Mark Cairns has given notice that he will retire in June 2021.
“I think 15 years as a CEO is a pretty good run,” Cairns told Bay of Plenty Business News after announcing he was stepping down from running New Zealand’s largest and most efficient port.
“I’ve got no more executive gigs in me. What I’d like to do is try and put a little back into business and take on a few governance roles.”
He is also a keen fisherman and can be expected to be able to spend more time on the water.
Time for the next generation
Cairns said the time felt right to hand over to the next generation and that, while he would miss his colleagues, he was excited to see where the company went next.
Cairns said he was especially pleased to see that the board had gone in-house for his replacement, with Leonard Sampson named to take over next year.
Sampson was appointed the port’s chief operating officer in September 2019, after six
years as commercial manager.
Prior to joining Port of Tauranga, he held senior roles at KiwiRail, Carter Holt Harvey and Mainfreight.
Port chairman David Pilkington said Cairns’ leadership had seen the company grow from a regional bulk export port to New Zealand’s international cargo hub, as well as one of its most successful listed companies. When he took over as chief executive in 2005, Port of Tauranga handled 12.6 million tonnes of cargo and 438,214 Twenty foot equivalent units (TEUs). In the year to June 2020, the port handled 24.8 million tonnes of cargo and 1.25 million TEUs.
“Mark has kept the company strongly focused on future opportunities, while maintaining an industry-leading
safety record and the highest productivity rates in Australasia,” he said.
Local ratepayers own just over half of Port of Tauranga’s shares through Quayside Holdings and the company’s success had delivered wide-ranging benefits to the region.
“During Mark’s tenure, the average compounding Total Shareholder Return has been 19 per cent per year, with market capitalisation increasing by $4.4 billion, from $665 million to $5.1 billion today,” said Pilkington.
Cairns said Port of Tauranga was is in excellent shape. “I’m incredibly proud of our people and the positive outcomes we have achieved for our customers and our community.”
Discussing the recent challenges of steering the port through the Covid-19 pandemic, Cairns said early concerns stemmed from not knowing exactly what the pandemic was or how it should be handled, and then working closely with staff to ensure the port stayed open.
“If you can imagine, you’re – for example – working with pilots who were having to board vessels from China where the virus originated. It just really illustrated the resilience of the people we’ve got working for us.”
As to the future, Cairns ac-
knowledged it was a tough call, noting that the World Bank had recently forecast a four percent contraction in global GDP.
“I think the world is going to do it tough for a while,” he said.
The cruise ship market could be gone for a few years, which could be a $6 to 7 million hole in earnings. Cairns said the biggest concern was on the import side. Rising unemployment could see consumption drop off and, while it was only about 17 percent of the port’s earnings, imports were likely to take the biggest hit.
“But we’re predominantly an export port and the world’s always going to need our primary sector exports and our fruit – that’s a big part of our business we’ll see continue.”
Bay of Plenty Business News has a circulation of 8000, distributed throughout Bay of Plenty between Waihi and Opotiki including Rotorua and Taupo, and to a subscription base. www.bopbusinessnews.co.nz
Bay of Plenty Business Publications 210/424 Maunganui Road, Mount Maunganui, 3116
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From the editor
For a long-time political junkie like myself, October 2020 is about as good as it gets. We have the astonishing spectacle taking place in the US as the battle between Donald Trump and Joe Biden nears a climax. And we have our own – less insane, but still vitally important decision coming up after New Zealanders conclude voting on 17 October.
Assuming we have a result by the time we publish our November issue, we will be devoting our next cover story to analysing the implications of the new government’s policies for businesses in the Bay.
But as we saw after the last election, MMP will not necessarily deliver an immediate “final” result. As veteran politician Richard Prebble reminded readers in a recent opinion article dig at the Jacinda Ardern coalition: “Under MMP, the losers can win.” Prebble is of course notable for having jumped from Labour to the then new ACT party and subsequently becoming its leader in the 1990s.
Going into the final days of campaigning, our latest New Zealand elections are the hardest to call in recent history. They have come down voters deciding on two key issues: who can handle the ongoing issues of Covid-19 most effectively, and who is best placed to help lead New Zealand’s economic recovery.
The polls have so far shown consistent, though slowly ebbing, support for the Ardern coalition, a slight improvement from a low position by National, and a strong swing to ACT.
However, I tend to be something of a sceptic of polls. I doubt people really confide their true beliefs to phone poll surveyors, and don’t see why online surveys should be necessarily any more reliable. Even the polltakers admit to a three percent plus or minus error factor. What may be more significant this election, is the very large number of undecided voters showing up in most recent polls.
But there is no doubt polls give mainstream media something to write and broadcast about. As we went to press, there was massive publicity around the NZ Herald-Kantar Vote2020 poll, published on 30 September. This favoured Labour on Covid-19 protection,
but gave National a slight edge on rebuilding the economy.
In my view, there are a few standout issues at play in our current elections and they will remain potent factors regardless of which party manages to form a government.
The return of Crusher Collins
One is that Judith Collins –after briefly dallying with a softer, kinder image – has happily re-embraced the “crusher” nickname that defined her. The opening televised leaders’ debate was fascinating as the Judith Collins of the past elbowed her way back.
An interesting recent analysis in the NZ Herald by former National MP and now professor of public policy Marilyn Waring and Dr Ali Rasheed, a graduate of Auckland University of Technology, noted that Collins’ approach to the first debate resulted in her commanding the majority share of both the questions, and the answer time. The authors said:
Nonetheless, those who like Ardern’s leadership style and performance are likely to stick by her. Though Labour supporters might be wise not to assume their victory is a done deal, and make sure they actually get out and vote. But whether Collins is Prime Minister or Opposition leader, she will prove a potent force.
It is difficult at this stage not to write off NZ First. I sus-
[The New Zealand elections] have come down to voters deciding on two key issues: who can handle the ongoing issues of Covid-19 most effectively, and who is best-placed to help lead New Zealand’s economic recovery.”
Collins’ “adoption of the style of boys in a classroom was a clever tactic for the first debate and the full production team fell for it.”
It would seem National has finally come to – or more likely Collins has opted to return to – what she does best. Those who don’t like her style will continue to respond to Ardern’s more softly, softly approach, but wavering National voters are likely to respond favourably to the old Crusher.
The television debate included Collins’ classic response to Ardern saying she wasn’t drawn to blood sportstyle contests, of “Poor wee thing.” Or Collins’ description of Ardern’s raising her ancient SFO investigation, which exonerated her, as “a low blow” and saying: “Gosh, the veil is definitely slipping, isn’t it?”
pect that Winston Peters’ days of dominating a coalition on his own terms – as he has done so successfully if confusingly – in the current government, are over.
The Greens after some missteps seem likely to claw their way back into parliament, according to some polls. But if they remain Labour’s only viable coalition party, they are unlikely to be much help to them in winning the elections. The Greens’ somewhat unrealistic commitment to a wealth tax that would capture a large proportion of ordinary Kiwi households, may cause voters who might otherwise support Labour, to have second thoughts.
The surprise performance has been from David Seymour and the ACT party. In late campaigning, Seymour has tried to
position himself as the “real” National party. The reality is he is more likely to be cannibalising NZ First than the National Party.
The problem both the major parties face, is a lack of clearly detailed and differentiated policies. However, the general themes that have emerged are much as might have been expected.
Labour’s announced policies tend to reconfirm their view that bigger government is better, and that only government knows how to spend taxpayers’ money. National’s policies tend to take the approach that business should be left to get on with what it does best. The reality is that whoever wins power will be committing previously unimagined billions of dollars to keeping the population employed, or at least fed if not always well-housed.
One consolation we can all take is that, unlike in the US, we are not facing a political squabble that has the potential to unleash continuing civil dissent whatever the outcome. The Republicans are led by Trump, a well-documented liar, the leak of whose long-hidden tax returns prove him to be one of the least successful businessmen, and most personally indebted presidents in US history. His Democratic opponent Biden is a competent, seemingly decent but aging politician, who got the nomination because mild socialist Bernie Sanders was too “left” for party elders to stomach.
Whoever wins in New Zealand can be expected to at the least try and do their best for our country, and to be largely supported, while being held to account, by a loyal opposition. We are lucky.
David Porter
Avo prospects positive for new season
Prospects for the Bay of Plenty’s new avocado season are looking positive, with export volumes forecast to rise and strong prices buoyed by lighter crop volumes in Australia.
By RICHARD RENNIE
NZ Avocado chief executive Jen Scoular said the total crop estimate for this season is 7.2 million trays, the same as the actual crop volume harvested last season, with almost 4.5 million trays destined for export.
Some growers here have reported slightly smaller fruit because of the dry summer, but Scoular said more will be known about average fruit size over the coming month as the export season gets underway.
Katikati grower Don Grayling said the dry weather through summer has influenced this year’s crop, but irrigation had helped reduce some of the dry’s worst effects. He has also noticed picking has started particularly early.
