Business News

  How can you ‘add value’ to your customers? As a sales and marketing consultant, I advise my clients to do things that differentiate their business in a positive way from all their competitors. And a simple way to do this is with the strategy of ‘added value.’ Here are three examples of added value to get you thinking… 1: Warehouse reorganisation: In the book ‘How Champions Sell’ by Michael Baber there is the case study of Steve who was an industrial sales representative and sold hardware, nuts and bolts to industrial accounts. Steve dealt mainly with buyers in purchasing departments. His products were considered a commodity and he was under constant price pressure. Now Steve was an engineer, and became interested in warehouse operations. During some extended sales calls, and during some of his weekends, he worked with the warehouse manager of one of his accounts. Together they upgraded the accounts warehouse management system. This saved the customer hundreds of thousands of dollars. His customer was very grateful and gave Steve all his hardware business with little concern for price (as Steve was generally price-competitive). The owner of this company and the warehouse manager referred Steve to several other companies in the area. Steve helped install the cost-saving warehouse system at some of these companies. He picked up their hardware business, again with little concern about pricing. Soon Steve was calling on the owners of companies (not buyers) all over his territory. He offered the added value service of improved warehouse operations. This was accompanied of course by the purchase of his hardware line. Steve became the most successful sales person in his company. SteveÍs added value service of helping his clients improve the efficiency of their warehouse operations is a perfect example of adding value to his customers. […]

Carl Lunt (left) with Grant Pedersen and some of Dotmar’s manufactured products. Dotmar Engineering Plastics in Auckland’s Mt Wellington industrial area – with other branches in Christchurch and Palmerston North — is part of a privately-held company which is truly a global giant in the supply and manufacture of game-changing thermoplastics. They don’t need to boast, because they are already the biggest in North America; second- biggest in Europe; and Australasia’s biggest. Then you add the ability to buy the best European plastics and hand them to highly-skilled and experienced, long-term employees like technical manager, Grant Pedersen, and the rest equals sustained success. Customers seek them out for their product-knowledge, design skills, collaborative working relationships, the quality and precision of their manufacturing, and the knowledge they have the highest quality raw-materials Ð-sheet, rod and tube, almost exclusively of European origin – when they start. The results include uncontaminated – either on or in the thermoplastic — componentry for the local food and dairy industry; hard-wearing conveyor systems; specialist bearings and fittings for super yachts; seals for petro-chemical pipelines and PTFE, graphite-filled compressor-grade seals for compressors, amongst a zillion others. The New Zealand operation also has a significant export trade in machined components to Australia, Mexico, the USA and India. Which brings us to the headline. After supplying indirectly initially, Dotmar is now providing Swedish headquartered, Atlas Copco, directly with high-spec, compressor piston rings for their now-55-year-old Indian operation. Carl Lunt, the local business manager explains: “Their compressors are part of a growing industry worldwide, the use of tankers to deliver gas to homes and factories, rather than by pipelines, which have a propensity to fail, when not properly maintained, and are sometimes subject to vandalism too. “It goes without saying that compressors operate under extreme pressures and in this application […]

  Any NZ business currently exporting, looking to grow its export markets or enter new markets, can’t afford to miss the unique insights on offer from the Indian, Australasian and European market experts at this year’s Go Global conference. Organised by ExportNZ, Go Global will bring together exporters from around the country and around the world at the Sky City Convention Centre in downtown Auckland on 22 March. The conference aims to answer some of the big questions exporters grapple with – such as how to research a market, how to promote their goods or services there, and how to use intellectual property and research and development to best effect. ExportNZ executive director Catherine Beard says there are always new technologies and new tips to help deal with these challenges. “With the line-up of international speakers, including NZ Trade and Enterprise’s chief executive Peter Chrisp and the agency’s Beachhead Advisors who are highly successful business people in markets around the world, anyone attending is going to get some priceless insights. “Go Global presents a rare opportunity to have all these experts together at one time, at one event. Be there or miss out on what could be the key ingredient your business needs to succeed in that highly lucrative overseas market you’ve been trying to crack!” As well as the in-market Beachhead Advisory Board experts from North America and India, tips for success will also be shared from Kiwi exporters making good around the world: • Simon McDonald, CEO of Triodent, winner of Exporter of the Year at the BNZ Partners ExportNZ Bay of Plenty Export Awards • Michael Stedman, CEO of Natural History New Zealand; and • Neil Cowie, CEO of Pumpkin Patch, winner of the NZTE International Business Awards supreme award in 2010. As well as learning from […]

