Focus Winter 2017 by Business East Tamaki

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 usin e ss co mmu n it y

3 WHATâ&#x20AC;&#x2122;S YOUR CONTINUITY PLAN? 4 ROLLING WITH THE PUNCHES 6 BUILD RESILIENCE AT WORK 8 EMERGENCY READY 12 SHUT HAPPENS! 20 THE GENERATIONAL BALANCING ACT 24 PROPERTY UPDATE

ON BUSINESS RESILIENCE

WINTER 2017

From the Chair

Editor: Jane Tongatule E gm@getba.org.nz Advertising: E events@getba.org.nz PO Box 58260 Botany Auckland 2163 P 09 273 6274

getba.org.nz

Upcoming events

14 July Breakfast with Deputy Prime Minister Hon Paula Bennett 9 August People Essentials: Performance Appraisals 17 August Business Owners Forum: Youth employment – the attitude gap 6 September Business Showcase: Hosted by Nautech Electronics 13 September People Essentials: Engaging and Rewarding your Team 27 September GETBA Annual General Meeting

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Welcome to the Winter issue of GETBA Focus for 2017. As we count down the days to the September election, the main economic fundamentals remain pretty much unchanged, which means that the NZ economy will remain in good shape for some time yet. With Auckland growing at what some consider an alarming rate, the major issues of transport, infrastructure and housing affordability are affecting every business. It is a real concern that there is no big picture plan, only tinkering. It is nearly 60 years since the harbour bridge opening, with no plan for a second harbour crossing. We need a rail system that can move large numbers in and out of Auckland central, and the airport as many other cities have, with an efficient rail network linking Auckland, Hamilton and Tauranga. Continued reliance on an improved road network is not a long-term solution on its own, but it will certainly help. The recent very high immigration has rapidly highlighted the many years of underspend on transport and infrastructure and catch-up is going to be very expensive and take considerable time. On a more positive note, New Zealand business is at the forefront of being digitally engaged, with IT being an essential component of every business nowadays, big or small. Whilst this rapid adoption of new technologies provides many obvious benefits to the business, it does at the same time make us totally reliant on technology and the required expertise around that, and we need the support and back-up when the system ‘goes down’. Hence, the theme for this issue of Focus is Business Resilience, highlighting the necessity for business interruption planning and corresponding communication when critical technology or other infrastructure services suddenly stop functioning. Here at MiTek, being part of a USA based global corporate, we are required to have a full Business Recovery manual, which is fully updated quarterly. Following the February 2011 devastating Christchurch earthquake, I was very concerned about our 12 staff and their families. Thanks to the Business Recovery manual containing regularly updated staff contact details, I was able to contact them all by late evening and establish thankfully that there were no injuries, although two houses were damaged. Read on for information on how best to prepare your business for ‘an unplanned event’, links to resources to assist you with the business continuity process, and we hear from experts in the field. No matter what level of business resilience preparedness your business has, I am sure you will find worthwhile advice and guidance in this issue. As always, please ensure you visit the GETBA website regularly to keep up to date with everything that is happening in East Tamaki – you don’t want to miss out. RICHARD POOLE, CHAIRMAN, GETBA

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WHAT‘S YOUR CONTINUITY PLAN? A natural disaster – earthquake, storm or flood. A server crash or ransomware attack. A fire or power outage. An equipment breakdown or loss of a key client or supplier. A lot of things can happen both inside and outside your business to disrupt your business – indeed disruption and adversity are just harsh facts of life for business. How prepared is your business for a crisis? Do you have a business continuity plan? And how soon would you be able to resume business-as-usual?

In this issue some local businesses share their experiences, specialists provide information and advice on building resilience in your business, and there are links to resources to help you develop your business continuity plan and be prepared. A business continuity plan is designed to protect all your business assets – staff, equipment, facilities, IT systems, your reputation, market-share – everything!

Some considerations when business continuity planning: Be aware of your external environment Unplanned events facing your business are not always natural disasters. Consider sector trends, technology changes, customer buying behaviours, supply chain relationships and potential impacts of world events and money markets. Identify vulnerabilities Identify what your business needs to operate and assess their vulnerability. This might include people, premises, machinery, processes and technology. Make sure your insurance cover is adequate.

Review how you store electronic data Identify what data is critical to your business and ensure it is backed up off site or in the cloud. Consider how you or someone else would access it in the event of a disaster. Communication Ensure you can contact your staff, clients and suppliers if your systems and landline or mobile networks are down. Store contact lists in multiple electronic and nonelectronic forms, and update regularly. Make sure others know where to find this information if the business owner/CEO is not there. Involve your staff Harness the knowledge of your staff in developing your plan so they will understand it and back it when it is in place. Cultivate their problem-solving ability by doing some scenario workshop planning. Talk to your staff about what they and their families would require in a crisis. Test your plan Have a drill so that any shortcomings are identified and addressed before a real emergency. If one of your back-up plans is to work from home, do it for a morning. If you have back-up IT systems, practice a restore.  Go to page 8 for links to more information and resources.

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NAUTECH

Rolling with the punches With 28 years of experience, Nautech Electronics has a longestablished reputation for delivering leading technology solutions. The award-winning company designs, manufactures and exports electronic products and is a long-standing supplier to emergency service organisations and the critical aviation, marine, military and security sectors.

Andrew Turner

Nautech’s first office was Andrew and Alison Turner’s garage in 1989, and they’ve steadily grown the business since. The New Zealand Police were a major customer of Nautech’s for 20 years, with every police car in the country fitted out in their East Tamaki workshop. “We did their research and development, manufactured all the vehicle products and fitted out the entire fleet,” Director Andrew Turner explains. After losing the contract in 2015, Nautech needed to rethink the direction of their business.

For many businesses, losing their biggest client could easily spell disaster and with the Police contract accounting for 35% of Nautech’s turnover, the loss was a blow, but Andrew dusted himself off and made a plan to move forward. “When you suddenly lose a huge chunk of your turnover – we’re talking $5 million plus – the instinctive thing to do is to cut costs and trim staff numbers. We did both, but those two things alone did not compensate for the loss. You can’t increase prices or you won’t remain competitive. We needed to find ways to increase sales and manufacture more efficiently.” In most cases, the bigger the client, the more business resources are tied up managing and processing their requirements, which can potentially lead to other clients receiving less attention. “It can be easy to become complacent with long-standing clients,” Andrew admits.