“We are feeling optimistic, the downturn in Australian crop volumes will certainly help growers here,” he said.
The Bay of Plenty continues to be the dominant area for avocado growing, but shifts are occurring as the concentration of new orchards grows in the north.
Recent significant investments from both iwi and corporate growers into green fields orchard conversions in Northland, with some as large as 200ha by the end of the decade, means the current 60:40 split between Bay of Plenty and Northland is likely to even out over the next five years.
“The investment into avocado development in Northland has been made off the
back of confidence in the wider avocado industry, the ability to utilise research and development to get better productivity, and utilising scale of operations to reduce relative on-orchard costs,” said Scoular.
New orchards harvesting this year
Some of the large new orchards planted in Northland began harvesting for both export and domestic markets this year.
“We expect to see continued increases in volumes from these newly planted orchards over the next five years.”
Australia remains the dominant export market for New Zealand fruit, accounting for about 70% of exports, and supply to Australia is expected to
be boosted this year thanks to an anticipated strong season here.
Aussie growers in southern and western Australian growing regions are also anticipating lighter crops, thanks in part to a drier season.
In coming years Australian volumes are expected to increase significantly because of large new plantings through Western Australia’s south-west district.
But for the coming season the Western Australian volumes are forecast to be down.
“New Zealand exporters anticipate this will result in a good market opportunity for New Zealand avocados in Australia for the 2020-21 season,” said Scoular.
Over time as the Western Australian fruit comes on stream it is expected to impact upon the volumes New Zealand growers can sell into Australia. It has prompted greater focus here on exporting to non-traditional markets that this year including India, Pacific Islands, Thailand, South Korea and Singapore, alongside the Chinese market.
New Zealand’s entry to the China market in 2018 was initiated with a 40,000 tray commitment. Since then the volume has ramped up with the larger, more expensive New Zealand fruit being differentiated by quality, food safety and traceability claims.
“Our harvest maturity requirements are the highest in the world, and this combined with our rich volcanic soils
Even though they have put more plantations in Western Australia, their crop is significantly down this season, by almost half, so the outlook for us here is very good in terms of Australian exports.” – Michael Franks
and temperate climate produce and avocado with a consistently great taste profile and unique nutrient properties,” said Scoular.
Thailand market growing
Thailand is expected to be
New Zealand’s largest Asian export market this year, taking 300,000 trays.
However, Scoular cautioned export to markets faced Covid-19 challenges including a reduction in air freight capacity, and pressure from Peruvian fruit in some of New Zealand’s
favoured markets.
Michael Franks, chief executive of Seeka, which has been focusing on increasing its share of the avocado market in recent years with its premium branded fruit, said Australia would remain a significant market for the company in the immediate future.
“Even though they have put more plantations in Western Australia, their crop is significantly down this season, by almost half, so the outlook for us here is very good in terms of Australian exports.”
Australia consumption per capita of the fruit has risen steadily over the past decade by over 50%.
However, Franks said Covid-19 has altered the demand profile in the past few months around the world.
“A lot of fruit goes into food service, and with a drop off in eating out in the likes of Mexican restaurants means the demand there has dropped. Big suppliers out of Mexico and South America are moving more into fresh whole fruit supply, which of course brings more competition to the likes of us.”
However, he was confident Seeka’s focus on providing high quality, premium fruit would hold it in a strong position against the smaller fruit from South America that tended to have a higher water and lower oil content in their flesh.
He said expectations of $25-$35 a tray was very realistic this season.
Michael Franks
Jen Scoular
Evidence of a V-shaped recovery
Investment market update (for the quarter ended 31 Aug, 2020)
The global pandemic is not yet behind us. People in the northern hemisphere have been enjoying their summer holidays at the same time that infection rates have been increasing.
Yet the overall mortality rate continues to decline, highlighting better overall care and treatment options. At the same time, central banks and government policymakers have continued to support households, businesses, and banks allowing businesses to reopen and encouraging healthy economic activity as lockdowns are eased.
For now, the outcome has been a broad rebound in economic activity around the world. Housing has been particularly strong in many countries due to a combination of historically low interest rates, pent-up demand, nesting (people redirecting spending to their home and in-house activities), and, in New Zealand, a shortage of supply. Along with houses, low interest rates have boosted demand for new cars, which has contributed to an upturn in global manufacturing.
Retail sales have also surprised many, with a strong rebound following a weak second quarter of the year. Household savings rates went up during the lockdowns and the use of
those savings once economies reopened has contributed to a more robust recovery than many had predicted.
Central banks committed to ultra-low interest rates
In most cases, central bank interest rates are near zero and indications are they will stay
there for a long time to come. The US Federal Reserve has gone one step further by confirming it is focused on reducing unemployment and is now prepared to let inflation run above its official two percent target for some time before even thinking about raising rates. Comments from one of our own RBNZ Deputy Governors suggest our central bank
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.
is also prepared to do something similar.
The implication is that interest rates are going to remain at ultra-low levels possibly for years. Those waiting with cash in the bank for higher deposit rates are likely to be disappointed. The long-term trends contributing to the decline in inflation (including ageing populations, high debt, globalisation, and the proliferation of technology) are all still with us. Inflation risks remain benign near-term. That’s not to say all the money printing won’t eventually cause some inflationary pressures if it creates excess demand for goods and services. But that risk appears a fair way out from here.
Earnings optimism
As the equity markets continue to recover strongly, so too does optimism for future company earnings. July and August is when companies report their financial results to markets. Expectations for Q2 2020 earnings were low, and we saw more positive surprises than negative ones. Reflecting more buoyant than expected
Key questions to ask on an Information Memorandum
A business’s Information Memorandum is a summary of the business for sale and you use it to figure out if you are really interested in the business. It is like going to an open home. You have a quick look around and form an opinion of the house from what you see on the surface. And then you decide whether you want to look a whole lot harder.
A few of the common questions I have when reviewing an Information Memorandum (IM) are:
1. Financial Performance – what trends can be seen from reviewing the numbers? How have the financials been used to arrive at a business value? Do they indicate a business that is growing in profitability? Or are sales up, but gross margins down? All the figures can be used to tell a story – but you might need professional help in reading it.
2. Price – the questions I have about the value of a business from the IM stem from working out the multiple of earnings that the asking price implies and whether the prospective buyer thinks this is good value or not.
3. Reasons for selling – does this imply anything about
The IM stage is about forming an overall view so you can work out whether you are keen to learn more – or throw it in the bin. All the factors above contribute to building a true picture of the business.”
the state / value of the business? Retirement is a common reason. However, not everything can be taken at face value. If the business is declining, then it may be that the vendor now wants to retire as they do not have the energy to pick things up again.
4. The IM will contain plenty of information about products, markets, suppliers, and competi-
tors. It is key to understand what the IM is (and is not) telling you in this area.
5. Do you have a clear understanding of the risks and opportunities? Sometimes the IM will refer to markets or products as opportunities despite the business not currently being in those markets. For me, any gain from this should be to the new buyer.
6. Staff – is there a high level
economic conditions, analysts are now generally lifting earnings expectations for this year and the year ahead.
The “working from home” theme is becoming a permanent theme in many economies, with many people moving out of the cities and into the suburbs. This has been beneficial for industries such as homebuilders, car manufacturers, home furnishing, and anything else related to working or shopping from home.
With positive signs much of the global economy is experiencing a sharp rebound in activity, investors should become increasingly confident that the low in earnings is behind us, and a recovery is underway.
Uncertainty still ahead, but stick to the plan
The commentary above all sounds pretty positive, and clearly equity markets have responded favourably.
But these remain unprecedented (a word used a lot at the moment) times. We’re still navigating the first global pandemic in over a century. Interest rates are the lowest in
history, which may lead to economic imbalances longer-term. And governments are spending money with abandon, funded largely by central banks printing money, but this can’t last forever.
Given the recovery in equity market values since March, we note that: (1) markets are able to remain resilient in the face of bad news, (2) share prices reflect the long-term earnings companies will generate over the years and decades ahead, not just the next six to 12 months, and (3) it’s not possible to consistently time or predict short-term movements in markets. Overall, it’s important to establish and remain committed to an investment plan which meets your long-term goals.
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.
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
of specialist knowledge held by an exiting owner? Or can the staff manage without them? It reduces the risk to a new buyer considerably if the business can still function well without the current owner being around.
7. Owner’s commitment to the transaction – are they looking to exit as fast as possible? Or are they prepared to stick around and help a buyer get a good a start?
8. Systems – what are the
core systems that the business uses? Does it indicate a business that is using best practice, or will a new owner have to improve things early on?
9. Location / premises / equipment – are there any premises that are central to the success of the business? What is the lease situation? Are the assets for sale with the business up to date or will you need to allow to replace some?
