BUSINESS – THE BEATING HEART OF HOW BUSINESS CONTRIBUTES TO THE PROSPERITY OF OUR COUNTRY – ITS ECONOMY, ITS PEOPLE, AND OUR PLACE IN THE WORLD.

PHOTO: CHRIS WILLIAMS CONTENTS

01 Powering the country 02 Innovation opens doors 04 Benefiting the community 06 Making a difference 07 Inspired by success

08 Case studies 08 OPUS 09 Orion Health 10 Hawkins 11 Pacific Aerospace 12 Ngai Tahu Holdings 13 Mesynthes 14 O-I Glass 15 The Warehouse 16 The Tindall Foundation 17 Fujitsu New Zealand

PHOTO: CHRIS WILLIAMS INTRODUCTION

POWERING THE COUNTRY

NEW ZEALAND’S BUSINESS IS EVERYONE’S BUSINESS, BECAUSE IT AFFECTS ALL NEW ZEALANDERS.

The wider implications of successful business, in However, not all contributions are as tangible providing high-value goods and services, go beyond or easy to measure. Other ways in which business generating income growth for business owners and contributes to society and the wealth of the staff. They generate a ripple effect throughout the nation include: whole economy, raising prosperity and growth, and the overall standard of living in New Zealand. › Creating jobs › Up-skilling, developing and rewarding staff When business is going well, it affects the wellbeing › Providing leadership of our economy, our environment, our communities, our jobs, our families and our futures. › Translating great ideas into successful businesses › Harnessing innovation to deliver unique tools Some of the benefits of business to New Zealand’s and services economy and society are relatively obvious – such › Identifying and exploiting new markets as taxes as a source of government revenue which can be used to provide facilities and services in our › Delivering profits that are invested and spent in communities including roads, transport, New Zealand infrastructure, healthcare and education. Private › Sustainably managing our natural resources businesses can make direct investments into such › Recognising its wider responsibilities to the facilities and services as well. community This publication looks at how business contributes to the prosperity of our country – its economy, its people, and our place in the world. It tells the story of some of New Zealand’s best- known companies and how they are contributing to growth and developments in technology, infrastructure, innovation, exporting, sustainability, skills, investment and international competitiveness – and what this all means for New Zealand. THE BEATING HEART OF NEW ZEALAND INNOVATION OPENS DOORS

GREAT IDEAS AND INVENTIVENESS ARE SOME OF THE ATTRIBUTES OF MANY OF OUR MOST SUCCESSFUL KIWI FIRMS, AND THE KEY TO STAYING AHEAD IN THE MARKETPLACE.

Being world class innovators There are many examples of Much of our innovation is left helps keep Kiwi businesses success. , the Wellington- under-developed and under- internationally competitive. based software company, has utilised. We need to get better at This involves identifying broken the $4 billion barrier and commercialisation. currently tops the 100-strong and exploiting new markets, Organisations such as the list of Forbes’ Most Innovative raising global standards, Callaghan Innovation network Growth Companies in the world. and continually evolving are helping with this goal by to deliver new products However, there are areas where providing R&D support to firms. and services. Kiwis could do so much more This includes working with and reap even greater rewards. businesses to develop new sciences and technologies, and Sir Ray Avery points out that turning ideas into new products, New Zealand’s innovators are services and new ways of being held back from global working. recognition because they are isolated and have a tendency CEOs that are orientated to be understated about their towards growth, externally success. Despite having proven focused and looking to their leadership in global innovations employees to serve their in medicine, technology and customers and markets, are space explorations, Kiwis tend to most likely to be innovative. shy away from the spotlight. Most commonly, they’re delivering new or significantly improved goods and services, processes or marketing methods.

2 BUSINESS – THE BEATING HEART OF NEW ZEALAND PHOTO: CHRIS WILLIAMS BEING INNOVATIVE DOES NOT NECESSARILY REQUIRE REVOLUTIONARY THINKING. IT COULD BE ABOUT SMART THINKING.

PHOTO: CHRIS WILLIAMS

Innovators are more likely Being innovative does not As you’ll see in the case studies, to perform growth activities necessarily require revolutionary New Zealand businesses have such as exporting, investing thinking. It could be about smart proven neither size, lack of in expansion or research and thinking – for example, how to capital, nor a relatively small development. turn our primary produce into economy are obstacles to higher value exports through delivering products, service Asked about their competitive great ideas, local expertise and and infrastructure to the advantages, CEOs rated personal finding viable overseas markets. highest global standards, when attention, established reputation innovative thinking is employed. and responsiveness to client The global financial crisis needs as their most important. encouraged such smart The business leaders who put thinking, resulting in many priority on growth identify four New Zealand companies taking things as crucial: stock and adjusting their levels of activity and investment, • Maximising current and products, services and the way future returns they do business. They got • Contributing to the wellbeing themselves into a fit state to of stakeholders survive the difficult times and • Increasing the value of the ready to invest and expand business when economic conditions improved. • Creating something new and distinctive

BUSINESSNZ 3 THE BEATING HEART OF NEW ZEALAND BENEFITING THE COMMUNITY

SUCCESSFUL BUSINESSES HAVE A SYMBIOTIC RELATIONSHIP WITH THEIR COMMUNITIES. STRONG PERFORMANCE HAS A DIRECT IMPACT BY IMPROVING LIVING STANDARDS FOR INDIVIDUALS AND SOCIETY.

