October/November 2020 - Bay of Plenty Business News

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From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.

OCTOBER/NOVEMBER 2020 VOLUME 4: ISSUE 10

WWW.BOPBUSINESSNEWS.CO.NZ

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS

special

focus

why the

tauriko tauranga

bubble works

Chris Parker, PhotoGraphics

TAURANGA PORT

Cairns announces

retirement as CEO after 15

years.

P3

HORTICULTURE

Avocado prospects positive

this year.

P5

COMMUNICATIONS

Honesty the best policy

dealing with staff.

P22


2 BAY OF PLENTY BUSINESS NEWS October/November 2020

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October/November 2020 BAY OF PLENTY BUSINESS NEWS 3

Mark Cairns to step down

from port role next year

By DAVID PORTER

Long-serving Port of Tauranga

chief executive

Mark Cairns has given

notice that he will retire in

June 2021.

“I think 15 years as a CEO

is a pretty good run,” Cairns

told Bay of Plenty Business

News after announcing he was

stepping down from running

New Zealand’s largest and

most efficient port.

“I’ve got no more executive

gigs in me. What I’d like to

do is try and put a little back

into business and take on a few

governance roles.”

He is also a keen fisherman

and can be expected to be

able to spend more time on the

water.

Time for the next

generation

Cairns said the time felt right

to hand over to the next generation

and that, while he would

miss his colleagues, he was

excited to see where the company

went next.

Cairns said he was especially

pleased to see that the

board had gone in-house for

his replacement, with Leonard

Sampson named to take over

next year.

Sampson was appointed the

port’s chief operating officer

in September 2019, after six

years as commercial manager.

Prior to joining Port of Tauranga,

he held senior roles at

KiwiRail, Carter Holt Harvey

and Mainfreight.

Port chairman David Pilkington

said Cairns’ leadership

had seen the company grow

from a regional bulk export

port to New Zealand’s international

cargo hub, as well

as one of its most successful

listed companies. When he

took over as chief executive

in 2005, Port of Tauranga handled

12.6 million tonnes of

cargo and 438,214 Twenty foot

equivalent units (TEUs). In

the year to June 2020, the port

handled 24.8 million tonnes of

cargo and 1.25 million TEUs.

“Mark has kept the company

strongly focused on future

opportunities, while maintaining

an industry-leading

Leonard Sampson:

in-house choice.

Photo/Supplied.

I’m incredibly proud

of our people and the

positive outcomes

we have achieved for

our customers and

our community.” –

Mark Cairns

safety record and the highest

productivity rates in Australasia,”

he said.

Local ratepayers own just

over half of Port of Tauranga’s

shares through Quayside Holdings

and the company’s success

had delivered wide-ranging

benefits to the region.

“During Mark’s tenure, the

average compounding Total

Shareholder Return has been

19 per cent per year, with market

capitalisation increasing by

$4.4 billion, from $665 million

to $5.1 billion today,” said

Pilkington.

Cairns said Port of Tauranga

was is in excellent shape. “I’m

incredibly proud of our people

and the positive outcomes we

have achieved for our customers

and our community.”

Discussing the recent

challenges of steering the

port through the Covid-19

pandemic, Cairns said early

concerns stemmed from not

knowing exactly what the pandemic

was or how it should

be handled, and then working

closely with staff to ensure the

port stayed open.

“If you can imagine, you’re

– for example – working

with pilots who were having

to board vessels from China

where the virus originated. It

just really illustrated the resilience

of the people we’ve got

working for us.”

As to the future, Cairns acknowledged

it was a tough call,

noting that the World Bank had

recently forecast a four percent

contraction in global GDP.

“I think the world is going

to do it tough for a while,” he

said.

The cruise ship market

could be gone for a few years,

which could be a $6 to 7 million

hole in earnings. Cairns

said the biggest concern was

on the import side. Rising

unemployment could see consumption

drop off and, while

it was only about 17 percent

of the port’s earnings, imports

were likely to take the biggest

hit.

“But we’re predominantly

an export port and the world’s

always going to need our primary

sector exports and our

fruit – that’s a big part of our

business we’ll see continue.”

Mark Cairns: moving to governance roles. Photo/Supplied.

Cairns professional achievements

• Doubling in cargo volumes

• Successful execution of strategy to become New Zealand’s

only “big ship capable” port

• Nearly trebling container volumes

• More than seven times increase in market capitalisation

• Named Chief Executive of the Year in the 2012 Deloitte

Top 200 Business Awards

• Winner of the Caldwell Partners Leadership Award in the

2019 Institute of Finance Professionals Awards

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4 BAY OF PLENTY BUSINESS NEWS October/November 2020

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For a long-time political

junkie like myself, October

2020 is about as

good as it gets. We have the

astonishing spectacle taking

place in the US as the battle

between Donald Trump and

Joe Biden nears a climax. And

we have our own – less insane,

but still vitally important decision

coming up after New Zealanders

conclude voting on 17

October.

Assuming we have a result

by the time we publish our November

issue, we will be devoting

our next cover story to

analysing the implications of

the new government’s policies

for businesses in the Bay.

But as we saw after the

last election, MMP will not

necessarily deliver an immediate

“final” result. As veteran

politician Richard Prebble

reminded readers in a recent

opinion article dig at the Jacinda

Ardern coalition: “Under

MMP, the losers can win.”

Prebble is of course notable for

having jumped from Labour to

the then new ACT party and

subsequently becoming its

leader in the 1990s.

Going into the final days

of campaigning, our latest

New Zealand elections are the

hardest to call in recent history.

They have come down voters

deciding on two key issues:

who can handle the ongoing

issues of Covid-19 most effectively,

and who is best placed

to help lead New Zealand’s

economic recovery.

The polls have so far shown

consistent, though slowly ebbing,

support for the Ardern

coalition, a slight improvement

from a low position by

National, and a strong swing

to ACT.

However, I tend to be

something of a sceptic of polls.

I doubt people really confide

their true beliefs to phone

poll surveyors, and don’t see

why online surveys should be

necessarily any more reliable.

Even the polltakers admit to

a three percent plus or minus

error factor. What may be

more significant this election,

is the very large number of undecided

voters showing up in

most recent polls.

But there is no doubt polls

give mainstream media something

to write and broadcast

about. As we went to press,

there was massive publicity

around the NZ Herald-Kantar

Vote2020 poll, published on 30

September. This favoured Labour

on Covid-19 protection,

but gave National a slight edge

on rebuilding the economy.

In my view, there are a few

standout issues at play in our

current elections and they will

remain potent factors regardless

of which party manages to

form a government.

The return of Crusher

Collins

One is that Judith Collins –

after briefly dallying with a

softer, kinder image – has happily

re-embraced the “crusher”

nickname that defined her.

The opening televised leaders’

debate was fascinating as the

Judith Collins of the past elbowed

her way back.

An interesting recent analysis

in the NZ Herald by former

National MP and now professor

of public policy Marilyn

Waring and Dr Ali Rasheed, a

graduate of Auckland University

of Technology, noted that

Collins’ approach to the first

debate resulted in her commanding

the majority share

of both the questions, and the

answer time. The authors said:

Collins’ “adoption of the style

of boys in a classroom was a

clever tactic for the first debate

and the full production team

fell for it.”

It would seem National

has finally come to – or more

likely Collins has opted to return

to – what she does best.

Those who don’t like her style

will continue to respond to Ardern’s

more softly, softly approach,

but wavering National

voters are likely to respond

favourably to the old Crusher.

The television debate included

Collins’ classic response

to Ardern saying she

wasn’t drawn to blood sportstyle

contests, of “Poor wee

thing.” Or Collins’ description

of Ardern’s raising her ancient

SFO investigation, which exonerated

her, as “a low blow”

and saying: “Gosh, the veil is

definitely slipping, isn’t it?”

David Porter

[The New Zealand elections] have come

down to voters deciding on two key issues:

who can handle the ongoing issues of

Covid-19 most effectively, and who is

best-placed to help lead New Zealand’s

economic recovery.”

Nonetheless, those who

like Ardern’s leadership style

and performance are likely to

stick by her. Though Labour

supporters might be wise not

to assume their victory is a

done deal, and make sure they

actually get out and vote. But

whether Collins is Prime Minister

or Opposition leader, she

will prove a potent force.

It is difficult at this stage

not to write off NZ First. I suspect

that Winston Peters’ days

of dominating a coalition on

his own terms – as he has done

so successfully if confusingly

– in the current government,

are over.

The Greens after some

missteps seem likely to claw

their way back into parliament,

according to some polls. But

if they remain Labour’s only

viable coalition party, they

are unlikely to be much help

to them in winning the elections.

The Greens’ somewhat

unrealistic commitment to a

wealth tax that would capture

a large proportion of ordinary

Kiwi households, may cause

voters who might otherwise

support Labour, to have second

thoughts.

The surprise performance

has been from David Seymour

and the ACT party. In late campaigning,

Seymour has tried to

position himself as the “real”

National party. The reality is

he is more likely to be cannibalising

NZ First than the National

Party.

The problem both the major

parties face, is a lack of clearly

detailed and differentiated

policies. However, the general

themes that have emerged

are much as might have been

expected.

Labour’s announced policies

tend to reconfirm their

view that bigger government

is better, and that only government

knows how to spend taxpayers’

money. National’s policies

tend to take the approach

that business should be left to

get on with what it does best.

The reality is that whoever

wins power will be committing

previously unimagined billions

of dollars to keeping the population

employed, or at least fed

if not always well-housed.

One consolation we can

all take is that, unlike in the

US, we are not facing a political

squabble that has the

potential to unleash continuing

civil dissent whatever the

outcome. The Republicans are

led by Trump, a well-documented

liar, the leak of whose

long-hidden tax returns prove

him to be one of the least successful

businessmen, and most

personally indebted presidents

in US history. His Democratic

opponent Biden is a

competent, seemingly decent

but aging politician, who got

the nomination because mild

socialist Bernie Sanders was

too “left” for party elders to

stomach.

Whoever wins in New Zealand

can be expected to at the

least try and do their best for

our country, and to be largely

supported, while being held to

account, by a loyal opposition.

We are lucky.

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October/November 2020 BAY OF PLENTY BUSINESS NEWS 5

Avo prospects

positive for new

season

Prospects for the Bay of Plenty’s new

avocado season are looking positive,

with export volumes forecast to rise

and strong prices buoyed by lighter

crop volumes in Australia.

By RICHARD RENNIE

NZ Avocado chief executive

Jen Scoular said the

total crop estimate for

this season is 7.2 million trays,

the same as the actual crop

volume harvested last season,

with almost 4.5 million trays

destined for export.