The IM stage is about form-
ing an overall view so you can work out whether you are keen to learn more – or throw it in the bin. All the factors above contribute to building a true picture of the business. An IM is a sales document – no different to a property hoarding. Understandably, it presents the business in the best possible light. It is up to a buyer and their professional advisors to cut through the noise quickly so they can work out whether it is worth the time and cost to dig further.
An IM is like an open home visit:it’s basically a sales memorandum. Photo/stock
New Year – New Meetings at Trustpower Baypark
Trustpower Baypark are pleased to offer a “New Year – New Meetings” promotion as a fresh start to 2021 for all your strategic planning, training and team building needs. On offer is a 25 percent discount for small meetings confirmed before 23 December, 2020 and held between 5 January – 31 March 2021. The discount applies to Venue Rental, Audio Visual, Catering and Baystation and is subject to availability.
Once again, Trustpower Baypark are gearing up for a busy summer, with a number of upcoming events to keep the entire family entertained.
Women’s Lifestyle Expo
Do you need a girls’ day out? The Women’s Lifestyle Expo is a two-day event for woman of all ages, featuring everything from fashion and beauty to health and fitness, artisan good, gourmet food and beverages and much more!
This is the only event of its kind happening in nine regions across New Zealand, so grab your girlfriends, sisters, mum, grandma or daughters for the ultimate weekend at the Women’s Lifestyle Expo on Saturday 10 and Sunday 11 October. Tickets are just $10 at the door, or get a 2-for-1 deal on GrabOne in the lead-up to the show. Kids under 12 are free.
Tauranga Homes Show
Returning for its huge 21st show on Friday 16, Saturday 17 and Sunday 18 October, the Tauranga Home Show is spread across both venues of Trustpower Arena Baypark along with beautiful outdoor displays.
Browse, compare and draw inspiration from a range of over 250 exhibitors, from top of the line to budget conscious. Bringing together regional and national businesses, the Tauranga Home Show encourages you to buy local and support local from established Kiwi brands to small family ventures.
Watch live cooking demonstrations from “Nude Food” advocate Nadia Lim. Nadia is all about everyday simple, healthy, delicious food.
She came up with the idea of Nude Food as a budding young cook when she was just 12 years old and it has been her mantra ever since. She wasn’t referring to cooking or eating in the nude – rather the concept signifies fresh, natural, real food, free from being dressed up in fancy packages, marketing and additives. It’s a message she conveys to her audiences with her fresh, bright and tasty recipes. Don’t miss out on her live cooking shows at 2pm on both Saturday and Sunday.
HoopNation
If you love basketball then block out Labour Weekend now (23-26 October).
HoopNation is Aotearoa’s classic basketball event brand and host successful tourna-
ments throughout the year nationally and internationally.
One of these events is The Classic, which is hosted annually every Labour Weekend in Tauranga.
The Classic is where the HoopNation journey began in 2011 and it has grown to become New Zealand’s premier basketball event showcasing some of the nation’s top talent. HoopNation is all about exposing athletes nationwide to opportunities to showcase their talents on their journey to greatness. 12 Youth Divisions – 5 Adult Divisions – 4 days. Don’t miss out.
Baypark Speedway
Opening night for Baypark Speedway is Saturday, October 24 and will see all adrenaline junkies come out of
hibernation.
The opening night is just the start of what is set to be an action-packed season.
To celebrate Guy Fawkes Day, Speedway will finish with a spectacular display of Fireworks to light up the sky on November 7.
There will be no shortage of thrills this season. Other confirmed 2020 speedway dates are November 21 and December 5, 26 and 29.
Look after your clients in style
Did you want to treat one of your valued clients? Or how about coming to Speedway for your Staff Christmas party?
We have a number of Corporate Boxes available to entertain your guests comfortably.
With the box you get; an exclusive, spacious and comfortable box with an outdoor balcony for up to 20 guests.
Full kitchen facilities including microwave, sink, table, chairs and bar stools.
A self-contained refrigerator for ongoing inbox bar service with dedicated corporate box catering stewards for continuous supply along with a high quality catering service delivered to your box.
These boxes are also available on an annual basis to cover the entire Speedway Season. Please contact us on events@ bayvenues.co.nz or 07 577 8593 for more information.
Premier Venue
Trustpower Baypark is Tauranga’s Premier Venue for conferences, meetings, entertainment and exhibitions. Offering a complete package in one convenient location that features state of the art meeting rooms, in-house catering, audio visual services, professional conference organiser (PCO) and marketing/promotional services. Virtual meetings
“Bring your events online” with our Virtual Meetings. The range of onsite and offsite services include: Remote Presentation, Video Conferencing, Web Streaming and Streamed Hybrid Conferences. The Virtual Meeting services also includes purpose-built studios to ‘broadcast standard’ offering competitive packages to enable you to continue to stay connected to your audience. Ask about our competitive packages today.
TheTrustpower BayparkArena Suites:Book now for the NewYear. Photo/Supplied.
The popularWomen’s Lifestyle Expo is coming back. Photo/Supplied
Bay of Plenty Business News readers can register for FREE tickets and come along to the Stratus Blue Cyber Security event on 14 or 15 October.
Protect your digital assets
Over the past few articles, I have written about the importance of protecting your business’ digital assets. However, when it comes to actually implementing security systems and processes, many struggle to know where to begin.
It doesn’t matter how big or small your business is – if the data that is held within it is of interest to unsavoury characters, then your business could be at risk.
Here we offer five simple tips (in no particular order) and explain how they can help your business stay one step ahead of the cyber beasties.
1. Manage and install software updates. Patches add new features to software, but also they often fix security vulnerabilities.
2. Ensure that you have a process and system to backup key data. Have a backup of key data including email, so that if any malicious at-
tacks occur, a backup can be restored. Having files and data on the cloud is NOT a backup. It is a place to store them, but does not necessarily offer a backup service. Meaning if your data gets compromised –you still may not be able to return to operation or get it back.
3. Implement multi-factor authentication (MFA or 2FA) across your systems. With privacy and customer information access and security becoming a legal requirement, anyone who logs in to your system will need to provide something else on top of their username
www.airchathams.co.nz
and password, to verify that they are who they say they are.
4. Implement security awareness training for users and team. Train your staff to know what to look out for. Make sure they understand what to do in certain circumstances. Have a plan and disaster recovery options, which should include a privacy statement. And make sure that your organisation has a privacy officer as part of the new legislation.
5. Secure your network. Consider and think about the connections both going in and going out of your busi-
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.
ness network when you start thinking about how to secure it. Install antivirus and key technology tools on all devices. Don’t let mobile phones or non-work related devices connect to the company Wifi – have separate access for these devices that are separate from the company network. This would include those where they have been working from home in a less secure environment. If you have staff working remotely, check how they are connecting – implement the
above – and when patching is done, ensure the kids games are removed.
It’s important to remain diligent when it comes to cyber security. Don’t just make policy, make sure your policies are consistently followed by your team. Even if you instruct employees not to store password lists, financial data, and other sensitive information on email storage, you should still periodically check that your policy is being acted upon.
By educating your staff to spot potential threats and not letting your guard down you can build a company culture that is security-minded. You can also adopt a training policy that gives your employees the tools they need to deal with online threats effectively, thus benefiting your company and your clients. To find out more, Bay of Plenty Business News readers can register for FREE tickets and come along to the Stratus Blue Cyber Security event on 14 or 15 October, which is held in partnership with industry partners in Cyber Security.
How to avoid or get out of debt
One of the things that have really helped me in my role as a debt advisor, debt prevention advisor and especially a repossession company director, is that I genuinely understand debtors, debt collector avoidance and general debtor behaviour in a way that few in my industry do.
TCREDIT 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
he reason comes not from in-depth analysis or my 15 years’ experience on the frontline of collections.
Why I understand debtors – and particularly habitual debtors – is because for years before my foray into credit management I was one. When I say I was one I don’t mean that I had the odd bill that went a bit overdue. I was a proper phone call screening, constantly moving, habitual credit vampire with a -192 Equifax credit score and every major credit control company in New Zealand chasing me.
I calculate that before my personal credit revelation I was around $200,000 in debt and weeks if not days away from bankruptcy.
Using the methods that I outline below, I was able to not only reduce my indebtedness to zero and restore my credit score to an optimal one, I was able to implement rules and strategies that will ensure I never fall into the debt trap ever again.
Domino Strategy
This strategy was taught to me years ago by a property developer who was able to trade his way out of $1million debt amassed through a development that went horrendously pear-shaped.
How it works is: let’s say you have 10 creditors that you owe $1000 to and you have $1200 per month available to pay.
You contact each one and after outlining your situation (honesty is vital) you commit to paying $100 to each per month for 10 months, which they accept in writing (making it binding on both parties and
preventing collection action).
With the remaining $200 you pay an additional $200 per month on the oldest debt allowing you to pay this off three times faster. Once this debt is cleared in full, you then add the $300 available to the $100 you are paying on the second oldest debt, allowing this to be paid four times faster, and so on until all debts are cleared.