Product Design and Development Contract Manufacturing Specialised Manufacturing Solutions

Our services include: • Surface Mount Technology • Double sided and Through Hole assembly • Complete Turnkey Solutions • Printed Circuit Board Design • Electronic Circuit Design • Project Management • Software and Firmware • Mechanical Design • Robotic Manufacturing • Automated Optical and X-ray Inspection • Supply Chain Management • Warehousing and Distribution

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your partner of choice for contract manufacturing 120 Cryers Road, East Tamaki, Auckland 2013 Ph: +64 9 273 2001 Fax: +64 9 273 7487 Email: sales@nautech.com Website: www.nautech.com

The first step Andrew took was to ensure that his existing customers were happy, review what services Nautech were providing them and if there was anything else they could offer. In some cases, they found there were opportunites for Nautech to increase the services provided to those customers. “By liaising closely with each client and finding out what we were doing well, what we could do better and how we could potentially work together further, we picked up a lot more business. Pre-existing customers are usually easier to get on board than new ones. They know you and you know them, so it’s just an extension of the relationship.” “We had to become dynamic and think outside the box. There is a lot of competition in the contract manufacturing market but there was a huge amount of work available, and as it turned out there was significantly more business to gain from our clients.” As well as growing their existing customer base, Nautech also focused on driving new business. They had a very small sales team when the Police contract was lost; Andrew says that sales “just happened naturally” through word of mouth and referrals, but now the team had to actively seek out new opportunities. “You’ve got to start at the beginning, which is sales. Without sales, nothing else matters! The first thing we did was hire a Sales and Marketing Manager

who evaluated what we were doing and how we were doing it with a fresh set of eyes. We also introduced a junior-level Business Development role which has now grown into a more senior position to keep growing the business.” Nautech’s excellent reputation in the market led to successfully finding new opportunities. “People don’t want to change providers unless they’ve got good

PRE-EXISTING CUSTOMERS ARE USUALLY EASIER TO GET ON BOARD THAN NEW ONES. reason to. By keeping in touch, if and when they do start to look around, it’s quite easy to get them on board. It might take a year or more, but if people have a reason to change they’ll look elsewhere, and if you’re communicating with them they’re more open to giving you an opportunity.” After reviewing their sales processes, Nautech then went through their manufacturing procedures, assessing how they could become more efficient. “We looked at what we could do better and what we could trim to become leaner. Our focus became centred on improving processes, quality and technology. Our entire organisation has stepped up to a more superior level. Staff are higher skilled, our machinery and technology is world class and our improved automation and processes have resulted in keeping Nautech competitive while giving our customers cost effective, quality product. “You have to look at the business as a whole and review all your processes, which isn’t an overnight thing. It took us more than a year to replace the lost revenue from the Police contract, but we’re a lot more efficient now and a much better company for it.”  nautech.com W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

Build resilience at

Perhaps considering who benefits from your efforts and how they benefit can help here? It is also useful to think about what greater good your work contributes to; a safer environment, education, health outcomes, and/or economic prosperity in the region? Don’t be afraid to think big here, we all contribute in this society and have a choice about how we spend our time.

“YOU’VE GOT A LOT OF CHOICES. IF GETTING OUT OF BED IN THE MORNING IS A CHORE AND YOU’RE NOT SMILING ON A REGULAR BASIS, TRY ANOTHER CHOICE.” Steven D. Woodhull

Feedback

Today’s workplace is challenging, participants may have to survive continual change, illogical decisions, unfair managers, increasing complexity, pressures from home and other everyday stresses. One in five Kiwis struggle with work related stress and one out of 10 are unhappy with their work life balance according to Statistics New Zealand. Resilience has become an essential capability for success. Specifically, workplace resilience; “The capability to manage the everyday stress of work and remain healthy, rebound and learn from unexpected setbacks and prepare for future challenge proactively”, as defined by Kathryn McEwen in her 2016 book Building your Resilience: How to Thrive in a Challenging Job. It’s not just a matter of soldiering on; people need to understand the elements that contribute to building strength and what you can do to ensure you have the resilience not only to survive but to thrive. Implementing small changes in several everyday routines can help build strength. A lot of work has been done in this space and organisational psychologist Kathryn McEwen in conjunction with Dr Peter 6

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Winword have developed a Resilience at Work formula identifying key areas that interrelate, contribute and influence our overall workplace resilience. Key areas are:

Control One of the most important elements in reducing stress is to take back control, become proactive and spend time and energy on things within your control. A very simple technique when you are faced with a worry or stress is to take the following steps: 1) Identify the issue. 2) Determine what is in your control and what is not. 3) If there is something you can do – DO IT! Or if there is nothing you can do accept the situation and let it go. I find the Disney song from Frozen, “Let it go”, a useful mantra here! Keeping things in perspective and focusing on the positive will also help.

If we are going to cope well, having a robust personal and professional network is also essential. We need friends and colleagues we can go to for ideas, to celebrate, to commiserate, to give us feedback and guidance. If you are not getting enough feedback at work, seek it out. Ask for peer reviews, offer thinking up for comment and consider who you can help and support.

Care The final element in building strength is something we all know, look after yourself. This includes eating well, getting enough exercise and sleep and taking time out to relax. A simple walk on the beach or through the bush can do wonders for your wellbeing. There is no magic formula to help you cope with the fires, dragons and other nasty stuff but understanding what makes a resilient employee allows us to recognise what we need to focus on and how we can support those around us. Stress-related illness at work, headaches and panic attacks, and lack of enthusiasm can be all too common, but with a few simple techniques you can build your capacity to cope, feel happier and more in control.

Purpose Another simple technique to build resilience at work is to remind yourself of why you do what you do. Maybe you have a vocation, a passion you have had since childhood, or you may have ended up in a “job” to pay the bills, either way we all need a purpose.

 This article by Julie Kidman was originally published in the June Issue of the EMA magazine Business Plus. Julie is a certified Resilience at Work coach and consultant at Mindstep. Julie@mindstep.co.nz

BEWARE THE ENEMY WITHIN… Ian Forrester and his team at Plan B have always been national specialist Business Continuity solutions providers. Since they set up in the 1990s, they’ve supported New Zealand businesses through three earthquakes in Wellington, three in Christchurch, and a tornado in Auckland. Ian believes they’re the only company in the world who can make this claim. Business Continuity is one of the fastest changing industries in world, and Plan B has adapted and grown with every new demand.

While natural disasters make up only 3% of disruptions to service – commonly in the form of fires, storms and lightning strikes – they can be the most devastating. Plan B has a deserved reputation for success, taking on these significant events and coming through with flying colours. However, as Ian will tell you, it’s not usually external events like these that are the biggest threat to your business operations. “It’s not what’s coming in from outside, the risk is often from your own staff,” he says.