Some growers here have

reported slightly smaller fruit

because of the dry summer,

but Scoular said more will be

known about average fruit size

over the coming month as the

export season gets underway.

Katikati grower Don Grayling

said the dry weather

through summer has influenced

this year’s crop, but irrigation

had helped reduce some

of the dry’s worst effects. He

has also noticed picking has

started particularly early.

“We are feeling optimistic,

the downturn in Australian

crop volumes will certainly

help growers here,” he said.

The Bay of Plenty continues

to be the dominant area for

avocado growing, but shifts

are occurring as the concentration

of new orchards grows in

the north.

Recent significant investments

from both iwi and corporate

growers into green

fields orchard conversions in

Northland, with some as large

as 200ha by the end of the decade,

means the current 60:40

split between Bay of Plenty

and Northland is likely to even

out over the next five years.

“The investment into avocado

development in Northland

has been made off the

Jen Scoular

back of confidence in the

wider avocado industry, the

ability to utilise research and

development to get better productivity,

and utilising scale

of operations to reduce relative

on-orchard costs,” said

Scoular.

New orchards harvesting

this year

Some of the large new orchards

planted in Northland

began harvesting for both export

and domestic markets this

year.

“We expect to see continued

increases in volumes from

these newly planted orchards

over the next five years.”

Australia remains the dominant

export market for New

Zealand fruit, accounting for

about 70% of exports, and supply

to Australia is expected to

be boosted this year thanks to

an anticipated strong season

here.

Aussie growers in southern

and western Australian growing

regions are also anticipating

lighter crops, thanks in part

to a drier season.

In coming years Australian

volumes are expected to

increase significantly because

of large new plantings through

Western Australia’s south-west

district.

But for the coming season

the Western Australian volumes

are forecast to be down.

“New Zealand exporters

anticipate this will result in a

good market opportunity for

New Zealand avocados in Australia

for the 2020-21 season,”

said Scoular.

Over time as the Western

Australian fruit comes on

stream it is expected to impact

upon the volumes New Zealand

growers can sell into Australia.

It has prompted greater

focus here on exporting to

non-traditional markets that

this year including India, Pacific

Islands, Thailand, South

Korea and Singapore, alongside

the Chinese market.

New Zealand’s entry to the

China market in 2018 was initiated

with a 40,000 tray commitment.

Since then the volume

has ramped up with the

larger, more expensive New

Zealand fruit being differentiated

by quality, food safety and

traceability claims.

“Our harvest maturity requirements

are the highest in

the world, and this combined

with our rich volcanic soils

Michael Franks

Even though they have put more

plantations in Western Australia, their

crop is significantly down this season,

by almost half, so the outlook for us

here is very good in terms of Australian

exports.” – Michael Franks

and temperate climate produce

and avocado with a consistently

great taste profile and

unique nutrient properties,”

said Scoular.

Thailand market growing

Thailand is expected to be

New Zealand’s largest Asian

export market this year, taking

300,000 trays.

However, Scoular cautioned

export to markets faced

Covid-19 challenges including

a reduction in air freight capacity,

and pressure from Peruvian

fruit in some of New Zealand’s

favoured markets.

Michael Franks, chief executive

of Seeka, which has

been focusing on increasing its

share of the avocado market in

recent years with its premium

branded fruit, said Australia

would remain a significant

market for the company in the

immediate future.

“Even though they have put

more plantations in Western

Australia, their crop is significantly

down this season, by almost

half, so the outlook for us

here is very good in terms of

Australian exports.”

Australia consumption per

capita of the fruit has risen

steadily over the past decade

by over 50%.

However, Franks said

Covid-19 has altered the demand

profile in the past few

months around the world.

“A lot of fruit goes into

food service, and with a drop

off in eating out in the likes of

Mexican restaurants means the

demand there has dropped.

Big suppliers out of Mexico

and South America are moving

more into fresh whole fruit

supply, which of course brings

more competition to the likes

of us.”

However, he was confident

Seeka’s focus on providing

high quality, premium

fruit would hold it in a strong

position against the smaller

fruit from South America that

tended to have a higher water

and lower oil content in their

flesh.

He said expectations of

$25-$35 a tray was very realistic

this season.


6 BAY OF PLENTY BUSINESS NEWS October/November 2020

Evidence of a V-shaped recovery

Investment market update (for the quarter ended 31 Aug, 2020)

The global pandemic is

not yet behind us. People

in the northern hemisphere

have been enjoying

their summer holidays at the

same time that infection rates

have been increasing.

Yet the overall mortality

rate continues to decline, highlighting

better overall care and

treatment options. At the same

time, central banks and government

policymakers have

continued to support households,

businesses, and banks

allowing businesses to reopen

and encouraging healthy economic

activity as lockdowns

are eased.

For now, the outcome has

been a broad rebound in economic

activity around the

world. Housing has been particularly

strong in many countries

due to a combination of

historically low interest rates,

pent-up demand, nesting (people

redirecting spending to

their home and in-house activities),

and, in New Zealand, a

shortage of supply. Along with

houses, low interest rates have

boosted demand for new cars,

which has contributed to an upturn

in global manufacturing.

Retail sales have also surprised

many, with a strong rebound

following a weak second

quarter of the year. Household

savings rates went up during

the lockdowns and the use of

those savings once economies

reopened has contributed to

a more robust recovery than

many had predicted.

Central banks

committed to ultra-low

interest rates

In most cases, central bank interest

rates are near zero and

indications are they will stay

there for a long time to come.

The US Federal Reserve has

gone one step further by confirming

it is focused on reducing

unemployment and is now

prepared to let inflation run

above its official two percent

target for some time before

even thinking about raising

rates. Comments from one of

our own RBNZ Deputy Governors

suggest our central bank

is also prepared to do something

similar.

The implication is that interest

rates are going to remain

at ultra-low levels possibly for

years. Those waiting with cash

in the bank for higher deposit

rates are likely to be disappointed.

The long-term trends

contributing to the decline in

inflation (including ageing

populations, high debt, globalisation,

and the proliferation

of technology) are all still

with us. Inflation risks remain

benign near-term. That’s not

to say all the money printing

won’t eventually cause some

inflationary pressures if it creates

excess demand for goods

and services. But that risk appears

a fair way out from here.

Earnings optimism

As the equity markets continue

to recover strongly, so too does

optimism for future company

earnings. July and August is

when companies report their

financial results to markets.

Expectations for Q2 2020

earnings were low, and we

saw more positive surprises

than negative ones. Reflecting

more buoyant than expected

WHAT TO DO WITH YOUR MONEY

> BY BRETT BELL-BOOTH

Investment Adviser with Forsyth Barr Limited in Tauranga, and

an Authorised Financial Adviser. Phone (07) 577 5725 or

email brett.bell-booth@forsythbarr.co.nz.

economic conditions, analysts

are now generally lifting earnings

expectations for this year

and the year ahead.

The “working from home”

theme is becoming a permanent

theme in many economies,

with many people moving

out of the cities and into

the suburbs. This has been

beneficial for industries such

as homebuilders, car manufacturers,

home furnishing, and

anything else related to working

or shopping from home.

With positive signs much of

the global economy is experiencing

a sharp rebound in activity,

investors should become

increasingly confident that the

low in earnings is behind us,

and a recovery is underway.

Uncertainty still ahead,

but stick to the plan

The commentary above all

sounds pretty positive, and

clearly equity markets have responded

favourably.

But these remain unprecedented

(a word used a lot

at the moment) times. We’re

still navigating the first global

pandemic in over a century.

Interest rates are the lowest in

history, which may lead to economic

imbalances longer-term.

And governments are spending

money with abandon, funded

largely by central banks printing

money, but this can’t last

forever.

Given the recovery in

equity market values since

March, we note that: (1) markets

are able to remain resilient

in the face of bad news,

(2) share prices reflect the

long-term earnings companies

will generate over the years

and decades ahead, not just the

next six to 12 months, and (3)

it’s not possible to consistently

time or predict short-term

movements in markets. Overall,

it’s important to establish

and remain committed to an

investment plan which meets

your long-term goals.

This column is general in nature

and is not personalised investment

advice. This column

has been prepared in good

faith based on information obtained

from sources believed to

be reliable and accurate. Disclosure

Statements for Forsyth

Barr Authorised Financial Advisers

are available on request

and free of charge.

Key questions to ask

on an Information

Memorandum

A business’s Information Memorandum is a summary of the business for

sale and you use it to figure out if you are really interested in the business.

It is like going to an open home. You have a quick look around and form

an opinion of the house from what you see on the surface. And then you

decide whether you want to look a whole lot harder.

A few of the common

questions I have when

reviewing an Information

Memorandum (IM) are:

1. Financial Performance

– what trends can be seen

from reviewing the numbers?

How have the financials

been used to arrive at

a business value? Do they

indicate a business that is

growing in profitability? Or

are sales up, but gross margins

down? All the figures

can be used to tell a story

– but you might need professional

help in reading it.

2. Price – the questions I have

about the value of a business

from the IM stem from

working out the multiple

of earnings that the asking

price implies and whether

the prospective buyer

thinks this is good value or

not.

3. Reasons for selling – does

this imply anything about

The IM stage is about forming an overall

view so you can work out whether you

are keen to learn more – or throw it in

the bin. All the factors above contribute

to building a true picture of the

business.”

the state / value of the business?

Retirement is a common

reason. However, not

everything can be taken at

face value. If the business

is declining, then it may be

that the vendor now wants

to retire as they do not have

the energy to pick things up

again.

4. The IM will contain

plenty of information

about products, markets,

suppliers, and competitors.

It is key to understand

what the IM is (and is not)

telling you in this area.

5. Do you have a clear understanding

of the risks

and opportunities? Sometimes

the IM will refer to

markets or products as opportunities

despite the business

not currently being in

those markets. For me, any

gain from this should be to

the new buyer.

6. Staff – is there a high level

An IM is like an open home visit: it’s basically a sales memorandum. Photo/stock

of specialist knowledge

held by an exiting owner?

Or can the staff manage

without them? It reduces

the risk to a new buyer considerably

if the business

can still function well without

the current owner being

around.

7. Owner’s commitment to

the transaction – are they

looking to exit as fast as

possible? Or are they prepared

to stick around and

help a buyer get a good a

start?

8. Systems – what are the

BETTER BUSINESS BUYING

> BY TOM BESWICK

Director at Ingham Mora Chartered Accountants in Tauranga, is a

business advisor who specialises in buying and selling businesses.

He can be contacted on 027-5744- 019 or tom@inghammora.co.nz

core systems that the business

uses? Does it indicate

a business that is using

best practice, or will a new

owner have to improve

things early on?