PHOTO: CHRIS WILLIAMS

The most obvious Companies are also increasingly PwC New Zealand Chief benefits of business to the recognising the importance of Executive Officer Bruce Hassall community are the creation their part in creating healthy and says, “The gap between the of jobs and the payment of safe communities by directing skills of the current workforce taxes, as well as distribution funds into skills development and the skills businesses need of profits to shareholders. programmes, local charities and to achieve their growth plans other good causes. Some have is widening. Despite rising adopted the view that investing business confidence equating heavily in both staff and the to more jobs, organisations wider community is essential to are struggling to find the right long-term sustainable growth. people to fill these positions.” Of course, as commerce grows, The demand for employees so does the need for skills. with high levels of skills is very evident in the technology PwC’s report The talent area. Chief executives say challenge: Adapting to growth much more needs to be surveyed over 1,300 CEOs in done to demonstrate to high 68 countries, including 43 New school students the multiple Zealand CEOs, and showed opportunities and job gateways 80 percent of New Zealand open to them. Our education CEOs saying the availability of system needs to recognise, key skills is the biggest threat for example, that as smart to their organisation’s growth, technology companies grow, so compared to 63 percent does the demand for computer globally, with technology and science students. engineering firms struggling the most with the shortage of skilled employees.

4 BUSINESS – THE BEATING HEART OF NEW ZEALAND PHOTO: CHRIS WILLIAMS EMPLOYERS ARE BECOMING MORE AWARE OF THE PART THEY HAVE TO PLAY IN ENSURING YOUNG PEOPLE ACHIEVE THE SKILLS THEY NEED TO SUCCEED IN THE WORKFORCE.

PHOTO: CHRIS WILLIAMS

Employers are becoming more The bulk of that revenue comes Overall, more businesses aware of the part they have to from businesses – including are helping to ensure their play in ensuring young people company tax, PAYE, GST and communities are physically, achieve the skills they need to many other fees and levies financially and socially healthy. succeed in the workforce. They collected by central and local This includes helping to boost are showing more support government. local charities and other for education and training, good causes with grants, and Most years the Government and collaborating more with encouraging staff and customer collects over $20 billion in educational institutions engagement. This movement is income tax (much of it from and others. motivated by business leaders the private sector), $10 billion recognising the importance of Along with a growing demand in corporate tax, $15 billion in the public good aspect of their for skills, in turn, growing GST, as well as contributions to roles, and the need to create commerce also delivers higher superannuation, ACC and more. outcomes that benefit both levels of taxation revenue that Business owners and leaders business and community. allows governments to maintain welcome actions that and enhance public services. demonstrate recognition that This includes infrastructure income needs to be spent such as roads, bridges and a rail wisely, with a high degree of network, building, maintaining accountability. and staffing hospitals, schools and tertiary institutions, and paying salaries, welfare benefits and pensions.

BUSINESSNZ 5 THE BEATING HEART OF NEW ZEALAND

COMPANIES THAT TAKE THESE OBLIGATIONS MAKING A SERIOUSLY ARE MORE LIKELY DIFFERENCE TO CAPITALISE ON IMPROVED PHOTO: CHRIS WILLIAMS ECONOMIC CONDITIONS.

Business today identifies In addition to making profits, For businesses that have Such activities help drive greater obligations and creating jobs, investing and been running for years these greater employee participation, responsibilities than at any expanding, companies are requirements can mean big ownership and responsibility, other time in history. also charged with providing changes to the way they have help reduce waste and cut safe and healthy workplaces, been operating, putting greater overheads, and help to using fair and equitable work emphasis on programmes that ensure the best people are practices, ensuring they are deliver better results. recruited and well treated, environmentally sustainable and that management is kept These programmes could and having sound governance accountable. include employment diversity processes. schemes and policies, structured Companies that take these These requirements are essential recycling programmes, and obligations seriously are more for a company’s reputation, health and safety regimes likely to capitalise on improved the attraction and retention that change workplace economic conditions, delivering of staff and shareholders, the cultures while ensuring strong better results to all stakeholders. willingness of business partners governance and oversight is Likewise, there is an opportunity to work with it and to enjoy maintained. for entirely new businesses the confidence and support of to be created based on these the community (also known new responsibilities and for as a “social licence to operate”). more established companies to They are also reflected in the capitalise on the momentum. legal framework under which businesses operate.

6 BUSINESS – THE BEATING HEART OF NEW ZEALAND TECHNOLOGY IS ANOTHER AREA IN WHICH INSPIRED BUSINESSES ARE CONTRIBUTING BY SUCCESS WORLD-LEADING SOLUTIONS.