This strategy has three outcomes, it clears your debt, avoids credit defaults on your credit file and also helps restore your credit reputation as the creditors expect it to take 10 months to be paid and are
If Covid-19 has taught us nothing else, it has driven home the importance of budgeting. There are many free services that can assist with this if isn’t your forte.”
all pleasantly surprised.
Without fail, all of my current 9000 clients would accept a payment plan with certainty, rather than a hope of eventual payment. As with everything in life, honest and early communication is key.
Avoid Debt Consolidation loans
Many finance providers market “Debt Consolidation Loans” to “ Clear” your debts.
This can sometimes this can be a good idea, providing that the debts that you have allow for early repayment without penalty. But often you can end up paying not only the interest on the new loan, but a good portion of the original debt interest and “Break” or “early repayment” fees.
These consolidation loans are marketed for their ease of use, not their reduction of costs. This is especially true if you use a broker who may have a not insignificant broker fee that is also incorporated.
Do not hide
In my experience as an investigator, there has only been one person that we could not find out of more than 600 cases. That person has never had a credit score or bank account, lives in a tent in the bush that he moved weekly, avoided town centres and any business with CCTV, and had no digital footprint.
My point is that, unless you live like this person, you will be found. Hiding just makes your debt larger (tracing and investigation fees can often legally be added to your account).
If you cannot pay a debt make early contact and ask about options. Many finance companies have insurance that is built in to your loan that can cover unexpected job losses or sickness. Early honest contact will make the creditor much more likely to earnestly explore these options and fight on your behalf.
Insurance is vital
We have dealt with numerous people that we have had to
chase for debts because of unexpected costs that would have been covered by insurance.
If your income changes talk to a good, well-recommended insurance advisor who can put in place affordable insurance to avoid these unexpected and unwelcome additions of debt.
Quit expensive habits
I would say that around 80 percent of the debtors that our company repossess cars from are cigarette smokers. What is the correlation?
The average weekly payment on these finance loans
are $85-100 per week – a one pack per day smoker buying the cheapest smokes available is spending around $25 per day.
I’m no math’s genius, but those numbers do seem to be rather similar. When I was on my road to credit redemption I had to choose either my habits or my future. Stopping one paid for the other.
Keep your budgeting tight
Most of the people I have worked with who have navigated their way out of debt and
Racing to the top – meet our newest Associate
Congratulations to Rebecca Steens, who works in our litigation team, on her promotion to Associate. Rebecca returned to Tauranga earlier this year and joined our litigation team after four years working at a global offshore firm based in Jersey, in the Channel Islands. She has a range of experience and expertise in general civil litigation matters with a particular focus on trusts and estates, as well as commercial disputes, directors’ claims and insolvency.
Rebecca enjoys working with clients and developing pragmatic solutions. In her spare time, Rebecca is a competitive road cyclist, and is a member of a women’s cycling team sponsored by the firm. Rebecca is looking to continue her success whether in a race or in a Courtroom, and we are proud to welcome her as our newest Associate.
stayed out of it, have a strict budget.
Remember that people with umbrellas aren’t overly affected by the rain and people that properly prepare for a budgetary deficit can also remain relatively unaffected. If Covid-19 has taught us nothing else, it has driven home the importance of budgeting. There are many free services that can assist with this if isn’t your forte. The above is not intended to be prescriptive, just techniques that worked for me and many others. Just a thought.
WHY THE TAURIKO TAURANGA BUBBLE WORKS
Tauriko has been one of the region’s most successful industrial parks and is a core reason for Tauranga’s strong record over recent years in attracting the likes of Jenkins Freshpac Systems and Brother Printers NZ to the Bay.
ABy DAVID PORTER
key recent example is the decision early this year by Fletcher Building to relocate its state-of-theart new Winstone Wallboards plasterboard facility to Tauriko – bringing a $400 million investment boost for the Bay. Fletcher Building chief executive Ross Taylor said at the time: “Our current site in Onehunga, Central Auckland is land-locked, which has prevented us from expanding our operations and improving efficiencies by consolidating manufacturing and distribution on the same site.”
The new Tauriko site was double the size and would allow for further capacity growth, he said.
Nigel Tutt, chief executive of Priority One, which worked with the company to help bring it to Tauranga, said Fletchers needed to move the plant from Auckland. And the Tauranga port had a lot to with the decision.
“They import a large amount of gypsum and Tauriko was the best choice for their logistics set up,” he said. “If you import or export stuff and your main markets are Auckland or the upper North Island, Tauriko works well, especially for any logistics or distribution.”
But while Tauriko remains busy, it now needs local infrastructure developments to catch up in order to continue fulfilling its potential, as Bryce Donne, director of primary site developer Element IMF explains in the following pages.
However, it’s important to note, remarks major Tauriko realtor, Philip Hunt of Ray White Commercial, that Tauriko benefits from what he calls the “Tauranga bubble” centred around the Port of Tauranga.
As a result of proximity to the port, importers and exporters of all sizes can ensure ready access to material imports and to destinations both nationally and globally, he says.
Continuing growth despite Covid-19
Perhaps the most interesting aspect of Tauriko’s continuing development success during a period when the country is dealing with the ongoing impact of Covid-19, is that companies aren’t wanting to end leases because they are having to close down, but because they are growing and optimistic, said Hunt.
“These companies that are expanding are in many cases new, with young people running them,” he said. “It’s exciting and encouraging. Logan Dawson started Road Safe Traffic Management in 2016 out of a garage and home office with one vehicle. He now has offices in Whaka-
tane and Rotorua, and around 50 staff, 16 trucks and 16 utes.
“We do everything that happens on a road,” said Dawson. The company provides safe compliant spaces for roadworks – anything from tree felling and road resealing, to event parking control. It is sometimes known as the “cone” company. He added that the company sources thousands of cones a year, and
could lose 20 percent or so a year to wastage. The company started off in Tauriko’s Paerangi Place with around 400 sqm and recently relocated to much larger premises through Ray White in Whakakahe St. “That has given us better office space and more building yard space,” said Dawson.
Continued on page 12
Chris Copping started his business Cars and Commercials from home four-and-ahalf years ago and has now changed premises a couple of times since moving to Tauriko, moving on as larger premises have become available. He is now in Rakiraki Way.
The company specialises in bringing in good used stock out of Japan. “We’re competing in a market that has had quite a strong European presence and we stick to stuff that is a bit different,” said Copping.
He added that given the abundance of car companies in downtown Tauranga and the Mount, Tauriko made sense as a location, and given its strong online presence the company could be easily found.
Strategically Tauriko is a well-located prime place, connects with Waikato and has a fairly direct route to the port – it’s a great place to be.” – Matt Cowley
Being on the outskirts of town worked better for out-of-town buyers as well.
“You need to forget about doom and gloom and forget about external influences, like Covid-19,” said Copping.
Matt Cowley, chief executive of the Tauranga Chamber of Commerce, said that anecdotally he had heard of a number of business that had relocated from other areas to Tauriko to be able to future proof their development.
“Strategically Tauriko is a well-located prime place, connects with Waikato and has a fairly direct route to the port –it’s a great place to be.”
“I sat down and looked at what data was available to me after four years and enquiries were still strong. Business is like anything - you get out of it what you’re prepared to put in. You’ve got to put the hours in and you have to absolutely back yourself because no one else will.”
Chris Copping:Forget about outside influences and absolutely back yourself. Photo/Supplied
Tauriko – Positioned for further growth
Tauriko Business Estate continues to experience high growth and demand, says Bryce Donne, Director of Element IMF, which has been developing the site since its inception in 2006.
By DAVID PORTER
With excellent access to the Port of Tauranga and the downtown Tauranga CBD, as well as Waikato and Auckland, Tauriko is comprised of approximately 200 ha.
Around 150 ha has been completed of net developed lots, and businesses are offered a choice of freehold purchase, design and build and ground leases.
The major constraint facing what has been one of the region’s most successful business estates, is the need for local and central government support for the infrastructure needed to develop further land options as the current zoned area of the estate has been largely developed.
“At the moment there is significant demand from business wanting to come here that we can’t cater for,” said Donne. “But for now we are still pretty hard out in earthworks and civil construction delivering what was sold over the past 24 months.”
Currently construction at Tauriko is focused in Stage Phase 3A – essentially the area between Gargan Road and Belk Road, while Element IMF is also focused on improving the amenities of the existing business estate.
“We are looking to improve our communication with our neighbours and other stakeholders, whilst also lifting our game in the estate in terms of more planting, walkways
and general amenities,” said Donne.
Donne noted that the ability to bring on further land for development was dependent on advancing a number of local government processes, together with the provision of infrastructure projects, which require investment from both central and local government, in addition to developer funding.
