u p d a t in g a n d in f o rmin g t h e Gre a t e r E a st Ta ma ki b u sin e ss co mmu n it y
3 R&D AT TANDARRA ENGINEERING 4 REDUCING WASTE TO LANDFILL 6 THE CHANGING USE OF TECHNOLOGY 11 SCHNEIDER ELECTRIC’S GREEN ETHOS 17 THE HIDDEN COST OF CRIME 19 ONLINE RESOURCE FOR SMALL BUSINESSES
ON INNOVATION
AUTUMN 2014
Editor: Jane Tongatule E gm@getba.org.nz Advertising: Roanna McLeod E events@getba.org.nz PO Box 58 260 Botany Auckland 2163 P 09 273 6274
getba.org.nz
From the Chair This is the first issue of our new GETBA magazine, which replaces the GETBA newsletter. I hope you like the look, as we feel it is a better vehicle to communicate with our members, and provide the opportunity for local businesses to promote themselves. In this issue we are highlighting innovation in business and you will read about several local businesses for whom innovation is an integral part of how they do business.
Upcoming events 8 April 2014 Business Owners Forum: The business owner, the best person to lead the business? 6 May 2014 Management Bites: How to deal with prickly personalities in the workplace 15-16 May 2014 Business Connections EXPO EXPO seminars 28 May 2014 Post Budget Breakfast 5 June 2014 Management Bites: Employment agreements avoid expensive pitfalls! 12 June 2014 Technology Bytes 19 June 2014 Business Owners Forum 25 June 2014 Breakfast
A stellar economy is the way our leading economists describe the New Zealand economy in 2014, and certainly many leading indicators all point in the right direction. GDP is nudging 4%; the Terms of Trade are the highest since 1973; we have a Christchurch rebuild and Auckland catch-up house construction. In addition, there is accelerating world growth, and net migration is now over 20,000 per annum, with business and consumer spending on the rise. The only dampener is that interest rates are on the rise and likely to result in the OCR being 5% by the end of 2015. The high exchange rate remains an issue for many exporters, and unfortunately it is likely to remain high for an indefinite period, with the interest rate rise being part of the problem. We have a very wide variety of businesses in GETBA and most are seeing a lift in activity, with a positive outlook ahead, something we haven’t seen in recent years. Being an election year, certainly helps too. 2014 sees the introduction of new workplace health and safety legislation. We recommend that you take a close look at the changes as the new law will see stronger enforcement and beefed up penalties. Minister of Labour Simon Bridges says that it will be flexible enough to work appropriately for small and large businesses, and high-risk and low-risk sectors, without being overly burdensome or prescriptive. As always, GETBA’s website getba.org.nz is the place to go for what’s happening and regular updates on such changes, so please visit this regularly. At GETBA we have a very busy calendar for 2014. In addition to our regular programme of informative events, forums and seminars, we have our first East Tamaki Business Connections Expo on 15-16 May at Waipuna Conference Suites Highbrook. Make the most of this opportunity to either take a stand and raise the profile of your business, or come along and see the range of innovative local businesses on show. There will also be free seminars on topical subjects running alongside the Expo. We have been very busy with submissions on the Annual Plan and the all-important and very large Unitary Plan. Our input and comments are from the business perspective; one being the need for sufficient industrial land to service the needs of Auckland in decades to come. The East/West link consultations are continuing. Action is required now to solve the costly congestion problems occurring across the city on a daily basis. The waste minimisation project is progressing well and we have been working with a number of companies on reducing their waste to landfill. You can read more about this on page 4. All the best for a great 2014! Richard Poole Chairman, Getba
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FOCUS ON INNOVATION A U T U M N 2 0 1 4
Roll On Innovation Every year, Callaghan Innovation R&D Growth Grants are awarded to businesses who have shown a strong commitment to R&D investment and a proven track record of innovative, quality products and performance in their industry. East Tamaki business Tandarra Engineering has clearly exceeded the criteria, having been recently named a new recipient of one of these grants.
“At the end of the day you want people to be safe. Whether it’s in our business or in our customers’ businesses, it needs to be as safe as is practically possible.” Lance adds. The machines Tandarra produce, now all adhere to the stringent Australian Safety Standards and cannot be operated if the proper guards aren’t in place or the guillotine is not fully enclosed, even during manual overrides. With the market moving towards a greater focus on workplace safety, due to recent incidents in New Zealand and new law changes, Tandarra’s attention to detail in this area was no doubt one of the considerations for their receipt of the R&D Growth Grant. According to Lance, while the R&D Growth Grants are looking at new products or technologies, they are not focussed on specific projects that companies are working on, but rather their ability to apply their R&D successes to develop machines that produce further sales or open up new markets. “The focus wasn’t solely on specific projects, so I guess our track record of development which then generates multiple sales was part of the reason that we got the nod.”
Like many typical Kiwi businesses, Tandarra Engineering started in a backyard shed, after one of those conversations over a family BBQ turned into a ‘No.8 wire’ challenge. That was 1982. A family member in the kiwifruit industry, a problem to be solved, and a few simple tools from the garage were all that was needed for Brian Watson (Co-Director of Tandarra, with his wife Marie) to build his first rollformer. In the years since, Tandarra Engineering have built a name for themselves as rollforming innovators, consistently striving to improve the safety and efficiency of their rollformers and associated accessories. Composite decking, steel roofing, gutters, fascia, and sectional garage doors are among some of the products that Tandarra offer rollformers and accessories for.
