able. Two or three monitors will offer more productivity than one screen. And for those using laptops I’d recommend mice and keyboards with a docking station.

Printing

You will no longer have the use of the office scanner / printer, and this may be a requirement.

Connectivity

Where possible, an uncapped high speed internet connection is desirable. A backup 4G router can also be supplied to separate work from streaming TV.

• Phones. Divert phone systems to mobiles or if you have a VOIP phone system, it is easy to take the office / desk phone and plug it in at home. With some systems, an app can be downloaded to your mobile phone allowing you to also make and receive calls from your office number.

• Remote access: A VPN (virtual private network) customised and connected to your office environment is one of the better, most secure options. Team Viewer and netconnect are less secure, cheaper options. Windows has Remote Desktop (RD), and Apple RD is built into the operating system.

File sharing

File sharing options like google drive, one drive, dropbox, etc are handy to save “dialing” into the office. These can also be used to collaborate and

share, and make sure you follow the rule of not emailing anything over 8mb.

Infrastructure and security

Don’t overlook security. One of the problems with distributed workforces is that remote workers are prime targets for those wishing to exploit vulnerabilities.

This is obviously a concern when dealing with sensitive data, proprietary information, and contracts.

• Password hygiene: Strong, frequently updated passwords protect businesses.

Do not use the same password across multiple applications. (check out lastpass, keepass, passportal for password control and single sign on options )

If the company owns the device, then it should ensure it is properly protected with upto-date antivirus, monitoring, remote access agents, device encryption, and firewalls.

Cyber security policies should designate which devices can be used for which kinds of business activity. If

TECH TALK

> BY TONY SNOW

Tony Snow is chief executive and co-founder of Stratus Blue. He can be contacted at tony@stratusblue.co.nz.

you are providing your own equipment be mindful of company security policies. Multifactor and 2Factor authentication is a must.

Communications and meetings

WFH success depends heavily on whether you trust employees to do their work, even if you can’t see them.

Focus on performance outcomes and productivity reviews.

Set accurate expectations with employees and enable supportive interactions. WFH can feel unstructured, so have clear-set expectations for communications day to day.

Time management tools like Timely, Toggle, everhour

and focus applications like pomodoro can assist.

Communication and instant messaging tools like Teams, Zoom, Slack, mattermost, google hangouts, discord, facebook and whatsapp, can keep the office banter and communications going.

Headsets with boom mikes and noise cancellations are a good option when using these.

• Maintain as much faceto-face interaction online as possible – especially to those employees who live alone and might feel more isolated.

Get ready for the remote-work future

This vast remote-work experiment is also a great op-

portunity to prepare for the future.

According to recent Gartner research:

• By 2030, the demand for remote work will increase by 30 percent due to Generation Z fully entering the workforce.

64 percent of today’s professionals say they could work anywhere and remote work policies are common (in place at 71 percent of organisations).

The mandatory current use of remote work for business continuity signals that it’s time to revisit remote working policies.

And to redesign them for wider application when business defines what our new normal will be.

Looking to the longer-term recovery

Covid-19 is an extraordinary situation that has shocked the world’s economy. There is a lot of anxiety amongst the business community because businesses like certainty and there are a lot of uncertainties as the situation is constantly changing.

By MATT COWLEY

Many tourism, venues, and entertainment operators had the rug pulled from underneath them on with bookings immediately cancelled. Tourism operators who are reliant on cruise passengers have already made up to 90 percent of their staff redundant. Tourism is at the coal face of border restrictions, and the tourism economy is our biggest export earner and impacts many businesses in a variety of ways.

Businesses are having to quickly change the way they operate. Some businesses have too many staff for their declining sales, while other businesses have a massive shortage of staff (e.g. supermarkets, deliveries, kiwifruit, the banking sector).

Businesses can also have anxiety as they may have significant mortgages after recent capital expansion in anticipation of growth. This was an economic black swan event that has taken the world by surprise. Few people anticipated it would reach these levels of economic restrictions.

Exports still moving

The economic lifelines are that our local exporters are still getting their shipments to overseas markets.

Our government has also invested wisely, following the economic disruptions over the past two decades.

The Reserve Bank of NZ also has a lot of tools in its arsenal, and they are working with NZ’s banks, who are self-interested in having the economy moving again.

The Tauranga Chamber is working with Tourism BOP, Priority One and other business associations to help connect people and encourage locals to continue to support local businesses. It is in everyone’s best interests to have as many people employed and in business as possible to keep cash moving through our local economy.

We are encouraging local residents to support local businesses by either ordering online or having kerbside pickups. We are also encouraging locals to buy gift cards to use at a later date as well as sharing and supporting their favourite local business on social media.

The Chamber is also looking to use our different networks to help promote people to visit local businesses during the recovery.

It is challenging for businesses to ramp down their business at short notice. But it will also be a challenge to ramp it back up quickly once the recovery has begun.

The Chamber’s business advisors are on hand to offer

help to businesses during the initial downturn, as well as during the long-term recovery.

(NB: the one month lockdown kicked in just as BOP Business News went to print)

Increased support is available

The Tauranga Chamber of Commerce is expanding its resources to help businesses affected by Covid-19. Additional funding has been provided by the government to the Regional Business Partnership Network (RBP) nationwide.

The Bay of Plenty region received funding for an additional three full-time Growth Advisors to support businesses, boosting the existing four advisors already

working here. The advisors are being shared across Tauranga Chamber of Commerce, Eastern Bay of Plenty Chamber of Commerce and Rotorua Business Chamber, as well as Poutama Trust, which will receive a Growth Advisor to boost support for Māori business networks and owners.

Businesses can contact the Biz Hub helpline to arrange a meeting (one-to-one or digitally), free of charge,

with one of the Growth Advisors to discuss how they are affected by COVID-19 and what support they need.

Tauranga Chamber of Commerce chief executive Matt Cowley said there was so much information available it could be overwhelming.