“And what people often forget is that cyber security is a business risk, NOT an IT risk.” Plan B does research. A lot of research. It’s what’s kept them at the top of the game. You just have to look at the Fortune 500 companies as examples. In 1975, on average, 83% of their market value was made up of tangible assets. Today it’s 13%. That’s an almost exact reversal, with the bulk of a company’s worth now intangible. Intangible assets by their very nature are much harder to protect, it takes more than a wall or an electric fence. Intangible assets include our IP, systems, processes, customer information and so

on – and it’s mainly stored electronically. Our use of computers and the internet has driven this change, and businesses have changed the way they operate accordingly. “But the very technology that enables our businesses is now being used to target our businesses,” says Ian. Just look at the recent WannaCry ransomware attack. Staff accidentally clicking on phishing links is far too common. “A classic scam is using the name of a local coffee shop, and making it look like a promotion. “Click here for free coffee!” And bang, your system is compromised.” And it doesn’t happen often, but it can happen – a disgruntled staff member can be bribed to pass on log-in details or steal data. You need to know what to watch out for, and your staff need to know. Building up your human firewall is vitally important. It all comes down to education. What you put in is what you get out. “If you don’t take the time to educate your staff on the risks and spell out the impact of risky actions, you only have yourself to blame,” warns Ian. There are other simple and effective routines to adopt to keep your data and other online assets safe. When a patch or system update comes out, do it. Make sure your anti-virus software is up-to-date. Regularly change your passwords and use dual-factor authentication or log-in tokens for remote access. “And

test your security and business continuity plans,” Says Ian. “And keep testing them! Continuously. There’s a whole new industry in cyber criminals whose day job is to catch you out and hold you to ransom.” Think of guarding against cyber-attack in the same way you think about insuring your house or car. And it doesn’t have to be expensive, but it does need to be the right solution for you. “You have to talk to an expert to get it right,” says Ian. “If you think the price of good advice is expensive, wait until you see the price of bad advice…” Take Ian’s advice and talk to someone today. Check out the GETBA Directory for members who might be able to help you deal with the unexpected, recover and carry on.

Plan B provides a full range of ICT services nationwide from offices in Auckland, Wellington, Hamilton and Christchurch. Plan B’s goal is to be the most recommended ICT provider in NZ. They are proud to be big enough to be meaningful, but small enough to care.

 planb.co.nz 0800 266 846 W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

EMERGENCY READY! Does your business have a business continuity plan? Customers increasingly expect and require high levels and continuity of service – even during a crisis or emergency. The business that can open its doors and keep them open will gain significant competitive advantage over those that can’t. The key to that open door is managing the supply chain, having alternatives and knowing who to turn to when the chips are down. A company’s reputation will benefit from the ability to keep their doors open, from having a quick recovery time and from minimal client disruption. Protecting and supporting staff during times of emergency also makes good business sense. Would your business be able to remain operational during an unexpected event?  Go to resilientbusiness.co.nz for useful information and resources, including a five-minute self-assessment tool, case studies, checklists and templates that you can download free of charge so you can plan for your own business continuity. The information is organised according to business size so that it is relevant to all businesses, from sole traders to SMEs to large organisations.

Does your business have a survival kit? Civil Defence recommends your survival kit enables your business to survive for three days without assistance. • water (3 litres per person per day) • canned non-perishable foods

Tsunami mapping Civil Defence has released tsunami mapping for the region and identified a risk to parts of the GETBA area in the event of a tsunami. Check the overview map on the opposite page, but note that the official CDEM maps and guidelines can be found on the GETBA website:  getba.org.nz/emergency-response-plan

Business recovery planning This example shows the different sections of a sample business recovery plan. There is a drill down within each section and it also identifies the contact person responsible for each.

INDEX CONTACTS: QUICK REFERENCE LIST SECTION 1: UTILITIES 1 2 3 4 5 6 7 8 9 10 11 12

Phone System Power Supply Water Supply Air Conditioning Building Supply/Vendor/Owner Security System Security Provider Building W.O.F Provider Cleaning Company / Contracts IT System – Complete Fire Alarm System Compressed Air Supply

SECTION 2: SUPPLIERS AND SERVICES 1 Freight & Distribution 2 Steel 3 Packaging 4 Powder Coating 5 Purchasing Plan 6 Marketing 7 Insurance 8 Legal

SECTION 3: SCALE OF OUTAGE & RECOVERY PLAN Business Outage Recovery Flowchart 1 Restoration of Utilities – Electricity 2 Restoration of Utilities – Water System 3 Restoration of Utilities – Compressed Air 4 Restoration of Utilities – Phone System 5 Restoration of Utilities – Air Conditioning 6 Restoration of Utilities – Security System 7 Restoration of Utilities – Software Development 8 Restoration of Utilities – Sales & Marketing Department 9 Restoration of Utilities – MD Office Suite 10 Coping with partial loss of facility 11 Coping with temporary total loss of facility 12 Strategy for TOTAL LOSS SECTION 4: RELEVANT INFORMATION 1 2 3 4 5

Staff Phone List Building Maintenance List Building Compliance List Insurance List Compliance Issue Details

Locating your nearest defibrillator AED Locations is a community-orientated volunteer project with a website where individuals can locate the defibrillators in their local area, and who provide signage for display at these sites.

• toilet paper, plastic bags and bucket

In using this website’s data, the user must be aware that the presence of a location on the map does not guarantee:

• first aid kit and essential medicines

• an absolute right to use the AED

• bbq or other means of cooking

• the AED is available for use 24/7

• face and dust masks

• the AED is in full working order

• torch and radio (with spare batteries)

• the location is geographically correct  http://www.civildefence.govt.nz/ get-ready/at-work/

 aedlocations.co.nz

Where to go for more information and resources civildefence.govt.nz aucklandcivildefence.org.nz resilientbusiness.co.nz resorgs.org.nz business.govt.nz/risks-and-operations/ planning-for-the-unexpected-bcp/ emergency-and-continuity-planning/

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TSUNAMI MAPPING CHECK YOUR LOCATION

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TSUNAMI EVACUATION Evacuate via the routes drawn on this map. Follow signed routes where present.

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Walk quickly if possible, drive only if essential. If driving, keep going once you are well outside of all evacuation zones, to allow room for others behind you.

The first waves may not be the largest. Large waves may come after a series of small waves. The largest waves from distant sources may take many hours to arrive.