Recently they have also extended their scope into the mining industry. “We’re currently manufacturing a machine for our first mining profile, which is a product called a Rock Bolt. When they blast the tunnels they drill a whole lot of holes in the ceiling and push these bolts up into it, where internal services are hung. This machine will make the 3m long bolts, from material 3mm thick. That’s a new thing for us, which requires a lot of R&D prior to starting the build, because the volume and materials are a lot different.” Brian’s son Lance, General Manager of Tandarra Engineering, explains. Tandarra focusses on making their machines not only efficient, but also safe, and not just for their own employees, but also for those buying their products.
Tandarra have always strived to be a niche manufacturer, providing products that set them apart from their competitors. This means maintaining their reputation for quality products and placing “a strong emphasis on production control”. To achieve this, they keep about 90% of their production in-house. They have recently added an Electrical Engineer to their staff in order to bring all the electrical functions of their production in-house. This will also provide a platform for more R&D work in the electrical space of rollforming. It’s not just their production control and quality that set Tandarra’s products apart and put them in the running for the prestigious grant. Tandarra have a number of products in the pipeline which are aimed at increasing the efficiency, accuracy and safety of rollforming operations and meeting the needs of an increasingly advanced consumer demographic. “We do a lot of new product development. We’ve just finished building a prototype that’s a new style of uncoiler, which increases production efficiency by reducing machine downtime. You can put this behind any kind of rollforming machine, so it has heaps of applications. It’s that sort of stuff we’ve always done to try and set ourselves aside from the competition.” A U T U M N 2 0 1 4 FOCUS ON INNOVATION
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Reducing waste to landfill in East Tamaki
Eight months into GETBA’s Waste Minimisation project, the outlook for East Tamaki is positive. In a waste assessment conducted in 2011, it was found that Auckland sent 1.174 million tonnes of waste to landfill, and based on earlier figures, 84% of this was made up of commercial and industrial waste with 30% attributed to the construction and demolition industries. These figures might seem daunting at first glance, and it is clear that work needs to be done to reduce these percentages, but the good news is that the majority of businesses we have spoken to are keen to make a difference. As the largest commercial/industrial area in Auckland, this is a great place to start! 4
FOCUS ON INNOVATION A U T U M N 2 0 1 4
So, where do you begin? The first step to reducing your waste is to know how much, and what types you are producing with a waste audit. Once you make this assessment, you not only have a better knowledge of how much you are spending on your waste, but you can paint a clearer picture of how to mitigate your waste to landfill by creating a Waste Minimisation Plan, and potentially reducing costs in the process. Here are a couple of examples of how recycling can potentially save you money: • When cardboard is mixed with other materials and sent to landfill it ends up costing a business about $400 per tonne, but when it is recycled it will only cost the business $40 per tonne. • It costs around $1000 to dump a tonne of screwed up paper (in rubbish bags), compared with $40-60 per tonne to recycle flat paper. High waste paper producers (or users) can earn $60-100 per tonne through recycling.
1.174 million tonnes of waste to landfill
84%
from commercial and industrial waste
30%
from construction and demolition industries
It is important to note that with any Waste Minimisation Plan in business, you require the cooperation of all employees. The most effective way to ensure this is if the message comes from the top! Integrating waste minimisation practices as part of daily routine in the workplace is essential for the plan to be successful.
We also have a Waste Minimisation Networking Group on LinkedIn which is an open forum populated by industry professionals and local businesses, where you can ask questions and gain or offer advice about waste minimisation practices.
What can GETBA do to help?
We have had great insight into the gravity of Auckland’s growing landfill problem, and our ongoing consultation with small to large companies in East Tamaki has been very encouraging; so we are committed to assist our local businesses to reduce their waste to landfill.
We have a wide range of useful links and resources on our Waste Minimisation webpage: www.getba.org.nz/wasteminimisation, including a Waste Audit Guide, a Waste Minimisation Plan template, and up-to-date details of our activity in this area. Coming soon on GETBA’s website will be a Waste Minimisation Directory showing you where the nearest waste contractors and transfer stations are located, providing the details of the local representatives for waste contractors so you can make direct contact, and keeping you up to date with any promotions happening in the area.
Where to from here?
We are currently in the final stages of completing our Feasibility Study into Waste Minimisation in East Tamaki, and have
already identified two potential industryspecific waste diversion pilot programmes. We are particularly interested in hearing from anybody in the cabinet/kitchen manufacturing industry that would like to recycle MDF dust and offcuts, and anyone producing or consuming a large quantity of label (release) liner that they would like to recycle. In July this year we have a very exciting ‘Environmental Showcase’ planned at Fisher & Paykel Healthcare. This will be the perfect opportunity for companies of any size to learn how the largest company in East Tamaki has successfully implemented an effective and comprehensive Waste Minimisation Plan, and offer a unique peek into its practical application during a tour of their facility.
If you would like any further info or assistance to reduce your waste to landfill please contact Project Manager Troy Greenfield: project@getba.org.nz – Ph 09 273 6274 We will continue to educate and inform you with current material and activities via events, resources, and consultation, but we are always interested to hear what you are doing in your business. If you have a waste minimisation story or experience that you would like to share, please contact Troy.
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technology
The changing use of technology
Technology at the Business Connections Expo 2014 Join us at our Business Connections Expo Technology Seminars on May 15 and 16 this year and learn tips and tricks and cool new computing tools, how to make your website mobile friendly, and how to ensure your website is optimised for search engines. We will also have a Technology Zone inside the Expo showcasing the latest technology on offer in East Tamaki. ď ľ Go to www.getba.org.nz/ businessconnectionsexpo for further details and a full timetable.