PHOTO: CHRIS WILLIAMS

PHOTO: CHRIS WILLIAMS

There are many ways that • Taking the lead on recycling Technology is another area To see how this feeds into business contributes to life and sustainability in which businesses are long term, sustainable growth in New Zealand: • Helping to fund New contributing world-leading you only need to look at The Zealand’s economic base solutions, as seen with Orion Warehouse, who have made • Supplying the infrastructure through taxes, royalties and Health. The next time you visit a investment in community a needed for modern transport other contributions hospital, here or overseas, there’s key part of their business and and communications a high chance it will be their financial plan. A number of New Zealand software that’s being used. • Developing new digital There are many examples of companies are contributing products that are Also making waves in the global business working to make a in not only one, but many of transforming work and leisure health sector is Mesynthes, a difference in the environment. these areas. • Invigorating our primary small business that has created Some of them have been doing sector with new business The case studies provided in a high value product to treat so for much longer than we based on traditional this booklet highlight some and repair wounds. Rapid might imagine, as is evident in the agricultural strengths of the diverse challenges, growth has seen them grow case study on O-I Glass. They’ve from a staff of one to almost 40, been in business since 1922, and • Earning export income circumstances and with international partnerships leading recycling initiatives in from innovative products achievements of some well- and new products already in schools for the last 30. irresistible to overseas markets known businesses, and the difference they each make. development. • Growing skills and equipping That same commitment New Zealanders to contribute From the world-class Hawkins provides a strong applies to businesses wanting to economic life infrastructure that’s being example of the impact business to improve our working delivered by Opus to the can have on community. They’re environment also. Fujitsu has • Investing in communities massive export potential tackling the skills shortage head been described as a shining through engagement with that’s being tapped into by on in their efforts to develop example of welcoming diversity young people, charity work Pacific Aerospace, it’s clear that the next generation of skilled and creating opportunities for and helping fund start-up innovation is still the key to workers. Ngai Tahu are working an increasingly wide range of companies cementing our highly-regarded with them, as part of their own New Zealanders. • Demonstrating diversity and position in world trade. initiative to foster high-level talent inclusion in hiring policies within their own community.

BUSINESSNZ 7 OPUS ACHIEVING GLOBAL GROWTH IN INFRASTRUCTURE. DAVID PRENTICE CHIEF EXECUTIVE

The quality of Opus’s work Other recent acquisitions has received international include Australian-based rail “HIGH PERFORMANCE recognition. It won an Award engineering consultancy Coffey MEANS NOT BEING SATISFIED of Merit from the International Rail Pty Ltd and Asia Pacific Rail WITH THE STATUS QUO, Federation of Consulting Pty Ltd, as well as the North BUT HAVING THE PASSION Engineers for its work spanning Vancouver-based engineering TO CONTINUOUSLY RAISE more than 100 years, including consultancy Dayton & Knight. THE BAR.” special recognition of its work The key to the acquisitions has on the Britomart Transport David Prentice been linking with companies Chief Executive Centre in . that share the same vision and Leading Opus is Scotsman values as Opus, including a drive When it comes to a Prentice says Opus has David Prentice, who joined the for technical excellence. New Zealand company ambitious plans for growth company as an engineer in 1997 forging a reputation Opus has developed global that could see the company in response to a recruitment for global expertise, expertise in fully integrated asset reach 10,000 staff by the year drive aimed at securing 100 infrastructure giant Opus development and management 2020. A continuous business people. The drive only netted 20 services. These include concept improvement programme International Consultants and the plan was for the young development, planning, with a specific focus on high Ltd is often one of the first engineer to work in Malaysia, detailed design, procurement, performance is delivering good to come to mind. but plans changed and he construction, commissioning, results. His leadership and ended up in New Zealand. Once a government department operation, maintenance, appetite for fundamental long- – the old Ministry of Works and On arrival in New Zealand, rehabilitation and upgrading. term improvement is keeping Development – Opus has grown Prentice found a lot of the momentum going. In its home country, Opus’s as a privately owned company similarities in infrastructure current work includes the “High performance means not to be a major player in its field. issues between here and the UK, Government’s Roads of National being satisfied with the status It’s involved in major asset but affordability was an issue. Significance programme and quo, but having the passion to management projects and the “It was the same except that the rebuilding of continuously raise the bar,” construction of bridges, tunnels, here we have four million where it has its biggest office, he says. roads, rail links, managing water people, not 60 million, and comprising 230 staff. supplies and other work in Opus’s focus on developing we still need to provide the multiple countries. The company forms part of a high performance culture same roads, ports and other the Stronger Christchurch encourages leadership It has a massive 3000 staff infrastructure. The reliance Infrastructure Rebuild Team behaviours not just among worldwide based in 91 offices, on the transport network consortium of five major senior leaders but throughout with 1200 in New Zealand is even greater than the UK contractors, and has about 20 the company. scattered among 40 offices. but without necessarily the people seconded to that team. Opus’s international bases economic strength to achieve They have been working on can be found in the United all the improvements,” the chief the horizontal infrastructure to SNAPSHOT States, Australia, and the United executive says. repair and replace so the vertical COMPANY: OPUS Kingdom along with work in The company has undertaken rebuild can take place. INTERNATIONAL Mozambique, Liberia and other major growth, organically CONSULTANTS LTD countries. Its 12,000 clients are Attracting and retaining and by acquisition. The latter BASED: WELLINGTON served by talented engineers, top talent is proving to be includes the merger with WORK: INFRASTRUCTURE designers, planners, researchers a problem. Opus has been Canadian consultancy Stewart DEVELOPMENT and advisers. recruiting hard in Christchurch Weir which has added 550 staff CONSULTANCY to keep up with demand, Typical Opus projects include: to Opus’s existing numbers in but there are still significant a seven-year, multi-million Canada. Stewart Weir is a market shortages of engineering pound joint venture contract leader in pipeline, infrastructure specialties. To address this, the for management of the and energy projects in the company is developing a robust Hertfordshire County Council province of Alberta. talent attraction system. in England’s highway network, and a five-year contract to help manage highways in Motor City, Detroit, Michigan.

