focus autumn 2015

4 ACHIEVING FIRSTS FOR NEW ZEALAND 6 THE CHANGING NATURE OF MANUFACTURING

8 RE:INVENTING PLASTICS 16 SUPPLY CHAIN MATTERS

18 TRANSPORT LINKS IMPORTANT 21 ECOBIZ: FREE ADVICE FOR YOUR BUSINESS

A U T U M N 2 0 1 5

updating and informing the Greater East Tamaki

business community

ON

MA

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FAC

TURI

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2 FOCUS ON MANUFACTURING A U T U M N 2 0 1 5

2015 looks like being another good year for the New Zealand economy, and New Zealand businesses in general. The list of positives includes GDP growth of around 3%, strong employment growth, high business confidence levels, inflation less than 1%, and continuing low interest rates. The increase in business activity is extending beyond Auckland and Christchurch to the regions which is very good news and putting all this together, manufacturers should experience positive growth this year.

There are some negatives as always, being the high NZ/Australian dollar which is likely to remain the case for some time. Also, our largest trading partner, China, is moving into more difficult times with GDP down and excess capacity in many manufacturing areas, along with vacant buildings signalling an end to the property boom.

With construction, the Christchurch rebuild and primary produce exports spearheading economic activity and growth, along with a buoyant services sector, and of course a stable third term government, 2015 is looking pretty good indeed.

And we must not forget the ANZ Truckometer which is pointing to plenty of momentum in the domestic economy. The Heavy Traffic Index showed a rise of 1.7% on the three months before, and the Light Traffic Index which provides a six-month lead on economic activity, rose 1% in February and over the three months to February was up 1.4% on the previous quarter, suggesting solid growth rates over the next six months.

In this edition, we are focussing on manufacturing, with this sector continuing to be a key player in the East Tamaki business precinct. We look at the changing nature of manufacturing and feature several case studies of local companies using innovation and technology, and informative articles on related topics including Lean and supply chain logistics.

I trust you will enjoy reading this ‘manufacturing’ issue of Focus and make the most of what will be an exciting year for manufacturing.

RICHARD POOLE

CHAIRMAN, GETBA

Upcoming events 14 April 2015 Everyday Leadership Programme

23 April 2015 Business Owners Forum: Marketing

26 May 2015 Post Budget Breakfast

10 June 2015 Business Owners Forum: Managing Risk

Editor:Jane TongatuleE [email protected]

Advertising:E [email protected]

PO Box 58 260 BotanyAuckland 2163P 09 273 6274

getba.org.nz

From the Chair

A U T U M N 2 0 1 5 FOCUS ON MANUFACTURING 3

A 2014 report on New Zealand manufacturing compiled on behalf of ManufacturingNZ (a division of BusinessNZ) by independent researchers Castalia, shows the manufacturing sector is the largest contributor to the New Zealand economy, and is holding ground compared to other OECD countries.

Chief Executive of Castalia, Alex Sundakov says “The manufacturing sector remains a key part of New Zealand’s economic future. This study revealed how the changing nature of business requires a modern interpretation of manufacturing. This includes successful manufacturers reshaping their business by providing services.”

Catherine Beard, Executive Director of ManufacturingNZ, says, “The case studies in this report reveal common factors which make New Zealand manufacturers competitive. Talent-driven innovation is a key driver of competitiveness.”

Other characteristics of successful manufacturing firms in the report were: largely export oriented, predominantly locally owned, mostly privately held, vertically integrated and still manufacturing predominantly in New Zealand.

The manufacturing sector remains one of the largest employers in New Zealand. In 2013 manufacturing firms employed 191,000

(Statistics NZ). Manufacturing has historically been perceived as a low skilled sector, but this perception is not consistent with trends and case studies carried out by Castalia which show the sector has a high demand for highly skilled and specialised jobs.

The Ministry of Business, Innovation and Employment’s (MBIE) Occupation Outlook 2015 touts job prospects in the manufacturing industry as positive. It shows that New Zealand’s traditional manufacturing industries based on primary sector processing remain a vital part of the economy and are becoming increasingly sophisticated and high-tech. At the same time, new, highly innovative industries are emerging in areas ranging from pharmaceuticals to telecommunications, from medical devices to watercraft.

A career in the manufacturing industry offers many pathways and specialisations including other specific occupations that support the manufacturing sector such as engineering professionals, science technicians, ICT analysts and technicians, software developers and automotive technicians.

About one-third of manufacturing employees are employed in food product manufacturing, 13% in machinery and equipment manufacturing and 11% in fabricated metal product manufacturing; all well represented in East Tamaki.

MANUFACTURING,A KEY PART OF NZ’S ECONOMIC FUTURE

New Zealand’s high and medium-technology manufacturing industries are a small part of our economy, but are growing rapidly. High-tech manufacturing includes pharmaceuticals, aircraft manufacturing, professional and scientific equipment manufacturing and computer and electronic manufacturing. The government has targeted these sectors for growth as part of its target to increase exports by 40% of GDP by 2025. MBIE forecasts that employment in primary processing will grow at 1.3% per year till 2018, and other manufacturing employment will grow by 2.6%, compared to total employment growth of 2.1%.

The manufacturing sector experienced improved levels of expansion during February, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for February was 55.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 5.2 points higher than the previous month, and similar to the level of expansion seen in November last year. Both production and new orders are in healthy expansion territory with new orders showing its highest value for over a year.

The construction sector shows increasing activity. The second National Construction Pipeline report confirms building and construction activity in New Zealand is expected to reach unprecedented levels over the next three years, totalling $100 billion by 2017. This is significant given that the entire economy rates at only slightly over $200 billion per annum.

manufacturingnz.org.nz

mbie.govt.nz/occupation-outlook

The manufacturing sector comprises approximately 37% of employment in the East Tamaki business precinct. With a concentration of related sectors including engineering, logistics, warehousing and distribution, East Tamaki is not only the largest industrial precinct in New Zealand but a key contributor to the New Zealand economy.


TimberLab Solutions

ACHIEVING A NUMBER OF FIRSTS FOR NEW ZEALAND

Now with a combined Auckland workforce of 35 staff operating out of the old McIntosh Timber Laminates 3500m2 plant in Bostock Place, and over 76 years of experience; TimberLab Solutions has the best of both worlds, combining McIntosh’s extensive experience in manufacturing structural laminated timber for commercial use and TimberBond’s expertise in residential use of glued laminated timber (Glulam). The result

When two of New Zealand’s leading engineered timber design and manufacture companies, McIntosh Timber Laminates and TimberBond Industries, joined forces in November 2012, TimberLab Solutions Ltd was created.

has been a “greater perspective towards ways in which structural timber can be applied to all building situations”, according to Owen Griffiths, TimberLab’s Sales and Marketing Director.