“We want the business community to know they have somewhere to turn to for guidance and that they can walk away from their session with a Growth Advisor with

a renewed level of confidence and support.” If you are a business based in the Western Bay of Plenty, and you want to gain free business support from a Growth Advisor, please contact the Tauranga Chamber of Commerce on info@ tauranga.org.nz or 0800 BIZ HUB (0800 249 482). If you are a business based in Eastern or Central Bay of Plenty, please contact 07 346 3657.

Positivity and good information crucial

March has certainly been interesting month. In the Bay we’ve gone from being flat out, with concerns about how we’ll cope with growth, to staring at an impending recession.

By NIGEL TUTT

The speed of the Covid19 crisis and associated economic downturn has been rapid.

It’s very hard to see how long and severe a downturn might be. Media and economists tend to favour the more negative end of the spectrum. Adopting a local view is important alongside understanding the national and global impacts.

In the Western Bay, we came into this downturn in pretty good shape. Our economy was probably the strongest in New Zealand, with low unemployment, rising income levels and strong business and economic growth.

Covid-19 has had some immediate and strong effects on our local businesses, particularly tourism and hospitality – due to border controls and social distancing. The effect on some of these businesses has unfortunately been severe and will get much worse now we are going into community

lockdown

While it is troubling and very uncertain, this situation feels different than our last recession, the Global Financial Crisis. Right now we’re dealing with the effects of a health crisis and its associated economic fallout.

The economy should spring back

The structure of the world economy is in a very different place to what led to the GFC. When the health crisis is eventually solved or mitigated, the economy should be able to spring back.

We are also fortunate that the New Zealand economy is in good shape to combat the economic effects of this problem.

On the flipside, the lockdown could create economic damage of a level we haven’t seen before, and we don’t know how long the after-effects of that would last.

In the Western Bay we are so far fortunate that our

our exported goods and trading conditions at the time of writing are close to normal for most businesses.

Positivity is important in these times, as well as good information, so let’s try to keep a good perspective on the situation in the coming months.”

key industries (construction, distribution / logistics, manufacturing, healthcare and horticulture) are not structurally affected right now.

While businesses in these sectors have concerns, in general the fundamentals remain stable. Markets remain open for

While I’ve painted a picture that’s perhaps not as bad as we see in mainstream media, there are certainly big risks ahead of us: labour supply will likely be a problem in horticulture (although that may be good if workers from other industries need employment), we would be at risk if access to markets for our exports was restricted, and consumer / business con-

fidence will be reduced, which will have an effect on demand for most industries. The ability to get people to and from productive work will be a big determinant of economic outcomes. So while this is a shock and a very difficult time for some, it doesn’t look like the end of the world yet. Positivity is important in these times, as well as good information, so let’s try to keep a good perspective on the situation in the coming months.

Matt Cowley is the chief executive of the Chamber of Commerce Tauranga Region Inc.

Nigel Tutt is the chief executive of Tauranga EDA Priority One

New Zealand’s kiwifruit harvest has begun to move to overseas markets. Photo/Zespri.

Italian lessons for Covid-19 kiwifruit harvest

The Italian experience with the Covid-19 pandemic is providing some valuable lessons for kiwifruit processors in the Bay of Plenty as they grapple with harvesting a record crop under strict bio-security protocols.

By RICHARD RENNIE

Kiwifruit orchardists and packhouses had already been scrambling to reorganise staffing rosters in March after the shock impact of border closures resulted in the Bay losing over half the overseas staff it expected for this year’s bumper kiwifruit harvest.

The announcement that no foreigners would be allowed into New Zealand meant 1300 Recognised Seasonal Employer (RSE) staff were locked out until the ban has been lifted.

Apata chief executive Stu Weston said he and his colleagues have had several conference calls with their peers in Northern Italy about the best ways to re-configure packhouses, maintaining a safe distance between staff while also continuing to process and pack fruit effectively.

Italian fruit processors are

at a low ebb for kiwifruit now, but often also process other fruit in the same facilities and have managed to continue to do so with Covid-19, which has hit Italy especially hard.

“We have also had a lot of assistance from Zespri who have us bulk packing first, which is less labour intensive compared to the layered packing process,” said Weston.

“We have erected barriers around packhouses to separate people. The key challenge is really around smoko rooms where people congregate and with high touch surfaces.”

Essential business

The kiwifruit sector has been classed as an “essential” business and with that all contractors and post-harvest operators have to register with Ministry for Primary Industries.

“We have found growers have been very understanding, but we expect we may even see a smoother harvest curve this year as they accommodate our needs.”

– Nikki Johnson

harvest season.

months to come. Those that want to stay home and watch

NetFlix will. We have not seen that yet, but we are cognisant of that risk.”

“But apart from operations, it is about managing staff head space in this situation and keeping them safe,” aid Weston.

“There is cash to be earned here and jobs to be had for

That includes producing a full risk management outline on how they intend to manage staff from getting infected, and reporting infections.

NZ Kiwifruit Growers Incorporated chief executive Nikki Johnson acknowledged there had been feedback about potential staff questioning their safety on the job, should they choose to work.

One possibility mooted was

allowing new staff in this and other essential businesses to be granted any government payment for loss of their earlier job, and keep the amount earnt conducting the essential role.

A short pause was called to harvest after the PM announced the lockdown intention, but it was due to ramp up although not at the same pace as pre-Covid-19.

“It is still very early in the

“We have found growers have been very understanding, but we expect we may even see a smoother harvest curve this year as they accommodate our needs.

“We may see a more even five week peak, rather than that three week peak.”

Meantime market prospects are still highly positive for New Zealand kiwifruit.

2degrees confirms its support of customers

2degrees has outlined its approach to customer care in response to the impacts of Covid-19.

CEO Mark Aue reassured customers that its mobile and broadband networks are working well, and that the national operator is very confident in its capacity to manage extra demand.