9. Location / premises /

equipment – are there any

premises that are central to

the success of the business?

What is the lease situation?

Are the assets for sale with

the business up to date or

will you need to allow to

replace some?

The IM stage is about forming

an overall view so you can

work out whether you are keen

to learn more – or throw it in

the bin. All the factors above

contribute to building a true

picture of the business.

An IM is a sales document

– no different to a property

hoarding.

Understandably, it presents

the business in the best possible

light. It is up to a buyer and

their professional advisors to

cut through the noise quickly

so they can work out whether

it is worth the time and cost to

dig further.


October/November 2020 BAY OF PLENTY BUSINESS NEWS 7

New Year – New Meetings

at Trustpower Baypark

Trustpower Baypark are pleased to offer a

“New Year – New Meetings” promotion as

a fresh start to 2021 for all your strategic

planning, training and team building needs.

On offer is a 25 percent discount for small

meetings confirmed before 23 December,

2020 and held between 5 January – 31

March 2021. The discount applies to Venue

Rental, Audio Visual, Catering and Baystation

and is subject to availability.

The Trustpower Baypark Arena Suites: Book now for the New Year. Photo/Supplied.

Once again, Trustpower

Baypark are gearing

up for a busy summer,

with a number of upcoming

events to keep the entire family

entertained.

Women’s Lifestyle Expo

Do you need a girls’ day

out? The Women’s Lifestyle

Expo is a two-day event

for woman of all ages, featuring

everything from fashion

and beauty to health and fitness,

artisan good, gourmet

food and beverages and much

more!

This is the only event of its

kind happening in nine regions

across New Zealand, so grab

your girlfriends, sisters, mum,

grandma or daughters for

the ultimate weekend at the

Women’s Lifestyle Expo on

Saturday 10 and Sunday 11

October. Tickets are just $10 at

the door, or get a 2-for-1 deal

on GrabOne in the lead-up to

the show. Kids under 12 are

free.

Tauranga Homes Show

Returning for its huge 21st

show on Friday 16, Saturday

17 and Sunday 18 October,

the Tauranga Home Show is

spread across both venues of

Trustpower Arena Baypark

along with beautiful outdoor

displays.

Browse, compare and draw

inspiration from a range of

over 250 exhibitors, from top

of the line to budget conscious.

Bringing together regional

and national businesses, the

Tauranga Home Show encourages

you to buy local and

support local from established

Kiwi brands to small family

ventures.

Watch live cooking demonstrations

from “Nude Food”

advocate Nadia Lim. Nadia

is all about everyday simple,

healthy, delicious food.

She came up with the idea

of Nude Food as a budding

young cook when she was just

12 years old and it has been her

mantra ever since. She wasn’t

referring to cooking or eating

in the nude – rather the concept

signifies fresh, natural, real

food, free from being dressed

up in fancy packages, marketing

and additives.

It’s a message she conveys

to her audiences with her fresh,

bright and tasty recipes. Don’t

miss out on her live cooking

shows at 2pm on both Saturday

and Sunday.

HoopNation

The popular Women’s Lifestyle Expo is coming back. Photo/Supplied

If you love basketball then

block out Labour Weekend

now (23-26 October).

HoopNation is Aotearoa’s

classic basketball event brand

and host successful tournaments

throughout the year nationally

and internationally.

One of these events is The

Classic, which is hosted annually

every Labour Weekend in

Tauranga.

The Classic is where the

HoopNation journey began in

2011 and it has grown to become

New Zealand’s premier

basketball event showcasing

some of the nation’s top talent.

HoopNation is all about

exposing athletes nationwide

to opportunities to showcase

their talents on their journey to

greatness. 12 Youth Divisions

– 5 Adult Divisions – 4 days.

Don’t miss out.

Baypark Speedway

Opening night for Baypark

Speedway is Saturday, October

24 and will see all adrenaline

junkies come out of

hibernation.

The opening night is just

the start of what is set to be an

action-packed season.

To celebrate Guy Fawkes

Day, Speedway will finish

with a spectacular display of

Fireworks to light up the sky

on November 7.

There will be no shortage of

thrills this season. Other confirmed

2020 speedway dates

are November 21 and December

5, 26 and 29.

Look after your clients

in style

Did you want to treat one of

your valued clients? Or how

about coming to Speedway for

your Staff Christmas party?

We have a number of

Corporate Boxes available

to entertain your guests

comfortably.

With the box you get; an

exclusive, spacious and comfortable

box with an outdoor

balcony for up to 20 guests.

Full kitchen facilities including

microwave, sink,

table, chairs and bar stools.

A self-contained refrigerator

for ongoing inbox bar

service with dedicated corporate

box catering stewards for

continuous supply along with

a high quality catering service

delivered to your box.

These boxes are also available

on an annual basis to cover

the entire Speedway Season.

Please contact us on events@

bayvenues.co.nz or 07 577

8593 for more information.

Premier Venue

Trustpower Baypark is Tauranga’s

Premier Venue for conferences,

meetings, entertainment

and exhibitions. Offering a

complete package in one convenient

location that features

state of the art meeting rooms,

in-house catering, audio visual

services, professional conference

organiser (PCO) and marketing/promotional

services.

Virtual meetings

“Bring your events online”

with our Virtual Meetings.

The range of onsite and offsite

services include: Remote Presentation,

Video Conferencing,

Web Streaming and Streamed

Hybrid Conferences.

The Virtual Meeting

services also includes purpose-built

studios to ‘broadcast

standard’ offering competitive

packages to enable you to

continue to stay connected to

your audience. Ask about our

competitive packages today.

For more information on any events, enquiries for Trustpower Baypark venues, BayStation activities or service on/off site from BayCatering, BayAudioVisual

or to book our New Year – New Meetings promotion visit www.trustpowerbaypark.co.nz, email events@bayvenues.co.nz or call 07 577 8560.


8 BAY OF PLENTY BUSINESS NEWS October/November 2020

Bay of Plenty Business

News readers can

register for FREE tickets

and come along to the

Stratus Blue Cyber

Security event on

14 or 15 October.

Protect your digital assets

Over the past few articles, I have written about the importance of

protecting your business’ digital assets. However, when it comes to

actually implementing security systems and processes, many struggle

to know where to begin.

It doesn’t matter how big or

small your business is – if

the data that is held within

it is of interest to unsavoury

characters, then your business

could be at risk.

Here we offer five simple

tips (in no particular order)

and explain how they can help

your business stay one step

ahead of the cyber beasties.

1. Manage and install software

updates. Patches add

new features to software,

but also they often fix security

vulnerabilities.

2. Ensure that you have a process

and system to backup

key data. Have a backup of

key data including email,

so that if any malicious attacks

occur, a backup can

be restored. Having files

and data on the cloud is

NOT a backup. It is a place

to store them, but does not

necessarily offer a backup

service. Meaning if your

data gets compromised –

you still may not be able to

return to operation or get it

back.

3. Implement multi-factor authentication

(MFA or 2FA)

across your systems. With

privacy and customer information

access and security

becoming a legal requirement,

anyone who logs in

to your system will need

to provide something else

on top of their username

and password, to verify that

they are who they say they

are.

4. Implement security awareness

training for users and

team. Train your staff to

know what to look out for.

Make sure they understand

what to do in certain circumstances.

Have a plan

and disaster recovery options,

which should include

a privacy statement.

And make sure that your

organisation has a privacy

officer as part of the new

legislation.

5. Secure your network. Consider

and think about the

connections both going in

and going out of your business

network when you

start thinking about how to

secure it. Install antivirus

and key technology tools

on all devices. Don’t let

mobile phones or non-work

related devices connect to

the company Wifi – have

separate access for these

devices that are separate

from the company network.

This would include

those where they have been

working from home in a

less secure environment. If

you have staff working remotely,

check how they are

connecting – implement the

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.

above – and when patching

is done, ensure the kids

games are removed.

It’s important to remain diligent

when it comes to cyber

security. Don’t just make policy,

make sure your policies

are consistently followed by

your team.

Even if you instruct employees

not to store password lists,

financial data, and other sensitive

information on email

storage, you should still periodically

check that your policy

is being acted upon.

By educating your staff to

spot potential threats and not

letting your guard down you

can build a company culture

that is security-minded. You

can also adopt a training policy

that gives your employees

the tools they need to deal with

online threats effectively, thus

benefiting your company and

your clients.

To find out more, Bay of

Plenty Business News readers

can register for FREE tickets

and come along to the Stratus

Blue Cyber Security event on

14 or 15 October, which is held

in partnership with industry

partners in Cyber Security.

Daily flights to Auckland in just 45 minutes

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be happy to help you.

0800 580 127


October/November 2020 BAY OF PLENTY BUSINESS NEWS 9

How to avoid or get out of debt

One of the things that have really helped me in my role as a debt

advisor, debt prevention advisor and especially a repossession

company director, is that I genuinely understand debtors, debt

collector avoidance and general debtor behaviour in a way that few

in my industry do.

CREDIT CONTROL

> BY NICK KERR

Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.

He is also a director of International Private Investigations Ltd.

Nick can be reached at nick.kerr@eccreditcontrol.co.nz

The reason comes not

from in-depth analysis or

my 15 years’ experience

on the frontline of collections.

Why I understand debtors

– and particularly habitual

debtors – is because for years

before my foray into credit

management I was one. When

I say I was one I don’t mean

that I had the odd bill that went

a bit overdue. I was a proper

phone call screening, constantly

moving, habitual credit

vampire with a -192 Equifax

credit score and every major

credit control company in New

Zealand chasing me.

I calculate that before my

personal credit revelation I

was around $200,000 in debt

and weeks if not days away

from bankruptcy.

Using the methods that I

outline below, I was able to

not only reduce my indebtedness

to zero and restore my

credit score to an optimal one,

I was able to implement rules

and strategies that will ensure

I never fall into the debt trap

ever again.

Domino Strategy

This strategy was taught to

me years ago by a property

developer who was able to

trade his way out of $1million

debt amassed through a development

that went horrendously

pear-shaped.

How it works is: let’s say

you have 10 creditors that you

owe $1000 to and you have

$1200 per month available to

pay.

You contact each one and

after outlining your situation

(honesty is vital) you commit

to paying $100 to each per

month for 10 months, which

they accept in writing (making

it binding on both parties and

preventing collection action).

With the remaining $200

you pay an additional $200 per

month on the oldest debt allowing

you to pay this off three

times faster. Once this debt is

cleared in full, you then add

the $300 available to the $100

you are paying on the second

oldest debt, allowing this to be

paid four times faster, and so

on until all debts are cleared.