TimberLab Solutions ‘aim to be the best provider of innovative, cost-effective and customised engineered timber solutions throughout New Zealand and to offshore markets’. They specialise in providing complete design-manufacture-installation packages for a wide range of timber projects, from small one-off sculptures to large industrial buildings. Being New Zealand’s largest and most experienced manufacturer of Glulam building systems, TimberLab’s Bostock Place premises showcase some of the capabilities on offer with Glulam portal frames, Glulam gantry beams, and reverse-curved Glulam beams featured throughout.

TimberLab Solutions also have a high focus on quality, which would usually make it more difficult to provide cost-effective customised solutions as set out in their mission statement. However, they manage to achieve these objectives through careful design work and quality control from start to finish.

“You can have two solutions for the same building, but because the designer is unfamiliar with the product and what it can do, they tend to be conservative in their design; therefore more expensive. Because we’ve had experience, we can provide a better value solution. It’s a matter of being able to choose the right solution for the right challenge. We have saved up to half a million dollars on some projects by being able to advise on appropriate design possibilities”, says Owen.

Part of maintaining their high quality products is in sourcing the right materials. TimberLab only uses timber from sustainably harvested plantation forests in New Zealand, ensuring an environmentally responsible construction option which is backed by the FSC (Foreign Stewardship Council) Chain of Custody Certification.

This focus on providing high quality products has led to TimberLab Solutions achieving a number of ‘firsts’ for New Zealand in recent years. Within the last year, they have commissioned a 5 axis CNC Gantry machine; the first of its kind in New Zealand and Australasia.

“It enables us to process slabs of timber up to 30 metres long and four metres wide, cut it, rebate it, drill it, and shape it into all sorts of shapes and sizes. It enables us to do detailed work that’s involved particularly in connection areas in our structures. Because we do complete structures, they involve all sorts of detailed design and connectivity work which has to be very accurate and repeatable. This machine opens up a whole new possibility in terms of what timber can do, how it can be made.”


Another New Zealand first for TimberLab is the innovative multi-storey post-tension timber structures that they have been working on in Christchurch, in order to achieve earthquake resistance. This is an area in which TimberLab has developed expertise over recent years, and sets them apart from many of their close competitors.

TimberLab Solutions also recently finished working on the Tuhoe Headquarters in Taneatua, which was designed with the ‘aim of being the most advanced sustainable living building in New Zealand’.

“This is the first New Zealand living building; which means it’s self-sustaining. All the material had to be from sustainable renewable resources; it produces its own power with solar energy and feeds the excess back into the grid and has its own water reticulation system. It’s all built on very strict environmental requirements. It’s attracted a lot of attention, and won a lot of awards in terms of what it’s done.”

Other unique projects include a timber grid shell for the translucent roof at a newly built community swimming pool on the Kapiti Coast, and a three storey classroom at Sydney’s University of Technology made out of what looks like giant Jenga blocks and designed by world-famous architect Frank Gehry.

“One of the most interesting ones locally has been this swimming pool in Kapiti. It’s called a timber grid shell because it’s in the shape of a shell, curving in all directions, has crossover timber arches that expand 40 metres, and they hold up the whole translucent roof so it lets all the light in. It’s quite an outstanding example of what can be done with timber in public spaces.”

While 65% of their production is for overseas markets like Australia, the Pacific, the Middle East, and parts of Asia, TimberLab Solutions would like to see more of a focus on the use of engineered timber solutions on their doorstep. “An important message we’d like to get out there is the flexibility of how we can use this

new machine to assist other woodworking manufacturers in the area. We can take their panels or bits of wood and sculpt them, shape them, and do special fittings for them.”

“It’s just a recognition of the need for local designers to be aware of what’s possible and to come and talk to us at an early stage. The problem we have is when the building has already been designed, structural engineering done; it comes to us and we see areas that could be done better. If people come to us first we can avoid having to redo it all over again. Where projects bring in our expertise at the start of the project rather than at the end, we can get some good savings.”

Taking Timber Processing To a new LeveL

From our plant in East Tamaki we have achieved a step change in timber processing.

Introducing Australasia’s first large scale 5 axis CNC Bridge for the automated processing of solid wood elements.

Bringing to local businesses, a service to produce precision detailing to a degree that was not possible previously.

The 5 axis CNC can process timber elements up to 35m long and 4m wide.

With processing options from accurately forming predetermined shapes to precision cutting, drilling, rebating, grooving, routing and bevelling; all to the most demanding tolerances.

For information on how we can assist, contact:

TimberLab Solutions9 Bostock Place, East Tamaki

ph. 09 253 9349e. [email protected]. timberlab.co.nz

TImBErLAB IS NEW ZEALANd’S LEAdINg mANuFACTurEr oF ENgINEErEd TImBEr – gLuLAm & FABrICATEd LVL


Manufacturing turns ideas and designs into tangible shapes for sale and has moved from workshop, handcrafted, one-off products to assembly-line, mass-produced items made with specialised inputs and massive economies of scale.

Cost reduction and offshore competitive pressures have encouraged New Zealand manufacturers into adopting new techniques including labour, materials and supply chain management and other innovations. Computers have given electronic effect to what were originally paper-based changes. They have developed lives of their own so that increasingly they drive the detail of all manufacturing processes.

These digital innovations have resulted in hidden intellectual property, outside registration-based rights, such as patents, trademarks and designs. The how-to of computerised manufacturing is uneasily protected by a mixture of copyright and confidentiality. It is constantly challenged and eroded by accelerating digital technology changes. Those changes lead to rapid obsolescence (reducing value and pressures to protect). This challenge can only be dealt with by constant upgrades and replacement systems.

If there are continuing property rights, there are often difficulties with defining who owns them. This is because of the combination of local and external knowledge, proprietary and open source systems in the New Zealand-based manufacturing process.

Technology changes also force labour market changes.

Those involved in the manufacturing process have moved far beyond nuts and bolts and must have high literacy and numeracy skills as a firm base for the acquisition of necessary computer and other skills.

THE CHANGING NATURE OF MANUFACTURING

+ Business and Commercial+ Property+ Litigation, Mediation & Intellectual Property+ Trusts and Asset Management+ Family and Matrimonial+ Employment+ Immigration+ Wills and Estates

Wynyard WoodHighbrook Business ParkP 09 969 0126E [email protected]

wynyardwood.co.nzHIGHBROOK | AUCKLAND | WARKWORTH

Underlying these technology changes are two significant themes. One directly affects even skilled labour: robotics, the use of computers to enable machines to perform physical manufacturing tasks.

