Business News

PIC CAP Sargon Elias (left) GM Velocity Trade Limited with Laura Dolphin, marketing executive, in their Auckland CBD online facility. If you are one of those people who ‘just know’ that the bank will always give you the best foreign exchange rate when you import machinery or are sending off an exhibition stand to an international tradeshow, prepare to be disappointed.That’s the claim of Sargon Elias, GM of Velocity Trade, and someone who has done his time in the foreign exchange market internationally and in New Zealand. And if you think he is shaving a margin and making a lot of noise, how about this for a statement to make you think again: ‘If your company has hired someone from the UK and they are selling a GBP400, 000 home (an average price), you can tell them the difference between going via their bank or using our services will be that they can buy a fairly decent second-hand car when they get here with the savings they’ve made.’ That got your attention? Velocity Trade Limited is a New Zealand-based foreign exchange company, FMA approved, part of Velocity Trade International – originally founded in Canada in 2007 – with offices in Toronto, London, New York, Auckland, Sydney and Cape Town. Their ‘secret’ or the basis of their ability to trump your local bank is they have ‘global access to wholesale interbank rates and advanced trading platforms’ with relatively miniscule overhead, according to Elias. Clients using their services get the rate at the exact moment they strike the deal, rather than a bank rate, which is fixed for some 24-hours or more. ‘Obviously, the larger the sums involved are, and the frequency thereof will dictate an even better deal for you,” says Elias, “and unlike the banks we are flexible when it […]

PHIL O’REILLY BusinessNZ and Landcare Research have partnered with the producer of the world’s most widely used sustainability reporting framework, the Global Reporting Initiative (GRI), to provide an accurate and complete sustainability reports database for New Zealand. BusinessNZ chief executive Phil O’Reilly said consumers are becoming increasingly aware of the environmental impact of products and services. “Businesses providing transparent and comparable reporting on how they manage their economic, environmental, social and governance impacts is a valuable way for them to respond to consumers’ concerns and demonstrate their commitment to sustainable development.” Landcare Research chief executive Richard Gordon says “Landcare Research’s association with BusinessNZ and the GRI is seen as a positive step towards establishing an information hub and make available timely and accurate information about sustainability reporting trends in New Zealand, whilst raising the visibility of New Zealand reporting organisations within New Zealand and internationally.” Phil O’Reilly added that as well as responding to consumer demand, businesses are themselves developing more sustainable and efficient production methods as a way of ensuring long-term profitability and viability. “Joining GRI’s global network of data providers, means we can gain a more accurate global picture of sustainability reporting, compare organisational performance over time, and measure that performance with respect to laws, norms, standards and voluntary initiatives. “This new partnership means we can also contribute to the GRI Framework’s continuous improvement and application worldwide.” The Framework is developed through a consensus-seeking, multi-stakeholder process, with participants drawn from global business, civil society, labour, academic and professional institutions. Landcare Research will carry out the data collection about reports published in New Zealand, and this will allow BusinessNZ and GRI to maintain and publish a complete and accurate database for New Zealand.    

The launch of up to 10 new products and the opportunity for aviation companies to close millions in sales are the two main outcomes expected at a Waikato-based aviation showcase planned for October. NZ Flair 2011, to be held at Te Kowhai Airfield near Hamilton from October 13 to 15, will showcase a wide range of New Zealand products and services and innovation within the burgeoning aviation sector. Waikato Aviation Industry Cluster and NZ Flair 2011 organiser Shaun Mitchell, said the event will bring New ZealandÕs Òunder the radarÓ aviation industry into the international spotlight. “NZ Flair 2011 will leverage off the extra profile of New Zealand during the Rugby World Cup and is a real opportunity for growth, development and innovation of our industry,” Shaun said. A New Zealand Trade and Enterprise report from June 2010 showed the New Zealand aviation sector brought an estimated $9.7 billion into the economy in 2009, with $5.9 billion from domestic activities and $3.8 billion from export activities. The New Horizons report shows the industry is expected to grow to $12.6 billion by 2015 with experts predicting Waikato will net a Òsignificant sliceÓ of the growth. Waikato economic development leader Sandra Perry, of Opportunity Hamilton, said NZ Flair 2011 was a Òcoming outÓ for New Zealand’s multi-billion dollar aviation industry. “This will attract thousands of visitors and key aviation business people and potential investors from around the world. It’s a real chance for these businesses to get global attention,” Sandra said. NZ Flair 2011 is modelled on AirVenture Oshkosh, a United States aviation event attracting 500,000 visitors from more than 60 countries. “It is a combination of exhibitors, demonstrations and air displays. It will incorporate everything aviation, from manufacturing and design to space exploration and pilot training,” Shaun said. More than 70 exhibitors […]

 Alasdair Thompson, chief executive of the Employers & Manufacturers Association, says its only right that women should be paid more than men when their output and productivity is greater than men.  We back higher pay for women when they’re doing a better job than men, he said.  Mr Thomson said on NewstalkZB this morning that EMA supports and promotes equal pay for equal productivity no matter a person’s gender, age, or ethnicity.  “We believe in and promote advancement of women in the workplace and in business,” he said.  “It should not matter if a man or a woman is off work on sick leave more than others if their output is high they should be paid highly. “And if a person’s productivity is more or less than someone else, that will be recognised in their pay.  “It’s a pity if saying this is not pc.  “EMA supports and promotes the work of the Equal Opportunities Trust, the International Labour Organisation (ILO) and the International Organisation of Employers (IOE).  “We believe in the balancing of family and work responsibilities and the need for flexible work places to help achieve this.  “Our businesses mostly recognise the value of this and we back them fully in their efforts to employ, develop and retain their skilled people.  “The Equal Pay Act 1972 already makes it illegal to pay a different rate to a man and a woman doing the same work at the same standard and if there was widespread discrimination you would expect to see numerous court cases under the Equal Pay Act – there aren’t.  “Requiring employers to record gender on pay records as the Greens Equal Pay Amendment Bill seeks to do would not help address pay issues one iota. It hasn’t in the UK where similar law has proved ineffective. […]

INTENT Group’s Business Performance Accelerator (BPA) programme was chosen by Process Improvement at ETEL Transformers. Stuart Cumming, whose role is to promote Lean manufacturing processes and continuous improvement within ETEL Transformers, had previously worked with INTENT on another project and had been impressed with the understanding of Lean. Furthermore, the content of the BPA offered a great opportunity to help spread the principles of Lean manufacturing and continuous improvement within ETEL. Stuart was very keen to get a real mix of people on the BPA to spread understanding and integrate teams. ETEL has attended two BPA training cycles and attendees have been taken from a range of functions including sales, purchasing, quality management, production managers, supervisors and senior management. At ETEL the BPA has played a very important role in some excellent business improvements achieved over the last 12 months. This includes reducing the production cycle time from 16 days to 13. Waste has been reduced across the site and stocktaking improved. ETEL has made some great financial savings as a result. Stuart says  “the Business Performance Accelerator programme has been excellent for ETEL Transformers. We have achieved significant cost savings and have people across the business with a much better understanding of Lean manufacturing and continuous improvement is invaluable. “Every business needs to examine what it does on a regular basis and look for ways to do it better. I would recommend the BPA programme as an excellent way to develop a culture of continuous improvement.” Interested Businesses should contact Donald Bowie at INTENT Group for further information on 09 523 0366.

The month of May saw the manufacturing sector continue its march towards stronger expansion, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for May was 54.7, up from 52.0 in April and the highest value since June 2010 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Four of the five indices were in expansion for May, the same as April. BusinessNZ’s executive director for manufacturing Catherine Beard said that the second consecutive month of improvement in activity is consistent with other positive indicators recently seen within the sector. “Although there have been some recent publicly announced layoffs in the sector, overall the manufacturing sector has shown signs of resilience, even in the face of a high dollar versus the US dollar. It is particularly pleasing to see such a positive result from Canterbury manufacturers, which have come back quite quickly into expansion mode after the February earthquake in a relatively short space of time.” “Official data has shown a lift in total manufacturing sales, while manufacturing sector exports have also been steadily rising. Add to that the latest PMI result showing a pick-up in production and new orders and the sector is showing encouraging signs after a turbulent time of late.Ó BNZ economist Doug Steel said the May PMI was further evidence of the economic recovery gathering momentum. “Within the rather diverse fortunes across the manufacturing sector at present, there are some rather strong pulses coming through. Surging commodity income is starting to filter through the economy, and appears to be one factor behind a lift in manufacturers’ new orders. There are also encouraging signs that domestic consumer demand is improving, which may amplify the inventory cycle and the economic recovery we foresee.” […]

Pic: Prime Minister John Key with Tru-Test Group CFO Ian Hadwin and HSBC CEO David Griffiths with the HSBC Best Importer or Exporter with China award. The Chinese dairy industry is about as different from New Zealand’s as you can get. Consider this: – Their average feedlot has 6,000 cows (compared to herds in NZ of 350) – Cows are virtually all feed-lot (compared to NZ’s grass fed) – Their cow-to-human ratio is 1:100 (compared with our 1:1.5) New Zealand’s global leader in animal weigh scales, milk metering and electric fence systems, Tru-Test Group, has just won a New Zealand China Trade Association (NZCTA) award for technology that is set to help revolutionise China’s dairy industry. The HSBC Best Exporter with China award reflects Tru-Test’s success in opening up the market for walk-over weighing and animal weight data management for the country’s 12 million-strong dairy cow industry. With vastly higher input costs than New Zealand (in addition to their feed-lot structure, they import lucerne hay from the US, for example) China needs a systematic means of measuring and managing cow performance. Tru-Test Group introduced the first walk-over weigh scales system to China just over a year ago, and now around 2% of cows in China are being weighed and the data captured. That means 98% are not  underlining the market’s potential. Tru Test Group’s Market Manager for Asia, Nick Howarth, says the likely uptake of the Chinese dairy farmers and the intensity of the Chinese dairy industry’s production is likely to provide valuable insights for the New Zealand industry and further opportunities for companies like us who can export unique kiwi technology. “Given the number of people in China and the size of their industry, their dairy industry will not be a competitor to New Zealand’s Ð instead it’s a […]

  The launch of up to 10 new products and the opportunity for aviation companies to close millions in sales are the two main outcomes expected at a Waikato-based aviation showcase planned for October.  NZ Flair 2011, to be held at Te Kowhai Airfield near Hamilton from October 13 to 15, will showcase a wide range of New Zealand products and services and innovation within the burgeoning aviation sector.  Waikato Aviation Industry Cluster and NZ Flair 2011 organiser Shaun Mitchell, said the event will bring New Zealand’s “under the radar” aviation industry into the international spotlight.  “NZ Flair 2011 will leverage off the extra profile of New Zealand during the Rugby World Cup and is a real opportunity for growth, development and innovation of our industry,” Shaun said.  A New Zealand Trade and Enterprise report from June 2010 showed the New Zealand aviation sector brought an estimated $9.7 billion into the economy in 2009, with $5.9 billion from domestic activities and $3.8 billion from export activities.  The New Horizons report shows the industry is expected to grow to $12.6 billion by 2015 with experts predicting Waikato will net a “significant slice” of the growth.  Waikato economic development leader Sandra Perry, of Opportunity Hamilton, said NZ Flair 2011 was a “coming out” for New Zealand’s multi-billion dollar aviation industry.  “This will attract thousands of visitors and key aviation business people and potential investors from around the world. It’s a real chance for these businesses to get global attention,” Sandra said.  NZ Flair 2011 is modelled on AirVenture Oshkosh, a United States aviation event attracting 500,000 visitors from more than 60 countries.  “It is a combination of exhibitors, demonstrations and air displays. It will incorporate everything aviation, from manufacturing and design to space exploration and pilot training,” Shaun said.  More than 70 […]

BusinessNZ supports the general direction of proposals outlined in the ACC discussion document released today. BusinessNZ Chief Executive Phil O’Reilly said the principles underlying the scheme were unchanged and 24-hour no-fault coverage would remain. “Providing choice and competition in the work account will allow insurance and rehabilitation packages to better meet the needs of workplaces and employees. “The government does not have to be a monopoly service provider to meet its social and economic objectives,” Mr O’Reilly said. “The ability for the private sector to take part in the workplace accident insurance market will help bring more resources and innovation to the sector, to the benefit of employees.” BusinessNZ also welcomes the extension of the accredited employer scheme. “This scheme allows firms to manage their claims and achieve better safety outcomes.” Mr O’Reilly said with ACC competing against private sector insurers, it was important to ensure a level playing field for them all. “It will be important for ACC premiums to be set in a transparent manner without political interference. “BusinessNZ looks forward to working with Government in the consultation over policy detail.”

Organisations that offer their employees higher levels of trust, cooperation, fairness and economic benefits are rewarded with increased productivity, according to research by a Victoria University Economics Professor.   “We’ve all heard of the Golden Rule ‘do unto others as you would have them do unto you’—this works in economics as it does in life. If people are treated well they will work harder,” says Professor Morris Altman, who specialises in behavioural economics.   “So a Golden Rule for sustainable wealth creation is building more trusting and cooperative economic organisations.”   He cites Toyota as an example of a successful, competitive company with an employee-centred philosophy, including offering high wages, giving employees more say in the day-to-day operations of the company, offering more transparency about the company’s finances and avoiding heavy-handed monitoring of employees.   He also says in North America, department store Costco does just as well as Walmart, despite paying its workers approximately double the wages and offering better health benefits.   “The rate of return is just as good because Costco’s workers respond to being treated well by being more productive—it’s that simple.”   However, Professor Altman’s research shows that along with the success of the Golden Rule approach, it is possible for both highly self-serving as well as ‘trusting’ firms to survive in highly competitive environments. Although research indicates it is largely the trusting firms that are more productive in the long run, he believes it is not enough just to depend on the goodwill of employers to deliver a Golden Rule economy.   “As libertarian economist Friedrich Hayek argued, ‘we need institutions or circumstances that induce evil people to do good things’. This is happening increasingly in the world economy as tighter labour markets, often coupled with democratic rights, motivate employers to adopt and develop […]