Business friendly apps that help make better use of your time With more than 2.5 million Kiwis using smartphones today there is a high possibility you are one of them. We have highlighted a few business productivity apps recommended to us by our members to help make best use of your phone, and most importantly your time! (All of these apps are free and available on Apple, Android, and Windows 8 platforms)
CamCard
Evernote
Card scanner
Note tool
By far the most popular app among the members we spoke to. This handy little tool allows you to take a photo of a business card, and transfers all the details to your contact list. It also synchronises with your Microsoft Outlook contacts, and will even give you directions to the contact by utilising your internal GPS and Google/Apple maps. A very clever app that saves having to manually enter those important contact details into your phone.
XE Currency tool Chances are you have already used the website in the past. Now this app provides you currency information at your fingertips, with up -to-the-minute details about the stock exchange and foreign exchange rates. A must-have for anyone in import/export industries.
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FOCUS ON INNOVATION A U T U M N 2 0 1 4
Probably the most commonly known note taking tool on the market, Evernote is a great way to store information on the go. You can write notes, take voice notes, and even add photos, and all notes are easily categorised by using hashtags. Evernote also syncs very smoothly with Microsoft Outlook.
CamScanner Portable scanner One of favourites, the CamScanner app gives you all the power of an office scanner on your phone. As the name suggests, it utilises your camera as a scanner, automatically adjusting the contrast of the image and saving it as a pdf attachment. It is particularly useful for signing and returning contracts or other important documents on the go.
The internet is on the move… Over
2.5
million Kiwis own smartphones
90%
of smartphone users have used it to search for a business or service
60%
of smartphone users browse the internet daily
80%
of people use their phone while doing other things such as watching TV
80%
of smartphone users look for local information on their phone and 88% take action as a result
86% of smartphone users notice mobile ads 2/3 only look at the first page of results when
conducting a search on their smartphone
Over
1/2
have performed a search on their smartphone after seeing an offline ad
Nearly a
1/3
of smartphone users have made a purchase on their phone
2/3
of smartphone users use their device in stores, and 1/2 in restaurants
73%
of people who own smartphones don’t leave home without their device
75%
of smartphone owners are so attached to their device they regard it as a body part and feel lost without it
20%
of smartphone users would rather give up their TV than their phone
Almost
Young Businesspeople Group Calling all Gen Y and Z (and even a little X) businesspeople in East Tamaki We have started a Young Businesspeople Group via LinkedIn for the growing number of young and driven business owners, managers and executives in East Tamaki to share ideas and advice, and provide networking opportunities. To join this group go to LinkedIn and search for the ‘Young Businesspeople in East Tamaki’ group, or for more info contact Troy Greenfield, project@getba.org.nz
1/3
of Kiwis own tablets
Laptops are the most popular means of accessing the internet in more than 2/3 of households
1/3
of New Zealand households accessed the internet via a mobile phone,
up 26% since 2009
Over the past three years, the number of households using more than one device to connect has doubled,
from 21% to 40%
... What are you doing to keep up?
Sourced from: 2013 AUT World Internet Project Report Statistics New Zealand Household Use of ICT 2012 survey Google surveys
A U T U M N 2 0 1 4 FOCUS ON INNOVATION
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transport
Where is the East in the East-West Link? On 28 June 2013 Prime Minister John Key announced the Government wanted to speed up the combined AMETI and East-West Link project. “The area between Onehunga, Mt Wellington and East Tamaki is home to a number of industrial and logistics businesses that make a critical contribution to the Auckland and national economy. Many people are employed in the area and there’s considerable growth potential, but the transport links in and out are not up to the job,” said Mr Key. At the time of going to print, Auckland Transport’s website stated: • The focus of work moving forward on the East-West Link programme will be on improving access for freight to and from the state highways in the OnehungaPenrose industrial area. • No new major road links will be progressed on the south side of the Manukau Harbour between SH1 and SH20 for at least the next decade.
What has happened to the connectivity to East Tamaki? The original mandate was to enable easier freight movements between Onehunga, Mt Wellington and East Tamaki. Four options were circulated for consultation. Each of the options included linkages to East Tamaki via AMETI and/or the Highbrook interchange. GETBA held an information session on 7 August 2013 with Auckland Transport speakers and Chris Carr, Roading Spokesperson for National Road Carriers, and made recommendations. The south side of the Manukau Harbour was not one of them. However the need to connect to East Tamaki via Highbrook and AMETI was. GETBA has major concerns at the apparent reduction in the project scope. Yes, there is a need to address, even prioritise, reducing congestion in the Onehunga-Penrose area. However, in the words of Michael Barnett, Chairman of the transport lobby consortium, the Auckland Business Forum, “A partial solution is not acceptable”. Piecemeal solutions are notorious for not delivering over time. There is a need for the full project to be scoped; the ultimate desired outcome to be identified and consulted upon before work commences; and agreed solutions implemented as one rolling project. Be assured we will continue to lobby for the need to connect to AMETI and Highbrook as part of this project - specifically, the upgrade of the Highbrook motorway interchange and Highbrook Drive for freight, and the link with the extension of Gossamer Drive. Without this section it can hardly be called an East-West Link! Contact Jane Tongatule, GETBA General Manager, Ph 09 273 6274
Do you have staff interested in carpooling? Thursday April 10
On , from 10.00am till 2.00pm, at The Crossing in Highbrook, Auckland Transport staff will share information on the benefits of carpooling, how it works, and taking registrations of interest.