Electronic people reduce labour costs and increase production accuracies. Those advantages outweigh initial capital costs which reduce over time. Robotics raises the issue of displaced labour and the possible risk of reduced consumer purchasing power, the ultimate driver of the manufacturing process itself.

The other change is related and even more fundamental: the use of 3D printers as industrial robots where the idea and design for a product is worked up on computer software and programs and then given tangible effect by a 3D printer. It manufactures the product by progressively adding paper, plastic, metal or even organic layers as slices or cross sections of the 3D model driven off the programme.

This change allows products to be thought of, designed and manufactured by individuals rather than industrial enterprises, where the product user is designer, manufacturer and intellectual property owners. In the long term, 3D printing will also challenge current large scale plant-based manufacturing processes in the same way, signalling a possible partial return to the original workshop manufacturing environment, especially for specialised products.

Author: Richard Osborne, Consultant, Wynyard Wood Lawyers and Notaries


Increasing demand for rollforming related machine maintenance and changing safety regulations led to the establishment of Total Roll Forming in mid-2012. The company now specialises in ‘everything rollforming’, from breakdown work, scheduled maintenance, and preventative maintenance, through to AS/NZS4024.1 compliant safety upgrades, primarily for companies in the rollforming and sheetmetal industries. The company also extended its reach with machine sales in the folding industry, recently becoming the New Zealand agent for Swiss-made THALMANN longfolders, introducing a high quality range not previously available in the domestic marketplace.

While Total Roll Forming operate out of the same premises as Tandarra Engineering, the two are completely separate entities. Tandarra Engineering manufacture their own rollforming machinery and accessories, while Total Roll Forming carry out work on plant from any manufacturer. The two companies therefore share a mutually beneficial relationship as work can often be transferred over if the other doesn’t have the resources available or is not suited to it.

“It’s a benefit to Tandarra that Total’s got highly experienced and skilled guys on the job. We’ve had international jobs come through people ringing Tandarra, saying we’ve got an old Tandarra machine, can we get someone over to do some maintenance on it? If Tandarra pulls an assembly guy off the floor it interrupts production. Whereas, putting my Tandarra hat back on, we can say these guys we work with at Total Roll Forming can do it”, explains Lance Watson, Director of Total Roll Forming (and manager at Tandarra Engineering).

Health and safety reforms will come into force in the second half of 2015 bringing New Zealand safety standards in line with Australia’s existing standards, meaning an increase in the need for compliant machine guarding systems right across the manufacturing sector. WorkSafe has already had a focus on machine guarding in manufacturing with guidelines, tool kits and machine-specific fact sheets available on their website, but the new legislation will be strictly enforced with increased penalties.

“A lot of companies have gaps in their safety, particularly around fencing. Automatically we looked at the market and said what can we buy off the shelf locally that covers the standard, whilst being practical, easy to assemble, etc.? We didn’t really find anything, so we said let’s just make our own.”

“It’s about trying to provide some flexibility, a custom solution, so that we can tailor it to suit clients’ needs, instead of saying this is what we offer, you’re going to have to make it work. We make the guarding to suit their application, as long as it’s within code.”

Total Roll Forming also already had an inherent focus and emphasis on safety before the issues of compliance with the new legislation were raised.

“We have a 40-point checklist for companies that do our preventative maintenance programme and one of the things we flag on it is if there are any safety concerns. As a service business we can’t go in and identify issues around operator safety and not flag it. We see a lot of the hazards out there, we draw people’s attention to them, but there’s no point in drawing attention if you can’t address them.”

Total Roll Forming has faced some resistance within the industry when introducing the new compliant machine guarding. However, they anticipate this

+ Business and Commercial+ Property+ Litigation, Mediation & Intellectual Property+ Trusts and Asset Management+ Family and Matrimonial+ Employment+ Immigration+ Wills and Estates

Wynyard WoodHighbrook Business ParkP 09 969 0126E [email protected]

wynyardwood.co.nzHIGHBROOK | AUCKLAND | WARKWORTH

Total Roll Forming

PROACTIVE RESPONSE TO HEALTH AND SAFETY REFORM

will lessen as WorkSafe enforcement of the new safety standards becomes imminent, and clarity of understanding is increased.

“It’s one of those difficult things because, as with anything, it’s not a problem until it’s a problem. But businesses are going to have to take action. We are just trying to get ahead, so that when the time comes, we’ve got a ready off-the-shelf solution.”

Primarily, Total Roll Forming want to see manufacturing companies reducing the chance of human injury, and to be prepared for the new legislation to be enforced, so they can avoid sudden shutdowns as a result of being non-compliant.Visit totalrollforming.com

For more information: Current machine guarding in manufacturing information: www.business.govt.nz/worksafe/information-guidance/ guidance-by-industry/manufacturing/manufacturing New health and safety reform bill: www.business.govt.nz/worksafe/about/reform


Thirty-five years ago John and Ken and also Robert Holt began manufacturing women’s fashion footwear components for their parent company Hollywood Shoes, and using their initials as a clever acronym, Jakaar Industries was born.

Fast forward to 2015 and Jakaar Industries have advanced well beyond simple injection moulding techniques used to create heels and soles. With their state-of-the-art manufacturing facility, Jakaar are now able to integrate the entire plastics engineering process from design and development through to manufacturing completion, ensuring a smooth progression from initial concept to final production for local and international markets.

One of the innovative products Jakaar has designed and manufactured as a result of this process is the JakMat ground stabilisation matting. There are three different types: JakMatEnviro,

JakMatGeocell and JakMatDairy. Each of these products is unique in its application.

JakMatEnviro, the softest product, was originally designed to meet stringent regulations laid out by DOC for their national walkways.

“There are a lot of inherent features. They were using a product imported from Germany. They wanted to reduce their carbon footprint, so it had to be manufactured in New Zealand. It had to be made out of 100% recycled material and also had to be able to go up to the mountain on a helicopter and not move around much, so we designed it to

interlock on itself”, explains Alan Holt, Director of Jakaar Industries.

Due to their success with the JakMat design, new markets have been formed in the DIY and Dairy industries. JakMat Dairy has developed a successful niche in stabilising high pressure animal handling areas, such as entry and exits to farm milking sheds. This improves farm productivity with better cow flow and a reduction in cow lameness.

“We really try to push the business relationships very hard, servicing them to the nth degree. So when something comes up, you’re hopefully top of mind for them.”

As well as the emphasis on customer relationships and service, Jakaar believe their point of difference lies within the quality of their finished products. By utilising the latest in Computer Aided

REINVENTING

Jakaar Industries


Auckland Karcher Center.- For your business cleaning needs

Free on site demonstration 66 Allens Road, East TamakiPH: 09 274 2792www.karcher.co.nz

Design (CAD) and machining, backed by its tool room and ISO 9001 Quality Systems, Jakaar can bring a lot of mechanical and design flair to a customer’s idea or product, with the whole process controlled in-house. This creates a level of comfort for the customer, knowing their IP is controlled internally.