The proposed Stage 4 at Tauriko Business Estate is about 100 ha predominantly on the south side of Belk Road.
This area is currently within Western Bay of Plenty District Council territory, but an application to move the boundary of Tauranga City to include this area is under consideration by the Local Government
Commission.
If successful this change would pave the way for future delivery of infrastructure, but is only one of a number of processes and works required before the release of further business land could be achieved.
New infrastructure for the 3 Waters (drinking water, wastewater and stormwater) is required, but planning and
nection of the internal Tauriko Business Estate road network to State Highway 29 at or around Belk Road. We realistically can’t release much more land at all until that happens.
This connection will also provide a safe and efficient replacement for the existing Belk Road connection which residents have been looking forward to for many years.”
We are still pretty hard out in earthworks and civil construction delivering what was sold over the past 24 months.” – Bryce Donne
design works to provide these in the time required are already well advanced, and are unlikely to be the factor holding back a further release of land.
“The biggest constraint to growth is the need for the con-
Even right now there might be $500 million or more in private sector building projects that Tauriko could get going without any government money spent, if we could only get the State Highway connec-
tion built, said Donne. “The estimated cost of the connection is in the order of $11 million, much of which will come from existing and future development contributions, requiring comparatively modest central government investment. To me that would look like money exceedingly well spent.”
Donne said that in terms of location, Tauriko worked very well for local businesses.
“There’s a lot of residential growth in this western corridor which is to come. It fits very well in relation to the port. And it fits in very well in relationship to dealing with all of our trade partners, most of which are in the Waikato and Auckland.”
Donne acknowledged that success tended to breed success, with economic activity attracting more economic activity.
“People want to come and locate where their contemporaries are.”
Why Tauriko continues to thrive
Perhaps surprisingly, says Ray White Commercial director Philip Hunt, despite Covid-19 the Tauriko Business Estate is busier than ever.
By DAVID PORTER
ATauriko specialist with eight years’ experience in the area, he says he initially feared that some of the smaller operators could be hard hit.
“But without exception, the smaller operators have moved very rapidly, repositioned their businesses where necessary or moved online,” he said.
“Their businesses have moved dramatically and positively and I get more calls now from industrial tenants saying ‘help me get out of these premises because I’ve outgrown them’.
“Without exception it’s not because they’re having to close – it’s because they want to move into larger premises.”
Hunt said that because he has a following of tenants, he is able to get them out before their leases end because he has probably sold the property to
a good landlord who understands he will find new tenants for them without problems.
“I go to the landlord and say your tenants have outgrown
the premises, can I get them out early. And they say sure, just bring me a new lease.”
Asked why the business estate is performing better
These companies that are expanding are in many cases new, with young people running them – it’s exciting and encouraging.” – Philip Hunt
than might have been expected given the impact of the pandemic, Hunt puts it down to what he calls the Tauranga/ Tauriko bubble.
“I think economists and banks don’t understand how this bubble works,” he said. “I would say a large part of it is caused by our proximity to the Port of Tauranga.”
As a result of the port, importers and exporters of all sizes can ensure ready access to material imports and to destinations both nationally and
globally, he said.
Hunt has been involved in developing around 200 industrial unit developments in Tauriko, as well as several in Mount Maunganui and Papamoa.
“I keep very strong records on all my enquiries so I know what people are looking for,” he said.
“At any given time I have a snapshot of the market and the demand that is there.
“Then I will bring a development on and sell off the
plans to satisfy the demand of that market.”
A typical unit development would take around a year or so, and Hunt says that past experience can see a large capital gain during the development period for someone buying off the plan, usually because of the increase in land value.
But he cautions that investors shouldn’t buy just for capital gain.
“These are long-term holds and are designed as a launch pad for people who want to get
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Tauriko’s Paerangi Place
into a commercial or industrial investment and people generally buy and hold,” he said.
“And we getting more and more first-time investors who are residential people shifting their focus.” One of the key attractions was the continuity and reliability of both landlords and tenants, he said.
“I’ve had residential investors come to me for industrial and have one now on his seventh property. He’s never had a week without a tenant. He’s an exceptional landlord and that word gets out.”
Hunt strongly believes in Tauriko’s potential and is always an investor himself.
“I am always on the property and new investors should ensure they build a relationship with their agent and that the agent can deliver tenants.
“I have a following in that part of the market. So if anyone’s going to tenant them it will be me and my team.”
Hunt has appointed Christy Arundel, a licenced sales person specialising in the Tauranga CBD and Tauriko, as his second-in-charge.
He described Arundel –who won a “Client’s Choice, Customer Service, Individual” award at the recent Ray White International Awards – as “an exceptional talent”.
Ray White International Awards
At the competitive annual Ray White Commercial International Awards held virtually on 27 August, local Ray White Commercial Tauranga received a series of accolades.
Commercial Tauranga was recognised for excellence in customer service receiving the coveted Customer Service “Clients’ Choice”
TelferYoung’s lay of the land
What’s happening with Tauriko land prices?
Sales of industrial sites in Tauriko show steadily increasing land values. In 2016, prices were predominantly in the mid -$200s per square metre this increased to mid -$300s per square metre 2017, then low to mid -$400s per square metre most of the Stage 3 sections in mid -2019. Most recently in early to mid -2020 there have been a limited amount of sales, with the sales of medium large sized sites typically sitting in the mid -high $400/m2 range, up to mid -$500/m² depending on and location. Smaller sites sell at higher rates, do corner sites.
Award for the fourth year in a row. Commercial Tauranga was Awarded:
• Clients Choice – Customer Service – Commercial Tauranga Office
• Clients Choice – Customer Service - Individual – Philip Hunt
• Philip Hunt – No. 5 Commercial Agent Internationally
• Kate Bosworth – Finalist (one of the top three internationally) for PA of the Year
Philip Hunt achieved Ray White Commercial Salesperson of the Year for the fifth year in a row and was honoured as an Elite performer,
TelferYoung’s lay of the land
What’s happening with Tauriko land prices?
Sales of industrial sites in Tauriko show steadily increasing land values. In 2016, prices were predominantly in the mid-$200s per square metre and this increased to mid$300s per square metre in 2017, then low to mid-$400s per square metre for most of the Stage 3 sections in mid-2019.
ranking him among the top two percent of Ray White agents in the country’s more than 180 branches. “It is an honour to be recognised as one of the best performers not only in Commercial, but within the whole Group,” said Hunt. “The awards demonstrate the commitment and energy within our boutique Tauranga Commercial Team.”
Company profile
Most recently in early to mid2020 there have been a limited amount of sales, with the sales of medium to large sized sites typically sitting in the mid-high $400/ m2 range, up to mid-$500/m² depending on size and location. Smaller sites sell at higher rates, as do corner sites.
have land prices increased so much?
price of land is determined by supply and demand and is also a function of the value of completed buildings less the costs of construction. Industrial property values are assessed by converting the rental value (market rent) into value, using an appropriate investor return (capitalisation rate). Since 2015/16, Tauriko has significant growth in market rents. This, combined with decreasing yields across the wider commercial property market has had a multiplier effect on the values of industrial properties. Whilst construction costs have also increased during this to offset these gains slightly, this is only minor and the resulting effect is that land values increased. The escalation in land values has exacerbated in Tauriko due to a shortage of in Tauranga’s other industrial areas and the relatively slow release of sites in Tauriko, which seen pent up demand.
Why have land prices increased so much?
The price of land is determined by supply and demand and is also a function of the value of completed buildings less the costs of construction.
Industrial property values are assessed by converting the rental value (market rent) into value, using an appropriate investor return (capitalisation rate).
Since 2015/16, Tauriko has seen significant growth in market rents. This, combined with decreasing
Where can TelferYoung assist?
yields across the wider commercial property market has had a multiplier effect on the values of industrial properties.
Whilst construction costs have also increased during this time to offset these gains slightly, this is only minor and the resulting effect is that land values have increased.
Often, TelferYoung are engaged by our clients prior to the issue of a title, with instructions to provide a valuation of the vacant land for mortgage funding of the settlement. Once building plans have been prepared, the next step in the valuation process is to provide an ‘as proposed’ value of the completed project off plans. This is based on the assumption that the building development is complete. This is a relatively routine valuation that requires the client provide us with plans, specifications, consents and preferably the building contract.
The escalation in land values has been exacerbated in Tauriko due to a shortage of land in Tauranga’s other industrial areas and the relatively slow release of sites in Tauriko, which has seen pent up demand.
Where can TelferYoung assist?
Often, TelferYoung are engaged by our clients prior to the issue of title, with instructions to provide a valuation of the vacant land for mortgage funding of the settlement.