“We know these are unprecedented and uncertain times for our customers, but we don’t want them to worry about but staying connected.

“My message to all 2degrees customers today is simple, we will do the right thing by you,” said Mark Aue.

Details for 2degrees customers are as follows:

• Data caps removed: 96% of 2degrees broadband customers are on unlimited data plans already. For those who aren’t we have removed data caps until

the end of June 2020 (date will be reviewed ongoing). This applied to all home and business customers on 20 March 2020.

• Hardship: if Covid-19 causes financial hardship to any 2degrees’ customers, the company will try to keep you connected during the Alert Level 4 period, waive any late payment fees and work with you through these trying Alert Level 4 times.

People are phoning each other more than ever, and there has been some congestion industry wide for voice calls.

Mark asked people who can to use the calling features on apps such as FaceTime, WhatsApp, Viber and the like, to free up capacity for people who only use calling.

Mark stressed that the industry is critically aware that it provides an essential service and is working together, and with Government, to make a difference now.

Securing systems during Covid-19

Many organisations have taken prudent steps to reduce the likelihood of Covid-19 spreading by allowing as many staff as possible to work from home. Working from home (WFH) or remote working may be an established practice for many, but for others it may be a new way of doing business. This article presents the security aspects organisations should consider.

Working through the effects of Covid-19

HUMAN RESOURCES

> BY KELLIE HAMLETT Director, Recruitment & HR Specialist, Talent ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz or 027 227 7736

In my March article on business continuity and contingency planning, I broadly covered aspects around having a plan in place for times of crisis.

The time of crisis is here and it’s hit hard and quite quickly. Sectors that have already been struggling, have little resilience left to keep trading, and the coming months ahead are going to be tough.

Thankfully, the government has come forward quickly with a support package for businesses.

It provides a breather, but whether it will be enough, only time will tell. Businesses are having to respond quickly as the situation we are all faced with changes on a day-to-day basis.

Many businesses I have talked to and are working with are reducing hours, and looking at alternative working options before redundancies.

The first step, and I’m sure most employers will have done this already, is having an honest and open conversation in good faith with staff around the Covid19 situation and what it means for the business.

Unlike any other event, it’s a time for people to work together, share concerns and fears and look at how we can work together to keep businesses fluid.

It’s also important that, even though we are moving through unprecedented times, good process is still followed.

Employment agreements and workplace policies set out the basis of the employment relationship and the process for changing the terms.

As employers we do have the right to make changes within our business and structure it as we see appropriate, but genuine business reasons must prevail.

Document all decisions

As always, employers need to document all decisions and reasons about any change that might result in an employee’s job being significantly changed, hours being reduced, or an employee being made redundant.

The present situation being that most employers will be citing financial downturns, which are easy tracked and documented.

There still needs to be a consultation process.

It may be that because of the developing situation that this can’t be as long as it would usually be, but there is a still a duty of being fair and reasonable.

This process would include giving affected employees information about the suggested change and an opportunity to provide feedback on it.

Currently, along with the

WSECURITY

> BY JONATHON BERRY

Jonathon Berry is a consulting partner with New Zealand security consultants InPhySec, based in Tauranga. He can be reached at jonathon.berry@inphysec.co.nz.

orking from home presents two broad concerns:

• Cyber-security. Ensuring systems are available and information is protected, and

• Physical security. Ensuring offices and assets are protected during reduced staffing.

Cyber-security

Remote workers may be operating outside of the security provided by the enterprise. If devices, such as laptops, have not been provisioned securely it increases a number of risks including the possibility of malware and the exposure of sensitive data. Many exisiting security practices are still relevant, more so for personal devices that may be being used for work purposes.

• Patching and updating is critical. Personal devices may not be automatically updating, including anti-malware. These should be enabled to keep software up to date.

• Multi-factor or Two-factor authentication should

be utilised for accounts. Where not possible, ensure credentials (passwords) used are robust and sufficiently complex.

• Users should not be given account privileges beyond what they need to get their job done.

Connections from home into corportate environments should be via secure (encrypted) means. Capacity may need to be increased to deal with higher load.

Logging and monitoring of critical assets should be increased. Any suspicious activity should be investigated promptly.

• Maintain or increase levels of user awareness to threats, scams and social engineering. There are parties who will seek to exploit the current situation. If in doubt, call people before commiting actions such as payments. Consider the use of cloudbased security services that can be deployed rapidly and accessed without the need for face-to-face interactions. Equally, these may be

de-provisoned when staff return to corporate security environments.

• Ensure back-ups are maintained and that these are not vulnerable to ransomware or cryptoware attacks.

• Utilise community resources such as NZ’s NCSC and CERT.

Physical security

Opportunistic theft may increase, while there are reduced numbers of public and staff in the vicinity of offices. Organisations should consider:

• Putting attractive items out of view.

• Ensuring disk encryption is enabled on devices left in offices and credentials are required for access.

• Increasing guard patrols.

• Keeping security systems armed and not automatically disabled during business hours, including doors.

• Ensuring response functions are in place. If an alarm is triggered, someone will react to it.

• Determining if visitors, such as cleaners, are necessary.

When it comes time to move forward again we are –more than ever –going to need the right people in our businesses.”

amount of panic buying, a lot of employers are also panicking about their financial forecasts and rightly so.

Some have already been struggling for months and this situation will make their businesses untenable.

However, where possible I would urge businesses to take up the government support package on offer.

Where you can, reduce hours rather than make employees redundant and look at alternative ways of working.

I know this isn’t possible for some businesses. But when Covid-19 disappears, we need to get businesses and the economy moving again.

Staff are assets and good people are hard to come by. With restrictions on immigration, the skill shortages are going to be even more apparent.

When it comes time to move forward again we are – more than ever – going to need the right people in our businesses.

Covid-19 – Market contagion?

Market Update (Please note this column was prepared on 17 March, 2020)

In the last few weeks global sharemarkets have substantially retraced their early momentum for the month of January and the latter stages of last year.