“We stand behind our products”, says Alan. The Boomerang Tread Wobble Roller, another innovative product by Jakaar, is a good example. It has wheels with a unique curved tread and has revolutionised the way boats are launched and retrieved from trailers. These each carry a three-year guarantee.

“Rollers in the market were all straight-treaded. The idea was for water off the boat to go into the grooves on the roller, then drain out. But as the boat’s sitting on the trailer and ramp on an angle it is hard to get the boat to roll as it has to lift over the top of the next rib, and then you get the juddering sound as the boat goes down the trailer. With the new design, the curved rib is touching at the same time as the same part of the previous rib, which enables the boat to just free-wheel straight off the trailer. It’s a lot quicker and quieter. You also don’t get the juddering effect on the gel coats on the boat.”

We continuously look at ways tomake a product better with use

of high-tech materials and better design.

Jakaar have a strong focus on all forms of sustainability, from maintaining their business to protecting the social, economic, and environmental future of their surrounding communities. This approach is increasingly relevant in today’s market place where most developed nations have shifted their focus towards businesses who operate responsibly.

“Sustainability starts with the design, we want to make sure we’re producing something that’s going to do the job and stand the test of time. Where we can, we make from recycled product. We try not to manufacture rejects, but in the plastics industry if you do you’ve got two options: you can throw it out which is what we don’t do, or regrind it and put it back, so that once it goes to get manufactured you can put that same material back into the product. The same with the water, it all gets recirculated, where we can we catch it off the roof to fill up our water towers, so we’re trying to take as little off the main

street system as possible.”

Jakaar’s aim is to ‘reinvent plastics’, but what does this concept actually mean for them and for the plastics engineering industry?

“We continuously look at ways to make a product better with use of high-tech materials and better design. Plastics these days are more dimensionally stable and offer a lot of advantages in areas where lubrication, high heat, and long working life are just a few obstacles needing to be overcome.”

“I think if you’re not reinventing what you’re doing all the time and coming up with new ways of doing things, you’ll will struggle. You’ve got to be looking at everything you’re doing, whether it’s old or new and looking at how you can make it better, whether it’s materials, design, or the internal systems you use. That’s the only way you’re going to stay ahead of the market.”

Visit jakaar.co.nz


10COMPANIES

1COMMON

GOAL

To create a lasting

impression with the highest

quality service and materials

United Industries, formed in 1991, is the

holding company of ten stand-alone manufacturing businesses

throughout New Zealand, all of which specialise either in construction or supplying materials for construction-related industries. The group’s main product offerings include structural steel, reinforcing mesh, timber, frames and trusses for houses, roofs, PVC pipes and fittings, and polystyrene. Seven of these companies are located within East Tamaki: Akarana Timbers, Knobs ‘N Knockers, Metalcraft Industries, Pipemakers, Millier Reinforcing, ReoFab, and United Steel; and collectively provide employment for over 200 people in the area.

Having started out 24 years ago with just four of these ten companies, United Industries has since experienced ‘tremendous growth within all companies that make up the group today’; these companies are also now considered to be leaders in most of their key product markets.

What’s the secret to such a successful group of companies?Richard Anyon, Planning & Strategy Director for United Industries, puts it down to a combination of factors: employee empowerment allowing for quick decision making processes, and a strong but realistic focus on customer service and satisfaction.

“Most of our competitors are corporates, we’re larger than a lot of corporates, but operate a lot differently to them. The beauty of the way our businesses are set

up is that we’re very nimble; we can make decisions quickly, and there’s ownership at site by the managers to make a difference.”

“Our ethos is the best service in the market. It’s a given that your product is competitive, but your competitors often aren’t as service focused. At the end of the day, your customers will come back because they like dealing with you. From time to time all businesses make mistakes with customers, but you’re actually judged on how you rectify the situation. It’s just understanding that you do what you say you’re going to do, it’s about communication.”

Additionally, significant investment in plant and new technology has allowed United Industries companies to increase productivity and keep their edge in the marketplace.

“We’re not scared to invest in plant and equipment. You gain manufacturing efficiencies and also a competitive edge on people. We’ve just put a lot of investment in Akarana Timbers and productivity has increased dramatically, quality has increased dramatically, and because of that we’re now growing faster than anticipated” says Richard.

According to Richard, the main changes in the construction industry over recent years have been largely due to technological advancements in processes and efficient building designs, rather than changes in the actual construction materials used. Having said this, since the Christchurch Earthquake, most new commercial buildings are now using structural steel as opposed to reinforced concrete, for greater strength and flexibility.

THE CONSTRUCTION

SECTORExperienced by United Industries


“Akarana has a new fully-automated saw. The trusses are designed on a computer CAD programme, the design then runs through an optimisation programme which works out the best way to cut to minimise wastage. You can put in multiple jobs, it analyses all the jobs and finds the most optimum throughput for the saw, so you minimise wastage, and every part is labelled. That sort of technology is just unbelievable. You can’t do the maths in your head if you are manually cutting, or even on a spreadsheet. The computers have enabled us to be far more efficient and productive than we ever could’ve been.”

The Christchurch earthquake has also forced the construction industry to adapt to more stringent rules surrounding the quality of building materials, particularly steel.

“Post-earthquake, the reinforcing steel standards changed to compensate for more elastic reinforcing steel. They’ve also got very very pedantic now about the particular ASNZ standard that the structural steel is. This has forced the industry to get more proactive around tracing materials being sold back to their source, in order to prove they’re actually to standard and have been through the right accreditation processes. Things have tightened up, which is a good thing.”

These changes have had a sizeable effect on United Industries’ steel-related businesses, particularly United Steel, which invested in an onsite lab to test the steel materials they receive, as well as their own manufactured steel, to ensure it all adheres to the new standards. While this was a significant capital investment, it also created an unanticipated and substantial boost in productivity.

Despite the construction industry’s tendency to remain ‘boom and bust’ over the years, and even with the Christchurch earthquake forcing significant changes to materials and processes, the outlook for the foreseeable future remains positive for United Industries and the rest of the construction industry in New Zealand.

“The Auckland economy is very strong. Hamilton, Bay of Plenty and Christchurch are strong. But it’s still very competitive, the levels of business are now higher than they were in the 2008/2009 downturn but not ridiculously high, so it still looks to be reasonably sustainable for a few years.”

Visit unitedindustries.co.nz


You should have heard about ‘Lean Manufacturing’ by now. In fact you’ve probably heard so much about it that you’re heartily sick of it and would now like it to go away and stop bothering you. Unless of course you’re one of those people who has implemented Lean and you’ve become a source of the annoyingly loud noise about it.