TelferYoung Tauranga has 12 valuers, comprising registered valuers and 3 graduate valuers. Initially formed in the late 1960s, the company was known for many years as Middleton Valuation. In 2011 joined the TelferYoung group which is represented by 13 leading independently owned valuation practices throughout New Zealand. Each of the practices has an established history within their respective region, and in-depth knowledge of market and localities in which they operate. We to develop and maintain strong ongoing relationships with our clients.
tine valuation that requires the client provide us with plans, specifications, consents and preferably the building contract.
the company was known for many years as Middleton Valuation. In 2011 we joined the TelferYoung group which is represented by 13 leading independently owned valuation practices throughout New Zealand.
Within our team we have specialists in rural, commercial and residential properties. This includes apartments, orchards, pastoral properties, commercial and industrial buildings and residential dwellings.
Each of the practices has an established history within their respective region, and in-depth knowledge of the market and localities in which they operate.
Once building plans have been prepared, the next step in the valuation process is to provide an ‘as proposed’ value of the completed project off plans.
This will be the start of an ongoing relationship that often involves insurance valuations, rent reviews and periodic market valuation updates.
This will be the start of an ongoing relationship that often involves insurance valuations, rent reviews and periodic market valuation updates.
This is based on the assumption that the building development is complete. This is a relatively rou-
Company profile
TelferYoung Tauranga has 12 valuers, comprising nine registered valuers and three graduate valuers. Initially formed in the late 1960s,
We aim to develop and maintain strong ongoing relationships with our clients.
Within our team we have specialists in rural, commercial and residential properties. This includes apartments, orchards, pastoral properties, commercial and industrial buildings and residential dwellings.
The RayWhite commercial team atTauriko:ChristyArundel,Philip Hunt,Kate Bosworth,Michael McMichael,Ivy Shen,Antony Lee and David Herman.
Telfer Young Tauranga's Commercial Valuation Team
Specialists
in Commercial, Industrial,
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Grime Off Now in Tauriko
A growing number of Tauriko businesses have experienced the building wash maintenance services offered by Grime Off Now. From post build hand-over washing to full hot water sanitisation of warehouse complexes, Grime Off Now have solutions to get the best results.
In response to the increasing popularity of darker cladding colour choices Grime Off Now uses a filtered water system to lessen the chance of water spotting.
Grime Off Now offers services to ensure warranty conditions are met over a wide range of claddings including cedar. Cladding manufacturers will want to see evidence of a regular wash maintenance program if a warranty claim is ever made against a product.
With increasing regulation and demand for more diligence in this area, Grime Off Now invests a lot of time in health and safety training, processes and reviews.
Work Authority, Permit to Work, First Aid and Elevated Work Platforms.
Working at Height is a specialised service offered by the team at Grime Off Now. This includes roofs, gutters, solar panels and sky lights.
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Design and build excellence at Tauriko
Hawes Building Solutions have firmly established themselves in the past 20 years as one of Tauranga’s leading construction companies. The locally owned, family-run business is behind many exceptional design and build projects in the region, which include several highly functional and eye-catching commercial buildings at the Tauriko Business Estate.
Due for completion by Hawes later this year is an innovative project for Easy Gate, New Zealand’s leading aluminium gate company.
In collaboration with Kirk Roberts Engineers, they have provided a cutting-edge solution for this company’s new offices, powder coating plant, and warehouse space adjacent to their existing factory on Hotuhotu Street.
Other design and build projects that Hawes Building Solutions has worked on at Tauriko in recent years are the premises for building machinery suppliers Macma Machinery, the Bay Bathrooms showroom, and a large three tenancy industrial building with offices, a showroom area and a large open warehouse for Harpa Developments.
“As we’ve been in business for 20 years, we know how crucial it is to understand our clients’ needs from the earliest stages of the development of industrial builds.
“Regardless of the design or complexity of a project, we aim to
surpass our clients’ expectations every time,” explains director and quantity surveyor Anthony Hawes.
With his brother Mark Hawes, who founded the business in 2000, Anthony leads a team of 20 staff which includes another quantity surveyor, a registered architect, senior site managers, carpenters, hammer hands, apprentices, and an office manager.
An extra crew of skilled contracting carpenters can be called upon when required.
The business is a member of the Certified Builders Association of New Zealand, and Mark Hawes has been a Carpentry and Site 2 Licensed Building Practitioner since 2008.
All site managers are Licensed Building Practitioners.
“Personal service is key in the way we work at Hawes, and we look after our team. Not only do we take great pride in the quality of their workmanship, we are also really proud of the positive attitude of our people,” says Mark.
Alongside commercial and
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industrial buildings, the Hawes Building Solutions team is also known for their exceptional work on high-end residential builds.
They have designed and delivered several spectacular new homes in the Bay of Plenty and Waikato, and they have worked on major home renovations and extensive leaky home remediations as well.
Working closely with clients and their architects, the Hawes team can organise the entire building process, from drawing up the plans and dealing with all council procedures and consents, through to delivery. They are highly experienced, great to deal with, and passionate about what they do.
For your next construction project at Tauriko or elsewhere in the region, either commercial or residential, call Hawes Building Solutions on 07 578 2414 or see them online at www.hawes.build.
You will find their HQ on Glenlyon Avenue in Greerton.
One of Hawes Building Solution’s large commercial building projects delivered atTauriko.
Hawes Building Solutions at work on a design and build project in theTauriko Business Estate.
Kiwibank, genuinely helping Kiwis
Kiwibank exists as a bank that genuinely helps Kiwis. This is what drew me to the bank 7 years ago, it was true then and its true now. Working with and supporting local businesses and playing a part in making a difference to the country I love are the things that get me going day in and day out. Being able to do that in the beautiful Bay of Plenty, and especially in the rapidly growing city of Tauranga is actually a genuine privilege.
In the current environment, businesses are faced with a number of challenges, uncertainty being one of them.
At a time like this having a bank and banker who is available to talk is a real comfort and I’m finding that just being accessible for even simple conversations goes a long way to providing confidence for moving ahead.
There’s real opportunities out there, and working alongside clients to make these a reality where possible can be a real positive experience.
New Zealand has a stable economy and a history of weathering global financial challenges well. Our central bank and government are doing what they can to minimise the economic impact for Kiwis, and the New Zealand public has responded responsibly to the lockdown.
Here at Kiwibank we’re playing our part too. We know small and me-
dium businesses are the backbone of the New Zealand economy. We are seeing right now that Kiwis really are buying local, and that includes banking local.
We know in this current environment cashflow is an issue for many, so we have a resilience and recovery programme to support our customers.
Options available to our business banking customers are changing your loans temporarily to Interest Only, Temporary Overdraft Facilities, Loan Repayment Deferrals, and the Business Finance Guarantee Scheme. (Criteria does apply, and this is only open to current Kiwibank customers. If you bank elsewhere, you need to approach your own bank).
If you need assistance, we suggest you visit our website in the first instance or call your relationship manager.
Outside of work I have a real passion for sports of various types. Over the years I’ve represented New Zealand internationally in two different sporting codes, one of which I still hold both national and international records in. My competing days are behind me, although sometimes it’s awfully tempting to jump back in and see what happens!
Probably for the best, these days I direct my sporting energy into supporting my kids and building up others through coaching.
Over the last few years this has taken me to leading teams at both national and international levels. It seems I just can’t help myself and have thrown myself into coaching with the same enthusiasm that I did to my own sporting endeavours.
Kieran Mischewski
Ph 027 707 9022 or call our Business Team on 0800 601 601
Small and medium businesses are the backbone of the New Zealand economy. If your business needs support, our team of specialists are here for you. kiwibank.co.nz/business
Owning a Commercial Property is not always about what you have, it’s also about what it could be. We see underlying property potential and know the roads to release best value.
We are true active property managers, getting the best performance from your investment by understanding your property as a whole.
Operating in the Bay of Plenty for over 17 years, Focus on Property is a full service team of commercial property investment and management specialists offering robust financial due diligence on property with a proven track record in searching for and securing quality property investments.
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together. Mā te Manaakitanga tātau e kōkiri whakamua.
iLine Construction –Continued growth in construction sector
The impact of 2020 across the construction industry has undoubtedly been wide-ranging and disruptive for many. Despite the disturbances this year has seen, we believe that opportunities continue to exist during times of adversity; with our committed and anticipated future workload demonstrating exactly that.
Operating across the Bay of Plenty, Rotorua, Waikato and Auckland, we have seen distinct growth within the Tauriko Business Estate, where we have been involved in the construction of a number of purpose-built Design and Build projects both pre and post lockdown.
We are fortunate to have existing relationships with a number of local developers, thanks to our solid reputation and long-standing presence in the region, which has ensured considerable forward workload across the ever-expanding Tauriko landscape.
Our current activity in Tauriko includes an industrial unit devel-
opment comprising three generous sized office/warehouses on Matakokiri Drive for developers Vista Belle Limited and a purpose-built industrial facility for Raeden Group on Taitimu Street. Also situated on Taitimu Street are two further Tauriko developments, recently added to the iLine portfolio – An industrial building for OJI Fibre Solutions and a large-scale kiwifruit coolstore extension for Mount Pack and Cool (MPAC) both completed to programme, despite interruptions from Covid-19.