EVACUATION ZONES Shore exclusion Zone

There may be multiple waves separated by up to an hour, or more.

Evacuation Zone orange

Stay out of evacuation zones until given the official ‘all-clear’.

Evacuation Zone yellow

Stay away from the Red Zone for 24 hours after any tsunami warning, even small waves can be dangerous.

250

500

metres

Warning may also be through siren, telephone, text, loud hailer or other local arrangements. WARNINGS AND RESPONSE In the case of a large earthquake (one it is hard to stand up in), unusual noises from the ocean, or changes in the ocean (e.g. the ocean rushing in or out), or you feel a weak rolling earthquake that lasts for more than a minute. Evacuate all zones. A wave may arrive within minutes or take more than an hour to arrive. Official: Evacuate from the zone(s) stated in the warning and stay out until the official ‘all-clear’

is given. The official warning source is local Civil Defence, and their warnings may come to you via NZ TV/Radio broadcasts, mobile app alerts and emergency services. You may receive warnings from only one, or several sources. Don’t wait.

Natural or informal warning signs: Evacuate all zones

Informal: Warnings from friends or other members of the public may be correct. Consider evacuating from all zones.

Disclaimer: Please note that the margins of evacuation areas are indicative and are not specific to property level.

Verify the warning only once evacuated or on-route if it won’t delay you (via NZ TV/ Radio broadcasts, local Civil Defence and emergency services).

Source: Auckland Council Civil Defence and Emergency Management

Official warning: Evacuate zone(s) stated in warning

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Did you know...

FIRE AND EMERGENCY NEW ZEALAND HELPS BUSINESSES WITH: Your evacuation scheme

Hardening the target

If the building you are in is a “relevant building”, then an evacuation scheme approved by the Fire Service is required for your building to be compliant – and occupied. The owner of the building is responsible for putting this in place and for ensuring things such as trial evacuations (aka fire drills) are held regularly.

Rubbish skips and recycling bins present a welcome target for fire setters, vandals and arsonists and the number of fires we attend at business premises involving these things increases during the peak business months. It is quite easy to reduce the risk of fire at your business by ensuring these bins are emptied regularly, especially over weekends or holidays. Keeping them away from buildings helps prevent fire spreading to your business.

Education for your employees on home fire safety Providing your employees with this in the workplace can not only demonstrate that you are a responsible employer, but can also improve your employees’ safe practices at work. If your employees are safe at home, they can also be safe at work.

Minimising false alarms Unnecessary false fire alarms cost businesses time and money, plus they can take fire engines away from where they are really needed. We can work with you and your fire alarm provider to reduce unwanted false alarms, which helps keep you and the community safe.

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 Fire and Emergency New Zealand can assist you and your businesses with these areas of fire safety and many more. You can find out more about business and home fire safety on fireandemergency.nz or by contacting the Counties-Manukau Fire Risk Management department on 09 262 0868, or emailing phil.faidley@fireandemergency.nz

Notice something different? On 1 July 2017 the New Zealand Fire Service became Fire and Emergency New Zealand – the combination of urban and rural fire services around the country. Over the next few months you will see some changes in our identity – but you can rest assured the service remains the same. Our phone number in an emergency stays the same too:

111

What makes Kiwi business succeed? A great support team helps. The Auckland South East team Mike Anderson Praneeta Chandra-Blake Adam Day Anuradha Datt

Businesses are the backbone of the NZ economy and Kiwibank is committed to helping Kiwi business owners succeed. They’ve made a huge investment in people with the knowledge and skills to help. As Mike from the Auckland South East team says "Business owners work so hard, many of them never feel on top of things – to add to the pressure, they have families and employees all relying on them to succeed. Taking some of the pressure off to allow them to spend less time on banking and more time on their business is something we can do." Given their desire to help Kiwi business owners feel the joy of independence, the Kiwibank Business Banking team is a highly motivated bunch. "When you get to come to work every day and do something you really believe in, that’s not a bad place to be." points out Praneeta . As well as creating business products and services specifically for the New Zealand market, like Fetch™ payment solutions and accounting software integration, Kiwibank has built a Business Banking team with a huge depth of experience. You’ll find specialists in areas such as Asset Finance, Working Capital, Merchant Services, Foreign Exchange, International Trade and more. With 120 Business Banking specialists across the country, 14 Business Banking Centres and a New Zealand-based Contact Centre, the Kiwibank team are well resourced to help local businesses succeed.

To find out more about how Kiwibank can help your business, call them on 09 272 2458 or visit 60 Highbrook Drive, East Tamaki.

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SHUT HAPPENS!

Repeated power outages in recent months have severely affected more than 20 local businesses in lower Lady Ruby Drive and despite their best efforts, the business owners were unable to get any assurance from Vector that the underlying cause would be looked at. GETBA advocated on behalf of these businesses and the outcome has been the recent installation of a new cable and equipment which will provide backup power to the area in the future. Consultative meetings were held between GETBA, Vector, Northpower and two of the business owners significantly affected by the outages. Here we have the stories of two of the affected business owners.

Outages halt business: Mr Blinds Local company Mr Blinds manufactures blinds for the domestic and commercial market and has recently suffered the pain of taking electricity for granted. “The first outage took us by surprise,” Mr Blinds 12

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Director, Anthony Katavich explained. “It took a few hours for the electricity company to arrive so I had to think how best to utilise the team.” Anthony’s factory staff carried out some routine tasks but with power still not restored they were sent home resulting in the loss of a full day’s production. “Just a few days previously we had started working from a new offsite server which meant we could access our files remotely. This meant one of our team could work from home and we re-directed the phone to their mobile.” Because most of their sales enquiries come via phone or email this was manageable, “…but one person can only do so much; and if I ever go through to voicemail, I hang up, so it’s possible our sales were adversely affected.”

Power was subsequently restored but the following day brought more unwelcome news. “We were advised that the three-phase power connection was still down. Most of our machinery runs on three-phase power so we had to shut the factory down. Single-phase power was working so the office staff could work but our production line was again interrupted.” Anthony did consider installing a backup generator but this would not support threephase power and so decided against it. “A generator would keep the office going but considering the associated costs and the ability of the office team to work from home, it wasn’t worth it.” April saw another significant outage. “By then we knew the drill! Staff stayed until lunchtime and then I sent them home. All together I’ve probably lost about $7000 in combined loss of sales and salaries cost.“ We asked Anthony what is being done to prevent further outages. “Thankfully a device has just been installed which will activate a second electricity line should the first one fail, so the risk of similar outages

is much lower. We are really pleased this was done so quickly and GETBA played a big part in that by advocating for us. I doubt it would have happened so soon, or indeed at all, without GETBA’s intervention.” The second stage which involved replacing the faulty cable has also been completed. In terms of learning from his experience, Anthony says knowing how to utilise your team during an unplanned event is important. “It’s a costly exercise; you’re still paying wages whilst losing production time – so maintaining some productivity is essential. For our office staff, it’s important to have things such as a spare laptop and charger set up at home and being able to login quickly. Documenting processes like how to switch the phones across has also become vital.”