I’m afraid I’m going to join the chorus on this one, because I think that Lean is

THE SINGLE MOST POWERFUL WAY TO TRANSFORM YOUR BUSINESS.I didn’t want the point to get lost.

I was a director on Eastpack, a kiwifruit coolstore and packhouse. When I joined, we were the third largest in the industry. When I left last year we were number one. And here’s why.

The management team developed a vision of ‘world class, from orchard to market’. They went about looking at their processes from picking through to loading the ship. They engaged a consultant to help them because the consultant had more time, expertise, focus and objectivity.

They started this process three years before anyone else. When PSA struck in 2010, volumes fell dramatically, and our competitors started cutting costs. We made the decision to hold on to the capability and instead continue to find ways to produce more with what we had (we were already a year into Lean). Taking 20% out of our unit labour costs through process improvement meant we were able to go to market at a lower price than our competitors. As someone from another industry who had similar experience of declining volumes, it was a race down the cost curve. The only way to survive was to be the last man standing.

That was important. But in my mind, it was the ‘keep doing it’ bit that was critical.

The fact that we kept improving meant that we could (and did) keep an unbearable pressure on the competition. We were very unpopular with our competitors, but our customers (and theirs) loved us because we were giving them what they needed most at that time: lower price for the same service. In the end, we acquired the company that had been second biggest, and Eastpack became the biggest operator in the industry. As volumes have returned, so has the profitability, and as long as Eastpack continues to invest in continuous improvement, it will always be three years ahead of its competitors. As I’ve often reflected when I tempt fate by exceeding the speed limit, the best way to get there sooner is to leave earlier.

I have seen dozens of companies transform their business through Lean, and not just manufacturing. Some of the biggest gains are at the front end, through the decluttering process. Just getting rid of the mess and getting a little more organised will give you an instant lift in productivity. But the real benefit comes from thinking about every process and asking: what value does this create and for who? Lean is an outstanding methodology for releasing value that is currently trapped in your business. Join the chorus!

Author: Dr Mike Ashby

Dr Mike Ashby is Founder and Director of The Breakthrough Company and author of the eBook 7 Mistakes Business Owners Make.

Visit 7mistakes.co.nz to download your complimentary copy.


In the short time since its establishment in May 2011, Cabjaks Manufacturing has quickly progressed from a standing start, as a brand new business with very little capital injection, to producing an annual turnover of more than $2 million.

Cabjaks Manufacturing is a cabinet making business, specialising in supplying small simple kitchens, free-standing kitchenettes, laminate benchtops and wardrobe systems, at the lowest possible price. Husband and wife team Steven and Carolyn Phillips, who own and operate the business day-to-day, describe Cabjaks’ rapid growth as a very short, exciting, and unexpected experience.

It has not been completely without effort, as Steven acknowledges that their success is likely due to years of industry experience and expertise. “The experience and the knowledge you’ve got in the back of your head that you don’t even know you have, is where the ease comes from.”

Keep it simple...That’s the key to the business’s success, according to Steven. Streamlining both the manufacturing and front-end processes has allowed Cabjaks Manufacturing to keep their overhead costs as low as possible, ensuring these cost savings are passed on to the end buyer.

“We’ve made quite an investment in plant and automation. I bought all the machinery second-hand. Getting good quality plant at a much reduced price enabled us to get going.”

In order to create simple processes, Cabjaks employs the basic principles of Lean in all operations, as Steven learned about Lean when he owned a previous business. Loosely defined, Lean principles focus on ways of growing a business without increasing the costs.

“What I’ve learned is just to keep simple, clean, processes. That’s what Lean is to me. Every single day, I’m continuously doing something and then looking at it and saying we could do it better.”

A major contributor to the Lean processes is the fact that everything made by Cabjaks Manufacturing is created from just one product: 16mm white board. This not only keeps supplier costs down, but also ensures minimal manufacturing and labour costs.

“Every morning we cut all the board, edge it, machine it, put it away, and repeat that process the next day. The staff who do that process can then spend the afternoon doing their assembly and other work. We have four manufacturing staff, which, for the turnover we’re doing, is not that many.”

Keeping the process as simple as possible has helped create a natural niche for Cabjaks Manufacturing, amongst a saturated kitchen and cabinet making market.

“We don’t get involved in design or installation, so our target market is the skilled handyman, and tradespeople. The niche we’ve carved out is people that want good quality but also a low-cost simple offer.”

Cabjaks also recently found a successful niche selling separate components to build customised wardrobe systems. This was only introduced late last year, but has already seen exponential growth. “By only supplying components it’s more apt for the experienced DIY and tradespeople who are happy to do installation themselves. I’m just stunned by the growth of that from

nothing in September/October last year to now,” says Steven.

Cabjaks has also introduced an element to their website which allows customers to customise all of their products. Once the customer is satisfied with their order, payment is taken online and an invoice, delivery dockets, and picking list of the parts required, are all generated automatically. This allows the manufacturing process to begin with very little human intervention, saving time and reducing potential for human error. To create this process on the website has not been straight forward, but its completion allows Cabjaks to further succeed with their ‘keep it simple’ ethos, with more streamlined processes, greater simplicity, and lower costs.

“We don’t need a lot of people helping customers. It’s designed so they can do it themselves, to keep the costs down. It looks simple from the outside but behind the scenes, to create the simplicity, it’s actually quite complex. Our business has been profitable from day one; beyond my expectations. But, we’ve been very conscious about keeping our overheads as low as we can.”

Visit cabjaks.co.nz

Cabjaks Manufacturing

SIMPLICITY BUILDS SOLID START


Photographs by Grant Southam, [email protected] (except Fun Run)

BUSINESS OWNER’S FORUM - FAMILY BUSINESSES

LUNCH WITH THE PRIME MINISTER


HIGHBROOK ROTARY FUN RUN WALK


I never thought I’d work in the supply chain profession. I studied financial economics at university, and even after I gained a supply chain role, I still thought it was not as critical as IT or finance.

How wrong I was!

Supply chain, loosely defined, includes supply chain (S&OP) planning, warehousing and logistics, and inventory management. This article specifically addresses supply chain planning.

For outsiders, supply chain planning is a function that magically makes things happen; if we need more stock to sell, there will be more stock. If there’s something we don’t want to sell anymore, stock will disappear. When things don’t go this way, supply chain planning typically gets blamed.

Supply chain planning isn’t that magical, it also contributes greatly to any business, especially a manufacturing company’s bottom line.

Waste is the enemy in manufacturing. A major waste is excess stock of raw materials and finished goods. Excess stock typically comes from poor planning i.e. buying more materials than needed for a lower price, longer productions runs than necessary to increase efficiency, and poor understanding of the product life cycle. Good material and production planners can reduce those wastes by optimising the purchase and run size, helping the plant run more efficiently.