We’re seeing a high-level of activity and increased demand for custom-designed commercial prop-
erties in the area, which is a reflection on Tauriko’s accessibility and its capacity for continued growth. It is fast becoming a central hub for both local and national industry and we’re proud to be a part of that growth.
iLine’s ability to innovate and adapt quickly has been a huge advantage over the past six months. We have a strong team of construction professionals who understand the complexities of commercial construction and have extensive experience within the Design and Build sector.
We are passionate about bringing our clients’ ideas to life and enjoy the process of delivering
cost-effectiveness and quality on every job we manage.
We work closely with our clients, suppliers and contractors to ensure that each project is designed, detailed and built with economy, durability and aesthetics in mind.
ACG Tauranga Gymnasium
Drone footage of industrial units under construction at 159 Matakokiri Drive,Tauriko
I remember my year 11 economics class and the subject of entrepreneurship; it was described as being “hard to define and even harder to encourage”. It sounded elusive and counter to the field of economics where we generally like to be able to define our parameters for everything we study.
How do we define entrepreneurship and what is its relationship with franchising? Let’s start with returning to the definition. It turns out my year 11 class was not wrong. Wikipedia allocates nearly 250 words to a definition which includes: Entrepreneurship is the creation or extraction of value.
• Entrepreneurship is the process of designing, launching and running a new business, often a small business.
• Entrepreneurship is the capacity and willingness to develop, organise and manage a business venture along with any of its risks to make a profit.
• The people who create these businesses are often referred to as entrepreneurs.
I am going to summarise and define entrepreneurship as a willingness to, or process of taking on commercial risk, developing and managing a business with a view of creating value, profit or return.
The misperception that franchising stifles entrepreneurship
We have conversations every day with people who want to
start and grow their own businesses. They want to take a measured risk, invest time and money with a view of controlling their future and of course, make a return. Without perhaps saying it themselves, they want to be entrepreneurs. Those that have already decided that franchising is their route we call franchisee entrepreneurs. The statistics overwhelmingly demonstrate franchisee entrepreneurs are more successful.
Some budding entrepreneurs however have a misconception that franchising will stifle their entrepreneurial aspirations. I believe this could not be further from the truth, and invariably we have
a discussion around recurring themes:
I want to own my own business, not someone else’s
Nearly every franchise brochure or explanation that I have seen over 20 years starts with something similar to “be in business for yourself, not by yourself”. This is true, franchisees find – whether directly or through borrowings the business themselves, and the risks and rewards sit solely with the business owner, the franchisee entrepreneur. It is their business - it is not an outlet or subbranch of the franchisor’s business.
I want something I can develop, control and influence
FRANCHISING
> BY NATHAN BONNEY
Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275-393-022
That is not solely, but it is ultimately in the hands of the franchisee entrepreneur. If it is a start-up or greenfield franchise business, they obviously need to develop and grow the business. If buying an established franchised business, there is always room to develop, refine and do better. And the best part about franchising is it provides the road map and the benchmarking against which success can be measured.
From over 20 years of research the Franchise Relationship Institute has established that one factor accounts of approximately 40 percent of the success (or otherwise) of a franchised business. It is not the brand, not the location (though both are critical), it is the franchisee.
I don’t want to be told what to sell and I don’t want to be stifled
Firstly, here is the wake up, “someone” is going to tell you
what you should be selling.
That “someone” is the “market” – if the market does not want it, you won’t sell it. And why would you not want the collective experience, support and guidance of a franchise system to assist you with what you should be selling?
We also often hear people say they don’t want their ideas or innovation stifled. Good franchise systems do not stifle innovation, they have the ability to develop, test and roll out innovation, often generated by franchisees. Need we say more than Big Mac – invented by a franchisee, now the greatest selling burger on earth.
I don’t want to follow rules
Let’s face it, we have rules in business – we must pay taxes, we must follow an extraordinary number of legislative requirements and we must perhaps most importantly, do the things, and follow the rules that will create profitable businesses. Franchise systems develop processes and parameters,
“rules” because they work. Some are designed to make sure the franchisee is able to stay within the legislative playing field. Whilst others are definitely to ensure compliance within a franchise system.
To quote one of my former franchisor managing directors: “The franchise agreement and parameters are designed to keep the good things in and the bad things out.”
There is one statement that does separate the entrepreneur from the franchisee entrepreneur – I want to create or develop my own “thing”
These super brave people are politely called pioneers. I believe there is often a confusion between pioneering and entrepreneurship and while they are not mutually exclusive, they are not the same. You do not need to invent, or revolutionise anything to be an entrepreneur. If you do want to be a pioneer, then franchising is probably not for you and we wish you the best of luck. But remember that statistically, the franchisee entrepreneur is more likely to be successful.
New ways of working for Kiwi SMEs reveal potential security gaps
New research by 2degrees has revealed New Zealand’s small business owners are taking a new approach to work. This comes as Kiwis navigate their way through an unpredictable year, which has seen the country move in and out of lockdown in the fight against Covid-19.
The 2degrees Shaping Business Study, which surveyed more than 1,000 small and medium-sized business owners and decision-makers, found that more than half (58%) have changed their approach to work since the Covid19 pandemic reached our shores.
The lockdown earlier in the year thrust many small businesses into an unknown territory, however the new research shows that, second time round, businesses were much better prepared for the switch to Levels 3 and 2.
This year has seen one of the biggest changes to the way we work since the Industrial Revolution. With this, has come a significant shift to a more mobile workforce.
Andrew Fairgray, Chief Business Officer at 2degrees, says business owners and decision-makers have done a great job in establishing what works best for them and their people, while grappling with the challenges of the current circumstances.
“For some, working from home permanently is a better option, others are offering their employees more mobility around working hours or rotational days to work from home – either way it gives Kiwis reassurance and greater confidence in knowing they can work
from home when necessary.
“Part of that comes down to having the right tools to do so, like reliable, secure mobile and broadband connections.” says Fairgray.
With an estimated over 60% of employees in New Zealand now working from home on a regular basis, Kiwi businesses need to be thinking about security more than ever before.
According to the study, under half of SME decision makers currently did not have any current data security resource. Sole traders were significantly more likely to state that they currently have no security resource in place (46%) compared to employing businesses (27%).
While there are a variety of different risks, home broadband security is believed to be the biggest online risk for nearly one quarter of SME decision makers. Nearly onethird stated they didn’t know what the biggest online risk was to their business, highlighting the need for businesses to really take a good look at security options when it comes to their employees working from home.
So, what should business owners do? Start simply: identify your risks and research your options.
Some businesses will be more at risk than others – those dealing
with sensitive information every day such as financial services for example.
A great place to start is with 2degrees Work from Home Fibre –a secure, Fibre connection to keep businesses humming seamlessly when their employees are working at home. This new product delivers business grade broadband through a dedicated Fibre connection to employees’ homes. Work from Home Fibre does what it says on the tin – it’s fast and offers the capacity businesses need.
Plus, web-filtering is part of the package. So you have the option to switch on the web-filtering security add-on – a service that enables you to block sites known for phishing, malware and other security threats to work laptops or computers – for free, and you can also choose to block streaming sites.
Upload speeds are up to 5X faster compared to their home broadband Standard Fibre 100 Plan – super important for things like video conferencing. The 2degrees Shaping Business Study showed that 40% of respondents found video conferencing the most important tool to stay connected to their team during lockdown, so making sure it works well is key when staff are working at home.
So, give the guys at 2degrees a call or visit 2degrees.nz/business to start down the right path to ensuring your critical business information is secure even when staff are working from home.
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.
WHY TABAK
First on the scene
Photos from the launch of Dwayne Morgan’s new offices for Special Programs Security. Photos/ Pete Luxford
1 3 5 2 2 6 1 3 4 4
Photos from the Rotorua Women in Business networking meet-up at Volcanic Hills Wine Tasting Rooms.
Photos/ Nikeey Silwal, Rotorua Chamber of Commerce
1 Stacey Blackie,Jo Holmes and Lou Baddiley (Rotorua Economic Development),KarenTasker,Quest Rotorua,Michelle Cutelli,Michelle Cutelli Photography,and Eloise Roxburgh,Rotorua CanopyTours. 4 Tiana Hodge,Martyn EvansArt,with Debbie Gow and Julie Bell, DANA.
3 LucyVala-Blackmore,Nicola Brazendale,VictoriaThompson,Sophie Law and,Melissa Chester,Holland Beckett Law. 2 Nadia Christiansen,McDowells Real Estate,Abbie Proudley,BNZ,Lisa Pauling,Rotorua Hospice,Robyn Forbes and Sara Kenny,Property Inspect and Geraldine Jaques,Integrated Systems Design.