8 BUSINESS – THE BEATING HEART OF NEW ZEALAND ORION HEALTH KIWI SOFTWARE AT A HOSPITAL NEAR YOU. IAN MCRAE CHIEF EXECUTIVE

“Back then we thought that if In a company so reliant on good we could get a couple of million people to create, implement, “WE ARE PASSIONATE dollars in turnover that would test, document, analyse ABOUT SHARING OUR be fantastic. We’re doing $150 and support the company’s SKILLS AND KNOWLEDGE million this year. products, there is the broader WITH THE NEXT problem of not having a big GENERATION OF KIWI IT “As our portfolio grew, we enough skilled workforce. PROFESSIONALS.” became a full vendor in the health area doing most things. McRae points out that Ian McRae We started off in the New technology is a great space Chief Executive

Zealand market and in two or to be working in – there’s three years moved on to the no effect on the country’s One day soon the Consequently, many students United States, Australia and natural resources and minimal healthcare system will with a technical bent head for the UK.” environmental impact. allow patients to make key physics and biochemistry where care decisions themselves, The company struggled in the “We have taken a deliberate step there are fewer jobs. supported by research, early years but in recent years back to our origins by putting As part of its push in this area, educational materials and growth has ranged between entrepreneurship and ideas at Orion is providing Raspberry 10 and 50 percent a year. The the head of our priorities. When a guidance network of Pi mini computers for growth is reflected in staffing we first started we had 20-30 healthcare professionals schoolchildren. The idea is to with more than 400 new staff people who came up with new and their families. inspire and motivate children to taken on recently. ideas. Then we got bigger and think about computer science as The company proposing that had to support customers, and The medical and pharmaceutical a viable subject. exciting future is Orion Health, so innovation slowed down. industry is intensely competitive. a New Zealand health software We want to pursue ideas “We are passionate about Orion’s strongest competitors company that is a world leader because innovation is the core sharing our skills and knowledge are large American companies in its field with 300,000 clinicians of our business. with the next generation of Kiwi with deep pockets, including in 35 countries using their IT professionals. We recognise Cerner and Intersystems. “Health is going to go through intuitive products to improve that high school students are more massive change – clinical workflow, decision So are we talking about an not simply users of computers, within the next decade the making and patient care. accidental empire like Apple in but producers of digital content. use of mobile devices will be the health industry? We want to support them in Orion Health, an independently phenomenal and we will soon becoming the creators of digital owned global software “No we’re not like that. It’s taken be able to give patients access tools for the future,” McRae says. company that interconnects 21 years of pretty slow and to their medical records. The a wide variety of healthcare deliberate growth to get to products we have today will McRae says the industry has information systems, was where we are. We went from be superseded twice in the done a poor job in telling founded in 1993 by Chief turnover of $100,000 to half a next decade.” students and parents about the Executive Ian McCrae. He million, to a million, then two, opportunities in the field. The Asked if Orion adopts Google- remains the largest shareholder, and we keep resetting our goals. image is of everyone working type half or full days for creative with 60 percent of the company. Our next goal is to achieve the in code cutting, but in fact only thinking, McRae says they $200 million mark.” 20-30 percent of jobs are in “We provide a range of health run a Scratcharama Week (he writing code. software – including patient McRae attributes the growth doesn’t know why it’s called records, laboratory results, to the company’s preparedness that) three times a year, where pharmacy, medical records, to change and to restructure the developers get to focus SNAPSHOT scanning, clinical work flow, as staff numbers climb. on things they want to do and COMPANY: ORION HEALTH and invoicing,” McRae says. some crazy ideas come out. “One of the things that holds BASED: AUCKLAND “When I started the firm we us back is getting enough Orion is working hard to lift the WORK: HEALTH SOFTWARE were IT developers with one people with the right leadership profile of computer sciences in AND CONNECTIVITY simple product that did health experience and talent. They’re schools and to get universities messaging. We did come in short supply. We have limited to give the subject greater up with other products, but numbers of such people in prominence. McRae says that focused on health. New Zealand and it’s quite currently computer science is critical to our growth. A few lumped in with other optional come out of the ranks but we’re trades such as metalwork and always looking both locally and woodwork. internationally.”