In the early period of the Covid-19 outbreak, financial markets seemed to blissfully ignore the progression of the virus. However, we are now in a period of daily market volatility as investors gauge the flow-on economic impacts and whether the recent sell-off presents buying opportunities.

The catalyst for the sell-off has been two-fold.

Firstly, the progression of

the virus outside of China and secondly, a steady stream of companies beginning to downgrade forecast earnings.

The initial outbreak of the virus in China caused a major disruption to international supply chains, although the situation in that country seems to be improving.

Perhaps the biggest factor in market performance over the next three to six months will be the as yet unknown impact on company earnings.

It is possible we will see a rally if the spread of the virus can be contained, followed by dips as the market reacts to fur-

With further rate cuts being implemented by Central Banks to try and curb the impact of Covid-19, low interest rates will be the norm for the immediate future.

ther earnings downgrades.

WHAT TO DO WITH YOUR MONEY

> BY BRETT BELL-BOOTH

Investment Adviser with Forsyth Barr Limited in Tauranga, and an Authorised Financial Adviser. Phone (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz.

All of this uncertainly begs the question: “How should we react?”

Turbulent markets always make us feel like we should “do” something. Sometimes (like the 2008 financial crisis), we should. However, often sitting back and monitoring the situation is the best option. We think that is the case now.

Since 2008 there have been 19 sell-offs greater than five percent. The current downturn

is now classified as a bear market, having retraced more than 20 percent from its peak (at the time of writing, the sharemarket was down 21 percent.

Every sell-off is serious –from Greece teetering on the brink of complete collapse, to the US Government sovereign downgrade in 2011.

However, since December 2008, the US sharemarket has risen well over 200 percent, excluding dividends. In other words, reacting to a crisis by

investors.

With further rate cuts being implemented by Central Banks to try and curb the impact of Covid-19, low interest rates will be the norm for the immediate future. Whether you are an existing investor or considering an investment in the capital markets for the first time, get in touch with Forsyth Barr.

selling shares is often a poor decision.

The extent of market contagion relative to the level of viral contagion is determined by a combination of investor sentiment and factual information. An objective evaluation of your investment goals will ensure that your portfolio is well-positioned to weather any potential storm.

As has been the theme in recent years, low interest rates continue to limit options for

Source: Forsyth Barr Focus, Special Report, February 2020. This column is general in nature and is not personalised investment advice. This column has been prepared in good faith based on information obtained from sources believed to be reliable and accurate. Disclosure Statements for Forsyth Barr Authorised Financial Advisers are available on request and free of charge.

Help at hand for small businesses facing economic effects of Covid-19

Help is at hand for New Zealand’s more than 480,000 small businesses grappling with how to keep afloat during the changing economic environment caused by the Covid-19 pandemic.

Anewly established social enterprise, Weather the Storm, has been launched by business consultant Isis Farrelly and sales and marketing expert Cameron Macneil.

Their goal is simple –to support New Zealand’s sole-traders and small business owners in taking immediate action to mitigate the economic downturn.

“These are uncertain and challenging times, so we’re providing advice, tools and resources, including our soonto-be released programme Getting Through – a step-by step, interactive programme you can complete from home to assess your current position, then develop an action-oriented business and financial plan to get through,” said Farrelly.

“We’ve called upon expert advisors across a number of professions to assist, including

accounting, insurance, human resources, legal, marketing and banking.”

The programme, aptly named “Getting Through” offers practical tools and strategies focused on making an immediate difference to a business’s cashflow and bottom line.

Co-founder Cameron Macneil says that when market conditions change for the worse, those who take swift action and adapt don’t just make it through, but often prosper in the long run.

“But to come out the other side of the kind of market impacts that are ahead of us, small businesses need to have two simple priorities: be resilient and maintain profit.”

Macneil says the Government has come out with a great package of measures to support businesses in the short term, but people shouldn’t rely

on that continuing indefinitely.

“Small businesses need to take charge of their own destiny and despite what it may feel like right now, they actually have a lot of control over how they come through this,” he said.

“Often the hardest part for small businesses is knowing where to start and what can be done. The resources provided by Weather the Storm and their Getting Through programme takes a whole-ofbusiness approach, providing plain English, step-by-step strategies to reduce costs and improve profit margins in a real-world way.”

In addition, members get the benefit of an entire panel of expert advisors, including Tom Beswick of Ingham Mora. For less than the cost of one hour with an expert, you gain access to advice and strategies across the entire range of topics covered in the programme including cashflow management, staff engagement, lease negotiations, sales generation and many more.

“Whatever the business, this programme will work, and it can be completed from the comfort of your home and at your own pace,” says Macneil. Farrelly, business performance and change management expert, says they had an early opportunity to test their programme when a family member in Whakatane found her business in dire straits overnight after the Whakarei White Island tragedy and then the emerging effects of Covid-19.

Buying in uncertain times

A quote often used in relation to the stock market, is: “Buy on the sound of cannons, sell on the sound of trumpets.” It means that savvy investors will buy shares when things seem the direst (when everyone is running away) – and sell when things seem the rosiest (when your Uber driver is providing stock tips). And as it applies to shares, it can also apply to buying businesses.

Some will now be wondering whether to push pause on those business ownership dreams. However here are a few reasons to keep considering this – as well as a few extra things to watch for in the current market.

Three reasons to buy now

It is the opportunity to be the master of your own destiny and not reliant on an employer. Often a major reason for buying a business is to be self-reliant.

In times of uncertainty this can be both a positive and a negative.

If you back yourself and find the right business, then potentially it can be safer to be your own boss rather than working for someone else. It might seem risky right now to leave a solid job to buy a business. However, we may soon find that for many staying put in employment comes with its own risks.

There are likely to be some good buying opportunities around soon. A smart buyer will take advantage right when the cannons are loudest.