Another waste is lost sales. When a company is out of stock or suffers from DIFOT (delivered in full, on time) misses, not only are normal sales lost, so are customer confidence and company credibility. Good

SUPPLY CHAIN MATTERS IN MANUFACTURING

demand planners with commercial acumen could reduce bias in the demand plan, while good supply planners with excellent ability to deal with ambiguity can balance inventory levels to mitigate out of stock and excess stock risks.

When supply chain planning looks beyond the short term, and concentrates on a demand and supply plan for mid to long term (typically 7 to 24 months) it can:

•Highlightmidtolongtermcapacityconstraints, giving the business time to plan ahead, build more capacity where opportunities are, and decommission lines where demand has fallen;

•Showpossiblewarehousespaceconstraints, then the business can decide to use a 3PL (third-party logistics provider) or build more space. Capital projects take time, so a long term plan can make sure money is well spent;

•Helpwithbuildingcostanalysis.Accuratecost recovery work depends on robust demand and supply planning, which affects the accuracy of COGS (cost of goods sold), as well as pricing, which will in turn affect a company’s market competitiveness.

For decades, the finance function has been the initiator and builder of the annual budget, but this trend is changing. More businesses have realised a budget built on a well-reviewed demand plan is the better way to get robust numbers. Supply chain planning is now the key participant and initiator of the budget process.

Supply chain planning needs quality planners to achieve the above, and the attributes described don’t always come naturally. Even with supply chain tertiary education, you will still need professional training on the practical knowledge, as well as specific skills. For me, this need has been met by my APICS education provided by NZPICS. Organisations who support their employees to gain these supply chain skills also gain from their investment.

Author: Stuart Sheng is S&OP Development Manager with Fonterra Brands NZ Ltd, has his APICS CPIM and CSCP and also instructs for NZPICS.

NZPICS is a not–for–profit membership-based association for operations and supply chain management professionals. NZPICS is the New Zealand Premier Channel Partner of APICS and delivers the highly regarded APICS Certified Production and Inventory Management (CPIM) and Certified Supply Chain Professional (CSCP) courses as well as short courses and seminars.

Visit nzpics.org.nz for more information.

W I N T E R 2 0 1 4 FOCUS ON SUSTAINABILITY 17

Your localcontract electronicsmanufacturer State-of-the-art electronics manufacturing facility

full turnkey solutions: PCB design, manufacture, system assembly and box build services

Dedicated r&D team

CONTACT US tel 09 273 2001 email [email protected] 120 Cryers Road, East Tamaki WeB nautech.com

Nautech Electronics, based in East Tamaki, has recently installed state of the art technology that will transform the way inventory is managed for its electronic manufacturing facility. The Essegi intelligent storage system, built in Italy, is the first of its kind to be commissioned in Australasia.

This new storage technology will automate picking of electronic components required for manufacturing jobs. Integrated smart software also provides parts traceability and real time inventory control, bringing certainty and greater accuracy to stock levels and generating automatic re-order prompts.

During storage, the ability to keep sensitive parts to below 5% humidity ensures the parts stay in optimum condition. Bringing in

this new technology helps drive efficiencies, including cutting down on time required to gather the components ready for each job. The storage space required for the components is also significantly reduced.

Nautech has also recently installed additional Juki high speed ‘pick and place’ machines, using cutting edge technology to populate PCBs (printed circuit boards) required for customer orders.

This investment has brought increased productivity during the manufacturing process as a result of their increased speed of operation. Another performance benefit is the capability to place even smaller electronic components on the circuit boards.

This investment in production capability is a reflection of Nautech’s commitment to quality. The last year has seen a significant growth in production, with volume and revenue exceeding forecasts. To cater for continued growth in its contract manufacturing services, Nautech has also expanded the production floor area to accommodate additional specialised assembly lines and upgraded its R&D facility.

From humble beginnings 25 years ago, Nautech now employs over 100 people at its East Tamaki premises, serving a wide range of customers from SMEs to government agencies.

To cap off a landmark year, Nautech has recently been awarded winner of the 2014 Westpac Auckland business awards (South) - Innovation category.

Nautech Electronics

invests for higher productivity


Transport links are important for manufacturers for obvious reasons, and particularly important to the East Tamaki business precinct which is the largest industrial employment hub in Auckland.

GETBA’s feedback to Auckland Councils Draft Long Term Plan 2015-2025 and Auckland Transport’s Regional Land Transport Plan 2015-2025 (consultation closed on 16 March), questioned the value of the City Rail Link (CRL) to East Tamaki, especially as the very large investment in the CRL, in advance of central government commitment, means a number of local planned transport projects have been either dumped, deferred or de-prioritised under the ‘Basic’ Transport Network option (see below).

The freed-up funds could go towards relieving the pressure and congestion on the main arterial roads in our area affecting both freight and domestic traffic.

GETBASUBMISSION

TRANSPORT

Smales Allens Rd Widening & Intersection Upgrade priority Nº 124

Ormiston Preston East Tamaki Rd I/SCTN priority Nº 120

AMETI Reeves Road flyover delayed by 10 years

East West Connections reduced funding

Manukau Interchange deferred until after 2019

Otahuhu Interchange deferred until after 2019

The Smales Allens Road widening and intersection upgrade is crucial to relieving current congestion of both freight and domestic travel along the arterial route Smales/Allens/Highbrook Drive to the Highbrook motorway on/off ramp. This congestion will only worsen as the Flat Bush area grows and Ormiston Town Centre comes on stream and puts pressure on these local roads. Continued growth of Highbrook Business Park (about to embark on Stage two) will also put pressure on this arterial and adjacent local roads.

We are also concerned that there is no reference to the extension of Gossamer Drive to Highbrook Drive and related improvements to the Trugood/Ti Rakau Drive and Trugood/Cryers Road intersections.

We are concerned at the delay to the Reeves Road flyover, which would

play a key role in relieving pressure on the congested area encapsulating the Pakuranga Highway, Reeves Road, Ti Rakau Drive and South Eastern Arterial (SEART).

The planned Manukau and Otahuhu interchanges are vital for improving public transport linkages into East Tamaki.

Funding our roadsAuckland needs to invest more to get the ‘Auckland Plan’ transport network. Ongoing year-on-year general rates increases however are not sustainable and will not meet the level of spending required. The motorway user charge has advantages over the fuel tax option with regard to economic benefits to business, however, given the economic value of Auckland to the New Zealand economy, GETBA would like to see a greater contribution from central government to funding Auckland’s transport needs. Auckland Council should also look to sell assets and harness private sector capital.

