doug

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Posts by Doug Green:

Business exit and the waiting trap

-Mike Warmington, Director, Platform 1 There has always been talk about a tsunami of businesses actively seeking an exit of some description. It has not come to New Zealand yet and with covid, tariffs, wars, high interest rates and fuel price concerns there is a lot of waiting going on. What we are seeing is something less dramatic. A lot of waiting. Waiting for the economy to improve. Waiting for interest rates to fall. Waiting for one more strong year. Waiting for “the right time” to finally make a move. On the surface, this waiting seems sensible. Why make a major decision if conditions might be better just around the corner? The problem is that the right time never taps you on the shoulder. Also nobody I know has a crystal ball that actually works. The Hidden Cost of Waiting What tends to happen isn’t always dramatic but options narrow and flexibility disappears. We have come across major client loss, health issues ,loss of a key agency, Australian consolidation and many other events that have narrowed options for owners who were waiting. A waiting owner we were talking to for three years had a health event then said to me “I wish I had acted when we first talked” Unfortunately the business still relied on him, had suffered, and it was too late to save. The Myth of Perfect Conditions There is a common belief that momentum comes from ideal circumstances, a strong economy, demand, cheap money and high business confidence. In reality, momentum usually comes from a decision to prepare. The people who exit well aren’t the ones who perfectly time the cycle. They’re the ones who start early enough to shape how they leave their business. Exit Planning Doesn’t Mean Exiting Tomorrow One of the misunderstandings around […]

World-First construction tech could cut building emissions by 80%

-Mark Devlin New world-first technology developed to prevent design errors from cascading throughout the country’s most complex construction project to date could reduce cost overruns in New Zealand’s $275bn infrastructure pipeline by millions of dollars, as well as cutting new building emissions by up to 80%, according to new data. Modelling from the Government’s $290m Te Rua National Archives shows that if digital twin technology is introduced from the design stage of large-scale projects to identify and address flaws across the infrastructure pipeline to the levels achieved on Te Rua, where contingency spend was held to five percent against an industry average of up to ten percent, New Zealand could potentially avoid millions of dollars in construction cost overruns. Data also shows that the preventative maintenance capability of the technology could reduce operational carbon emissions of a building by up to 80%. It is believed that with the integration of AI, the methodology could also be adapted for use in New Zealand’s planned multibillion-dollar healthcare infrastructure programme to produce clinically safer environments for patients. The recently completed Te Rua Archive in Wellington is the most technically demanding building ever constructed in New Zealand. Designed to remain operational after a one in 1,800-year earthquake, it must maintain temperature and humidity within a one degree tolerance for at least 48 hours in a power failure to protect taonga and government records held under UNESCO Memory of the World obligations. Phill Stanley, portfolio manager for ASX-listed Dexus, says these performance requirements meant the project could not rely on traditional construction methodologies, as even minor errors would have compromised the stability of the collection. “When you are managing irreplaceable taonga and national records, there is no margin for error. Any design flaw that affects temperature, humidity or structural performance directly threatens the integrity of […]

World class is not optional

From May issue, NZ Manufacturer magazine Ian Walsh, Partner, Argon & Co While there are industries — car assembly, for example — where the economic case for local production can be debated, food is different. Producing food is something we should be doing. More than that, it is something we must do well. The story of Heinz — and by association Wattie’s — is one that is very near and dear to my heart. I have worked in this business on and off since the 1990s, in the UK, the US, and across ANZ. That lived experience matters, because this is not a theoretical discussion about ownership structures or ideology. It is a practical lesson in how value is built over decades — and how it can be lost just as surely. Under the leadership of Tony O’Reilly, Heinz became one of the great global food companies of the late twentieth century. Through the 1980s and early 1990s, the strategy was clear: disciplined international expansion, strong brand investment, and relentless focus on cost and productivity. The acquisition of Wattie’s in 1992 — for approximately NZ$565 million — fit this pattern perfectly: a category‑leading local brand with deep trust and export potential. Markets rewarded this approach. By the early 1990s, Heinz’s market value had grown to roughly US$10–15 billion. Scale, brand power, and operating discipline reinforced one another. But acquisition‑led growth is never free. Each successive wave of M&A expanded the footprint and lifted shareholder expectations. With every deal came aging assets, capital‑intensive manufacturing plants, and increasing complexity. To sustain growth and fund further acquisitions, the base business had to extract more productivity and cut costs. Over time, this narrowed the margin for error. Many manufacturing sites were already under‑capitalised when acquired. They required sustained reinvestment simply to remain competitive. Too […]