There are likely to be vendors out there who realize they would prefer to not hang

around unsold given the uncertainty and that might loosen up a few prices.

It takes guts to do it, but unless you have the opinion that things are going to stay down for years, then now (or soon) will be a great time to buy. Staff retention is likely to get slightly easier. People are less likely to jump ship during times like this – certainty of the known outweighs any grass is greener considerations.

In recent years we’ve had a very tight labour market, so retention of key staff has often been right up there as something to watch when buying a business. If staff retention risk eases this lessens the risk on buying a business.

Three things to watch

Paying a price that is relevant to current profits and forecasts.

One thing a recession does is it makes last years’ “record profits” a lot less alluring. Just because the business had a great March 2020 fiscal year doesn’t mean that 2021 will look anything like it. A buyer needs to pay a price that is sustainable going forward (and for which they will be able to get finance).

Getting the right finance is

“By February her revenue was down almost 50 percent and she was on a path to insolvency.

“Within days of completing the programme prototype, she had re-negotiated her lease, reduced her operating costs, agreed improved payment terms with her suppliers and restructured her team’s hours.

“These fairly straight-forward changes meant she could keep drawing a wage for herself and continue making her mortgage payments.

“Simply put, they saved her business.”

Macneil and Farrelly say if there’s one piece of advice they can give small businesses, it’s this: act now and take control.

Getting Through is available to any business in soletrade or small business in New Zealand and launches in early April.

People wanting to find out more or to access the free available resources visit https://weatherthestorm.org.nz/

BETTER BUSINESS BUYING

> BY TOM BESWICK

Director at Ingham Mora Chartered Accountants in Tauranga, is a business advisor who specialises in buying and selling businesses. He can be contacted on 027-5744- 019 or tom@inghammora.co.nz

key. Cashflow is going to get harder to predict. Previously reliable customers might become slow payers, given their own cash flow constraints. If you are looking to buy a busi-

ness, you are going to need a more robust finance package now than you did say three months ago.

When you are in the due diligence phase, you should

spend more time on things like scenario modelling where you work out how your overdraft is affected if say 10 percent fewer sales are made, margins soften five percent, and

customers pay 15 percent etc. Doing your homework is key to make it through to the easier times.

Customer retention. If consumer spending starts to decline, then competition will increase (particularly on price). In my view we never really recovered from the sale addition that seemed to kick in during the GFC.

Whether ever bigger ongoing sales will have any affect on spending remains to be seen. Make sure you spend a bit more time than you would have considering the competition and what things you can do to ensure that you are not relying just on price cutting to stay in business.

Unless things are spiralling to an end of days scenario (surely the health impact is not severe enough for that) there’s no reason to hunker down and stop buying businesses. However, the cost of getting it wrong grows in tough times. Take your time to get advice and you should buy well, get through the next period and be well placed to succeed in the recovery.

A smart buyer will be well dug in to whether the shortterm cannon fire and will be the one blowing their own trumpet in years to come.

Cameron Macneil

Isis Farrelly

Inland port hubs shaking up industrial sector

Bold inland port developments around the country are shaking up the industrial sector and bringing new efficiencies to the fastevolving supply chain market.

These intermodal hubs are supporting the transportation of freight, generating jobs in the regions and helping to ease the pressures on land and existing industrial property stock in the major centres.

They’re leveraging off existing rail networks and established transport arterials and providing a spark of change for other infrastructural work that will directly benefit those businesses that choose to locate their operations within these hubs.

If you’ve been trying to secure large-scale industrial warehousing or other space close to New Zealand’s major ports, you’ll know that such opportunities are scarce and come at a significant cost.

It may be time to look to regional hubs that have all

the bells and whistles to make your business more efficient.

Supply chain dynamics changing

In the “Golden Triangle” of Auckland, Hamilton and Tauranga, business dynamics within the supply chain market are changing quickly.

Ports of Auckland has just cut the ribbon on its Waikato Freight Hub to help ensure a more streamlined and resilient supply chain network in the upper North Island. The 33 hectare inland port site in Horotiu, between Hamilton and Ngāruawāhia, will help connect the regions with international markets and simplify freight movements between the ports of Auckland and Tauranga. The Waikato Freight Hub

acknowledges the important contribution that the Waikato region makes to the domestic economy through the significant export volumes that need to be efficiently transported by truck or train to and from a major port.

The Ports of Auckland project team is designing large-scale, market-leading and future-proofed buildings and early interest suggests that a wide range of industrial tenants will make their way to the hub.

Meanwhile, elsewhere in the Waikato, Tainui Group Holdings is developing the $3.3 billion Ruakura inland port and logistics hub – expected to eventually offer around 10 percent of New Zealand’s total industrial space. It will leverage off the new Waikato Expressway in-

terchange and other roading initiatives, along with the finalisation of plans for a major new rail siding for KiwiRail, to offer cost efficiencies along the supply chain network.

In the South Island, intermodal freight hubs in Rolleston such as MetroPort within the Izone industrial park and MidlandPort in the IPort Business Park are offering direct rail access for container freight to Lyttelton Port’s waterside operation.

Much of this industrial-zoned land has an open boundary to Lyttelton Port’s MidlandPort and offers huge scope for forward-thinking industrial business owner-operators.

Rolleston is on main roading connections, benefits from two rail lines – the main northsouth line and the west coast

Tainui Group Holdings is developing the $3.3 billion Ruakura inland port and logistics hub – expected to eventually offer around 10 percent of New Zealand’s total industrial space.

connection – and the proposed new southern arterial motorway will further future-proof the location by halving the travel time from Rolleston to the Christchurch CBD to just 15 minutes.

Operators of all sizes are re-evaluating their business and property requirements and looking to base themselves in the regions to benefit from a more centralised location and provide access to lower cost

housing for their staff – and that’s a real plus for the attraction and retention of a motivated workforce.