As Anthony says, the reality of running a small business is that you deal with problems every day: “Issues arise and you sort them.” However, this difficult experience has left them better equipped to manage any future interruptions to their day-to-day business.

Lack of power highlights business continuity: Seal House Matt Cook, General Manager at Seal House, said his business has also experienced repeated power outages, since moving to their Lady Ruby Drive site in 2008. “It’s impossible to continue business as usual during the outages.

We can divert some calls but this isn’t ideal as we receive a large number each day and we cannot run our machinery, so production stops.” Seal House manufactures technical sealing solutions for light and heavy industry and also for commercial and domestic applications. “During power outages we can do some counter trading but most of the team have to be sent home.” Matt explains, “The crux of the problem was the ongoing nature of the same issue which is testament to the age of the electrical wiring.” At one point, Seal House experienced so many regular outages over the course of three days, Matt had the building rewired so they could install a generator. The cost of doing this was significant, “but that way, we could at least have our phones and computers working, and because we are priority listed, the generator kicks in within 90 minutes. Even with our new ‘Plan B’ it didn’t solve the manufacturing issue.” Three-phase power is required for manufacturing and the generator cannot provide this. Matt says, “I guess part of being in business is having these contingencies in place, but hopefully now with a second power line installed, our power outage problems are behind us.”

 Is a regulatory issue impacting on your business? GETBA can troubleshoot on your behalf with Auckland Council and infrastructure providers. Contact Karen Hadley on 273 6274 or operations@getba.org.nz

Vector Outages App We encourage you to register on the Vector Outages App which allows you to see where planned & unplanned outages are occuring on Vector’s networks. You can also subscribe to updates and bookmark important addresses to get a push notification if there is an outage at or near your address.  https://www.vector.co.nz/ personal/outages/outage-app

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BREAKFAST WITH RETIREMENT COMMISSIONER DIANE MAXWELL

Photographs by Grant Southam, grant@southam.co.nz

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PROPERTY OWNERS FORUM

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CRIME PREVENTION

PROFESSIONAL SECURITY HELPS BUILD RESILIENCE

Deciding to get a professional security presence is often something that businesses put off until the worst happens. However, alongside reduced insurance premiums there are other business benefits.

A good employer – health and safety Using the services of a security company means that your staff are less at risk and you can make fewer demands on them. Do you really want your staff working alone out of hours or turning up to an alarm activation? It’s much safer for the responder to be a professionally trained security officer. Some security companies offer a service where a guard ensures staff working late alone leave the premises safely and is on hand for any concerns, providing peace of mind for both you and your employees. Panic alarms are another option for those working alone, which can also be used by contractors and cleaners. For managers that travel or work long hours, delegating the responsibility of securing business premises after every 16

FOCUS ON BUSINESS RESILIENCE W I N T E R 2 0 1 7

alarm disturbance can be a great help, plus it reduces risk to personal safety. Timeliness and convenience also come into play as depending on your location a security guard may be able to act more quickly, or the disturbance may be a false alarm. Emergency or not, having that immediate professional assistance can be invaluable when seconds count and it can help prevent further damage or theft.

Asset management – internal losses eat into profit! Consider the cost benefit of analysing and reducing internal losses rather than factoring them into acceptable profit write-offs. Look within your business.

It may be an uncomfortable truth, but looking at internal factors can sometimes lead to uncovering criminal activity, and having a professional security plan in place can enable you to identify the source of losses such as internal pilfering. One local company experienced a reduction in internal theft when their security company began undertaking random checks whilst staff were at work. Another neglected to change security codes after a disgruntled employee left and suffered subsequent theft. It’s human nature to trust, but this isn’t always in the best interests of your business.

The hidden cost of crime THE VALUE OF THE GOODS STOLEN IS OFTEN ONLY JUST THE BEGINNING.

Visible security presence – benefits the area as a whole Nowadays, sound security means more than just installing an alarm system, and without a response plan in place they provide inadequate cover. Advancements in technology have come on in leaps and bounds over the last few years, but having a human security presence is the only way to go for those businesses who not only want to protect their business and assets, but their staff too. With a monitored alarm system including response plan, plus regular patrols of your company premises, you display a consistent and visible security presence.

Security companies provide support for the Police Local Police agree that the presence of security companies in the business community contributes to general safety and security for everyone. Local security companies are familiar with the region and look out for suspicious behaviour across the precinct, so the benefit is widespread. GETBA’s Security Managers Network meets monthly together with local Police and loss prevention managers from larger East Tamaki companies, sharing intelligence and best practice in the combined effort to reduce crime within our business precinct.

Crunching the numbers When choosing a security provider, consider your own capabilities and expectations. Whilst price is undoubtedly a consideration, think about the potential loss to your business, personal cost to your staff and impact on your company reputation by not taking adequate measures.

Other cost factors

involved are:

• the repairs to damage done to your property • replacing your technology and software (if laptops stolen) • 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?) • arranging quotes for upgrading security systems Liz Groenewegen, Managing Partner, RSM New Zealand 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 50.0% 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!” 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 – will assets stolen from your premises be covered at book value, market value or replacement value?”

W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

CRIME PREVENTION RESOURCES Build resilience into your business by tapping into the wide range of crime prevention resources available to you from GETBA.

ISSUE: Number plate theft SOLUTION: Replace with tamper-proof number plate screws  If you would like us to come and replace your staff’s number plate screws with tamper-proof ones free of charge, call 273 6274 to book a site visit.

nnion tive!” Sarah Ma great initia a r fo ) A B . (GET Shared this ciation Inc o s s A s s e ki Busin East Tama r te a re G “Thanks Flexi cardsand , e s ri e th r site eft on r visiting ou er plate th With numbto thank GETBA for mber plate screws fo u e n k li r gula would our staffs re swapping of screws. tamper pro

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

FOCUS ON BUSINESS RESILIENCE W I N T E R 2 0 1 7

ISSUE: Bikes targeted SOLUTION: D locks – Discount for GETBA members Police are concerned at the increasing number of bike thefts and are encouraging cyclists to invest in a D lock that can’t be easily cut by bolt cutters. Local supplier Prestige Bicycle Repairs have arranged a Special Offer for members:

ISSUE: Staff / customer vehicles being broken into

ISSUE: Cash registers targeted by thieves

SOLUTION: Lock vehicles and hide valuables

SOLUTION: No Cash on Premises

Remove everything from view inside your vehicle and lock it securely. Stow valuables in boot of vehicle.