This strategy has three

outcomes, it clears your debt,

avoids credit defaults on your

credit file and also helps restore

your credit reputation as

the creditors expect it to take

10 months to be paid and are

If Covid-19 has

taught us nothing

else, it has driven

home the importance

of budgeting. There

are many free

services that can

assist with this if

isn’t your forte.”

all pleasantly surprised.

Without fail, all of my current

9000 clients would accept

a payment plan with certainty,

rather than a hope of eventual

payment. As with everything

in life, honest and early communication

is key.

Avoid Debt

Consolidation loans

Many finance providers market

“Debt Consolidation

Loans” to “ Clear” your debts.

This can sometimes this can

be a good idea, providing that

the debts that you have allow

for early repayment without

penalty. But often you can end

up paying not only the interest

on the new loan, but a good

portion of the original debt

interest and “Break” or “early

repayment” fees.

These consolidation loans

are marketed for their ease

of use, not their reduction of

costs. This is especially true

if you use a broker who may

have a not insignificant broker

fee that is also incorporated.

Do not hide

In my experience as an investigator,

there has only been

one person that we could not

find out of more than 600

cases. That person has never

had a credit score or bank

account, lives in a tent in the

bush that he moved weekly,

avoided town centres and any

business with CCTV, and had

no digital footprint.

My point is that, unless

you live like this person, you

will be found. Hiding just

makes your debt larger (tracing

and investigation fees can

often legally be added to your

account).

If you cannot pay a debt

make early contact and ask

about options. Many finance

companies have insurance that

is built in to your loan that can

cover unexpected job losses or

sickness. Early honest contact

will make the creditor much

more likely to earnestly explore

these options and fight

on your behalf.

Insurance is vital

We have dealt with numerous

people that we have had to

chase for debts because of unexpected

costs that would have

been covered by insurance.

If your income changes talk

to a good, well-recommended

insurance advisor who can put

in place affordable insurance

to avoid these unexpected and

unwelcome additions of debt.

Quit expensive habits

I would say that around 80

percent of the debtors that our

company repossess cars from

are cigarette smokers. What is

the correlation?

The average weekly payment

on these finance loans

are $85-100 per week – a one

pack per day smoker buying

the cheapest smokes available

is spending around $25 per

day.

I’m no math’s genius, but

those numbers do seem to be

rather similar. When I was on

my road to credit redemption I

had to choose either my habits

or my future. Stopping one

paid for the other.

Keep your budgeting

tight

Most of the people I have

worked with who have navigated

their way out of debt and

stayed out of it, have a strict

budget.

Remember that people with

umbrellas aren’t overly affected

by the rain and people

that properly prepare for a

budgetary deficit can also remain

relatively unaffected.

If Covid-19 has taught us

nothing else, it has driven

home the importance of budgeting.

There are many free

services that can assist with

this if isn’t your forte.

The above is not intended

to be prescriptive, just techniques

that worked for me and

many others.

Just a thought.

Racing to the top – meet our newest Associate

Congratulations to Rebecca Steens, who works in our litigation team, on her promotion to Associate.

Rebecca returned to Tauranga earlier this year and joined

our litigation team after four years working at a global

offshore firm based in Jersey, in the Channel Islands.

She has a range of experience and expertise in general civil

litigation matters with a particular focus on trusts and

estates, as well as commercial disputes, directors’ claims

and insolvency.

Rebecca enjoys working with clients and developing

pragmatic solutions. In her spare time, Rebecca

is a competitive road cyclist, and is a member

of a women’s cycling team sponsored by the firm.

Rebecca is looking to continue her success whether

in a race or in a Courtroom, and we are proud

to welcome her as our newest Associate.

Rebecca Steens

Associate

DDI 07 570 0687 rebecca.steens@hobec.co.nz

Tauranga / Rotorua / Whakatane / Opotiki

hobec.co.nz

HOB25875 BOP_BN


10 BAY OF PLENTY BUSINESS NEWS October/November 2020


SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

October/November 2020 BAY OF PLENTY BUSINESS NEWS 11

WHY THE TAURIKO

TAURANGA BUBBLE

WORKS

Tauriko has been one of the region’s most successful industrial parks and is

a core reason for Tauranga’s strong record over recent years in attracting the

likes of Jenkins Freshpac Systems and Brother Printers NZ to the Bay.

By DAVID PORTER

A

key recent example is

the decision early this

year by Fletcher Building

to relocate its state-of-theart

new Winstone Wallboards

plasterboard facility to Tauriko

– bringing a $400 million

investment boost for the

Bay. Fletcher Building chief

executive Ross Taylor said at

the time: “Our current site in

Onehunga, Central Auckland

is land-locked, which has prevented

us from expanding our

operations and improving efficiencies

by consolidating manufacturing

and distribution on

the same site.”

The new Tauriko site was

double the size and would

allow for further capacity

growth, he said.

Nigel Tutt, chief executive

of Priority One, which

worked with the company to

help bring it to Tauranga, said

Fletchers needed to move the

plant from Auckland. And the

Tauranga port had a lot to with

the decision.

“They import a large

amount of gypsum and Tauriko

was the best choice for their logistics

set up,” he said. “If you

import or export stuff and your

main markets are Auckland or

the upper North Island, Tauriko

works well, especially for

any logistics or distribution.”

But while Tauriko remains

busy, it now needs local infrastructure

developments to

catch up in order to continue

fulfilling its potential, as Bryce

Donne, director of primary site

developer Element IMF explains

in the following pages.

However, it’s important to

note, remarks major Tauriko

realtor, Philip Hunt of Ray

White Commercial, that Tauriko

benefits from what he calls

the “Tauranga bubble” centred

around the Port of Tauranga.

As a result of proximity to the

port, importers and exporters

of all sizes can ensure ready

access to material imports and

to destinations both nationally

and globally, he says.

Continuing growth

despite Covid-19

Above: Growing fast: Road Safe Traffic Management’s

Tauriko team.

Left: Road Safe Traffic Management’s Logan Dawson

with partner and office manager Greta Drummond.

Photos/Supplied.

Perhaps the most interesting

aspect of Tauriko’s continuing

development success during

a period when the country is

dealing with the ongoing impact

of Covid-19, is that companies

aren’t wanting to end

leases because they are having

to close down, but because

they are growing and optimistic,

said Hunt.

“These companies that are

expanding are in many cases

new, with young people running

them,” he said. “It’s exciting

and encouraging.

Logan Dawson started

Road Safe Traffic

Management in 2016 out of

a garage and home office

with one vehicle. He now has

offices in Whakatane

and Rotorua, and around

50 staff, 16 trucks and 16 utes.

“We do everything that

happens on a road,” said Dawson.

The company provides

safe compliant spaces for

roadworks – anything from

tree felling and road resealing,

to event parking control.

It is sometimes known as the

“cone” company. He added

that the company sources

thousands of cones a year, and

could lose 20 percent or so a

year to wastage.

The company started off

in Tauriko’s Paerangi Place

with around 400 sqm and recently

relocated to much larger

premises through Ray White

in Whakakahe St. “That has

given us better office space

and more building yard space,”

said Dawson.

Continued on page 12


12 BAY OF PLENTY BUSINESS NEWS October/November 2020

SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

WHY THE TAURIKO TAURANGA

BUBBLE WORKS

Continued from page 11

Chris Copping started his

business Cars and Commercials

from home four-and-ahalf

years ago and has now

changed premises a couple of

times since moving to Tauriko,

moving on as larger premises

have become available. He is

now in Rakiraki Way.

The company specialises in

bringing in good used stock out

of Japan. “We’re competing in

a market that has had quite a

strong European presence and

we stick to stuff that is a bit

different,” said Copping.

He added that given the

abundance of car companies

in downtown Tauranga and the

Mount, Tauriko made sense as

a location, and given its strong

online presence the company

could be easily found.

Chris Copping: Forget about outside influences and

absolutely back yourself. Photo/Supplied

Strategically Tauriko is a well-located prime

place, connects with Waikato and has a fairly

direct route to the port – it’s a great place to

be.” – Matt Cowley

Being on the outskirts of town

worked better for out-of-town

buyers as well.

“You need to forget about

doom and gloom and forget

about external influences, like

Covid-19,” said Copping.

“I sat down and looked at

what data was available to me

after four years and enquiries

were still strong. Business is

like anything - you get out of

it what you’re prepared to put

in. You’ve got to put the hours

in and you have to absolutely

back yourself because no one

else will.”

Matt Cowley, chief executive

of the Tauranga Chamber

of Commerce, said that

anecdotally he had heard of a

number of business that had

relocated from other areas to

Tauriko to be able to future

proof their development.

“Strategically Tauriko is a

well-located prime place, connects

with Waikato and has a

fairly direct route to the port –

it’s a great place to be.”

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SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

October/November 2020 BAY OF PLENTY BUSINESS NEWS 13

Tauriko – Positioned for further growth

Tauriko Business Estate continues to experience high growth and

demand, says Bryce Donne, Director of Element IMF, which has

been developing the site since its inception in 2006.

By DAVID PORTER

With excellent access to

the Port of Tauranga

and the downtown

Tauranga CBD, as well as

Waikato and Auckland, Tauriko

is comprised of approximately

200 ha.

Around 150 ha has been

completed of net developed

lots, and businesses are offered

a choice of freehold purchase,

design and build and ground

leases.

The major constraint facing

what has been one of the

region’s most successful business

estates, is the need for

local and central government

support for the infrastructure

needed to develop further land

options as the current zoned

area of the estate has been

largely developed.

“At the moment there is

significant demand from business

wanting to come here

that we can’t cater for,” said

Donne. “But for now we are

still pretty hard out in earthworks

and civil construction

delivering what was sold over

the past 24 months.”

Currently construction at

Tauriko is focused in Stage

Phase 3A – essentially the

area between Gargan Road

and Belk Road, while Element

IMF is also focused on improving

the amenities of the

existing business estate.

“We are looking to improve

our communication with our

neighbours and other stakeholders,

whilst also lifting our

game in the estate in terms

of more planting, walkways

and general amenities,” said

Donne.

Donne noted that the ability

to bring on further land for

development was dependent

on advancing a number of

local government processes,

together with the provision of

infrastructure projects, which

require investment from both

central and local government,

in addition to developer

funding.

The proposed Stage 4 at

Tauriko Business Estate is

about 100 ha predominantly

on the south side of Belk Road.

This area is currently within

Western Bay of Plenty District

Council territory, but an application

to move the boundary

of Tauranga City to include

this area is under consideration

by the Local Government

Commission.