5.30pm
Then at at Lighthorse Bar and Kitchen, there is the opportunity to meet other East Tamaki employees interested in carpooling, and learn how to use the Let’s Carpool website. For more information please contact our Project Manager Troy Greenfield – project@getba.org.nz
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FOCUS ON INNOVATION A U T U M N 2 0 1 4
Pre-consultation route map
New public transport network for South Auckland to take effect in 2015 GETBA’s consultation and evidence-based submission results in changes to proposed routes and timetables. Between June and August 2013, GETBA consulted with businesses and employees on the proposed New Public Transport Network for South Auckland. As a result of our consultation and subsequent submission, three of our suggestions will now be adopted in the final Public Transport Network for South Auckland, to be implemented in 2015. Below are maps and descriptions of the changes.
Post-consultation route map
GETBA was one of 1,100 submissions made to Auckland Transport, including three petitions. More than half of the official submissions supported or strongly supported the changes proposed. Around 22% were neutral and 21% opposed the proposals. In conjunction with analysing the submissions, a team of public transport planners drove the routes in buses to clarify issues raised.
The adopted changes: 352 Panmure to Manukau via Highbrook and East Tamaki (both directions) has been amended as per our recommendations. The route will include (all or parts of) Kerwyn Avenue, El Kobar Drive, Pukekiwiriki Place, Lady Ruby Drive, Accent Drive, Te Irirangi Drive, and Ormiston Road. It will be a peak-only weekday service every 20 minutes from 5.00am to 9.00am and 2.00pm to 7.00pm, to incorporate the shift work of many commuters in this area. 353 Manukau to Botany Town Centre via Springs Road, Harris Road and Greenmount Drive will now operate at least every 30 minutes, 7am to 7pm, 7 days a week. Lower frequencies early morning and evenings. 31 Mangere Town Centre to Botany Town Centre via Springs Road and Smales Road will now operate at least every 15 minutes, 7.00am to 7.00pm, 7 days a week. Lower frequencies early morning and evenings. A U T U M N 2 0 1 4 FOCUS ON INNOVATION
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Sustainability
Have you selected your non-domestic wastewater tarrif option Businesses will have received a letter from Watercare in March recommending the optimal pricing plan (of four options) for your business.
The new tariff takes effect from 1 July this year and is being phased in over three years. You can select the pricing plan that best suits your organisation and volume of waste water discharge. You can switch plans once a year if circumstances change and can also choose different plans for different meters if you have more than one. Watercare’s Commercial Manager Marlon Bridge, advises that in the Manukau area, 51% of customers will pay less while 49% will pay more, and of those paying more, 73% will pay an increase of $1000 or less per year. The new Auckland Trade Waste Bylaw 2013 also comes into effect on 1 July 2014, replacing the four current bylaws standardising charges across the Auckland region. For more information about the non-domestic wastewater tariff, visit: www.watercare.co.nz/common-content/billingand-payment/water-and-wastewater-charges For more information about the new trade waste bylaw, visit www.watercare.co.nz/business/trade-waste If you have any queries or concerns please contact GETBA General Manager, Jane Tongatule on Ph 273 6274
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FOCUS ON INNOVATION A U T U M N 2 0 1 4
Quick Change Overs 5S Short Interval Management Visual Factory Root Cause Problem Solving Roles and Responsibilities Alignment
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Green Schneider Electric strives to provide integrated energy solutions which embody these qualities. As global specialists in energy management, helping people make the most of their energy while using less of our planet’s resources is the ethos of Schneider Electric. With operations in more than 100 countries and over 140,000 employees world-wide, they are certainly well positioned to make this vision a reality. Schneider Electric manages electricity from the moment it leaves the power station right through to when it reaches the power point. Their product range is “very diverse” according to Product Manager Adrian Duque, “From low to medium voltage electrical distribution products, automation systems for different industrial, commercial and residential applications, to professional services that deliver total solutions to specific customer needs. Not to mention we have the technical support and expertise to back them up.” Why focus on green and sustainable energy? Holding strong with their company ethos, Schneider Electric firmly believes that renewable energy will play a vital role in future, “We have been in the renewable market for a number of years now, particularly in solar applications. We are also addressing the electric vehicle charging market. We aim to be ahead of the game, always looking forward to what’s coming and being ready when it does” Adrian explains. But it’s not just about the future economy or increasing the bottom line for Schneider
Electric, it’s about corporate social responsibility too, as Adrian points out “When we talk about the energy efficiency, one of Schneider Electric’s commitments would not just be to the stakeholders, but also to the planet and the environment. Being a global leader in energy management, we are very much committed in doing our part to improve our environment not only for us but for the future generations.” In addition to taking their environmental corporate social responsibility seriously, Schneider Electric are striving to ensure their customers are aware of the increasing power factor charges that Vector is implementing on April 1 this year. Power factor is a measure of a site’s electrical efficiency, and the charges were created as a disincentive to sites operating with a power factor below the required threshold of 0.95. The increase in charges from $2.20 to $9.70 per unit (kvar) per month will have a significant effect on many businesses. A company paying around $200 per month will end up paying over $800 starting April, which will be an unwelcome surprise for