Lock vehicles 锁好车辆

Hide valuables 隐藏贵重物品 Making East Tamaki safer 使 East Tamaki 更安全

Put up these signs at entry points and in car parks to remind your staff and customers.

Empty the till at the end of each working day and sit it on the counter in full view to show it is obviously empty.

No cash or valuables kept oN these premises

• Abus 420 Ultimate D-Lock, 14mm high tempered steel with a high security rating. RRP $120, buy for $89.95 • Bontrager Kryptonite D-Lock, had a medium to high security rating. RRP $49.95, buy for $39.95  To take advantage of these great deals, call Paul on 09 265 2889

getba Greater East Tamaki Business Association Inc.

Place ‘No Cash on Premises’ sign at entry points.  Contact GETBA on 273 6274 to request one of these signs for your premises.

More online resources and advice can be found on the GETBA website

getba.org.nz

Proudly supporting

W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

EVENTS

THE GENERATIONAL BALANCING ACT What does one generation owe the next, and who should pay for what?

Today there are close to 700,000 New Zealanders over the age of 65. By the middle of this century that figure will almost double. Demographic changes will leave us with fewer people of working age supporting a larger group of retirees, and an older population will present higher health costs. The biggest increase in crown expenses last year was NZ Super at $700 million, followed by health at $600 million. The cost of NZ Super is growing faster than GDP. Today NZ Super costs $30 million a day. In 20 years, it will rise to $98 million a day. How will we continue to fund NZ Super and what can we do about lifting the financial capability of all New Zealanders?

These are issues facing us all, but which Diane Maxwell in particular is grappling with, in her role as Retirement Commissioner. Diane gave a frank and thought-provoking talk to GETBA members at our May Breakfast. She leads the Commission for Financial Capability, which is best known for the Sorted website, but has been gaining attention recently for its work around our ageing population and how we can pay for it. The Commission is an autonomous Crown entity, not a core Government agency. As such the Commissioner reports to Government but is independent. This independence of Government is admired 20

FOCUS ON BUSINESS RESILIENCE W I N T E R 2 0 1 7

globally and other countries are keen to tap into the concept. In addition to building financial capability the Commissioner reviews and makes recommendations to the Government on changes to retirement income policies every three years. Being independent means Diane is able to look at the facts and numbers and say it how she sees it. The most recent retirement income policy review was in 2016 after her team had travelled around the country getting New Zealanders thinking and talking about the future. They discovered misconceptions that many New Zealanders have – about

Kiwisaver for example, and so Diane’s keen to invest in raising the level of financial understanding, especially of people in their fifties and sixties who have less time to prepare for retirement. She pointed out that all people don’t reach 65 in the same shape physically or financially – life in the form of relationship break-ups, failed businesses, children can get in the way. As the mother of two children Diane shares the concerns of other parents and grandparents over the new challenges that are facing young people at a time when debt levels are high and home ownership is declining – factors that can have a worrying effect on retirement. She wants New Zealanders to be equipped with the facts when it comes to considering the issues of intergenerational equity – what

Sorted workplace programmes These are 4-10 week programmes where facilitators cover a number of topics each week. The off-the-shelf programme is designed to get staff up to speed with personal finance and money management. The Commission can also tailor the programmes to the unique needs of a business. The programmes are priced to cover operating costs (approx. $3,350 + GST for a 4-week programme to up to $6,000 + GST for a 10-week course) and can cater for 20-30 staff. Another option is to download the Sorted seminars that are available free, for you to use and deliver to your team. Each seminar includes a comprehensive facilitator’s guide and presentation.  To find out more about these programmes, go to cffc.org.nz/financial-capability/workplace-programmes/

BUILDING FINANCIAL RESILIENCE enableMe (financial personal trainers) Director Dianne Barlow was inspired by the Retirement Commissioner’s talk and prepared this article.

Diane Maxwell, Retirement Commissionner

one generation owes the next, and who should pay for what. Diane’s goal as Commissioner is to build the financial capability of New Zealanders of all ages, with an emphasis on low income and vulnerable groups, as well as an increased focus on young people. In schools, they are teaching children about managing debt and savings, using digital resources. More than $10 million of funding across four years has been announced in Budget 2017 to improve financial capability in schools. The Sorted Schools programme will aim to reach over 93,000 students from 352 schools a year, with 34,000 teachers expected to use the resources, training and professional development opportunities that will be offered. The Commission is increasing its work in community-based programmes, focusing on vulnerable communities where financial capability is low and predatory lenders are active. The community programmes aim to give people confidence around money. They cover the value of having a buffer, managing money, saving and financial planning, and the hidden costs of credit and debt. The Commission also have financial capability programmes for the workplace. People who are coping financially also tend to enjoy better wellbeing, which has knock-on effects on productivity and reduced absenteeism.  cffc.org.nz

The Commissioner spoke about the importance of financial wellbeing and the need for us to change our poor behaviour around money. Her message particularly resonates with me because this is what we at enableMe teach our clients daily. We believe financial success is being in control, with a plan, living a life you enjoy and getting ahead with retirement sorted - ie knowing how much money is needed to fund your lifestyle, whether there is currently a shortfall and having a strategy to bridge that gap. We find that people generally don’t have a plan for their financial situation, no real goals, it’s all a bit hit and miss. They are also usually unaware of their capabilities and many are financially stressed, which impacts on our self-esteem, our wellbeing, and our relationships. What many business owners don’t know, is that financial stress is not only unpleasant for themselves, it’s also detrimental to their business if their staff are financially unfit. The fact is that 45% of employees are saying that financial matters cause them the most stress in their lives. Financial stress hurts your employees’ productivity, performance, and morale.

finances and to make good financial decisions resulting in financial progress and less stress on a week by week basis. The rules, in a nutshell, are: • Knowing your and your partner’s money personality type This helps you understand why some people find it easier to spend than save. Personality types are: Shoppers – they get emotional satisfaction from spending, Savers – often feel guilty about spending or Plodders – don’t really spend money but they don’t have much progress to show for it. • Identifying the fritter factor People tend to fritter about 15% of their income on things that don’t make them any happier and, it’s not only the dollar they waste, it’s the opportunity cost of that frittered dollar – for every $1 frittered this equals to $3 of lost progress. Capture this fritter and use it to pay off debt. • Cash is king To make financial progress you need to have an annual cash surplus so that you can pay off your mortgage and prepare for retirement. You also need a buffer, if you are living pay-day to pay-day you won’t be able to cope if a bad curve ball comes your way, and these are invariably part of life.