If successful this change

would pave the way for future

delivery of infrastructure, but

is only one of a number of processes

and works required before

the release of further business

land could be achieved.

New infrastructure for

the 3 Waters (drinking water,

wastewater and stormwater)

is required, but planning and

design works to provide these

in the time required are already

well advanced, and are unlikely

to be the factor holding

back a further release of land.

“The biggest constraint to

growth is the need for the connection

of the internal Tauriko

Business Estate road network

to State Highway 29 at or

around Belk Road. We realistically

can’t release much more

land at all until that happens.

This connection will also

provide a safe and efficient

replacement for the existing

Belk Road connection which

residents have been looking

forward to for many years.”

We are still pretty hard out in earthworks and

civil construction delivering what was sold

over the past 24 months.” – Bryce Donne

Even right now there might

be $500 million or more in

private sector building projects

that Tauriko could get

going without any government

money spent, if we could only

get the State Highway connection

built, said Donne. “The estimated

cost of the connection

is in the order of $11 million,

much of which will come from

existing and future development

contributions, requiring

comparatively modest central

government investment. To me

that would look like money exceedingly

well spent.”

Donne said that in terms of

location, Tauriko worked very

well for local businesses.

“There’s a lot of residential

growth in this western

corridor which is to come. It

fits very well in relation to the

port. And it fits in very well in

relationship to dealing with all

of our trade partners, most of

which are in the Waikato and

Auckland.”

Donne acknowledged that

success tended to breed success,

with economic activity

attracting more economic

activity.

“People want to come and

locate where their contemporaries

are.”


14 BAY OF PLENTY BUSINESS NEWS October/November 2020

SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

Why Tauriko continues to thrive

Perhaps surprisingly,

says Ray White

Commercial director

Philip Hunt, despite

Covid-19 the Tauriko

Business Estate is

busier than ever.

By DAVID PORTER

A

Tauriko specialist with

eight years’ experience

in the area, he says he

initially feared that some of

the smaller operators could be

hard hit.

“But without exception, the

smaller operators have moved

very rapidly, repositioned their

businesses where necessary or

moved online,” he said.

“Their businesses have

moved dramatically and positively

and I get more calls now

from industrial tenants saying

‘help me get out of these premises

because I’ve outgrown

them’.

“Without exception it’s

not because they’re having to

close – it’s because they want

to move into larger premises.”

Hunt said that because he

has a following of tenants, he

is able to get them out before

their leases end because he has

probably sold the property to

a good landlord who understands

he will find new tenants

for them without problems.

“I go to the landlord and say

your tenants have outgrown

the premises, can I get them

out early. And they say sure,

just bring me a new lease.”

Asked why the business

estate is performing better

These companies that are expanding

are in many cases new, with young

people running them – it’s exciting and

encouraging.” – Philip Hunt

than might have been expected

given the impact of the pandemic,

Hunt puts it down to

what he calls the Tauranga/

Tauriko bubble.

“I think economists and

banks don’t understand how

this bubble works,” he said. “I

would say a large part of it is

caused by our proximity to the

Port of Tauranga.”

As a result of the port, importers

and exporters of all

sizes can ensure ready access

to material imports and to destinations

both nationally and

globally, he said.

Hunt has been involved

in developing around 200 industrial

unit developments

in Tauriko, as well as several

in Mount Maunganui and

Papamoa.

“I keep very strong records

on all my enquiries so I know

what people are looking for,”

he said.

“At any given time I have a

snapshot of the market and the

demand that is there.

“Then I will bring a development

on and sell off the

Tauriko’s Paerangi Place

plans to satisfy the demand of

that market.”

A typical unit development

would take around a year or so,

and Hunt says that past experience

can see a large capital

gain during the development

period for someone buying off

the plan, usually because of the

increase in land value.

But he cautions that investors

shouldn’t buy just for capital

gain.

“These are long-term holds

and are designed as a launch

pad for people who want to get

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SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

October/November 2020 BAY OF PLENTY BUSINESS NEWS 15

into a commercial or industrial

investment and people generally

buy and hold,” he said.

“And we getting more and

more first-time investors who

are residential people shifting

their focus.” One of the key

attractions was the continuity

and reliability of both landlords

and tenants, he said.

“I’ve had residential investors

come to me for industrial

and have one now on his seventh

property. He’s never had a

week without a tenant. He’s an

exceptional landlord and that

word gets out.”

Hunt strongly believes in

Tauriko’s potential and is always

an investor himself.

“I am always on the property

and new investors should

ensure they build a relationship

with their agent and that

the agent can deliver tenants.

“I have a following in that

part of the market. So if anyone’s

going to tenant them it

will be me and my team.”

Hunt has appointed Christy

Arundel, a licenced sales person

specialising in the Tauranga

CBD and Tauriko, as his

second-in-charge.

He described Arundel –

who won a “Client’s Choice,

Customer Service, Individual”

award at the recent Ray White

International Awards – as “an

exceptional talent”.

The Ray White commercial team at Tauriko: Christy Arundel, Philip Hunt, Kate Bosworth, Michael McMichael, Ivy Shen, Antony Lee and David Herman.

Ray White International Awards

At the competitive annual Ray

White Commercial International

Awards held virtually on 27

August, local Ray White Commercial

Tauranga received a series of

accolades.

Commercial Tauranga was recognised

for excellence in customer

service receiving the coveted Customer

Service “Clients’ Choice”

ferYoung’s lay of the land

Award for the fourth year in a row.

Commercial Tauranga was Awarded:

• Clients Choice – Customer Service

– Commercial Tauranga

Office

• Clients Choice – Customer Service

- Individual – Philip Hunt

• Clients Choice – Customer Service

– Individual – Christy Arundel

• Philip Hunt – Elite Performer

(Alan White)

• Philip Hunt – No. 5 Commercial

Agent Internationally

• Kate Bosworth – Finalist (one of

the top three internationally) for

PA of the Year

Philip Hunt achieved Ray White

Commercial Salesperson of the

Year for the fifth year in a row and

was honoured as an Elite performer,

ranking him among the top two percent

of Ray White agents in the country’s

more than 180 branches.

“It is an honour to be recognised

as one of the best performers not only

in Commercial, but within the whole

Group,” said Hunt. “The awards

demonstrate the commitment and

energy within our boutique Tauranga

Commercial Team.”

PROPERTY VALUERS

TelferYoung’s lay of the land

’s happening with Tauriko land prices?

of industrial sites in Tauriko show steadily

No job is too big or too small

asing land values. In 2016, prices were

minantly in the mid-$200s per square metre

his increased What’s to mid-$300s happening per with square metre

Company profile

Tauriko land prices?

17, then low to mid-$400s per square metre

ost of the Sales Stage of 3 industrial sections sites in mid-2019. in Tauriko Most

tly in early show to mid-2020 steadily increasing there have land values.

of sales, In 2016, with prices the were sales predomi-

of medium

been a

d amount

nantly in the mid-$200s per square

ge sized sites metre typically and this sitting increased in to the mid- mid-high

/m2 range, $300s up to per mid-$500/m² square metre depending 2017, on

nd location. then Smaller low to mid-$400s sites sell per at square higher rates,

corner sites. metre for most of the Stage 3 sections

in mid-2019.

have land prices Most recently increased early so much? to mid-

2020 there have been a limited

market and localities in which they operate. W

amount of sales, with the sales of

No job is too big or too small.

rice of land is determined by supply and

to develop and maintain strong ongoing

medium to large sized sites typically

also sitting a function in the mid-high of the value $400/ of Telfer Young Tauranga's Commercial Valuation Team

relationships the company with our was known clients. for many

nd and is

leted buildings m 2 range, less up the to mid-$500/m² costs of construction.

depending

values on are size assessed and location. by

Where can TelferYoung assist?

years as Middleton Valuation. In

trial property Within our 2011 team we joined we have the specialists TelferYoung in rural,

erting the Smaller rental sites value sell (market at higher rent) rates, as into

commercial group and which residential is represented properties. by 13 This in

TelferYoung Tauranga’s commercial valuation team.

do corner sites.

leading independently owned valuation

practices throughout New

, using an appropriate investor return

Often, TelferYoung are engaged by our clients prior to the issue of a title, apartments, orchards, pastoral properties,

talisation Why rate). have Since land 2015/16, prices Tauriko has yields across with the wider instructions commercial to provide Where a can valuation TelferYoung of the vacant tine land valuation for mortgage commercial and industrial buildings and resid

that requires the client

been provide prepared, us with the plans, specifi-

dwellings. Each of the practices has an

Zealand.

significant increased growth in so market much? rents. This, property market funding has of had the a multiplier

effect next on the step values in of the indus-

valuation process is to provide an ‘as cations, proposed’ consents value and preferably of the established history within their

settlement. assist? Once building plans have

ined with decreasing yields across the wider

The price of land is determined trial properties.

Often, TelferYoung are engaged by building contract.

respective region, and in-depth

ercial property by supply market and demand has had and is a multiplier the completed project off plans. This is based on the assumption that

also Whilst construction costs have our clients prior to the issue of title, This will be the start of an ongoing

relationship that often involves ities in which they operate.

knowledge of the market and local-

t on the values a function of industrial of the value properties. of completed

have buildings also less increased the costs during of offset this these valuation gains slightly, that this requires is uation the client of the vacant provide land us for with mort-plans, insurance specifications, valuations, rent reviews We aim to develop and maintain

Whilst the building development is complete. This is a relatively routine

also increased during this time to with instructions to provide a val-

ruction costs

to offset these construction. gains slightly, this is only only minor consents and the resulting and preferably effect gage the funding building of the contract. settlement. and periodic market valuation strong ongoing relationships with

Industrial property values are is that land values have increased. Once building plans have been updates.

our clients.

r and the resulting assessed by effect converting is that the land rental values The escalation This will in be land the values start of prepared, an ongoing the next relationship step in the valuation

rent reviews process is and to provide periodic an ‘as market Company valuation profile

cialists in rural, commercial and

that often involves

Within our team we have spe-

increased. value The escalation (market rent) in into land value, values has been exacerbated insurance valuations, in Tauriko

exacerbated using in an Tauriko appropriate due investor a shortage return due of to a shortage of land in Tauranga’s

the other

proposed’ value of the completed

residential properties. This includes

apartments, orchards, pas-

in Tauranga’s (capitalisation other industrial rate). areas and

updates.

industrial areas and project off plans.