When Auckland Council was formed, businesses contributed 34% of the overall rates even though their properties only made up 17% of Auckland’s total property value. This was patently unfair. Council acknowledged the inequity and decided to slowly reduce the share paid by business from 34% to 25.8% by 2022/23.

As a result of the 2014 revaluation, which saw business properties increase by much less than residential homes, continuing with the current business differential reduction formula would result in an unintended windfall for business and corresponding increase for households. Council is now proposing to adjust the formula and extend the date that business will reach a share of 25.8% by 2025/26.

GETBA objects to the business differential on general rates and to Watercare

imposing a wastewater differential on business of between 1.53 and 1.85 meaning the business sector is paying $39M more than the domestic sector per annum. We support the EMA’s position challenging Watercare to phase out the differential over three years.

For the full submission: getba.org.nz/getba-submissions

TRANSPORTPROJECTS


CYCLINGKeen on cycling? We have various resources for people who currently cycle, or would like to. We can help facilitate bike training, free bike (trial) hire, and even electric bike hire as an alternative to company fleet cars.

If you’re already cycling, keep informed by liking our East Tamaki Cyclists Facebook page!

Your commute to work can set the tone for your day. Emancipating yourself from your car, or conversely sharing a ride with others, could have a positive effect on how you start and end your working days.

We have improved our website functionality to provide a clearer picture of the options available to you for your commute to and from work. Here is a snapshot of our transport resources and initiatives; head to our website to find out more!

CARPOOLINGHave you thought about giving carpooling a go? Find out how many people share your same work route on the Lets Carpool website. There’s even a section specific to East Tamaki!

PUBLIC TRANSPORTIs there a bus stop near you? Find out how long it would take you to use public transport for your daily commute by using the Auckland Transport journey planner via our website. While you’re there you can apply for a free two week hop card trial!

Look before you leaveDo you ever wonder what the traffic is like before leaving work? We have a live traffic map and cameras showing northern and southern motorway exit traffic. Bookmark our ‘Look Before You Leave’ page, and plan ahead before you leave work, you might be able to take an alternative route!

Travel PlanningIs your business relocating to East Tamaki? Do you want create a travel plan for your employees? We can help by assessing your employees’ transport options, and providing a travel plan indicating the best alternative transport modes and routes for their work commute.

Contact Troy Greenfield on 273 6274 or email [email protected]

getba.org.nz/commute

YOUR COMMUTING OPTIONS


WASTE MINIMISATION

About 80% of waste that ends up in landfills comes directly from business, and the majority of that could be recycled or re-used if a more coordinated approach was taken.

We’re trying to put a dent in that statistic, and help out our local residential communities at the same time, by taking unwanted items from businesses and distributing them to local community groups. These items could be anything from functional furniture, appliances, or electronic equipment, to manufacturing by-products which may be useful to others.

If you have a storage room in your business that’s getting filled with stuff you’ll never use again, or you’re sick of seeing useful by-products being discarded from the production line, contact GETBA Project Manager:

Troy Greenfield 09 273 6274 [email protected]

PASS IT ONRe-purposing your unwanted stuff


East Tamaki Transfer Station33 Neales Rd

Har

ris R

d

Cryers Rd

Car

pent

er R

d RECYCLING DIRECTORYCheck out our user friendly Recycling Directory, and find out what you can divert away from landfill. You might be surprised to find out what you can recycle, but you won’t know until you look!

Head to getba.org.nz/waste-minimisation-recycling-directory and give it a test drive.

Putting plastics in your general waste?Do you have HDPE or LDPE plastic materials going into your general waste?

The East Tamaki Recycling Station (located at the East Tamaki Transfer Station) provides a free local recycling facility for GETBA members to dispose of type 2 and 4 plastics, aluminium cans, and bottles. Waste Disposal Services also have a charged recycling service for batteries, cardboard, and green waste to complement their general refuse service.

Waste MiniMisation

getbaGreater East Tamaki

Business Association Inc.

East Tamaki - a great place to do business

[email protected] getba.org.nz/waste-minimisation

Waste Minimisation Network

ECOBIZ: FREE ADVICE FOR YOUR BUSINESSAuckland Council is offering small-to medium-sized businesses advice about how to improve their environmental record and the chance to save money through its EcoBiz Advisory Service.

EcoBiz is a free service which offers a business up to two hours of free support from an environmental consultant (advisor). The service is independent, and a business receives impartial advice specifically tailored to its needs. This is followed up by some recommendations that the business can take to make improvements to reduce energy, water and waste.

Since the service started last year, advisors have worked with 30 businesses and the feedback has been very positive about council offering such a service itself and free of charge.

Businesses which used the service ranged from a bakery to a heavy vehicle product supplier and education providers.

For East Tamaki’s Countrylane Bakehouse owner Stephen Holdaway, the benefit lay in having a pair of outside eyes look at those aspects of running your business that you forget about.

“You come in, turn on the lights and get baking. The advisor looks at efficiencies that come with your business – in our case energy use in particular – and asks ‘have you thought about this?’”

“For instance, we would leave our rack oven on all day and put a few racks in at a time. Now we wait until all the racks are full before we fire the oven up.”

To use the free plastic recycling facility you must pick up a Waste Minimisation Card (pictured above) from the GETBA office, or contact Project Manager Troy Greenfield [email protected].

All materials must also be cleaned, sorted and separated before drop off, and site rules adhered to. (Download a guide for accepted plastics on the GETBA website)

We would like to give special thanks to Astron Plastics and Waste Disposal Services for making this service available.

Denray Marine Services in East Tamaki was another business that used the service last year. “It was great to receive a site visit along with some recommendations about how to manage our rubbish”, said administrator Waana Smith. “In our type of business we have items to dispose of that are not run of the mill. Receiving advice that was tailored to our requirements was particularly useful. We have more knowledge about who to contact to have our equipment reused and we are recycling more.”

Register now by emailing [email protected] or call 301 0101.

Countrylane Bakehouse owner Stephen Holdaway (left) with EcoBiz advisor Simon Wilkinson


CRIME PREVENTION

Crime Prevention resources availableKishan also appreciated the “No Cash or Valuables kept on these premises” signs we delivered to his premises recently.

If you are interested in these signs for your business contact Poutoa Papalii on 027 532 1985 or email [email protected]

There is no charge.

Marshall Automotive’s new owner Kishan Samy was relieved to find an attempted burglary of his premises just prior to Christmas had failed. He attributes this to the preventative measures implemented by the previous business owner in adopting the recommendations of a GETBA Security audit report undertaken as a result of an earlier burglary. These included anti-jemmy mechanisms for the office door, sensor lighting, deadlocks and interior alarms. Kishan was also impressed with the prompt response by Police and GETBA to his recent attempted burglary.