With education and guidance, they could all be doing so much better and enjoying their lives more as a result.

The message of financial wellbeing is something everyone needs to hear and as Diane Maxwell said it is vital for us to prepare for retirement especially as our population is aging and National Superannuation will need to change in the future accordingly.

These basic money rules are the start to helping people get in control of their

 enableme.co.nz

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Link Business Broking Ltd (Licensed REAA08)

W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

WASTE MINIMISATION

ADOPT A SP T An opportunity for business to support our local community

pollution. The approach towards resolving these issues takes a top of catchment approach, needing to ‘turn the contaminant taps off’ at the top of the catchment, in conjunction with a process of re-connecting the community to the waterway. ¯ To help re-engage and empower the Otara community to take care of their local streams, the Trust has started a project called Adopt a Spot which provides resources and support to groups of neighbours and/or community groups to care for and restore sections of their local creek. The aim being to increase the pride and sense of ownership people have with the local waterways and provide important biodiversity and water quality improvements. Adopt a Spot groups are provided with plants and equipment, Growsafe training, assistance from contractors for specialized weed control and support from the Adopt a Spot Coordinator to help each group plan their project.

¯ GETBA has been working with the Otara Waterways and Lake Trust to help achieve the Trust’s vision of restoring the mauri of ¯ the Otara Waterways and Lake and the connection and pride people have with these waterways.

through the Flat Bush area and suburbs ¯ of Otara and East Tamaki (which includes the GETBA area). The creeks and streams ¯ finally merge into the Otara Creek, which ¯ flows into Otara Lake, then into the Tamaki River and out into the Hauraki Gulf.

A Million Metres Streams Project has been started to raise $31,500 needed to restore ¯ 630metres of the Otara Creek that has been adopted. These Adopt a Spot projects represent a local community that is getting engaged and creating positive change for the creek that is right in their ‘backyard’. ¯ GETBA hopes you’ll join the Otara

Don’t be fooled by the name. The creeks ¯ and streams of the Otara catchment start at the top of Redoubt Road, running

The 870 hectare catchment is predominantly urban, and the lake and its waterways have been impacted by years of urban run-off and

Waterways and Lake Trust and the Adopt a Spot groups in helping to restore this special area.

If you or your business would like to find out more or to support this project please visit the project page at millionmetres.org.nz Donations can be made either per metre of creek to be planted or your business could sponsor one of the groups, provide in-kind sponsorship or maybe would like to volunteer to help.  For information about the Adopt a Spot Groups contact Katie Jones katie.jones@aucklandcouncil.govt or for information about the Million Metres programme contact the Sustainable Business Network on 09 826 0394

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GETBA RECYCLING DIRECTORY:

PASS IT ON!

What can you divert from landfill?

Finding new life for used items A reminder of the ‘Pass it On’ web facility, which enables GETBA members to submit unsaleable items, seconds, used electronic equipment or appliances, useful manufacturing by-products, or any other items that are clogging up your workplace!

Check out GETBA’s go-to guide to find out if, how and where you can recycle the waste materials created in your business.

The submission process is easy; an electronic form on the ‘Pass it On’ webpage will prompt you to fill out your contact details, along with a title and description of the items you are submitting, and any photos you may have to support your listing.

RECYCLING DIRECTORY

Once your submission has been approved, we will post it to our ‘Pass it on’ webpage, and contact local charities and community groups to let them know items have been posted.

A practical directory to help you find where to dispose of recyclable waste

getba.org.nz/waste-minimisationrecycling-directory

Free plastic recycling at East Tamaki Recycling Station

Cryers

You can also recycle glass bottles and aluminium cans free of charge, but all items must be cleaned, sorted and separated. The site also offers a fee paying recycle service for batteries, cardboard and green waste.

Waste MiniM isatio etba.org.n n z

 project@g  getba.org

.nz/waste



-minimisa

tion

Waste Min

imisation

getba Greater Business East Tamaki Associat ion Inc.

Network

East Tam place to aki - a great do busines s

P 09 274 5287 wastedisposalservices.co.nz

Monday to Saturday: 7.30am to 4pm Sunday: 9am to 3pm

East Ta Trans maki fer St ation 33 Ne ales R d

Harris

This includes milk, juice and water bottles, yogurt and margarine tubs, flexible container lids, plastic bags, and industrial shrink wrap.

ente

East Tamaki Recycling Station 33 Neales Road, East Tamaki

Carp

A reminder that you can dispose of type 2 (HDPE) & type 4 (LDPE) plastics at the East Tamaki Transfer Station (NB there is now a more robust cage).

r Rd

Supported by Astron Plastics

 To use this free plastic recycling facility you must pick up a Waste Minimisation Card from the GETBA office, or contact Karen Hadley, GETBA Operations Manager on 09 273 6274 or email operations@getba.org.nz

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World’s Largest Business Brokerage linkbusiness.co.nz

Link Business Broking Ltd (Licensed REAA08)

W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

PROPERTY UPDATE Auckland Industrial market remains strong evidenced by record low vacancy rates.

AUCKLAND INDUSTRIAL PRIME YIELDS

Auckland’s industrial market remains strong with overall vacancy rates the lowest in 20 years, a new survey conducted by Colliers International Research team reveals.

8.0%

The survey reveals that the strength in the overall Auckland market continues with 2.1% overall vacancy, the lowest on record since the survey began over 20 years ago.

6.5%

In the last six months, the Auckland prime vacancy rate has declined from 1.7% to 1.4%, and secondary from 2.6% to 2.3%. For East Tamaki particularly, the overall vacancy rate is 2.4%, below the area’s 10 year average of 3.4%. The average prime vacancy rate for the area is 1.8%. Jolyon Thomson, Director of Industrial Sales and Leasing for Colliers International’s Highbrook office says the area’s strength in the market is evidenced by the team’s two recent March sales. “An older building of some 3500 sqm at 9 Bostock Place, East Tamaki has sold on the market for $5,650,000 by Greg Goldfinch and Paul Higgins of Colliers International, representing a yield of 6.9%,” he says. “Steady rental returns from a quality longterm tenant made this older warehouse an attractive opportunity for investors. The property offered a versatile warehouse, tidy offices and drive-through access.”