TelferYoung Tauranga has 12

Since 2015/16, Tauriko has seen the relatively slow release of sites This is based on the assumption valuers, comprising nine registered toral properties, commercial and

vely slow release of sites in Tauriko, which

significant growth in market rents. in Tauriko, which has seen pent up that the building development is valuers and three graduate valuers. industrial buildings and residential

een pent up This, demand. combined with decreasing demand.

complete. This is a relatively rou-

Initially formed in the late 1960s, dwellings.

TelferYoung Tauranga has 12 valuers, compris

registered valuers and 3 graduate valuers. Initi

formed in the late 1960s, the company was kno

for many years as Middleton Valuation. In 2011

joined the TelferYoung group which is represe

by 13 leading independently owned valuation

practices throughout New Zealand. Each of the

practices has an established history within the

respective region, and in-depth knowledge of

COMMERCIAL COMMERCIAL

RURAL RURAL

RESIDENTIAL RESIDENTIAL

telferyoung.com


16 BAY OF PLENTY BUSINESS NEWS October/November 2020

SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

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Industrial, Office

and Residential

Building Washing

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building to ensure your

business is presented in

the best possible way.

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our services include:

Building Washing (Commercial/

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Roof Washing

Gutter Cleaning

Window Washing

Moss, Mould, Lichen, Grime, Oil

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Fogging – Sanitizing

Hot water washes – Car parks,

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Call us today for a quote

Grime Off

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BUILDING WASHING

A growing number of Tauriko businesses have experienced

the building wash maintenance services offered by Grime Off

Now. From post build hand-over washing to full hot water

sanitisation of warehouse complexes, Grime Off Now have

solutions to get the best results.

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Contact Roger on

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what we can do for you.

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Web grimeoff.co.nz

In response to the increasing popularity of

darker cladding colour choices Grime Off

Now uses a filtered water system to lessen

the chance of water spotting.

Grime Off Now offers services to ensure

warranty conditions are met over a

wide range of claddings including cedar.

Cladding manufacturers will want to see

evidence of a regular wash maintenance

program if a warranty claim is ever made

against a product.

With increasing regulation and demand

for more diligence in this area, Grime Off

Now invests a lot of time in health and

safety training, processes and reviews.

Across the team they hold certificates in

Hazard Identification, Working at Heights,

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Working at Height is a specialised service

offered by the team at Grime Off Now.

This includes roofs, gutters, solar panels

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They have the ability to reach 3 storeys

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Design and build excellence

at Tauriko

CONSTRUCTION

Hawes Building Solutions have firmly established

themselves in the past 20 years as one of

Tauranga’s leading construction companies.

The locally owned, family-run business is behind

many exceptional design and build projects in the

region, which include several highly functional and

eye-catching commercial buildings at the Tauriko

Business Estate.

Due for completion by Hawes

later this year is an innovative

project for Easy Gate,

New Zealand’s leading aluminium

gate company.

In collaboration with Kirk Roberts

Engineers, they have provided

a cutting-edge solution for this

company’s new offices, powder

coating plant, and warehouse space

adjacent to their existing factory on

Hotuhotu Street.

Other design and build projects

that Hawes Building Solutions

has worked on at Tauriko

in recent years are the premises

for building machinery suppliers

Macma Machinery, the Bay

Bathrooms showroom, and a large

three tenancy industrial building

with offices, a showroom area and

a large open warehouse for Harpa

Developments.

“As we’ve been in business for

20 years, we know how crucial it

is to understand our clients’ needs

from the earliest stages of the development

of industrial builds.

“Regardless of the design or

complexity of a project, we aim to

surpass our clients’ expectations

every time,” explains director and

quantity surveyor Anthony Hawes.

With his brother Mark Hawes,

who founded the business in 2000,

Anthony leads a team of 20 staff

which includes another quantity

surveyor, a registered architect,

senior site managers, carpenters,

hammer hands, apprentices, and an

office manager.

An extra crew of skilled contracting

carpenters can be called

upon when required.

The business is a member of

the Certified Builders Association

of New Zealand, and Mark Hawes

has been a Carpentry and Site 2 Licensed

Building Practitioner since

2008.

All site managers are Licensed

Building Practitioners.

“Personal service is key in the

way we work at Hawes, and we

look after our team. Not only do

we take great pride in the quality

of their workmanship, we are also

really proud of the positive attitude

of our people,” says Mark.

Alongside commercial and

One of Hawes Building Solution’s large commercial building projects delivered at Tauriko.

industrial buildings, the Hawes

Building Solutions team is also

known for their exceptional work

on high-end residential builds.

They have designed and delivered

several spectacular new homes

in the Bay of Plenty and Waikato,

and they have worked on major

home renovations and extensive

leaky home remediations as well.

Working closely with clients

and their architects, the Hawes

team can organise the entire building

process, from drawing up the

plans and dealing with all council

procedures and consents, through

to delivery. They are highly experienced,

great to deal with, and passionate

about what they do.

For your next construction project

at Tauriko or elsewhere in the

region, either commercial or residential,

call Hawes Building Solutions

on 07 578 2414 or see them

online at www.hawes.build.

You will find their HQ on Glenlyon

Avenue in Greerton.

Hawes Building Solutions at work on a design

and build project in the Tauriko Business Estate.


SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

October/November 2020 BAY OF PLENTY BUSINESS NEWS 17

Kiwibank, genuinely helping Kiwis

BANKING & FINANCE

Kiwibank exists as a bank that genuinely helps Kiwis. This is what drew me

to the bank 7 years ago, it was true then and its true now. Working with and

supporting local businesses and playing a part in making a difference to the

country I love are the things that get me going day in and day out. Being able to

do that in the beautiful Bay of Plenty, and especially in the rapidly growing city of

Tauranga is actually a genuine privilege.

In the current environment, businesses

are faced with a number of

challenges, uncertainty being one

of them.

At a time like this having a bank

and banker who is available to talk

is a real comfort and I’m finding that

just being accessible for even simple

conversations goes a long way

to providing confidence for moving

ahead.

There’s real opportunities out

there, and working alongside clients

to make these a reality where possible

can be a real positive experience.

New Zealand has a stable economy

and a history of weathering

global financial challenges well. Our

central bank and government are

doing what they can to minimise the

economic impact for Kiwis, and the

New Zealand public has responded

responsibly to the lockdown.

Here at Kiwibank we’re playing

our part too. We know small and medium

businesses are the backbone of

the New Zealand economy. We are

seeing right now that Kiwis really

are buying local, and that includes

banking local.

We know in this current environment

cashflow is an issue for

many, so we have a resilience and

recovery programme to support our

customers.

Options available to our business

banking customers are changing

your loans temporarily to Interest

Only, Temporary Overdraft Facilities,

Loan Repayment Deferrals,

and the Business Finance Guarantee

Scheme. (Criteria does apply,

and this is only open to current Kiwibank

customers. If you bank elsewhere,

you need to approach your

own bank).

If you need assistance, we suggest

you visit our website in the first

instance or call your relationship

manager.

Outside of work I have a real passion

for sports of various types. Over

the years I’ve represented New Zealand

internationally in two different

sporting codes, one of which I still

hold both national and international

records in. My competing days are

behind me, although sometimes it’s

awfully tempting to jump back in

and see what happens!

Probably for the best, these days

I direct my sporting energy into supporting

my kids and building up others

through coaching.

Over the last few years this has

taken me to leading teams at both

national and international levels. It

seems I just can’t help myself and

have thrown myself into coaching

with the same enthusiasm that I did

to my own sporting endeavours.

Kieran Mischewski

Ph 027 707 9022 or call our

Business Team on 0800 601 601

Kieran Mischewski

Small and medium businesses are the backbone

of the New Zealand economy.

If your business needs support, our team of specialists are here for you.

kiwibank.co.nz/business

We will get through this together. Mā te Manaakitanga tātau e kōkiri whakamua.

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18 BAY OF PLENTY BUSINESS NEWS October/November 2020

SPECIAL FEATURE –

TAURIKO BUSINESS ESTATE

iLine Construction –

Continued growth in

construction sector

The impact of 2020 across the construction industry has undoubtedly been

wide-ranging and disruptive for many. Despite the disturbances this year has

seen, we believe that opportunities continue to exist during times of adversity;

with our committed and anticipated future workload demonstrating exactly that.

Drone footage of industrial

units under construction at

159 Matakokiri Drive, Tauriko

CONSTRUCTION

Operating across the Bay of

Plenty, Rotorua, Waikato

and Auckland, we have seen

distinct growth within the Tauriko

Business Estate, where we have

been involved in the construction

of a number of purpose-built Design

and Build projects both pre

and post lockdown.

We are fortunate to have existing

relationships with a number

of local developers, thanks to our

solid reputation and long-standing

presence in the region, which

has ensured considerable forward

workload across the ever-expanding

Tauriko landscape.

Our current activity in Tauriko

includes an industrial unit development

comprising three generous

sized office/warehouses on Matakokiri

Drive for developers Vista

Belle Limited and a purpose-built

industrial facility for Raeden Group

on Taitimu Street.

Also situated on Taitimu Street

are two further Tauriko developments,

recently added to the iLine

portfolio – An industrial building

for OJI Fibre Solutions and a

large-scale kiwifruit coolstore extension

for Mount Pack and Cool

(MPAC) both completed to programme,

despite interruptions from

Covid-19.

We’re seeing a high-level of

activity and increased demand for

custom-designed commercial properties

in the area, which is a reflection

on Tauriko’s accessibility and

its capacity for continued growth.

It is fast becoming a central hub

for both local and national industry

and we’re proud to be a part of that

growth.

iLine’s ability to innovate and

adapt quickly has been a huge advantage

over the past six months.

We have a strong team of construction

professionals who understand

the complexities of commercial

construction and have extensive

experience within the Design and

Build sector.

We are passionate about bringing

our clients’ ideas to life and

enjoy the process of delivering

OJI Fibre Logistics’ purpose-built facility on Taitimu St, Tauriko

cost-effectiveness and quality on

every job we manage.

We work closely with our

clients, suppliers and contractors

to ensure that each project is designed,

detailed and built with

economy, durability and aesthetics

in mind.

Construction is an interesting

industry right now, but we believe

that if managed well, there is a

unique opportunity for our sector to

help lead the way in New Zealand’s

economic recovery.

For more information on how

iLine can help you deliver your

next construction project please

visit iline.co.nz or call 07 571 0527.

CONSTRUCTION

WITH A

DIFFERENCE.

Visit our website for more information

or contact us today to discuss your

next construction project.

07 571 0527 | iline.co.nz

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October/November 2020 BAY OF PLENTY BUSINESS NEWS 19

Rise of the Franchisee Entrepreneur

I remember my year 11 economics class and the subject of

entrepreneurship; it was described as being “hard to define and

even harder to encourage”. It sounded elusive and counter to the

field of economics where we generally like to be able to define our

parameters for everything we study.