BUSINESSNZ 9 HAWKINS COLLABORATION IMPROVES EMPLOYEE SKILLS. NANCY McCONNELL GROUP MANAGER COMMUNICATIONS

Nancy McConnell, Group “Construction offers fantastic Manager Communications, opportunities for students to run “CONSTRUCTION OFFERS Brand & Community, says their own businesses. We need FANTASTIC OPPORTUNITIES playing a role in construction to help teachers and parents FOR STUDENTS TO RUN industry skills development is understand that a pathway to THEIR OWN BUSINESSES.” a big priority for Hawkins. She a trades career is a great one is at the forefront of an eight- and is career enhancing, not Nancy McConnell Group Manager Communications year Hawkins partnership with career limiting. We also need Papakura High School aimed at to ensure schools deliver what improving student achievement, students need to become great Several hundred Maori each focusing on why 47 percent of tradespeople and business year are now being given the Hawkins Group is a family- students leave without NCEA people.” opportunity to be involved in owned construction business Level One and identifying how the trades through He Toki. Prompted by predictions founded by builder and this could be changed. of a labour shortage for the McConnell says: “Supporting and entrepreneur Fred T Hawkins Through working with the Canterbury Earthquake recovery, celebrating Maori success in our more than 65 years ago. school, employers and tertiary coupled with the desire to foster industry is essential, because It directly employs 650 people, education providers, a pathways employment opportunities for Maori success is New Zealand’s but uses the services of hundreds model has been developed local Maori in the Canterbury success in terms of the economy of subcontractors across the through which students can region, Hawkins signed a and social achievement. sub-trades on every project the choose a number of flexible memorandum of understanding “He Toki has 250-300 company is working on. vocational pathway streams, with the largest enrolments each year and it’s as well as traditional academic iwi, Ngai Tahu. Its aim is to build Hawkins Construction, one of had a big impact on the Maori streams at the equivalent Maori capability and leadership three subsidiaries, has recently achievement rate. It’s about of NCEA Level 2 learning – in the trade workforce for the completed the design and preparing Maori for employment construction and infrastructure, Christchurch rebuild. construction of New Zealand’s through pre-trades courses in hospitality, health and sports first private-public-partnership This has resulted in Hawkins’ carpentry, plumbing, plastering, science and the services. (PPP), Hobsonville schools project involvement with He Toki ki te painting, electrical, welding and in Auckland, plus substantial “It is still in its infancy, but we are Rika (He Toki), a collaborative, iwi- also extending support during buildings at Middlemore learning that students need to led, Maori trade training initiative their employment journey. and Waikato Hospitals, and be introduced to this approach with Christchurch Polytechnic, “He Toki focuses on learning, redevelopment of Christchurch’s in their first year of secondary focused on building Maori employability, building trust international airport. school so they are aware of capability and leadership within and a collective sense of Hawkins Infrastructure’s planned career options that suit their the trades workforce for the New belonging. Our next steps are work includes the $100m natural talents, motivations, Zealand construction industry. towards a group apprenticeship joint venture electrification of interests and aspirations, and It’s available for all Maori, not scheme to enhance leadership the Auckland rail network, a can make the right choices.” just Ngai Tahu, and the focus development and pathway roading flyover in Port Moresby, McConnell says her company is on working with Maori who opportunities to other Papua New Guinea, and with identified the need to foster are keen for work in the trades, construction career openings international partner OHL is the a greater understanding of all providing practical pre-trades preferred bidder for the $250m in construction management the pathways the construction Ruataniwha water storage skill-based modules, a distinctly and supervision, or quantity project in Hawke’s Bay. industry offers from pre- Maori flavour reflecting culture surveying.” construction to completion. and values, work readiness The company is proud of its skills and pastoral care (pre- “Each commercial construction green star reputation, including enrolment, during courses, and SNAPSHOT project is a small business in COMPANY: HAWKINS building the first six-star green at a job stage). It’s also about itself and includes construction, GROUP (INCLUDING star rated building in New identifying and helping those management, and business CONSTRUCTION, Zealand, the Christchurch Civic with leadership potential to skills. Hawkins is like the overall INFRASTRUCTURE AND Building. This involved the move forward. redevelopment of the 1970s project manager, managing HARKER UNDERGROUND purpose-built former NZ Post relationships and expectations Eru Tarena of Ngai Tahu says the CONSTRUCTION) building for 1250 council staff. with consultants and sub- tribe’s Treaty of Waitangi claim BASED: AUCKLAND contractors from architects to was about re-establishing an Hawkins’ collaborative approach WORK: SECOND LARGEST structural engineers, carpenters, economic base and overcoming to skills training and education CONSTRUCTION COMPANY plumbers, services engineers inequality. has won strong plaudits inside IN NEW ZEALAND and fit-out specialists. and outside the industry.

10 BUSINESS – THE BEATING HEART OF NEW ZEALAND PACIFIC AEROSPACE CONQUERING OVERSEAS SKIES. DAMIAN CAMP CHIEF EXECUTIVE

The P-750 sets a benchmark for Securing the joint venture with 10-seater utility aircraft. Its claim Beijing Automotive took two “WE WANTED TO IDENTIFY to fame is that it can take off years and many visits by Camp WHO WOULD BE A GOOD and land in less than 244 metres and his directors, meeting with PARTNER FOR US. IT even in hot conditions; has low representatives of regional NEEDED TO BE A STRONG maintenance requirements; government, private companies PARTNER – THE DEAL can operate off semi-prepared and state owned enterprises. NEEDED TO HAVE A airstrips in all types of terrain; PROPORTION OF CHINESE “We wanted to identify who and can carry a load of 2000kg CONTENT, INCLUDING would be a good partner for us. even in warm and high MANUFACTURING, BUT It needed to be a strong partner conditions. MORE IMPORTANTLY HAD An exciting commercial – the deal needed to have a TO HAVE A STRONG SALES The aircraft can carry proportion of Chinese content, venture into China comes in FOCUS.” passengers on one flight and including manufacturing, but the form of the P-750XSTOL 30 minutes after have the seats more importantly had to have a XL 154 – or the P-750 Damian Camp removed and stored in a rear strong sales focus. Chief Executive for short. compartment, making the full “You have to have good cabin and cargo pod available The numbers and letters stand connections and strong Staff numbers have increased for carrying freight on the for Pacific Aerospace’s multi-use relationships to access a broader from 100 to 120 in the last 12 return leg. Its versatility is such aircraft, and while they don’t market. Fortunately our board months as the opportunities that it can be changed quickly resonate quite like a 737, the chairman has been going to beckon in Russia, Indonesia, and between 10 different roles Hamilton company has made China six to eight times a year other countries. Competition is including passenger, freight, a $75 million breakthrough over the last 23 years. Another tough, though, from the likes of skydiving, ambulance duties, into the fledgling Chinese director is Chinese born, American giant Cessna aerial surveying, crop dusting/ aviation market. understands both cultures and and others. spraying and firefighting. is able to help us interpret the The company, which traces Pacific Aerospace adopted a The joint venture in China is the Chinese market, ensuring we’re its roots back to 1949 and the lean manufacturing programme fruition of two years of work. not going in blind. early aircraft it manufactured six years ago and the results for topdressing, has had a “China is coming off a low base “We didn’t have to do this for are impressive – increasing rollercoaster ride over the years. in aircraft ownership and use. the certification programme production capacity by 40 This includes seeing out the There are opportunities for – they came to us. Our travel percent without large capital purchasing slowdown caused by aviation. This will be the largest to China has been for business outlays, reducing waste, the global financial crisis, during growth market. We recognised development.” continuous improvement, and which time it scaled down staff that some time ago and started staff who are engaged and Camp says Pacific Aerospace is and sought to ride out a tough preparing for it,” Camp says. important contributors to made up of design engineers, financial period. the business. Pacific Aerospace has to go technicians and fitters, skilled Less than a month after through a certification process metal workers and a network disclosing the Chinese joint with civil aviation authorities of sub-contractors, but at its SNAPSHOT: venture deal, Chief Executive whenever it wants to do core is its closely guarded COMPANY: PACIFIC Damian Camp was proudly business with another country, intellectual capital. AEROSPACE showing HRH Prince William so it needs to prove its aircraft’s BASED: HAMILTON around the Pacific Aerospace airworthiness through a WORK: AIRCRAFT facility. The Prince, an stringent programme. Fourteen MANUFACTURER experienced air force pilot, countries have given the P750 showed much interest in the approval. P-750 as he cut the ribbon on the brand new Mark III P-750, a multi-role, quick-change aircraft, the first of its type in the world.