This interest is coming from significant players in the construction sector, food and beverage processing, retailing, and from businesses operating within, and leveraging off, the primary sector.

www.bayleys.co.nz/workplace/industrial/insights/ inland-port-hubs

An artist’s impression of the inland port and logistics hub at Ruakura.

Be scared – or be prepared

CREDIT CONTROL

> BY NICK KERR

Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.

He is also a director of International Private Investigations Ltd. Nick can be reached at nick.kerr@eccreditcontrol.co.nz

Billy Connolly once said “there is no such thing as bad weather, only a bad choice of clothes”. While that’s a typical Connolly quip, I think it rings true in a lot of situations, including what we are going through as an economy and a society at the moment.

To get through any tough period in business it is important to adapt in order to lessen the possible impacts of the challenges faced, by anticipating probable issues and putting in plans to avoid or at least reduce loss.

In order to do the above, we need to analyse historically similar situations and what the outcomes were.

With a worldwide health scare, there are some pretty clear behaviour patterns. There is a massive surge in panic buying in the retail sector, and a downturn or flatline in events and tourism-based business.

That tends to be followed by a downturn in retail and business to consumer and business to business direct sales and service businesses across the board when contact restrictions are imposed.

Another major issue faced by businesses are staff shortages, which fall into several categories. You have the genuinely ill and their family members, the at-risk employee who must isolate due to immune deficiencies, the fearful isolators, and the advantage takers.

Many businesses can uti-

lise technological advances to mitigate the effects that the shortages in on-premises staff can have.

Staff sales and consulting meetings can be held over video conferencing applications, account management, accounts and administration activities can be completed remotely from home using cloud based systems and mobile phones.

But there will be some who may find it very hard or maybe impossible to get through without some major help at both a local and governmental level, if any lengthy isolation period is imposed. And that is what is now being experienced in a number of other parts of the world.

Credit

control options

From a credit management perspective there are a few things that businesses can do to give themselves the best level of cashflow possible throughout any period of economic downturn these include:

• Deposits: There is no legal regulation that precludes or limits the ability to ask for

deposits for works to be done as long as they are fair and reasonable.

A decent deposit gives you cashflow at the beginning and the end of any job or activity. If there is an increased risk that works will be postponed or suspended after they are started, then a decent deposit is essential to avoid outlay without income.

If you have any doubts that a customer can pay, then ask for payment up front especially for bespoke or non-stock goods unless you have a contract that agrees that this is your right.

• Payment Terms – Consumers do not need 20th of the following payment terms. Payment on completion or seven days at most is perfectly reasonable. Make this clear from the outset and no one gets surprised or offended.

• Credit Limits – For on account clients, set and monitor credit limits. If payments are late then do not amplify your risk by increasing your credit lim-

That tends to be followed by a downturn in retail and business to consumer and business to business direct sales and service businesses across the board when contact restrictions are imposed.

its. Someone’s ability to pay does not necessarily increase when the amount they need to pay does. Many eventually liquidated companies increase credit limits with suppliers in the months before liquidations. So use a credit monitoring service like Equifax or Centrix, which could provide a warning of a nasty surprise.

• Secure – Place PPSR securities on all major accounts

while they are all (to your knowledge ) solvent. If this ever changes (within the 5 year secured period) your rights of remedy are greatly increased.

• Pre-Empt – No one minds a friendly gentle reminder especially if it appears automated. A text message saying something like “we look forward to receiving payment for Inv#12345 on Friday, 20 March, please remember to use Ref #

12345 for this payment. Thanks.” In times of stress, simple reminders can result in a marked decrease in late payments.

• Act – If debtors are not communicating, time will not improve this. Send a warning letter, then escalate to collection action asap if communication and payment does not occur.

Just a thought. Stay safe.

Three compelling reasons why franchisees should follow the system

It should perhaps be obvious or assumed that when someone decides to buy or establish a franchised business that they will follow the system, after all that is what they have bought into. However, as human beings we have an engrained propensity to tinker, challenge and change just about everything.

WFRANCHISING

> BY NATHAN BONNEY

Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275-393-022

ith a caveat of saying no system is perfect and development and innovation should be encouraged and managed in a system, there are three compelling reasons why it is in the franchisee’s best interest to follow the system.

1. The system works

Firstly, franchises are often referred to as franchise systems, and the hint is in the second word – system.

A system is defined “a set of things working together as parts of a mechanism or an interconnecting network; or a set of principles or procedures according to which something is done; an organized scheme or method.”

In a franchise the business product, process or service is delivered via a systemised approach. It is tested and based on the success of the system or process the franchise brand is able to develop and grow.

It’s like baking a cake, you need to follow the recipe, use the right proportions and cook at the right temperature and for the right time. Once you have mastered this, you may be able to alter the recipe and or add but do this at the beginning and you have a mess. Holds true with a systemised business approach, miss a step, include too much of something and or alter the process and the results won’t be the same.

2. It provides the ability to measure and benchmark

A systemised approach to operating a business provides for measuring, and the old cliché of what you cannot measure you cannot manage applies.

The truly beautiful aspect of operating in a franchise business model is it provides independent business owners or operators – franchisees, the ability to measure or benchmark against and across similar businesses. The ability to benchmark between different locations, markets and operators is created by the fact they are operating under the same systemised approach.

Top 10 tips to keep your business running smoothly

IMONEY MATTERS

> BY STEPHEN GRAHAM

Stephen Graham is a Director and Managing Partner at BDO Rotorua, Chartered Accountants and Advisers. To find out more visit bdorotorua.co.nz or email rotorua@bdo.co.nz

am often surprised with new clients at how little they know about their business –even such simple facts as what their monthly overheads are –information that can mean the difference between success and failure.

I tell these clients that staying up to date is crucial, and that there’s no excuse not to be. All it takes is a monthly check of the following key indicators of your business’ health. Checking in monthly will mean you clearly understand your position and can then make the right decisions to run a robust and profitable business.