How do we define entrepreneurship

and what

is its relationship with

franchising? Let’s start with

returning to the definition. It

turns out my year 11 class was

not wrong. Wikipedia allocates

nearly 250 words to a definition

which includes:

• Entrepreneurship is the creation

or extraction of value.

• Entrepreneurship is the process

of designing, launching

and running a new business,

often a small business.

• Entrepreneurship is the capacity

and willingness to

develop, organise and manage

a business venture along

with any of its risks to make

a profit.

• The people who create these

businesses are often referred

to as entrepreneurs.

I am going to summarise

and define entrepreneurship as

a willingness to, or process of

taking on commercial risk, developing

and managing a business

with a view of creating

value, profit or return.

The misperception

that franchising stifles

entrepreneurship

We have conversations every

day with people who want to

start and grow their own businesses.

They want to take a

measured risk, invest time

and money with a view of

controlling their future and of

course, make a return. Without

perhaps saying it themselves,

they want to be entrepreneurs.

Those that have already decided

that franchising is their

route we call franchisee entrepreneurs.

The statistics overwhelmingly

demonstrate franchisee

entrepreneurs are more

successful.

Some budding entrepreneurs

however have a misconception

that franchising

will stifle their entrepreneurial

aspirations. I believe this

could not be further from the

truth, and invariably we have

a discussion around recurring

themes:

I want to own my own

business, not someone

else’s

Nearly every franchise brochure

or explanation that I

have seen over 20 years starts

with something similar to “be

in business for yourself, not

by yourself”. This is true,

franchisees find – whether directly

or through borrowings

the business themselves, and

the risks and rewards sit solely

with the business owner, the

franchisee entrepreneur. It is

their business - it is not an outlet

or subbranch of the franchisor’s

business.

I want something I can

develop, control and

influence

That is not solely, but it is ultimately

in the hands of the franchisee

entrepreneur. If it is a

start-up or greenfield franchise

business, they obviously need

to develop and grow the business.

If buying an established

franchised business, there is

always room to develop, refine

and do better. And the

best part about franchising is it

provides the road map and the

benchmarking against which

success can be measured.

From over 20 years of research

the Franchise Relationship

Institute has established

that one factor accounts of

approximately 40 percent of

the success (or otherwise) of

a franchised business. It is

not the brand, not the location

(though both are critical), it is

the franchisee.

I don’t want to be told

what to sell and I don’t

want to be stifled

Firstly, here is the wake up,

“someone” is going to tell you

FRANCHISING

> BY NATHAN BONNEY

Nathan Bonney is a director of Iridium Partners. He can be

reached at nathan@iridium.net.nz or 0275-393-022

what you should be selling.

That “someone” is the “market”

– if the market does not

want it, you won’t sell it. And

why would you not want the

collective experience, support

and guidance of a franchise

system to assist you with what

you should be selling?

We also often hear people

say they don’t want their ideas

or innovation stifled. Good

franchise systems do not stifle

innovation, they have the ability

to develop, test and roll out

innovation, often generated

by franchisees. Need we say

more than Big Mac – invented

by a franchisee, now the greatest

selling burger on earth.

I don’t want to follow

rules

Let’s face it, we have rules in

business – we must pay taxes,

we must follow an extraordinary

number of legislative

requirements and we must

perhaps most importantly,

do the things, and follow the

rules that will create profitable

businesses.

Franchise systems develop

processes and parameters,

“rules” because they work.

Some are designed to make

sure the franchisee is able

to stay within the legislative

playing field. Whilst others are

definitely to ensure compliance

within a franchise system.

To quote one of my former

franchisor managing directors:

“The franchise agreement and

parameters are designed to

keep the good things in and the

bad things out.”

There is one statement that

does separate the entrepreneur

from the franchisee entrepreneur

– I want to create or develop

my own “thing”.

These super brave people

are politely called pioneers. I

believe there is often a confusion

between pioneering and

entrepreneurship and while

they are not mutually exclusive,

they are not the same.

You do not need to invent,

or revolutionise anything to

be an entrepreneur. If you

do want to be a pioneer, then

franchising is probably not for

you and we wish you the best

of luck. But remember that

statistically, the franchisee entrepreneur

is more likely to be

successful.

New ways of working for Kiwi

SMEs reveal potential security gaps

ADVERTORIAL

New research by 2degrees has revealed New Zealand’s small business owners

are taking a new approach to work. This comes as Kiwis navigate their way

through an unpredictable year, which has seen the country move in and out of

lockdown in the fight against Covid-19.

The 2degrees Shaping Business

Study, which surveyed

more than 1,000 small and

medium-sized business owners and

decision-makers, found that more

than half (58%) have changed their

approach to work since the Covid-

19 pandemic reached our shores.

The lockdown earlier in the year

thrust many small businesses into

an unknown territory, however the

new research shows that, second

time round, businesses were much

better prepared for the switch to

Levels 3 and 2.

This year has seen one of the

biggest changes to the way we work

since the Industrial Revolution.

With this, has come a significant

shift to a more mobile workforce.

Andrew Fairgray, Chief Business

Officer at 2degrees, says business

owners and decision-makers

have done a great job in establishing

what works best for them

and their people, while grappling

with the challenges of the current

circumstances.

“For some, working from home

permanently is a better option,

others are offering their employees

more mobility around working

hours or rotational days to work

from home – either way it gives

Kiwis reassurance and greater confidence

in knowing they can work

from home when necessary.

“Part of that comes down to having

the right tools to do so, like reliable,

secure mobile and broadband

connections.” says Fairgray.

With an estimated over 60% of

employees in New Zealand now

working from home on a regular

basis, Kiwi businesses need to be

thinking about security more than

ever before.

According to the study, under

half of SME decision makers currently

did not have any current data

security resource. Sole traders were

significantly more likely to state

that they currently have no security

resource in place (46%) compared

to employing businesses (27%).

While there are a variety of different

risks, home broadband security

is believed to be the biggest

online risk for nearly one quarter of

SME decision makers. Nearly onethird

stated they didn’t know what

the biggest online risk was to their

business, highlighting the need for

businesses to really take a good

look at security options when it

comes to their employees working

from home.

So, what should business owners

do? Start simply: identify your

risks and research your options.

Some businesses will be more at

risk than others – those dealing

with sensitive information every

day such as financial services for

example.

A great place to start is with

2degrees Work from Home Fibre –

a secure, Fibre connection to keep

businesses humming seamlessly

when their employees are working

at home. This new product delivers

business grade broadband through a

dedicated Fibre connection to employees’

homes. Work from Home

Fibre does what it says on the tin

– it’s fast and offers the capacity

businesses need.

Plus, web-filtering is part of the

package. So you have the option to

switch on the web-filtering security

add-on – a service that enables you

to block sites known for phishing,

malware and other security threats

to work laptops or computers – for

free, and you can also choose to

block streaming sites.

Upload speeds are up to 5X faster

compared to their home broadband

Standard Fibre 100 Plan – super

important for things like video conferencing.

The 2degrees Shaping

Business Study showed that 40%

of respondents found video conferencing

the most important tool to

stay connected to their team during

lockdown, so making sure it works

well is key when staff are working

at home.

So, give the guys at 2degrees a

call or visit 2degrees.nz/business to

start down the right path to ensuring

your critical business information

is secure even when staff are

working from home.


20 BAY OF PLENTY BUSINESS NEWS October/November 2020

CONNECTING

BUYERS AND

SELLERS OF

QUALITY

BUSINESSES

First on the scene

Photos from the Rotorua Women in Business networking meet-up at

Volcanic Hills Wine Tasting Rooms.

Photos/ Nikeey Silwal, Rotorua Chamber of Commerce

When is the right time to sell

your business? Right now.

At TABAK, we promise to guide

you through the sales process

with focus, integrity and

complete confidentiality.

1

1 Stacey Blackie, Jo Holmes and Lou Baddiley (Rotorua Economic Development), Karen Tasker, Quest Rotorua, Michelle

Cutelli, Michelle Cutelli Photography, and Eloise Roxburgh, Rotorua Canopy Tours. 4 Tiana Hodge, Martyn Evans Art, with

Debbie Gow and Julie Bell, DANA.

2

FOCUS • INTEGRITY

CONFIDENTIALITY

3

3 Lucy Vala-Blackmore, Nicola Brazendale, Victoria Thompson, Sophie Law and, Melissa Chester, Holland Beckett Law.

2 Nadia Christiansen, McDowells Real Estate, Abbie Proudley, BNZ, Lisa Pauling, Rotorua Hospice, Robyn Forbes and Sara

Kenny, Property Inspect and Geraldine Jaques, Integrated Systems Design.

4

WHY TABAK

INDUSTRY EXPERIENCE

REALISTIC APPRAISALS

TEAM APPROACH

5

5 Kim Hodge, Abbie Proudley, Theresa Mason, Jenny O’Connell and Victoria Richards, BNZ. 6 Larissa Park, Volcanic Hills

Winery and Natalie Bridges, Blink PR.

Photos from the

launch of Dwayne

Morgan’s new

offices for Special

Programs Security.

Photos/ Pete Luxford

Photography

1

6

PRE-QUALIFIED BUYERS

147 Cameron Road

p. 07 578 6329

e. tauranga@tabak.co.nz

w. tabak.co.nz

P5177Y

2

3 4

1 Mark Irving, Priority One, Rebekah Webby, Webby and Associates Law, Rachael Adams, Adams Law and Renee Harley,

Webby and Associates Law. 2 Dwayne Morgan, Special Programs Security, Tauranga. 3 Lynn and Brendon Bradley, Bayleys

Tauranga, Mark Irving (Priority One), David Lathan (Lathan and Associates Accountants). 4 Mayor Tenby Powell.


October/November 2020 BAY OF PLENTY BUSINESS NEWS 21

Positives around a flexible

and contingent workforce

A large portion of our workforce is working from home and the business environment this

year has lent itself towards businesses being required to have a more flexible approach to

employment than ever before.

Work-life balance and

flexibility have definitely

been key tools

within the employment realm

over the past couple of years.

However, in 2020 it’s become

a more essential tool for

business survival.

The reality is that this year

and beyond, your workforce

needs to be flexible and reactive

for optimal profits and

success to be achieved in the

competitive and ever-changing

marketplace we are experiencing

within New Zealand now.

The most surprising fact

to most people might be just

how widely used temporary –

or contingent – employment

is utilised across such a wide

range of industries and fields,

from medical to creative services,

project management,

human resources, technical and

trade-related roles.