BUSINESSNZ 11 NGAI TAHU HOLDINGS TRIBE INVESTS FOR THE FUTURE. MIKE SANG CHIEF EXECUTIVE

Today the tribe has some clear “We look for investments that objectives: leverage broader benefits for our “WE LOOK AT THE LONG Ngai Tahu whanui,” Sang says. TERM POTENTIAL OF THE • Increasing shareholder INVESTMENT. WE LOOK FOR equity and expanding the “Many of our fishermen are Ngai COMPANIES THAT HAVE A commercial asset base Tahu and we’re working hard to FUNDAMENTAL UNDERLYING • Providing annual cash create opportunities for those STRENGTH AND A POSITIVE returns to marae through interested in farming.” OUTLOOK.” the tribe’s charitable trust to The investments must be line facilitate social, cultural and with the tribe’s aspirations Mike Sang Chief Executive environmental initiatives and priorities – “for instance, Even today the public • Growing the businesses for we would not invest in perception of Treaty of future generations gambling, smoking, or weapons “Ngai Tahu has set itself Waitangi settlements is manufacture. These would not aspirations and visions to • Developing future strategy limited to a resolution of be in line with Ngai Tahu values.” 2025. That’s not too long-term and assessing opportunities but enables a platform to be Maori grievances over land The investment arm provides developed. We have been and other assets that date Ngai Tahu Holdings Corporation, education scholarships, funds going 15 years, but it took seven back more than 170 years. It the commercial arm of the iwi, a cadet scheme and fosters a generations to pass before we seems little is known about has a diversified portfolio of governance programme. what happens next. investments including seafood, got to that stage. We have to farming, property and tourism, “We hire the best people but ensure that our programmes are In the case of Ngai Tahu, the which Chief Executive Mike Sang also aspire to help Ngai Tahu in line with the expectations of South Island’s biggest tribe has says are performing very well. people take roles on their our members.” moved on from its historic $170 own merit.” Sang also acknowledges million cash settlement in 1996. In property, the company has With total investments now the massive amount of The focus is on investment to strong residential subdivision reaching one billion dollars, the volunteer work that is done create jobs, opportunities and investments, a quality portfolio organisation is well placed to within Ngai Tahu. wealth for its more than 51,000 of investment property, and support distributions. To date, members. rural development turning land from forestry to farms. The approximately $300 million has Ngai Tahu has a proud history of been distributed to support SNAPSHOT company is a leading fisher and COMPANY: NGAI TAHU commerce and trade reaching exporter of seafood, particularly educational, environmental, back hundreds of years. Prior cultural and social programmes HOLDINGS rock lobster, most of which is BASED: CHRISTCHURCH to 1840 and the signing of exported to China. The tourism with a record $36 million being the Treaty of Waitangi, Ngai distributed this year. WORK: OWNS SUBSIDIARIES sector has had a tougher time IN SEAFOOD, PROPERTY Tahu underpinned the inter- but growth is evident. tribal trade in pounamu and AND TOURISM later embraced international “We have primarily directed commerce through strong investment into businesses involvement in New Zealand’s that we own 100 percent. The early whaling and agricultural exception is Ryman which we industries. have five percent of. We look at the long term potential of the investment. We look for companies that have a fundamental underlying strength and a positive outlook.