Monitor cash

Cash needs to be closely monitored as it is the single most important indicator of business performance. With cash it is imperative that it is monitored

more daily than monthly. It is also important that it is monitored on both a short-term and longer-term basis.

Financial reports

Too often I see businesses reacting to information months down the track. It is imperative that accurate reports are prepared on a monthly basis, close to month end so you can react in real-time to market changes. Most software can provide reports – from large business with fully integrated programmes to small businesses using xero type reports. Don’t just do your GST and move on to the next job – print your monthly reports and review them.

Customers

You must understand your customers – continually ask

Following a franchise system is the only way independent business operators could possibly achieve meaningful benchmarking; industry surveys and statistics, trade associations and even (illegal) cartels cannot as they do not have the constant of an operating platform from which to compare, they are at best able to relate one or several measures.

Disregard or operate outside the system parameters and the franchisees ability to benchmark and best manage

their business is compromised.

3. It provides a truly competitive edge

The most powerful motivator for a franchisee to follow the system is actually a combined result of having a process or system that works, and the ability to measure and benchmark with-in and across the system. This combined result is a truly competitive edge. Do the business better, measure it, compare, improve. Through

this repeated cycle the franchise system and franchisee will probably gain market share and profitability along the way. That’s quite a compelling reason the follow the system.

Back to my comment that no system is prefect but a good system will encourage innovation and change applying franchise system disciplines along the way. That’s how we got the Big Mac and McDonalds their best ever selling burger, and a great number of successful franchisees!

them what they want and what they think of your product or service. Use technology to help you connect and measure with them.

Overheads

Many clients do not know their monthly overheads yet it is such an easy calculation – even if done as basically as dividing annual overheads by 12 months. It is essential information to have when you reach that breakeven point in the month and start to make profit.

Key relationships

Strong relationships are fundamental to business success. So find a bank manager you connect with, who will give you their direct dial number and make sure you stay in touch. Likewise strong relationships with key suppliers are

imperative. They’re often willing to extend payment terms or give discounts and allowances so constant communication is the key. Huge benefits can flow to your business including improved margins and support through tight cash flow periods.

Gross margin

Know your pricing model and continually strive to maximise your margins. Gross profit and margin are key financial indicators that need to fall out of your monthly reports. Only by understanding your model can you strive for improvements.

Stock control

Measure stock that is key to your business on a monthly basis to obtain accurate fi-

nancial reports. This doesn’t necessarily mean monthly physical stock takes but it does mean having a programme or process to monitor levels, ageing and shrinkage. Rolling stock takes and spot checks are useful. Often when money runs out, stock is the culprit along with debtors.

Debtors and creditors

Monitor your debtor levels monthly. It is important to measure the days outstanding and have formalised methods of collections. This often requires continuous follow up and a firm consistent approach. Also measure your creditor’s levels monthly. Huge gains can be made by using technology and managing creditors on line and eliminating cheque payments.

Employees

Great employees are the key to business success. You need a process for collecting all the great ideas your employees have. You also need to monitor staff turnover on a regular basis.

Budgets

The difference between a dream and a goal is a plan. You must have both short and long-term business budgets, and review your monthly results to budgets. Most software easily accommodates budgets. If you’re stuck or confused about any of these matters, ensure you get professional advice sooner rather than later as staying up to date is fundamental to good business.

The Big Mac hamburger is sold by McDonald’s – the world’s largest chain of hamburger fast food restaurants.

Premier local Bay artists are recognised

The winners of Tauranga’s premier art award, have been announced, with the 2020 Miles Supreme Award going to local artist Israel Randell for her work Wahi Ngaro, 2019 a striking installation of electroluminescent wire.

The awards are presented by the Tauranga Art Gallery Toi Tauranga, in partnership with the Venetta Miles Trust. The supreme award carries a cash prize of $10,000.

ARTS AND CULTURE

> BY ALICE HUTCHISON

Alice Hutchison is the director of the Tauranga Art Gallery. She can be reached on director@artgallery.org.nz.

creative works entered in this years’ awards and had chosen works that were “moving, edgy, politically-minded and bold”.

Hudson said she was impressed by the broad range of

A crowd of friends and family filled the Tauranga Art Gallery in mid-March in support of the 40 finalists (from almost 100 entries) and waited with excitement to hear the announcement of the selected winners from guest judge Sarah Hudson. Hudson is currently based in Whakatane and is the curator of Te Koputu a te whanga toi, the Whakatane Library and Exhibition Centre.

Winners,friends and family at the MilesArtAwards.

Miles Supreme Award winner Randell’s work explained in her artist’s statement that her work examined “Wahi Ngaro, the ‘hidden realm’. It examined the notion of the

void (Te Korekore), an in-between space – or the places from which all things originate from. “The triangle, a primordial shape, refers to the wharetangata (womb), symbolic of the space from which we come from and return to,” the artist stated.

Hudson said: “This artist has created a surprising, edgy

work that grounds us deep down into the bones of this land.”

She added that she had enjoyed the subtle sound element of the work, which she read as screaming into the void.

“Entering an installation piece into an open competition is a bold move. The striking visual impact of Te Korekore and its strong conceptual foundations rooted in mātauranga Māori has resulted in a very moving experience for the audience.”

The entries submitted for this year’s Miles Art Awards reflected the diverse display of the talent and passion of artists who currently live in the Tauranga district and the wider region. The art works submitted have never been exhibited previously in a public exhibition.

Also presented were the following awards:

• The Incubator Emerging Artist Award to Adrienne Ranson for Cloud, Rock, Mountain No.2, 2019.

• The Ethel MacMillan Award to Brylee Courtney for Black Arena, 2019.

• The Tauranga Mayor’s Award to Kevin McCardell for Plight of the Bumblebee, 2020 .

• The Friends of the Tauranga Art Gallery Award to Zig Beatnik for Anarchist, 2018.

The People’s Choice Award, still to be announced, which is open for nomination by the public.