5 Kim Hodge,Abbie Proudley,Theresa Mason,Jenny O’Connell andVictoria Richards,BNZ. 6 Larissa Park,Volcanic Hills Winery and Natalie Bridges,Blink PR.
1 Mark Irving,Priority One,RebekahWebby,Webby andAssociates Law,RachaelAdams,Adams Law and Renee Harley, Webby andAssociates Law. 2 Dwayne Morgan,Special Programs Security,Tauranga. 3 Lynn and Brendon Bradley,Bayleys Tauranga,Mark Irving (Priority One),David Lathan (Lathan andAssociatesAccountants). 4 MayorTenby Powell.
Photography
Positives around a flexible and contingent workforce
A large portion of our workforce is working from home and the business environment this year has lent itself towards businesses being required to have a more flexible approach to employment than ever before.
Work-life balance and flexibility have definitely been key tools within the employment realm over the past couple of years.
However, in 2020 it’s become a more essential tool for business survival.
The reality is that this year and beyond, your workforce needs to be flexible and reactive for optimal profits and success to be achieved in the competitive and ever-changing marketplace we are experiencing within New Zealand now.
The most surprising fact to most people might be just how widely used temporary –or contingent – employment is utilised across such a wide range of industries and fields, from medical to creative services, project management, human resources, technical and trade-related roles.
There really are no industries with a barrier to temporary employment.
There is this misconception that temp employees tend to be such typical employees as receptionists or administrators. However, a temp can be
HUMAN RESOURCES
>
BY KELLIE HAMLETT
Kellie Hamlett is Director and Recruitment & HR Specialist, Talent ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz
as qualified and skilled as you require – they come from every industry and profession – skilled, degree qualified, registered.
Many are highly qualified and skilled, adding value through their ability to slip into a new environment, team and culture with ease.
Candidates choose to engage in temp work for all kinds of reasons, whether it is because they have just moved to the region, or enjoy the freedom of knowing they are not tied down to a permanent role.
Many enjoy the variety and flexibility or for pure lifestyle reasons.
Temporary workers can often be the best employees because they get to have a
large exposure to many different industries and workplaces, systems, and processes. They also come with the flexibility to work around your individual work-load requirements, and can be on-call on an ‘as and when’ basis.
Temp employees are being used by both growing companies and more established businesses to jump over the skills gap and address needs head on. And at present here in New Zealand, including in the regions, we have quite a pool of talent available.
Having a temporary workforce can be hugely beneficial in terms of keeping on top of market fluctuations for a business.
Contingent workers, in a
sense, are “on-demand” talent, the “Netflix” of the employment world if you like. They are not full-time employees of a company and once their project is finished, the contract has ended.
To label them mere temps, however, discounts the full scope, hi-tech nature and complexity of today’s contingent or “on-demand” workforce.
Utilising a contingent workforce within the relatively volatile business environment we are now experiencing under Covid-19 is a smart, lean way to run your business, whilst ensuring that the needs of your customers are met, a business as usual approach is the focus, and employment overheads are contained or reduced.
Flexible future for Shared Workspaces
The trials and tribulations of the past year have shown many businesses the benefits of remote working. But remote working is not going to completely replace traditional work in an office building, and many are starting to recognise the benefits that having a flexible workspace can have in boosting productivity, said Tony Snow, founder and director at Shared Workspaces.
By DAVID PORTER
Better known as the head of IT company Stratus Blue and BOP Business News’ Tech Talk columnist, Snow took over the lease late last year of the Smart Business Centre in Chapel Street, formerly managed by anchor tenant the Tauranga Chamber of Commerce.
“Shared Workspaces aim to have multiple locations with the Chapel Street location being renamed to Commerce House shortly, and the Beach House in Parton Road, Papamoa becoming available in November 2021,” said Snow, adding that other locations are being worked on.
Flexible working is a way of working that provides a productive and collaborative environment that has been created
without traditional corporate constraints on what is thought to be an “office” environment, he said, offering flexible memberships to suit a wide range of needs.
Angeline Williams, member and facility manager at Shared Workspaces, said: “The beauty of flexible working is that you can have your traditional workspaces such as in-office building or a home office, but also have a secondary space where you can hire equipment, ideas, and knowledge.”
Some studies have shown that a mix of working environments can lead to more productive use of time. Studies from the US indicated remote working could lead to a 13 per cent increase. On average, people that work 40 hours per week are only truly productive
The beauty of flexible working is that you can have your traditional workspaces such as in-office building or a home office, but also have a secondary space where you can hire equipment, ideas, and knowledge.” – Angeline Williams
for 23 hours (three days) in an office environment and just above 15 hours (two days) in a home environment, according to one study.
Maximising productivity
Flexible working aims to maximise productivity, said Williams. Utilising a mix of both remote working and office-based work, or remote working in an office, can help people get more out of your working week.
Changing up your routine allows for new ideas and fresh ways of thinking that you might not have considered before, she said.
Matt Cowley, chief executive of the Tauranga Chamber of Commerce, said the board made a decision at the time he was hired to focus all of its resources on supporting members rather than managing the Smart Business Centre tenancy.
“The board are saying it is probably the chamber’s best decision, especially with Covid-19,” said Cowell. “It’s enabled me to spend 100 percent of my time on our business and operations rather than dealing with tenancies and rent negotiations.”
Snow said that coming out
of lockdown, many people were still working from home, and flexible working was a great way to ease back into an office environment and get back to meeting people.
“With flexible working, you can work close to home, not just from home,” added Williams.
Having somewhere that understands the value of having a space of diverse thinkers and builds a community of individuals and businesses that work in different industries, that have diverse backgrounds and want to share knowledge, experience and ideas can help business and people flourish and be productive.
“We’re are open to anyone working on anything, and we’re darn proud of it,” said Snow. “We count on our diversity to give members unique opportunities to meet people who they can collaborate with. People from various walks of life can collide in the most amazing ways every single day.”
The business offers flexible terms and tailored packages to meet all needs. That includes people expanding their business, needing a project space, or meeting or training room, or desks or offices to rent.
Shared Workspaces is also giving away a three month free meeting room hire to the best suggestions for naming their new meeting rooms, and also will be giving away one week of desk and work space membership.
See www.shared.nz for details.
Honesty the best policy for staff communications
The year ahead will be one of the most uncertain for New Zealand businesses. The world continues to grapple with the impacts of Covid-19 and many directors will be wondering how their businesses can survive the economic slowdown and the uncertainty that changes in Government Covid-19 Alert Level restrictions can bring.
While some of us are getting by okay, others are barely holding on. Many workers fear losing their jobs and anxiety levels will be high in many workplaces.
Mortgage payments will be top of mind for many of them, as they question how they will support their families if their job disappears.
At a time like this, it is more important than ever for managers to engage effectively with staff and contractors.
Do it right and you can keep motivation levels high and productivity strong. Get it wrong and you can expect a staff apathy and a growing number jumping ship.
Keep the information flowing
When times are tough some business owners and managers go into their shell. It’s no fun sharing a difficult message
with staff and some people tend to react by saying little, or nothing at all.
This is a big mistake. Just because you’re silent doesn’t mean staff will be, and more often than not speculation and rumour are worse than the truth.
Informing staff shows you care and helps to build trust. It allows you to share the steps you are taking to overcome the challenges the business faces and demonstrates to staff that there won’t be any surprises. Things may not turn
out perfectly, but you’re all in it together and they will know where they stand throughout the process.
Keeping staff informed and engaged is also critical for team morale and culture.
If everyone knows where you are planning to take the business, and what the strategy is to get through the hard times, they are more likely to work together and put their energy into the right areas.
Much more than a courtesy, good communication with staff can provide productivity
There are few things more damaging to trust than a staff member hearing about a major change in their own business from a client who has been informed first, or even worse – reading it in the local newspaper.
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.
and retention bonuses for your business.
Tell staff first
Sometimes we are so eager to please our clients or to tell our story in the media that we forget to keep staff in the loop. This can be true for good news – such as announcing the launch of a new innovation –or bad, such as the closure of a regional office.
It’s good practice to tell staff first, before announcing anything more widely.
This can take the form of a briefing their managers, or even just a heads-up email before a communication to peo-
ple outside your organisation is sent out.
After all, there are few things more damaging to trust than a staff member hearing about a major change in their own business from a client who has been informed first, or even worse – reading it in the local newspaper.
Be up front
Over-spinning a message is another common mistake some businesses make when communicating neutral or bad news with staff.
This may involve overemphasising the positive while avoiding any mention of the
elephant in the room, or overusing buzzwords and business jargon such as “streamlining the business” or “right-sizing our teams” to communicate a restructure or impending job losses.
It’s absolutely true that you should think carefully about what you communicate, the tone of your message, and how it’s delivered. But give your staff some credit and realise many of them will see through the spin.
Honesty and up-front communication, with compassion, will be much better received than a message that beats around the bush or avoids an issue entirely.
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