Free 60-minute webinar

$144K recovered. 18% more output. When literacy improves, performance follows. As an operational or HR leader, you see the issues every day. Downtime that shouldn’t have happened. Instructions that were acknowledged but not followed. People waiting around for instructions, not sure of what’s next. And a strange silence during safety briefings or shift handovers. Most leaders call it “poor engagement”. Some call it “poor attitude”. But what if it’s not the real problem? The real constraint holding us back In Kiwi operational environments, at least 50% of frontline teams lack the literacy and numeracy skills to thrive in increasingly complex workplaces. Think manufacturing, construction, and logistics, and that figure is closer to 70%. This isn’t an HR issue; it’s a literacy issue showing up as lost performance. And it’s quietly draining your bottom line. What you’ll experience in 60 minutes: The redacted reality: We’ll apply a “CIA-style” redaction tool to a real-life induction document to show you exactly what a worker with an average reading age actually sees. What looks “clear” to you isn’t always readable to them. Connecting the “performance leaks” to the literacy gap: Connect the dots between downtime, rework, missed targets, and silence in meetings. You’ll see literacy gaps where you once saw attitude and engagement issues. How we start with the numbers, not textbooks: Learn how we build capability around your targets, your operational challenges, and your numbers, and strengthen literacy and numeracy to make it stick. What happens when it clicks: We’ll share real Kiwi case studies where teams built the literacy to read and respond to the work, they delivered an 18% lift in output, and recovered $144K in waste. The Operational Performance Diagnostic: You’ll leave with a high-level Operational Performance Diagnostic to pinpoint exactly where your plant is leaking performance Stop guessing. […]

(I wonder) What is in the Budget for manufacturers?

Another Budget, another election year. Lots of hand wringing? I hope not. The business community needs government to invest more and assist to make life better for all of us. Through these challenging times, we are not hearing from Ministers, expressing concerns, or sharing ideas to address the difficulties businesses are facing. When companies are challenged in moving forward, there needs to be options that can assist. Take for example Wattie’s and McCains, where are the Minister for Regional Development and the Minister for Small Business and Manufacturing? If they are working on a plan to improve the lot of these two companies, they are sure not letting business and communities know what is going on. If there are meetings going on, share the outcomes. Regions like Hawkes Bay are renowned for the quality of their products. Growers all over the country too. Rural business is holding the country together, financially, with their ginormous returns for high quality hort and agricultural export products. It is not the Queen Street farmer driving these efforts! In the Budget, we need to see investment into Manufacturing for companies to go forward, with confidence, and continue to grow. Manufacturing companies need the ability to invest in technology to do better and to enhance our market share. Improved technology can result in improved productivity, which can result in an improved bottom line. We cannot have a budget like the one in 2025, when to balance the books, the Finance Minister needed the money that was to be used for equal pay! I get it that in an election year members of Parliament may not want to comment or share ideas with the population because their words may well be remembered, affecting their chances of re-election. However, they work for us; with business, to bring about […]

NZ‑India free trade deal: were early fears about immigration and investment justified?

by Rahul Sen, Senior Lecturer, Department of Economics and Finance, Auckland University of Technology Depending on which side of the argument you listen to, the recently signed New Zealand-India free trade agreement represents either a huge economic opportunity for New Zealand or a risk to its economic sovereignty. In an election year, we can expect political positioning over something as significant as this deal, given the broader context. India is a huge market of 1.4 billion people, migration is a burning issue globally and economic growth has been elusive during a period of inflation, war and fuel price hikes. Broadly, the agreement reduces barriers to trade in goods, services, capital and skilled labour. It’s not surprising exporters are excited about the opportunities. India is projected to grow at 6.5% this year and the next – faster than New Zealand’s other existing trade partners. The Ministry of Foreign Affairs and Trade’s national interest analysis estimates trade, output and real wages will increase due to the market access for New Zealand goods in the deal. The economic benefits projected by 2050 may even be conservative estimates, given higher-than-modelled gains were seen once the New Zealand-China free trade agreement was in place. But the India deal goes beyond trade in goods and encompasses services and investment liberalisation, which was where the most political opposition was faced. First, it was feared New Zealand could be penalised for not investing enough in India. Second, according to NZ First’s Shane Jones, the agreement opens a door to “unfettered immigration”, displacing local jobs. The hyperbole notwithstanding, then, what does the text of the agreement tell us about the likely economic impact of the deal on New Zealand? Can NZ be penalised for not investing enough? The major sticking point for the Labour Party – whose support for the deal was needed because government coalition partner NZ First opposed it […]