There really are no industries

with a barrier to temporary

employment.

There is this misconception

that temp employees tend to

be such typical employees as

receptionists or administrators.

However, a temp can be

as qualified and skilled as

you require – they come from

every industry and profession

– skilled, degree qualified,

registered.

Many are highly qualified

and skilled, adding value

through their ability to slip into

a new environment, team and

culture with ease.

Candidates choose to engage

in temp work for all

kinds of reasons, whether it is

because they have just moved

to the region, or enjoy the freedom

of knowing they are not

tied down to a permanent role.

Many enjoy the variety and

flexibility or for pure lifestyle

reasons.

Temporary workers can

often be the best employees

because they get to have a

HUMAN RESOURCES

> BY KELLIE HAMLETT

Kellie Hamlett is Director and Recruitment & HR Specialist, Talent

ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz

large exposure to many different

industries and workplaces,

systems, and processes. They

also come with the flexibility

to work around your individual

work-load requirements, and

can be on-call on an ‘as and

when’ basis.

Temp employees are being

used by both growing companies

and more established

businesses to jump over the

skills gap and address needs

head on. And at present here in

New Zealand, including in the

regions, we have quite a pool

of talent available.

Having a temporary workforce

can be hugely beneficial

in terms of keeping on top

of market fluctuations for a

business.

Contingent workers, in a

sense, are “on-demand” talent,

the “Netflix” of the employment

world if you like.

They are not full-time employees

of a company and once

their project is finished, the

contract has ended.

To label them mere temps,

however, discounts the full

scope, hi-tech nature and complexity

of today’s contingent or

“on-demand” workforce.

Utilising a contingent workforce

within the relatively volatile

business environment we

are now experiencing under

Covid-19 is a smart, lean way

to run your business, whilst

ensuring that the needs of your

customers are met, a business

as usual approach is the focus,

and employment overheads are

contained or reduced.

Flexible future for Shared Workspaces

The trials and tribulations of the past year have shown many

businesses the benefits of remote working. But remote working is

not going to completely replace traditional work in an office building,

and many are starting to recognise the benefits that having a flexible

workspace can have in boosting productivity, said Tony Snow,

founder and director at Shared Workspaces.

By DAVID PORTER

Better known as the head

of IT company Stratus

Blue and BOP Business

News’ Tech Talk columnist,

Snow took over the lease late

last year of the Smart Business

Centre in Chapel Street,

formerly managed by anchor

tenant the Tauranga Chamber

of Commerce.

“Shared Workspaces aim to

have multiple locations with

the Chapel Street location

being renamed to Commerce

House shortly, and the Beach

House in Parton Road, Papamoa

becoming available in

November 2021,” said Snow,

adding that other locations are

being worked on.

Flexible working is a way

of working that provides a productive

and collaborative environment

that has been created

without traditional corporate

constraints on what is thought

to be an “office” environment,

he said, offering flexible memberships

to suit a wide range of

needs.

Angeline Williams, member

and facility manager at

Shared Workspaces, said:

“The beauty of flexible working

is that you can have your

traditional workspaces such as

in-office building or a home

office, but also have a secondary

space where you can

hire equipment, ideas, and

knowledge.”

Some studies have shown

that a mix of working environments

can lead to more

productive use of time. Studies

from the US indicated remote

working could lead to a 13

per cent increase. On average,

people that work 40 hours per

week are only truly productive

The beauty of flexible working is that you

can have your traditional workspaces

such as in-office building or a home

office, but also have a secondary space

where you can hire equipment, ideas,

and knowledge.” – Angeline Williams

for 23 hours (three days) in an

office environment and just

above 15 hours (two days) in a

home environment, according

to one study.

Maximising productivity

Flexible working aims to

maximise productivity, said

Williams. Utilising a mix of

both remote working and office-based

work, or remote

working in an office, can help

people get more out of your

working week.

Changing up your routine

allows for new ideas and

fresh ways of thinking that you

might not have considered before,

she said.

Matt Cowley, chief executive

of the Tauranga Chamber

of Commerce, said the board

made a decision at the time

he was hired to focus all of

its resources on supporting

members rather than managing

the Smart Business Centre

tenancy.

“The board are saying it

is probably the chamber’s

best decision, especially with

Covid-19,” said Cowell. “It’s

enabled me to spend 100 percent

of my time on our business

and operations rather than

dealing with tenancies and rent

negotiations.”

Snow said that coming out

Angeline Williams: flexible

memberships to suit a wide

range of needs. Photo/Supplied.

of lockdown, many people

were still working from home,

and flexible working was a

great way to ease back into

an office environment and get

back to meeting people.

“With flexible working,

you can work close to home,

not just from home,” added

Williams.

Having somewhere that

understands the value of having

a space of diverse thinkers

and builds a community of individuals

and businesses that

work in different industries,

that have diverse backgrounds

and want to share knowledge,

experience and ideas can help

business and people flourish

and be productive.

“We’re are open to anyone

working on anything, and

we’re darn proud of it,” said

Snow. “We count on our diversity

to give members unique

opportunities to meet people

who they can collaborate with.

People from various walks of

life can collide in the most

amazing ways every single

day.”

The business offers flexible

terms and tailored packages to

meet all needs. That includes

people expanding their business,

needing a project space,

or meeting or training room, or

desks or offices to rent.

Shared Workspaces is also

giving away a three month

free meeting room hire to the

best suggestions for naming

their new meeting rooms, and

also will be giving away one

week of desk and work space

membership.

See www.shared.nz for

details.


22 BAY OF PLENTY BUSINESS NEWS October/November 2020

Honesty the best

policy for staff

communications

The year ahead will be one of the most uncertain for New Zealand

businesses. The world continues to grapple with the impacts of

Covid-19 and many directors will be wondering how their businesses

can survive the economic slowdown and the uncertainty that

changes in Government Covid-19 Alert Level restrictions can bring.

While some of us are

getting by okay, others

are barely holding

on. Many workers fear

losing their jobs and anxiety

levels will be high in many

workplaces.

Mortgage payments will be

top of mind for many of them,

as they question how they will

support their families if their

job disappears.

At a time like this, it is more

important than ever for managers

to engage effectively with

staff and contractors.

Do it right and you can keep

motivation levels high and productivity

strong. Get it wrong

and you can expect a staff apathy

and a growing number

jumping ship.

Keep the information

flowing

When times are tough some

business owners and managers

go into their shell. It’s no

fun sharing a difficult message

with staff and some people

tend to react by saying little, or

nothing at all.

This is a big mistake. Just

because you’re silent doesn’t

mean staff will be, and more

often than not speculation and

rumour are worse than the

truth.

Informing staff shows you

care and helps to build trust. It

allows you to share the steps

you are taking to overcome

the challenges the business

faces and demonstrates to staff

that there won’t be any surprises.

Things may not turn

out perfectly, but you’re all in

it together and they will know

where they stand throughout

the process.

Keeping staff informed

and engaged is also critical

for team morale and culture.

If everyone knows where you

are planning to take the business,

and what the strategy is

to get through the hard times,

they are more likely to work together

and put their energy into

the right areas.

Much more than a courtesy,

good communication with

staff can provide productivity

There are few things more damaging to

trust than a staff member hearing about

a major change in their own business

from a client who has been informed

first, or even worse – reading it in the

local newspaper.

and retention bonuses for your

business.

Tell staff first

THE LAST WORD

> BY JAMES HEFFIELD

Director of Bay of Plenty marketing and PR consultancy Last

Word. To find out more visit lastwordmedia.co.nz or email

james@lastwordmedia.co.nz.

Sometimes we are so eager to

please our clients or to tell our

story in the media that we forget

to keep staff in the loop.

This can be true for good

news – such as announcing the

launch of a new innovation –

or bad, such as the closure of a

regional office.

It’s good practice to tell

staff first, before announcing

anything more widely.

This can take the form of

a briefing their managers, or

even just a heads-up email before

a communication to people

outside your organisation

is sent out.

After all, there are few

things more damaging to trust

than a staff member hearing

about a major change in their

own business from a client

who has been informed first,

or even worse – reading it in

the local newspaper.

Be up front

Over-spinning a message is

another common mistake

some businesses make when

communicating neutral or bad

news with staff.

This may involve overemphasising

the positive while

avoiding any mention of the

elephant in the room, or overusing

buzzwords and business

jargon such as “streamlining

the business” or “right-sizing

our teams” to communicate a

restructure or impending job

losses.

It’s absolutely true that you

should think carefully about

what you communicate, the

tone of your message, and how

it’s delivered. But give your

staff some credit and realise

many of them will see through

the spin.

Honesty and up-front communication,

with compassion,

will be much better received

than a message that beats

around the bush or avoids an

issue entirely.

At Bayleys, we believe relationships are what businesses are built on and how they

succeed. We understand that to maximise the return on your property you need:

Professional property management

A business partner that understands your views and goals

Contact the Bayleys Commercial Property Management team today.

Bayleys Commercial

Property Management

07 579 0609

jan.cooney@bayleys.co.nz

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

ALTOGETHER BETTER

Residential / Commercial / Rural / Property Services


October/November 2020 BAY OF PLENTY BUSINESS NEWS 23

Join NZ’s newest business

networking group

LAUNCHING 2021

The National Business Network is New Zealand’s newest national business to

business networking group and media brand that is 100% NZ Owned/Made for

kiwi businesses.

The National Business Network has a mission to become New

Zealand’s largest and most successful business to business

networking media brand by supporting kiwi business

owners, decision makers and staff to better

their business.

HOW IS THE NATIONAL BUSINESS

NETWORK DIFFERENT FROM OTHER

NETWORKING GROUPS?

Our

Vision

Share in Prosperity

for all Kiwi’s

1

2

3

4

5

6

7

100% Kiwi owned and operated to benefit Kiwi

businesses

Revenue/Fee Structure designed to support the Group

Leader, Community & Charity initiatives

Promote member businesses through social, digital and

various add on media platforms

Exclusive offers to business related marketing

opportunities

Numbers limited to 24 per group

Meeting times flexible to suit the group

Strong Educational component to help

businesses prosper and grow

LAUNCHING

NZ WIDE

BAY OF PLENTY

GROUPS LAUNCH

TAURANGA – 3 groups

Mt Maunganui/Tauranga City/Tauriko

ROTORUA – 1 Group

WHAKATANE – 1 Group

TO REGISTER YOUR INTEREST AND FOR MORE INFORMATION

Pete Wales – The National Business Network

E: pete@businessnetwork.co.nz | M: 022 495 9248 | W: www.businessnetwork.co.nz


24 BAY OF PLENTY BUSINESS NEWS October/November 2020

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