“The security audit report and visits have been beneficial for my business in preventing any more break-ins. You guys have been helpful in giving me some good security recommendations and I enjoy the personal touch of speaking with both local Police and our Crime Prevention Manager” said Kishan Samy.

Under GETBA’s current crime prevention project funded by the Ministry of Justice and carried out in partnership with NZ Police, GETBA’s Crime Prevention Manager Poutoa Papalii contacts businesses that have experienced a burglary or attempted burglary. He sets up a security audit site visit which is undertaken by Poutoa and Senior Constables Garry Boles or Stewart Green.

If you would like a security audit undertaken of your business premises please contact Poutoa on 273 6274 or email him on [email protected] There is no charge for this service.

GETBA assisted Marshall Automotive in preventing crime





No cash or valuables

kept oN these premises

SECURITYAUDITS


STAIR DANCING IN THE WORKPLACEContinuing opportunist ‘stair dancing’ (coming off the streets during the day to commit criminal offences) incidents remind us all to guard against complacency in the work place.

•Ensurethatyouhaveasecuritysensor/buzzer at the front entrance to your office in the absence of a receptionist.

•Ensureyouhavesignsrestrictingpublic access through your office and business place.

•Remindyourstafftokeepallvaluablesand cash secured away and not left unattended in desks or handbags. Lockers with strong padlocks, if provided, should be used at all times.

•Policearewillingtocomeonsiteandmake presentations to staff on safety and security in the workplace and at home.

•BusinessesareencouragedtoinstallCCTV cameras internally and externally. These cameras should be strategically installed at the main entrance points. Visit the Security category on the GETBA website’s Business Directory for CCTV provider details.

Visit the Security category on the GETBA website’s Business Directory for CCTV provider details.

Do you have CCTV cameras that face the road?GETBA is asking all businesses in the East Tamaki business precinct if they have CCTV cameras facing the road. This information will be held by GETBA and will assist the Police to track and apprehend criminal offenders in our precinct.

If you have not already given GETBA this information please email [email protected]

Are you getting maximum value from your CCTV cameras?If not have you maintained your current CCTV and alarm systems? These should be checked and maintained once a year.

Do you know how to download your pictures? If not contact your provider to show you how.

If your camera is one of the older analogue CCTV systems then you should have these changed to a High Definition system which produces a more enhanced picture quality.

Contact GETBA for more information or find CCTV providers under the Security category on the GETBA website’s Business Directory.

HELP ERADICATE MOTH VINE!Moth vine is a pest visible on properties in the East Tamaki business precinct. It is an invasive weed able to rapidly smother and replace native vegetation. It flowers from December to March, and green fist-sized pods grow from January. These then burst with thousands of seeds which are carried by the wind and spread across the gulf.

Do your bit and dig it out by the roots or email [email protected]


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Do take a look!

REVAMPEDGETBA WEBSITE


WORKSHOP YOUR BUSINESS DREAM TO AWARDS SUCCESS IN 2015When businesses talk to us they often speak about how their business began with a dream driven by passion. There are risks, but there are also successes and rewards. Much of the success is the result of sheer grit and the determination to achieve.

This year, your story could be one of them. Join us at the Westpac Auckland Business Awards workshops to hear judges and past entrants’ tips, advice, and ideas about how to create a successful entry.

Business Awards Entry Workshop - South

Date: Wednesday 15 April

Time: 2:00pm - 3:30pm

Venue: ATEED - Ground Floor, Ford Building, 86 Highbrook Drive, East Tamaki

To register for this event please email [email protected]

Could this be your business in 2015?


PROPERTY UPDATE

With the award-winning estate fully occupied, sustained customer demand is the catalyst for new development initiatives that are transforming the remaining greenfield sites into high quality business facilities.

At the end of 2014, glass specialist Metroglass moved into an impressive new 16,000 sqm manufacturing facility overlooking the Tamaki River while further up Business Parade North, logistics operator Mainfreight committed to a five year lease over a new warehouse development that was undertaken on an uncommitted basis.

Activity levels remain high across Highbrook with new design-build projects for Steel & Tube and Ford NZ in the final stages of construction and three new development projects just announced.

The three new commercial and industrial facilities, which have a total project cost

100%OCCUPANCYDRIVES DEVELOPMENT ACTIVITY

of $28 million, will add 11,140 sqm of lettable area to the Trust’s investment portfolio. The additional space is expected to generate $2.2 million of annual rental once fully leased and income producing, providing an initial yield of 7.9%.

The new industrial developments include a design build facility for tool specialist Machinery House, an existing customer at Highbrook whose business growth has necessitated a doubling of its floor space to 4,600 sqm.

A positive business environment is supporting the rapid expansion of Highbrook Business Park.

It’s extremely pleasing to be accelerating the development programme at Highbrook to meet demand. It reflects heightened levels of development activity right across the portfolio with over $110 million of new projects announced since March 2014.John Dakin, Chief Executive Officer, Goodman (NZ) Ltd

The second industrial facility is being developed on an uncommitted basis to meet demand. The new 3,400 sqm warehouse provides another option for mid-sized customers seeking high quality business premises.

The success of the initial development stages of The Crossing and a shortage of available office space at Highbrook have also facilitated the commencement of a new 3,140 sqm office building.

Located on a high profile site fronting Highbrook Drive, the three storey office development is already attracting strong customer interest more than 18 months ahead of its expected completion.

For Sale and Lease new website featureLinked from the Homepage this is an opportunity to view properties for sale and lease in the East Tamaki business precinct in one place.

getba.org.nz/for-sale-lease

+East Tamaki Property Owners Group on LinkedIn This is a forum for GETBA property owners and others interested in the local industrial property market to ask questions, post information and generate discussion on property trends and regulation changes.

Search for the East Tamaki Property Owners Group on LinkedIn and join.

Jesh Jaskiewicz0274 989 777

Paul Vermaak021 029 43844

The Selling and Leasing Experts in East Tamaki

OUR ASSOCIATE MEMBERS More than 70 businesses from outside the East Tamaki precinct have chosen to join GETBA as Associate Members. Here are four of them:

If you are an associate member of GETBA and want your ad here, email [email protected] or phone us on 09 273 6274.

Government-fundedworkplace training

Available now

*

Over the past 10 years Cornerstone has helped hundredsof businesses and thousands of employees. Successfullyworking with companies such as — Amcor, ProgressiveEnterprises, Methven & City Cleaning.

Call us today to discuss your business:09 522 0438

Increase employee productivity, capabilities, confidence, & compliance with our workplace communication programmes;

designed for all New Zealand businesses.

cornerstoneeducation.co.nz *Subject to eligibility criteria

getba.org.nz

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