those unaware of this hike. “Businesses should inquire with their utility providers if they were not informed or have no knowledge about it” Adrian advises. As part of Schneider Electric’s effort to help their customers deal with the increase in charges, they are offering a solution to improve customers’ power factor to the required threshold (thus minimising the charges) – Power Factor Correction Units, which Adrian describes as “one of the simplest and more effective energy efficiency initiatives a site can utilise”. On Tuesday 18 March at their GETBA Business Showcase, Adrian explained power factor correction and the new charges, using a simple but extremely effective and appealing ‘beer vs froth’ ratio analogy, to a captive gathering of GETBA members. The members also enjoyed the opportunity to tour Schneider Electric’s world-class Head Office in Highbrook, and see for themselves just how serious the global giant is about effective energy management. From daylight harvesting lighting control systems, to visual displays of power monitoring, and even the architectural design of the building from the ground up, Schneider Electric’s state-of-the-art New Zealand Head Office showcases their best and most innovative energysaving products and systems. This building is a physical embodiment of Schneider Electric’s ethos and vision of safe, reliable, efficient, productive and green energy. A U T U M N 2 0 1 4 FOCUS ON I NNOVATION
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Christmas breakfast with PIO TEREI
Breakfast with Auckland MaYOR Photographs by Grant Southam, grant@southam.co.nz
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FOCUS ON INNOVATION A U T U M N 2 0 1 4
Business ownerS forum
BUSINESS SHOWCASE, SCHNEIDER ELECTRIC
A U T U M N 2 0 1 4 FOCUS ON I NNOVATION
13
EVENTs
Selling effectively in today’s economy
you help a prospect discover their own problems – their pain, thus increasing their buying motivation. Pain results in a 400% increase in buying motivation”. Panellist Greg Longstaff, Business Development Manager for the Business Franchise Group, reinforced the need to find the prospect’s pain point. “There is always pain! And rather than sell, help people to buy, and don’t present the price until you have presented the value. Make sure you are talking to the decision maker”. Paul O’Donohue also pointed out the importance of the mindset of the salesperson – “It’s 80% of success. Issues such as the need for approval, self-limiting beliefs, buy-cycle weakness and money weakness can hinder sales performance”. He recommended undertaking their SalesSTAR’s capability assessment on prospective new salespeople to diagnose weaknesses before hiring. Panellist Helen Thompson-Carter, Director of Carter and Associates, also stressed the importance of recruiting the right salespeople, and of aligning the sales process with the business plan and marketing strategy. “Research is critical to the ROI. Identify your target market, identify the tyre kickers to avoid or walk away from, and focus on those with the pain”. She also stressed the importance of having the back end of the business support the sales process, and that while sales is a process, it is also a profession and that salespeople need the courage to be brave. “The person who asks the questions is in control” and “never call on a prospect once if you’re not prepared to go back three times”.
The last GETBA Business Owners Forum looked at how buying behaviours have changed since the global financial crisis and how businesses need to adapt their sales process accordingly. Forum panellist Paul O’Donohue, MD of SalesSTAR.com, noted that “Budgets have shrunk and buyers have become risk averse over the last five years, with 81% of buyers now researching before buying. Salespeople can’t just rely on an existing relationship”. He stressed the need for salespeople to be more savvy, and promoted the consultative selling model, much like a trusted advisor or doctor, asking lots of the right questions before providing a solution. “It’s hard to sell to a happy prospect, someone happy with the status quo, so by asking questions 14
FOCUS ON INNOVATION A U T U M N 2 0 1 4
Next Business Owners Forum:
The business owner, the right person to lead your business?
Businesses go through stages, and you as an owner have to evolve with each stage. This always involves letting go. Hear from our experts about how you’ll know it’s time to evolve, where you are in the business life cycle, and what you have to do to get safely to the next level.
Tues 8 April, 4-6pm Where BNZ Partners Business Centre Level 1, 86 Highbrook Drive Refreshments Beer, wine and pizza To register phone GETBA on 09 273 6274 or email events@getba.org.nz
Book your stand at GETBA’s Business Connections Expo and expand your local market! This B2B Expo will be held over two days, with different exhibitors on each day, to showcase the variety of companies operating in this thriving commercial industrial hub. There will be free seminars on a range of business-related topics and a ‘happy hour’ at the end of each day.
15 - 16 MAY 10.30am - 5pm WAIPUNA CONFERENCE SUITES HIGHBROOK east tamaki
We will promote the Expo to our 2000 local businesses via GETBA’s website, email and newsletters, and publicly via billboard and newspaper advertising. Entry will be free and there will be spot prizes to be won. If you would like to donate a prize contact Roanna – details below. Stands cost $450 + GST each (per day, limited to one day) Each stand is 2.1m wide x 1.8m deep, and constructed with black Velcro receptive walling. For more information or to book your space go to www.getba.org.nz/business-connections-expo-2014 or contact Roanna, events@getba.org.nz, Ph 09 273 6274
A U T U M N 2 0 1 4 FOCUS ON I NNOVATION
15
Crime prevention
Taking responsibility for your valuables There is an increasing trend towards opportunist theft in the work place. Despite the emphasis from various community organisations (Police, GETBA, Botany Crimewatch Patrol, Neighbourhood Support) on the importance of keeping your valuables secure, it appears that the message that we all need to take responsibility for our own valuables, is not being taken seriously. This relates to your vehicle (make sure that there is nothing visible to attract criminals, no matter where it is parked), and your cellphone, wallet, handbag, etc at work. The office desk is not a suitable place for personal items to be placed when it is unoccupied. Nor is the desk drawer or just down beside your feet! Your valuables need to be placed in a locked cupboard or drawer.