Colliers Highbrook-based industrial team

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8.5%

Airport Corridor

Manukau/Wiri

East Tamaki

Mt Wellington

New Lynn

Penrose/Onehunga

Henderson

Rosebank/Avondale

7.5% 7.0%

6.0% 5.5% 5.0% Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17

Similarly, a 3799sq m Industrial warehouse at 87 Lady Ruby Drive has recently sold for $6,050,000, represented a yield of 5.9%. The deal was brokered by Jolyon Thomson and Andrew Hooper of Colliers International. The survey also revealed that Auckland industrial warehouse rents reached $118/sqm and $98/sqm for prime and secondary respectively, up 3.8% and 7.8% from last year. East Tamaki’s prime warehouse rents have increased to $120/sqm and the area’s average prime land values have increased to $438/sqm. Jolyon says the team’s recent leasing of properties at Business Parade North, Highbrook and 12 Reg Savory Place, East Tamaki, evidence this strength. “The recent leasing of these two circa

6,100sq m buildings amid long term leases demonstrate the increase in net rental prices for the area,” he says. Focused on Industrial sales and leasing, the Highbrook office has totalled 82,180sqm of leasing and $151,353,372 of sales activity in 2017. Colliers International Industrial team were recently announced Industrial Team of the Year for the eighth year running at the 2017 RICS Awards New Zealand. The RICS Awards judges acknowledged the Industrial team for its strong performance last year. The team completed more than 180 transactions totalling more than $700 million.  colliers.co.nz

LEASE AGREEMENTS

LANDLORD AND TENANT RESPONSIBILITIES

items such as heating and ventilation, telecommunications etc. • Interior maintenance, arranged and paid by the tenant. • Removal of chattels and tenants’ fixtures, and reinstatement of alterations, when the Lease expires or is cancelled. • The cost of complying with law changes which relate to the tenant’s use of the premises.

Chris Walker

Our recent Property Owners’ Forum looked at some common traps and pitfalls with sales and purchase and leasing agreements. Panelist Chris Walker, Consultant at Wynyard Wood, agreed to follow up with a summary of the Auckland District Law Society Inc. form of Lease which is used for the majority of industrial property. Chris highlights the landlord and tenant responsibilities – apart from rent – during the lease and on termination.

Landlord Responsibilities • Obligations The landlord is obliged to maintain the building, building services and carparks in good order and repair, and keep the building ‘weatherproof’. Some costs of completing the landlord’s work are payable by the tenant as part of the outgoings referred to above. • Unrecoverable Costs Structural repairs or replacement (e.g. replacement of a roof beyond its useful life).

Replacement of building services at the end of their useful life. Cost of fixing defects in design or construction. Repaving/resealing yard and carparking areas.

Tenant Responsibilities • Outgoings Outgoings billed by third parties – rates, insurance and body corporate levies. Outgoings arranged by the landlord, and billed to the tenant, including: building warrant of fitness, management expenses, garden maintenance, repairs and maintenance to the building and Building Services which includes utility charges and other

• Damage caused by improper, careless or abnormal use by the tenant, not covered by insurance. • Glass breakage/damage to fixtures and fittings /replacement of bulbs and power points which wear out and not covered by insurance. • Legal costs – reimbursement of actual legal costs if the landlord is required to enforce its rights, remedies, or powers under the Lease. • Maintenance The tenant must paint and decorate the interior of the premises to a specification no less than existing, when reasonably required by the landlord. It must replace floor coverings which have been damaged – not if they are worn by reasonable use. Maintain the interior of the premises in the same order as at the start of the lease, subject to fair wear and tear. These obligations are with reference to the condition of the property at the start of the lease. Often this work is deferred until the end of the lease. W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

• Damage The tenant has the benefit of the landlord’s insurance cover for accidental damage. There can be issues around insurance excesses, and criminal damage. The tenant must remedy any damage to the premises which it, or those for whom it is responsible, causes. There can be issues around damage beyond fair wear and tear, which either was not accidental, or for which no insurance claim was lodged in time. • End of Lease Costs Remove and make good any additions or alterations which the tenant has made to the premises – the tenant must ‘reinstate the premises’. The tenant must remove its chattels, and make good any damage to the walls / floor / ceiling and landlord’s fixtures.

Deferred maintenance: The tenant must comply with its interior painting obligations (no fair wear and tear) and its interior repair obligations, including for floor coverings (subject to fair wear and tear). The time for complying is on or before the end of the lease. A tenant which takes over an existing lease is liable to reinstate any alterations made by the previous tenant during that lease, including renewals. In the same way, the second tenant is responsible for: - deferred maintenance - interior painting

The tenant must allow enough time at the end of the lease to undertake any work which it is required to complete, before the lease expiry date. Because of this, a deal will often be negotiated with the landlord for a payment by the tenant, on the basis that the landlord will then carry out the required work. If the tenant is not prepared to comply with its obligations to complete the work itself before the end of the lease, it must expect the landlord to ‘build in’ an amount for rent to compensate it for an empty building during the time when the work is completed.  wynyardwood.co.nz

- the whole of the cost of exterior painting, maintenance and repairs which the landlord may reasonably decide to undertake when the second tenant has possession.

Check East Tamaki commercial and industrial property listings getba.org.nz/for-sale-lease

FOCUS ON BUSINESS RESILIENCE W I N T E R 2 0 1 7

NEW ZEALAND’S LEADING INDUSTRIAL TEAM Bayleys Auckland Industrial is New Zealand’s largest industrial team, with 30 Industrial sales and leasing specialists, whose focus is ensuring the best possible outcome for our clients. Our team sell and lease properties of all shapes and sizes; small to large scale warehousing/office buildings, light and heavy manufacturing and distribution centres, industrial subdivisions and design build - and our results speak for themselves.

202

LEASING TRANSACTIONS

181

SALES TRANSACTIONS

231,675 $725m SQM TRANSACTED

OF PROPERTY SOLD OR LEASED

For the period 1st April 2016 – 31st March 2017

To get the best results for your industrial property, contact us today on 0800 BAYLEYS or aucklandindustrial@bayleys.co.nz Bayleys, Licensed under the REA Act 2008

W I N T E R 2 0 1 7 FOCUS ON BUSINESS RESILIENCE

Commercial & industrial growth

Employment growth

Economic output

East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average. getba.org.nz

Crime rate

getba Greater East Tamaki Business Association Inc.