Manufacturing activity remained in expansion but clear division lines are drawn, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 50.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was down from 51.6 in December but up from 46.5 in November. The January 2012 result was also the third lowest January value for activity since the survey began in 2002. BusinessNZ’s executive director for manufacturing Catherine Beard said that the positive and negative comments from manufacturers outlined similar issues and influences, but with contrasting outcomes. “For those experiencing positive influences to the start of 2012, seasonal effects combined with a pick-up in offshore orders, particularly from Australia, dominated headlines. At the other end, negative comments also picked up seasonal impacts as businesses closed over the holiday period, while there has been a drop off in orders from the European region.” BNZ Economist Doug Steel said “It is good to see the January PMI hold onto the majority of its bounce in December. Sure it is not yet strong, but it is still positive and indicative of some forward momentum.” Three of the five seasonally adjusted main diffusion indices were in expansion during January, led by production (51.7) and followed by employment (51.2). New orders (50.4) fell 1.8 points from December, while finished stocks (49.9) was generally unchanged in January. Deliveries (49.5) slipped back into contraction after a slight improvement the previous month. Unadjusted results by region showed that activity was stronger the further one travelled south. The Northern region (43.0) fell back to its lowest level of activity since June 2009, while the Central region (45.9) improved 3.2 points from December but still in contraction for the third consecutive month. […]

The debate over the funding options required to develop Auckland’s transport should cut straight to the chase, says the chief executive of the Employers and Manufacturers Association, Kim Campbell. “Several of the so called funding options in the Mayor’s paper are simply not going to happen and should be discarded right away,” Mr Campbell said. “These include more taxes just for Auckland which the council can’t implement anyway. Its simply alarmist and unhelpful to the discussion. “But it is important for Auckland to have such a process as this so we can all pool our ideas. “The city needs all the projects identified and the community has to accept the only way they will be built is to agree to fund some extra contribution. “Business favours a low level toll to apply to the whole of our highway network and for the projects funded to be across all modes and for both public and private transport. “Important for the debate too is that Aucklanders understand the major transport project priorities for where and when the funding will be invested. “Without this understanding its difficult to see Auckland willing to invest in developing the new transport assets that are nevertheless urgently needed. “So we call on the Mayor to state the priorities and timelines for the investment projects envisaged. “Business already has such a list, strictly in the following priority order: 1. Completing the Waterview project – though underway this needs more urgency – the return on investment is well over $4 for every dollar invested 2. Developing an eastern transport corridor connecting through to a four lane east/west highway from East Tamaki to Onehunga. 3. The central rail loop provided it is justified by a sound business case. 4. The third harbour crossing – a wide ranging debate is needed […]

ExportNZ is increasing its focus on growing opportunities in Korea by entering a partnership with the Korea New Zealand Business Council (KNZBC). Catherine Beard, Executive Director of ExportNZ, says the new agreement will create a strong alliance focusing on maximising the benefits to be gained from trading with the fourth biggest economy in Asia. “With its unique culture and perceptions, Korea can be a tough market to crack. New Zealand exporters should take all the help they can get to step up, be more competitive, and leverage the pool of goodwill and trust that Koreans have for New Zealand. “Working in close co-operation with the KNZBC will add huge value to the services ExportNZ can offer its members – including events, connections, the latest developments and business opportunities. In effect, KNZBC will be our specialist unit serving the Korean market.” Fergus McLean, Executive Director of the Korea New Zealand Business Council, welcomed the new agreement, saying it will enhance the opportunities for NZ companies to take advantage of our fifth largest market. “The Council looks forward to the prospect of working with ExportNZ through its strong branch structure. “Korea is probably the most IT-connected market in the world, and offers exciting possibilities for our exporters of value-added goods and services.” ExportNZ and the KNZBC will work together offering services and activities to their members, they will retain their individual autonomy and operate independently.  

The rapid development of new communications technology is challenging the old ways of doing things in today’s workplaces, says David Lowe, Employment Services Manager for the Employers & Manufacturers Association. “New technology such as smart phones and finger scanning are doing away with traditional work records, timesheets and other data entry,” Mr. Lowe said. “Smart phones with global positioning can determine when and where an employee is at any time, so keeping a record of their hours to be charged, and generating an invoice, is much simpler. “They also present new social media challenges for employers. “Finger scanning systems can replace manual timesheets and data entry. “Whereas this sort of technology is totally normal for an entire generation of newer workers, for others it presents a constant round of surprises. “New systems are also blurring the line between work and home life, often to the advantage of both employers and employees. “The downside is unhappy employees can make damaging comments about their job or employer on Facebook, and others may spend far too much personal time browsing the web at work. “These are just some of the challenges from new technology facing employers who must stay up to speed with what’s becoming possible, and develop clear guidelines on how to use it productively in the workplace. “To help with this EMA has just published Employees and Technology so employers can deal systematically with these workplace issues.”  