Your staff need a safe place to keep their valuables at work It is recommended that all staff be given a locked drawer or cupboard for their valuables (wallet, cellphone, purse etc) when they arrive at work. If there are dry pickings in the GETBA area, word will get around that it is not worth stealing here.
Recent increase in burglaries Reported burglaries in the East Tamaki business precinct doubled in the five months from October 2013 to February 2014. This is of concern. Equally of concern is the trend towards repeat burglaries. Senior Sergeant Pete Kaveney, Area Manager: Youth and Community, Counties Manukau East, reports that a worrying but all too common trend for police in visiting premises that have fallen victim to a burglary, theft or other crim, is the propensity of the offender to re-victimise that property or others close by within the next few months. GETBA and the Police are carrying out Security Audits on local premises to assist you to eliminate crime attractors. Contact Coralee Carr liaison@getba.org.nz or Ph 273 6274 to book your audit.
HELP ERADICATE MOTH VINE! Moth vine is a pest visible on properties in the East Tamaki business precinct. It is an invasive weed able to rapidly smother and replace native vegetation. It flowers from December to March, and green fist-sized pods grow from January. These then burst with thousands of seeds which are carried by the wind and spread across the gulf.
Do your bit and dig it out by the roots or email mothplantlocations@gmail.com
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FOCUS ON INNOVATION A U T U M N 2 0 1 4
Did you know... The Police will make presentations to your staff on safety and security in the home and workplace. Soon after moving into new premises in Highbrook, as part of a safety week, NALCO invited the Police to speak to their staff about safety. Community Constable Darrin Heaven spoke on personal safety, crime prevention in the home, how to prevent handbag snatching and theft from vehicles, and the importance of reporting crime or suspicious behaviour. Bunnings have also had the Police present to their Botany staff and were impressed with how relevant the content was; particularly on how to deal with suspicious behaviour in a safe way, using real examples faced on a daily basis. This is a great way of demonstrating that you are a responsible, caring employer. If you would like to arrange a similar talk to your staff by Police please email Sgt Paul Devane Paul.Devane@police.govt.nz
The Hidden Cost of Crime The value of the goods stolen is often only just the beginning. Other cost factors involved are: • the repairs to damage done to your property • replacing your technology and software (if laptops are stolen)
She went on to comment, “If the goods stolen are of a capital nature, insurance may pay out only at the depreciated book value; meaning your business may face the reality of having to find additional cash to fund the true cost of replacing the lost asset. Check your insurance policy to find out whether assets stolen from your premises be covered at book value, market value or replacement value?”
• upgrading your security system as may be required by your insurance company • higher excesses in the case of multiple break ins and possible increases in premiums Then there is the time and inconvenience involved in: • after hours call outs • waiting for the Police and loss adjustors to attend before full clean up can be undertaken • organising contractors to repair damage • staff reinstating information on laptops / CPU’s (has the back-up been working?)
Does your business have CCTV? To assist the Police in identifying and apprehending offenders, GETBA is collecting information on which businesses in the area have CCTV, either internal or external. In particular, we wish to know where there are cameras which have a view of the road. Please contact Coralee Carr by email liaison@getba.org.nz
• arranging quotes for upgrading security systems Liz Groenewegen, Partner, RSM Prince advises that for manufacturing businesses, insurance claims (apart from attracting an excess charge) usually cover only the manufacturing costs for the loss of stock, but will not cover lost profits. “For products sold with a margin of 50% the lost sales are twice the value of the stock. The time and cost of manufacturing the goods is covered but has been unprofitable – not something a business can afford to have happen too often!”
Some local experiences A Property Manager with an extensive number of properties within the East Tamaki precinct reports that under the current Property Law Act, the cost of glass replacement can no longer be passed on to the tenant (unless specifically covered in a lease agreement). This leads to an owner needing to be careful with their tenant selection by avoiding ‘high risk’ or ‘targeted’ types of businesses. Some bodies corporate have a list of non-approved types of business in their rules, for these reasons. At New Year, a Ti Rakau Drive building owner had stones thrown through his glass doors and the repair required on New Year’s Day cost him $1,200. Over the same holiday period, a large building complex experienced three separate incidents involving window/door/ glass repairs. The total paid out by insurers for these incidents (12 windows in total) was $7,500 with an additional $1,000 paid in excesses by unit owners. A U T U M N 2 0 1 4 FOCUS ON I NNOVATION
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The universal unique identifier for businesses If you’ve looked at your Companies Office registration since December 2013 you’ll have seen that (without having to do anything) your company now has a 13 digit New Zealand Business Number (NZBN) as well as its usual company registration number. The Companies Office allocated the NZBN to all New Zealand companies as part of the Government’s Better Public Services programme. Ultimately, the NZBN system is designed to apply to all businesses and government agencies and assist them in interacting efficiently, although currently the NZBN only applies to limited liability companies. The 13 digit NZBN is derived from GSI NZ, a not-for-profit organisation. The Government has purchased 10 million Global Position Numbers using the GS1 global number standards for issue by it, not by GSI NZ. The NZBN primarily identifies the business or entity. When used for New Zealand limited liability companies the first two digits are 94, identifying the company as a New Zealand entity, the next ten digits are the business entity id and the last digit is a system check. Looking ahead, the rationale for the NZBN is to remove the need for New Zealand business entities to have separate accounts with Government agencies so that across their data bases the
business will have a common identifier. As a company updates its details for the purposes of one data base it will automatically update other Government data bases. The NZBN is a first step in that direction but is limited. Taking the IRD as an example, the NZBN only applies to companies not other business taxpayers and it does not replace IRD, GST and ACC numbers. Globalisation is forcing an extension of information sharing between Government departments and agencies in New Zealand and internationally. With the continuing expansion of electronic communications across all media, this trend can only continue, with the NZBN being simply the first step towards one number fitting all business operators whatever entity or form that they may use.