Talking point from Mayor Wendy Schollum: McCain and Wattie’s closures

When a major employer closes and another downsizes, the impact doesn’t stop at the factory gate. In Hastings it affects workers, growers, contractors, suppliers, transport operators, local businesses, and families across our region – because when steady jobs disappear, it is felt around kitchen tables, in local shops, and across the wider community. That is why the recent changes at McCain and Wattie’s matter to our community, and why Council has a role to play. Over recent weeks we’ve brought together growers and industry to understand the drivers and impacts, and successfully pushed for a national review of the issues that have resulted in these business decisions. Wattie’s is not just a factory. For many families in this district, it is part of their history. Parents and grandparents worked there. Growers built businesses around supplying it. Contractors and transport operators have relied on it. It is part of Hastings’ identity as a food-producing district. But it is also important to say this clearly: Hastings is not starting from a weak position. We have strong growers, manufacturers, exporters and businesses that continue to play a major role in our district. Hastings is a powerhouse in primary industry, manufacturing, health and technology for the region, which provide about 60 per cent of Hawke’s Bay jobs, and we must remain focused on continued growth. We have an opportunity and a responsibility to respond with urgency to these recent announcements. Since they were made, I have been working with Central Hawke’s Bay Mayor Will Foley, growers and industry, to advocate at a national level with one clear Hawke’s Bay voice. This is a regional and national issue, not just a Hastings issue. Many affected growers are in Central Hawke’s Bay. Workers come from across the region, including Napier. The consequences reach well beyond one […]

Three Ministers for Small Business and Manufacturing in Three Years

Andrew Bayly, Chris Penk and Cameron Brewer have been the ministers for Small Business and Manufacturing in the past three years. How has this happened? Manufacturing in New Zealand requires a strong focus and a minister in the position for the long haul (or three years as the political term permits). To get to know how businesses function and the support they need for success. First there was Andrew Bayly, Chris Penk has been moved up in cabinet and Cameron Brewer is a brand-new appointment. How does the manufacturing community feel about this constant change? Because if National loses the upcoming election, there will have beeen four ministers in a short period of time…but let us not get ahead of ourselves. Manufacturing – all that is made – is consequential to our way of life. It goes without saying that if NZ does not have a manufacturing sector, it does not have an economy. If businesses are concerned about how long a minister is in the position, to do the position justice, they need to make their voices heard. Ministers need time to get to know how manufacturers function – familiarity -and the assistance they require, to enhance our standard of living and celebrate innovation.

Better thinking, better results: The two-day world class productivity simulation that builds capability

By Neil Robinson, a Senior Business Consultant with Argon & Co (Auckland) specialising in productivity improvement, Lean systems and capability building. Welcome back! If you joined us for Article 1, you’ll remember how the World Class Productivity Simulation gives teams a powerful, hands-on experience of what helps — and what hinders — operational performance. Many participants leave that first session with a renewed sense of possibility. “The only sustainable competitive advantage is an organisation’s ability to learn faster than the competition.” — Peter Senge In manufacturing, it’s easy to fall into a trap: when performance dips, the organisation responds with speed — quick fixes, point solutions, and local optimisation. Sometimes that helps. Often it creates new problems elsewhere, because the symptom wasn’t necessarily the system driver. A more reliable approach is to build the capability to think well about improvement — to see what’s really happening, understand what the customer needs, consider the organisation’s direction, and make decisions that improve the whole system rather than one corner of it. That’s the purpose of the two-day World Class Productivity Simulation. Day one creates an unforgettable experience of flow, waste and performance. Day two builds something more enduring: the ability to learn as a team and apply a repeatable method for choosing improvements that stick. Even if you never attend the simulation, the principles below will strengthen your own improvement conversations. The difference between activity and improvement Many sites have no shortage of improvement activity. The real question is whether that activity is producing better system performance: more reliable output, improved quality and delivery, lower cost, safer work, and less firefighting. A simple test is to ask: What problem are we solving — and how do we know? What customer need does this improvement protect or enhance? Which part of the system […]

Making scope 3 manageable: how to use spend-based emission factors

Manufacturers need a clear view of emissions across their value chain to identify hotspots, manage risk and meet reporting requirements. The challenge is that supply chains are complex, with limited visibility beyond direct suppliers. This makes scope 3 emissions difficult to quantify. Unlike scope 1 and scope 2, they are rarely measured directly and rely on estimates. Data is often incomplete or unavailable, especially early on. Waiting for perfect data is not realistic. This is where spend-based emission factors come in. They use financial data to estimate emissions, allowing organisations to build a complete scope 3 baseline from the data they already have. Using financial data to get emissions insight Spend-based emission factors link financial data to greenhouse gas emissions. They express the average emissions associated with a dollar spent in a given category. This approach uses national economic data and emissions data to estimate the average emissions per dollar spent. In practice, it allows manufacturers to use their existing spend data to estimate scope 3 emissions. This is exactly how many organisations begin. Financial data is readily available, structured and complete. Using it as a starting point enables a rapid, economy-wide view of emissions without waiting for supplier engagement. Photo by Cooper Hofmann on Unsplash Why this approach resonates with manufacturers Manufacturers operate across complex supply chains, often with a mix of domestic and imported inputs. Understanding upstream emissions in detail is challenging, particularly early on. Spend-based emission factors address this by providing full coverage. Because they are built on national economic accounts and include import data, they capture emissions across both domestic production and international supply chains. This completeness is one of their defining strengths. Every dollar spent is linked to emissions somewhere in the value chain. They are also efficient. Organisations can apply them using […]

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doug

About doug

Posts by Doug Green: