April/May 2020 - BAY OF PLENTY BUSINESS NEWS

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10 BAY OF PLENTY BUSINESS NEWS April/May 2020 COVID-19 Logging has taken a big hit from Covid-19. Photo/Supplied. Corona virus begins to bite in the Bay The latest statistics on New Zealand’s trade data are stark evidence of the immediate impact Covid-19 has had upon this country’s trading position, even before the government’s lockdown. (See our accompanying Special Focus on pages 11-14 for guidance on approaches to help deal with the impact of Covid-19.) By RICHARD RENNIE The virus initially put the brakes on Bay of Plenty tourism, which has seen major job losses, along with the events and hospitality industries. Key Bay export forestry was also an early casualty and quickly felt the impact as logs stockpiled and wharf space ran short in Chinese ports. However, the kiwifruit industry at time of writing seemed likely to be relatively unscathed. Released in early March, Statistics NZ data indicates all New Zealand’s exports to China for the January 27-February 23 period were down eight percent compared to that same period in 2019. Logs and meat were the biggest victims, with meat free-falling to half last year’s amounts, while forestry exports mainly in the form of logs fell to about 1.2 million tonnes, compared to 1.3 million in 2019. Forestry products by value plummeted by $70 million from $250 million to $180 million. The Bay of Plenty is the crown in the national forest estate, accounting for 400,000ha or 29 percent of the iwi land resource. The impact of the extended Chinese New Year as a result of Covid-19 was felt relatively quickly at the shore side end of log exports. Port signals lowered profits Port of Tauranga, the country’s largest log export outlet, had already reported a decline of eight percent in log volumes at the end of its first six months to December 31, due to the slump in log prices that hit home in August. The port has reduced its full year profit guidance due to Covid-19’s impact on log volumes, with revised full year profit now expected to be $94- $99 million compared to the previous $96-$110 million. Prue Younger, chief executive of the Forest Industry Contractors Association has welcomed the government’s announcement of regional support for forestry through a relief package. Some operators have been shut down for weeks and more were expected, she said. “Wharf space has only got tighter, and even if China got back to business as usual now, it will be three to four months until ports have released enough stock for operators to feel confident about putting logs on the water.” Fortunately, the Rotorua region is a key supplier for higher grade domestic supply for timber used in New Zealand houses and for packing processes. In contrast the East Coast region exports almost all its harvested logs. However, even in the Rotorua district, in order to harvest the higher quality content of the tree, lower grade export logs are the inevitable result. Ross Davis, chairman of the Forest Industry Contractors Association says this makes it complex to calculate the full impact of the virus on local logging operators’ incomes. “You have to chop the tree down in order to get the quality timber, but that [also] generates the poorer quality log. For most operators it has meant they are still working, but sometimes on reduced hours, and if you are not earning as much, you are not spending as much.” Times are tightening As a result he is already getting reports of forestry supply businesses, most which are based in Rotorua, facing tighter times. Brent Whitby, chief executive of Patchell Industries in Rotorua, which manufactures logging trailers and weigh systems, said the effects were starting to bite. “We have clients all over New Zealand, and it hit the likes of Gisborne early on, with operators losing work and being laid off. We now have customers we have completed work for who can’t uplift it, or with equipment ordered that they have asked to have put on hold.” Port activity is down, but key overseas export markets are still open. Photo/Supplied. New Zealand exporters have no-where else to send the industrial grade logs they harvest, but this is starting to change.” – Peter Weir “And on the other side we are monitoring very closely the delivery of all the supplies we use from overseas, things like tyres.” Whitby said he was surprised at the rapidity of Covid- 19’s impact and expected things will get worse before getting better as backlogs of goods and demand for them grew into April and May. Scott Downs, director of sales for Rotorua based forestry company PF Olsen said in his latest update that log inventories on Chinese wharves was rising at a rate of 35,000 cubic meters a day. He expects that to continue until China’s production gets fully back on its feet. Nowhere else to go “Many Chinese sawmills are yet to get back to work,” said Peter Weir, president of the Forest Owners Association. “New Zealand exporters have no-where else to send the industrial grade logs they harvest, but this is starting to change. More domestic mills are accepting reallocated export logs of poorer quality. “And there is still good demand in the region from the big players like Red Stag, and Oji’s two mills at Kawerau and Kinleith.” Logging smaller farm woodlots has ceased as association members do what they can to retain skilled labour by sending better logs to domestic sawmills to make up for the shortfall. Work hours are also being maintained by continuing to invest in silvicultural work including pruning, thinning and preparation of land for replanting from winter through to spring. But Weir cautions that it may be some months before markets recover fully from the sharp impact of Covid-19 virus. He said members were not looking for handouts, but sought some equitable ways for working with government to assist various harvesting crews. “They are the ones who need help.”