Public Consultation Around half of New Zealand businesses are sole traders, partnerships and trusts. Legislative change is needed to extend the NZBN to these other entities. Some of the questions the Government is seeking feedback on include: • Companies already have an NZBN. Who else should have one? • What information should be public? Why? • What should happen to the NZBN if a business is sold? • Are there reasons why NZBN information should not automatically be available to government agencies you deal with?
Consultation opens on 11 March 2014 and closes at 5.00pm Friday, 11 April 2014. Go to http://www.mbie.govt.nz/what-we-do/better-public-services/nzbn/nzbn-consultation For more information on this see the Companies Office website, www.business.govt/companies, the Ministry of Business, Innovation & Employment website, www.mbie.govt.nz and the GS1New Zealand website, www.gs1nz.org.nz Richard Osborne, Consultant Wynyard Wood Lawyers and Notary 18
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Did you know... That there is a fantastic online resource targeted at assisting small businesses, set up by the Government, and that it’s one of the busiest business-related websites in New Zealand.
There is also information on recruiting and managing staff, tax and reporting, laws and regulations, where to go for grants and advice, and much more, designed to make both day-to-day decision making and long-term planning easier.
Check out business.govt.nz
and complete a quick health check, watch a video or download the popular Mobile Business Toolbox for iPad. The site is fully mobile-friendly recognising that more business people are accessing the internet via mobile devices.
Some of tools an the interactive at your fid resources ngertips include: • Quick start bus in ess p bu
siness p lan temp lan and late • 5 ways to increa se your p • 10-ste rofit p busine s s surviva • Charg l plan e-out rate calculato • Break-e r ven calc ulator • Sustain able bus iness mo • Types del of IP pro tection in • Introd fographic uction to raising c • Assess apital your fina ncial hea • Assess lth your tax health • Assess the healt h of you • Assess r marketi if you ar ng e r e ady to sta • Prepar rt exporti ing an em ng ergency • Busine plan ss Toolb ox from • ONEC Statistics heck wh New Zea ic h allows land compan you to se y name, arch domain tradema name, an rk all in o d ne go
A U T U M N 2 0 1 4 FOCUS ON I NNOVATION
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CoMMUNITY
Otara Lake and Waterway Restoration Project Concerned stakeholders are banding together to plan a restoration project requiring a collaborative approach. There is an opportunity for both businesses and the community to leverage off this project to enhance land and amenity value. The Otara Lake and Waterway is a tributary of the Tamaki River and a tidal inlet of the Waitemata Harbour. The lake was formed in 1968 by the construction of a weir at
the head of Otara waterways (Highbrook bridge) where it meets the Tamaki River. The weir was designed to provide a source of cooling water for the power station on the southern bank. Otara Lake covers 50 hectares at the head of waterways, which then extend a further 2.5kms inland, reaching into the heart of residential and commercial Otara and East Tamaki. The waterways serve a catchment of 3500 hectares which has been among the fastest growing urban areas in New Zealand, both residentially and commercially. Studies record that the Otara Lake and Waterway is polluted and the silt and mud build up is contaminated with heavy
metals. Six decades of damage will take time to repair but the Otara-Papatoetoe Local Board is driving a multi stakeholder effort to remediate the Lake and Waterway. A visioning document has been prepared by Manukau Institute of Technology Visual Arts students showing what could be possible through the eyes of young people. UNITEC landscaping students will advance this work. Meanwhile a steering group of key stakeholders will progress the development, funding options and staged implementation of a co-developed strategic action plan. GETBA is participating on the steering group and invites interest and support for this project from local businesses. ď ľ Please contact GETBA General Manager Jane Tongatule on Ph 09 273 6274 or Sam Noon, Principal Policy Analyst, Community Policy and Planning, Auckland Council on Ph 09 261 8694
Source: Golder Associates studies, 2010 and 2011.
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Key to the future of healthcare Alpha Laboratories In February this year, New Zealand’s largest manufacturer of quality health products officially opened their Head Office in our own backyard and has made quite an entrance. New Zealand Prime Minister John Key was present at the grand opening of the new Crooks Road premises to cut the ribbon and formally welcome Alpha Laboratories to East Tamaki.
“What sets us apart is largely the comprehensiveness of the services and products that Alpha can provide. So it’s not only supplements, but all extents, including infant formulas, a range of powder blend formulas, vitamins and minerals, enteric coating, tablets, enzymes and probiotics, herbs and more.” Alpha Laboratories is the manufacturer behind many global brands because it can offer customers the latest equipment and technologies which meet strict New Zealand and international health standard demands with speed and accuracy. “We have a R&D team” Jean explains. “They focus on launching products to the market well before the new trends come in. Our manufacturing technologies are something which we are very proud of, and we have very heavy investment into our manufacturing technology for efficiencies and quality.” While Alpha Laboratories is proudly New Zealand owned and operated, it is very much a global enterprise, with over 80% of its products exported to overseas markets. They have already successfully infiltrated most markets in Australia, Asia, and the Pacific. However, with products that indirectly find a way onto shelves in places like Europe and America, they believe there is still room to expand their global operations. “We feel there are still a lot of opportunities in export markets. We are very focused on catching those export opportunities.”