12 BUSINESS – THE BEATING HEART OF NEW ZEALAND MESYNTHES A LOT MORE THAN A STICKING PLASTER. BRIAN WARD CHIEF EXECUTIVE

“When I first started, it was just “An ageing population and the me. I leased some space at what increase in diseases such as “THE DEVELOPMENT WORK was then Industrial Research and diabetes will fuel demand for AND CLINICAL WORK IS contracted two of their scientists the product. DONE IN NEW ZEALAND, to look after the processing. It BUT OUR TARGET WAS “We started manufacturing and took about six months’ work. THE MOST SOPHISTICATED selling in 2013. When our seed Then I employed a PhD student OVERSEAS MARKET capital ran out we had a number and a director of science and WITH THE HIGHEST of finance-raising rounds – so he expanded the development REGULATORY BARRIERS.” for the first years the company team.” operated with no income, Brian Ward Chief Executive Using animal tissue to In the first three years of surviving on the investor development Ward relied on funding.” repair human beings’ body seed capital from angel investors wounds is a product that is Over the first four years the Now the company is based in Auckland and Wellington to taking the American medical staff built up to 10-12, but has in Auckland. keep going. market by storm. recently increased to 35-40 as “We had a situation where From the outset the company, sales have taken off. Managing Mesynthes and its Endoform we had limited space to while based in New Zealand, has such growth can be a challenge Dermal Template product, which manufacture and had to expand focused on the huge US market. but Ward, who has an MBA and originates from a layer within very rapidly. We had to find new has worked for corporates in the the lining of the forestomach of “The development work and premises and build and move medical and pharmaceutical sheep, has been approved by clinical work is done in New quickly to meet the timelines fields, has stayed on top of the American Food and Drug Zealand, but our target was the of our American partners. developments. Administration for the treatment most sophisticated overseas “We did not find anything of wounds. market with the highest A second product is now in suitable in Wellington and so regulatory barriers. We went development. The chief executive of the started looking in Auckland. for FDA approval because we business, Brian Ward, a “It’s currently going through A lot of our supply and service wanted to run the business at veterinary surgeon by trade, the FDA regulatory process. It’s providers are in Auckland, there the standard necessary for it to has developed the product a product to be used in serious is a larger pool of talent and succeed internationally.” and grown the company since surgical procedures. There is a knowhow there – you are better founding it in 2008. Once approval was received, large market opportunity.” able to find people with the sort Ward went looking for a of experience we need.” He describes the company The US is the starting point, and commercial partner that could as a technical developer and Canada and Europe will be next. The company is recruiting provide sales and marketing manufacturer of high value overseas talent as there are expertise, choosing Hollister, As for selling in his home products – “It’s about innovation not enough qualified New a Chicago-based company country, Ward said that and capturing value. Zealanders available. that specialises in ostomy and concentrating on New Zealand “The product I developed was a wound care. would have taken a lot more medical product for soft tissue resources and would be a “We are using an American SNAPSHOT repair. It’s for wound care and distraction when a much larger partner because it has a sales COMPANY: MESYNTHES also has a surgical application. market beckoned. force and can concentrate on BASED: AUCKLAND “Basically we use animal tissue marketing the product, which “But we will look to sell in New WORK: SOFT TISSUE REPAIR that is purified so it can be used it does for wound care in Zealand because our product PRODUCTS for grafting on humans. If you hospital outpatient clinics and can benefit patients here.” treat it in the right way it will doctors’ clinics. be well tolerated by people for He says he has a very supportive tissue repair.” “We see a $200 million board with a great network of opportunity for that product. We people who have experience in In his research Ward found there believe our product can be the medical ventures. were a small number of animal market leader in the category. Being recognised for its based tissues that had shown It’s very early in the process but pioneering work has been helpful, promise. Finding the right type of it has been really encouraging. with Mesynthes winning the tissue was the challenge. “My job Our US partners are very excited Discovering Gold and overall was to identify the source material about the growth prospects. and to investigate its biological Supreme awards at the annual composition that would provide Wellington Gold Business Awards. the right healing properties.