One of ten that will open around New Zealand in 2012, the trades academy will provide practical skills training for secondary school students while allowing them to study for NCEA credits and tertiary qualifications. As lead provider for the trades academy covering the HawkeÕs Bay and Tair?whiti regions, EIT will partner up with secondary schools and industries to provide fees-free places for training in hospitality, sport and recreation, automotive and electrical engineering, trade skills, agriculture, land skills, animal care and hair and beauty services while the students remain enrolled in secondary school. The basic model will provide 16 and 17-year-olds with the opportunity to attend EIT one day a week. However, EIT deputy chief executive Claire Hague says the partnerships will be tailored to meet the needs of participating schools and students. Principals who attended a recent meeting with EIT were very positive and excited about the scheme, she said, and now wanted to enrol students into programmes. “They are already indicating the initiative will be oversubscribed. If that’s the case, we may have to look at establishing a mechanism for selecting students.” Places have been capped at 100 students for Hawke’s Bay and 50 for the Tair?whiti region. However, EIT had indicated it may go back to the Ministry of Education if demand outstrips the numbers approved. New Zealand’s first trades academies opened this year as part of a Government initiative aimed at re-engaging students who may have lost interest in education but were interested in learning practical skills. Ms Hague said trades academies gave the 71 percent of secondary school students who did not go on to university an opportunity to seriously consider alternative pathways. “It’s important to intervene early before they disengage from education, and to direct them into hands-on learning while rebuilding feelings of success as […]

Strategic Elements Ltd is involved in an aggressive program of field work on the West Coast of New Zealand. The West Coast field work marks the start of a wider program aimed at discovering large new sources of valuable strategic and precious metals. Results will be reported from each prospect as the Company receives information from its geological team. A company-wide phase of activity is intended over the next few months that includes: (1) Fieldwork across a number of projects on the West Coast NZ. (2) Fieldwork on the Mandamus rare metals project on the East Coast NZ. (3) Grant and commencement of work on a significant new tungsten/tin project in Ireland. (4) Fieldwork on Australian projects. (5) Airborne geophysical surveys to detect geological bodies hidden under cover. Managing Director Charles Murphy said “an intense period of activity has started that will lead us strongly into the New Year. General market conditions are still tough; however we are positioning ourselves to take advantage of any rebound that may occur in the first quarter of 2012.” The field team has begun to comprehensively explore through a geologically rich belt adjacent to the regional ‘Alpine Fault’ on the South Island. They will progressively commence work on each prospect until the end of January 2012. It is believed the west coast region has considerable mineral potential, however much of the surface area contained within the project is covered by vegetation due to humidity and rainfall. The project area has remained highly underexplored due to the covered surface. Critically, airborne geophysical data that can identify geological bodies under the covered surface has never been available. However a sudden escalation in exploration is expected, with the NZ government funding a multi-million dollar airborne geophysical survey to provide information on what lays hidden beneath the surface on […]

Minister of Building and Construction Maurice Williamson will open and attend a forum for Christchurch’s building and property professionals on 29 February. The event – Steel: the proven performer for a new Christchurch – aims to make the case for structural steel to play a leading role in the rebuilding of the city. Hosted by industry body Steel Construction New Zealand, invited guests including local architects, engineers, builders, developers and property owners will debate the technical, commercial and design merits of structural steel. Steel Construction New Zealand manager Alistair Fussell says seismic performance will be a key factor in deciding how Christchurch’s new buildings and infrastructure are designed and built. “The earthquake performance of the HSBC Tower on Worcester Boulevard and the Pacific Tower on Gloucester Street are great examples of steel’s seismic properties. Going forward, not just in Christchurch but around the country, there will be a big focus on seismic performance and what this means in dollar terms for tenants and owners of new buildings.” Forum speakers include Associate Professor Charles Clifton of the University of Auckland, Mr Fussell, and Richard McGowan of architects Warren and Mahoney. “Steel is a leading structural solution around New Zealand and overseas, but it’s not so common in Christchurch,” says Mr Fussell. “With the draft Central City Plan currently with the Government for approval, now’s a good time to be talking to the city’s property professionals about how New Zealand manufactured and fabricated steel can contribute to an attractive and future-proofed CBD.” The forum takes place on Wednesday, 29 February from 4.30pm at The George on Park Terrace.