Providing employment for over 260 people, Alpha Laboratories is rapidly becoming the ‘preferred partner’ in contract manufacturing of oral dose supplements throughout Australasia. The company already has an excellent reputation for meeting the stringent demands of short manufacturing lead-time and high quality products for companies in Australasia, Asia, the Pacific, and many other regions around the world.
How have they achieved this? Two things about this company immediately stand out: a dedication to creating new and innovative technologies and products, and a commitment to providing outstanding customer service through a ‘four pillars’ approach.
Jean Shim, Managing Director of Alpha Laboratories, describes these four vital pillars as speed to market, price, quality, and customer service. “We are really focussing on our long-term performance as a supplier, rather than good performance just to start with. We are really focussing on understanding customer needs and providing them with high quality products at the prices that they feel that they should pay for them.” And it appears that this customer-centric approach is paying off for them. “I must say we receive excellent, almost secondto-none, feedback from customers for our customer service”, Jean says proudly. Rowland Ong, Quality Manager, adds that the scope of the products and services that Alpha Laboratories offers also keeps them competitive.
Despite their strengths in the industry, Alpha Laboratories aren’t just focussed on their own success. They want to ensure the industry stays innovative and competitive by always ensuring there are multiple options for their customers. “We think that competition and freedom of choice for the consumer is beneficial. We are here to provide more choices. We want to set a benchmark standard, not just so we can think about competitors, but focus more on trying to sustain the growth in the market for the future” Jean explains. Alpha Laboratories are also hoping to lead the way for other New Zealand exporters to succeed in overseas markets – “We have a very good environment and great work ethic here in New Zealand, it would be good to raise more awareness of New Zealand exporters overseas.” A U T U M N 2 0 1 4 FOCUS ON I NNOVATION
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property update
GETBA submits on the Unitary Plan Submissions to the Unitary Plan closed on 28 February 2014. GETBA, on behalf of, and in consultation with its members, put in a written submission and has asked to be heard.
GETBA’s submission questioned whether the right balance had been struck? There are very few heavy industrial areas left in Auckland – and allowing some air emissions from these areas is important to their ongoing economic vitality. This is especially the case when vehicle emissions and those from domestic fires largely continue unchecked.
Activities in industrial zones The Unitary Plan sets out what activities are allowed in light and heavy industrial zones and what restrictions may be placed on them. One concern is that heavy industrial zones, in particular, have come under pressure in recent years to accommodate ‘non-industrial’ activities, such as churches, schools and child-care centres.
There were several issues facing businesses based in East Tamaki that were important to make a submission on. Some of these are:
Electricity transmission corridors The Unitary Plan proposes Electricity Transmission Corridors to prevent risks to people and property, protect the transmission network and preserve line access for maintenance. But businesses under the corridor in East Tamaki also face a number of restrictions.
warranted across heavy industrial areas and should be removed altogether from the plan and the planning maps in these areas.
Air quality The Unitary Plan proposes restrictions on activities in heavy industrial areas - to improve air quality. A hybrid approach is being taken. This involves an assessment of a heavy industry zone and the application of a combination of buffers extending into and out of the zone, depending on the proximity of the zone to other areas containing sensitive activities (such as residential areas).
This pressure will only increase as Auckland intensifies and land becomes more scarce. But once these ‘non-industrial’ activities establish in these zones, they put pressure on genuine industrial businesses through traffic, parking and their sensitivity to industrial noise, emissions and hazardous materials. Along with other industrial areas, GETBA believed the better approach is to prohibit or restrict ‘non-industrial’ activities from heavy and light industrial zones.
So, what now? It is understood that tens of thousands of submissions have been made. The Council is now beginning the process of considering those submissions, with the first step being preparation of a ‘Summary of Submissions’ report (expected before mid-year) which will be publicly notified, marking the start of a further submission period, following which the ‘hearings’ phase will begin for submitters who have asked to be heard. Hearings are expected to take place during 2015 and 2016.
GETBA’s submission raised questions about whether these restrictions are warranted across heavy industrial areas. Compliance with an existing NZECP Electricity Standard is still required and any sensitive activities (such as schools or hospitals) are not allowed in heavy industry zones anyway.
The buffer could be placed within and/ or surrounding the heavy industry zone according to the situation. The buffer may restrict activities up to 500 metres inside the zone. This has the potential to restrict any future air emissions from businesses inside heavy industrial zones.
The GETBA submission advocates that Electricity Transmission Corridors are not
For a copy of GETBA’s full Unitary Plan submission go to www.getba.org.nz/getba-submissions
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Our associate members More than 50 businesses from outside the East Tamaki precinct have chosen to join GETBA as Associate Members. Here are three of them:
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TALK TO local Business
Make some new connections that make a difference to your business. Take this opportunity to meet, talk and even do a deal with locals already doing business in East Tamaki. As New Zealand’s largest industrial precinct there are big prospects right on your doorstep. You’re invited to book space as an exhibitor or simply come along to find information, ideas and valuable new contacts, and to take advantage of the free seminar programme and happy hour hospitality. If that sounds good, let’s talk.
free entry free seminars free connections! more info on getba.org.nz
15 - 16 MAY
WAIPUNA CONFERENCE SUITES HIGHBROOK. EAST TAMAKI