SupremeAward winning entry Wahi Ngaro, 2019,by Israel Randall.

TheTauranga Mayor’sAward presented by deputy mayor Larry Baldock to Kevin McCardell for Plight of the Bumblebee, 2020.

All images courtesy ofTaurangaArt Gallery.

Reach your customers where they hang out

The generational divide doesn’t just apply to the climate change debate and views on whether children should ask permission before leaving the table at the end of dinner. It’s also acutely real in the world of marketing.

Businesses that want to get the most from their marketing and promotions spend need to think about the preferences of their customers and tailor their messaging and channels to best meet them.

This includes considering the age profile of your typical customers to determine the best way to reach and influence them.

There will of course always be people that don’t fit the mould – and that’s a great thing – but in most cases, the following generalisations apply.

Boomers (born 1946-1964)

Those aged 56-76 still read print newspapers and listen to radio. They are increasingly active on social media too, but typically only on Facebook and Twitter rather than Instagram or new social media platform TikTok.

Online statistics portal Statista reports that in January 2020, around 15 per cent of Twitter users and 10 per cent of Facebook users were aged

55 or over, compared to five per cent of Instagram users.

With this in mind, if your target market is made up of boomers it’s worth ensuring a considerable slice of your marketing budget is committed to more traditional channels.

This includes print and radio advertising, attending local business and community events and conducting leaflet drops. Also consider engaging with journalists to tell your story in a way that generates news items in local print publications and on radio.

Generation X (born 1965-1980)

Members of Gen X care about the news and will still seek it out on news sites such as Stuff or NZ Herald.

Most grew up before the net was mainstream, so newspapers and other print publications are still a good bet. When it comes to social media, Facebook remains the most popular platform among the Gen X age group of 40-55 year olds, but Instagram is also well used.

Engaging members of Gen

X requires the use of a solid mix of new and old media.

Think conventional print and radio advertising alongside social media and efforts to support and communicate with circles your target customers mix in to raise awareness.

Millennials (born 1981-1996)

The much-maligned millennials are sometimes portrayed in the media as shallow, smashed avocado eating posers who lack the sense to save money.

But in truth those aged 24-39 belong to one of the hardest working generations, increasingly influential and perhaps the most discerning when it comes to the marketing messages you direct their way. This group has grown up in a digital world so it’s no surprise that digital marketing is the way to go when reaching them.

Like Generation Z, many still follow the news media, but typically online rather than in print. Some listen to radio, but forget anything AM – it’s the music stations they are tuning into.

THE LAST WORD

> BY JAMES HEFFIELD

Director of Bay of Plenty marketing and PR consultancy Last Word. To find out more visit lastwordmedia.co.nz or email james@lastwordmedia.co.nz.

When it comes to social media, the number of New Zealand millennials on Instagram isn’t too far behind the number on Facebook, and TikTok is gaining in popularity.

Keep in mind that millennials have grown up in a world saturated by advertising and have learnt to tune out from messaging that is too overtly sales related.

For this reason, social-good messaging matters for this group – if you can tie your message into something that provides wider societal benefits, you’ll get cut-through.

Consider advertising on other online channels as well, whether it’s Youtube or Google Search and Display ads to reach people online in the places they are searching.

Podcasts are popular among this group as well – if you can promote your products on the right one, it can have a positive impact.

Generation Z (born 1996-2012)

Those aged 8-23 are known as Gen Z, or ‘Zoomers’. Like millennials, they have grown up

in a digital world, surrounded by screens and ever-present Wi-Fi.

The difference is that, for many of them, they have never known anything different. The idea of a landline seems entirely alien and any thought of reading a print newspaper is utterly archaic.

Reaching members of Generation Z requires you to explore newer social media channels – particularly TikTok.

You may also want to consider Google Display adver-

tising, using the re-targeting feature to tailor your ads based on those who have previously visited your site.

Don’t underestimate the power of influencers to reach this group, whether they be celebrities or even locally popular individuals among the communities your target market mixes with.

Sponsorship and marketing at music festivals and popular events is also an ideal go-to if you want to reach members of Generation Z.

CONNECTING BUYERS AND SELLERS OF QUALITY BUSINESSES

When is the right time to sell your business? Right now.

At TABAK, we promise to guide you through the sales process with focus, integrity and complete confidentiality.

First on the scene

6 8 1 2 4 5 7 9

Networking photos from the Business After Five event hosted by accountants Maisey Harris & Co at Base Station, Tauranga.

Photos by Laval Photo & Video

8 Frank Hekker, Kiss IT and David Hill, NZ Home Loans. 9 Kevin Kerr,TABAK Business Sales and Michael Doeraner, TechnologyWise.

6 Emma Hayward and Graham Kelly,Westpac 11thAvenue. 7 AlanWilkinson,CKL andAleisha Broome,Maisey Harris.

1 Matt Solomona,Maisey Harris & Co. 2 Matt Cowley,Tauranga Chamber of Commerce. 3 Nathan Maisey,Maisey Harris and MariaWilson,Crombie Lockwood (NZ).

4 ChrisTurner,Balanced Success andTami Hansen,Flowers byTami. 5 Conor Quinn,BizStar International and Nicole Pipe, Everlong Consulting.

First on the scene

10 Sheryl Greehalgh,Clearview Marketing and JanineWilliamson,Superior Shelving. 11 RataTowgood Kiss IT and David Ratima. 12 DeeanahWinders,Cooney Lees Morgan,Lisa Gilmour, ABC Business Sales and MeganTomalin,Small BusinessAccountingTauranga.

13 PeteWales,BOP Business News,Richard Steel,Richard Steel Consulting and Gillian Houser,BayVenues. 14 Mydawny Nairn-Kusabs,Bridge-it NZ,Claudia Fischer and Michele Anderson, Oceanside Homes. 15 Hayley Clement,BMINZ and Dee Collins,Focus Magazine.

PAULA LINES LL.B | Director