SPECIAL FOCUS – COVID-19 April/May 2020 BAY OF PLENTY BUSINESS NEWS 11 meeting the challenges of working from home These are challenging times as we all struggle to come to terms with the deaths and the ongoing mental, physical and financial stresses that our families and colleagues may yet suffer. With the spread of Covid-19, remote work is suddenly an overnight requirement for many. It is realistic to assume that shifting to the “home office” will become the new normal for many of us for some time. We are being forced into the world’s largest work from home (WFH) experiment. And it may not be easy for many to implement in a short time frame. According to a 2019 merchantsavvy global survey, 61 percent of companies currently have some sort of remote working policy for their staff, but not necessarily the data and IT policies to match this. HR and health and safety requirements aside, the biggest challenge may stem from the lack of technology infrastructure and lack of comfort with new ways of working. This may not be an option for everybody due to home lives, work types and activities. And some may be engaging in WFH for the first time, which means figuring out how to stay on task in a new environment that may not lend itself to productivity. So what are the key considerations? The workspace Having a dedicated space at home helps. It is best to put on work clothes and set up a desk, or location that is not the sofa, kitchen bench or bedroom. This also advises those living with you that “I am now at work”. A desk and comfortable office chair are desirable. Two or three monitors will offer more productivity than one screen. And for those using laptops I’d recommend mice and keyboards with a docking station. Printing You will no longer have the use of the office scanner / printer, and this may be a requirement. Connectivity Where possible, an uncapped high speed internet connection is desirable. A backup 4G router can also be supplied to separate work from streaming TV. • Phones. Divert phone systems to mobiles or if you have a VOIP phone system, it is easy to take the office / desk phone and plug it in at home. With some systems, an app can be downloaded to your mobile phone allowing you to also make and receive calls from your office number. • Remote access: A VPN (virtual private network) customised and connected to your office environment is one of the better, most secure options. Team Viewer and netconnect are less secure, cheaper options. Windows has Remote Desktop (RD), and Apple RD is built into the operating system. File sharing File sharing options like google drive, one drive, dropbox, etc are handy to save “dialing” into the office. These can also be used to collaborate and share, and make sure you follow the rule of not emailing anything over 8mb. Infrastructure and security Don’t overlook security. One of the problems with distributed workforces is that remote workers are prime targets for those wishing to exploit vulnerabilities. This is obviously a concern when dealing with sensitive data, proprietary information, and contracts. • Password hygiene: Strong, frequently updated passwords protect businesses. Do not use the same password across multiple applications. (check out lastpass, keepass, passportal for password control and single sign on options ) If the company owns the device, then it should ensure it is properly protected with upto-date antivirus, monitoring, remote access agents, device encryption, and firewalls. Cyber security policies should designate which devices can be used for which kinds of business activity. If you are providing your own equipment be mindful of company security policies. Multifactor and 2Factor authentication is a must. Communications and meetings WFH success depends heavily on whether you trust employees to do their work, even if you can’t see them. Focus on performance outcomes and productivity reviews. Set accurate expectations with employees and enable supportive interactions. WFH can feel unstructured, so have clear-set expectations for communications day to day. Time management tools like Timely, Toggle, everhour TECH TALK > BY TONY SNOW Tony Snow is chief executive and co-founder of Stratus Blue. He can be contacted at tony@stratusblue.co.nz. and focus applications like pomodoro can assist. Communication and instant messaging tools like Teams, Zoom, Slack, mattermost, google hangouts, discord, facebook and whatsapp, can keep the office banter and communications going. Headsets with boom mikes and noise cancellations are a good option when using these. • Maintain as much faceto-face interaction online as possible – especially to those employees who live alone and might feel more isolated. Get ready for the remote-work future This vast remote-work experiment is also a great opportunity to prepare for the future. According to recent Gartner research: • By 2030, the demand for remote work will increase by 30 percent due to Generation Z fully entering the workforce. • 64 percent of today’s professionals say they could work anywhere and remote work policies are common (in place at 71 percent of organisations). The mandatory current use of remote work for business continuity signals that it’s time to revisit remote working policies. And to redesign them for wider application when business defines what our new normal will be. WE’RE HERE TO ASSIST CALL US ON 07 777 0010 assist@stratusblue.co.nz stratusblue.co.nz He waka eke noa We’re all in this together Providing CORE technology platforms that Bay of Plenty businesses can rely on. Our COVID-19 response is simply to assist in keeping your business enabled anytime, anywhere.
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