BUSINESSNZ 13 O-I GLASS A RECYCLING SUCCESS STORY. PENNY GARLAND SUSTAINABILITY MANAGER

O-I NZ employs 250 people at its The company is investing in Auckland facility that has three fine and mixed grind processes, “A $US85 MILLION FURNACE furnaces and six production carbon reduced glass and the TO SUPPORT THE GROWING lines. A $US85 million furnace to recycling of glass offcuts from BEER AND WINE INDUSTRIES support the growing beer and windscreen manufacture. It has WAS BUILT AND OPENED IN wine industries was built and also been experimenting with a 2010.” opened in 2010, at a time when lightweight wine bottle. other companies held on to Penny Garland Garland pays tribute to the plant Sustainability Manager their investment money during manager, who is willing to try the global financial crisis. new things in order to achieve At the Environmental Packaging The company introduced a sustainability gains, and the O-I Glass is New Zealand’s Awards O-I was a finalist for major national glass reclamation supply chain management team. only glass container its environmental fund, was system in 1973, introducing manufacturer and is the With staff turnover of less highly commended for the the “submarine” yellow bottle country’s largest user of than three percent, Garland development of its lightweight banks in various locations so recycled glass. says the wonders of working wine bottles, and Garland won that consumers had a home with glass “gets under your the category for driving change. for their glass waste. This was Not surprisingly, the skin”, no doubt helped in part O-I also won the supreme 20 years before local authority New Zealand branch of a by their sophisticated onsite award. amalgamations and increased multinational company that training centre. The company environmental awareness led has 22,500 people working has achieved New Zealand to more co-ordinated waste at 77 plants in 21 countries, Qualifications Authority SNAPSHOT management efforts, including is passionate about the recognition of its training for COMPANY: O-I GLASS the introduction of formal sustainability of glass, which has apprenticeships and graduates. NEW ZEALAND a lower carbon footprint than kerbside schemes which now BASED: AUCKLAND PET plastic. exist in many urban localities. There are 26 nationalities WORK: GLASS represented in the workforce, Garland’s job is to educate MANUFACTURING The company achieves an the majority from the Pacific decision makers about recycling. average recycled container islands, and the importance of She has many success stories. content of 66 percent through staff health and wellbeing is its use of recycled glass, known Many councils contracted recognised through an on-site in the industry as cullet. out their waste and recycling gymnasium. services, and O-I Glass Its sustainability drive sees O-I Garland says that for many years was proactive in building plants being given 10-year O-I’s achievements flew under relationships with these frontline global sustainability goals the radar, but its record is a contractors as well as the including lowering energy proud one. consumption by 50 percent councils that hand them and reducing carbon dioxide- the work. For 30 years the company has given schools money equivalent emissions by 65 Schemes vary in size and quality. to implement a range of percent. Auckland and Christchurch environmental programmes. Sustainability Manager Penny have a cheaper, less than ideal Garland admits she could talk collection scheme where The environmental fund all day about O-I Glass’s drive households fill wheelie bins with provides $25,000 a year for this to recover glass from the waste all their recyclables, resulting work and a panel that includes stream and ensure it can be in huge, painstaking work representatives from the used again. separating glass from the rest. Ministry of the Environment and Garland says Wellington has a Ministry of Youth Affairs selects In New Zealand, the company world best-practice system that the lucky schools. Projects have has been operating since 1922 ensures the separation of glass included year 13 students at under the names ACI, AHI and from plastics, paper and Kamo High School in Northland O-I. During the Second World metal through alternating working on the Whangarei War, with a shortage of imported collection systems. Harbour Marine Reserve materials, teams of people Proposal. would scour the waterways looking for beer bottles that could be recycled.

14 BUSINESS – THE BEATING HEART OF NEW ZEALAND THE WAREHOUSE INVESTING IN YOUR COMMUNITY. MARK POWELL CHIEF EXECUTIVE

Part of that view is how the At the national level, initiatives company has responded to include a well attended supplier “WE TAKE A BROADER the campaign for a living wage. dinner which raises hundreds VIEW OF OUR BUSINESS The Warehouse has introduced of thousands of dollars for the AND ITS IMPACT ON the career retailer wage, which children’s charity Variety and SOCIETY. HOW WE TREAT demonstrates a commitment to provides laptop computers for PEOPLE IS IMPORTANT developing as a credible children in low-decile schools. TO US. THIS IS NOT TREE and exciting career choice. A recent golf day raised more HUGGING – IT’S than $50,000 which was used for IMPORTANT THAT WE “The career retailer wage children to attend an educational HAVE COMMITTED, is a major step in the right programme at the zoo. ENGAGED AND HAPPY Sheer size and scale buys direction in pay rates. Life skills EMPLOYEES WHO ENJOY are important, so we also get The company’s Red Shirts in The Warehouse Group a lot THEIR WORK.” involved in programmes aimed Schools initiative provides of influence and prestige, at lifting literacy and numeracy opportunities for secondary but it also allows it to Mark Powell skills and also health. school students to spend time Chief Executive deliver great benefits to working in store before they “Business has a part to play by the communities served make career choices. This can ensuring frontline staff are being The Warehouse Group has also by its stores. see the students gaining credits paid adequately – it’s about been generous in providing towards an NCEA qualification. With 92 Warehouse stores, long-term business growth tents, tarpaulins, soap and 76 Noel Leeming stores, 63 rather than short-term profits.” “We have also worked with other emergency products to Warehouse Stationery stores, schools to develop an NCEA organisations like World Vision at The company also has a clear and online businesses, operated qualification that provides entry times of emergency, for example strategy of supporting the by a staff of more than 10,000, level skills for retailing. We’ve in the Solomon Islands floods community at local, regional this big business is positioning had good feedback about our and Christchurch earthquakes. and national levels. itself for further growth. involvement in school Gateway At the local level, stores provide programmes, which is usually Chief Executive Mark Powell facilities for charitable causes the first experience a student SNAPSHOT draws a link between long-term to raise money from barbecues has of working. It’s a 12-week COMPANY: THE sustainable business growth and and the proceeds of selling course of working one day WAREHOUSE GROUP being part of a healthy society. plastic bags for 10c at the a week and is proving very BASED: AUCKLAND This means the company follows checkout go to store-nominated successful.” WORK: RETAIL TRADING the ethos of looking after its charities. THROUGH THE WAREHOUSE, staff and giving back to the STATIONERY WAREHOUSE, community. At the regional level, store NOEL LEEMING managers get together and “While it could be argued we decide on community projects are a big enough company and registered charities that can to do the things we do, it still be supported. Customers are requires a commitment by us to invited to add a dollar or more create wealth and employment to their charge for this cause. for others. “For instance, both Wellington “We take a broader view of and Christchurch are supporting our business and its impact on local children’s hospital projects,” society. How we treat people is Powell says. important to us. This is not tree hugging stuff – it’s important that we have committed, engaged and happy employees who enjoy their work, and who live the values that were first put in place during [founder] Sir Stephen Tindall’s time,” Powell says.

BUSINESSNZ 15 THE TINDALL FOUNDATION MORE THAN A HELPING HAND. SIR STEPHEN TINDALL CO-FOUNDER

The Tindall family still has 51 While 40 percent of the percent of The Warehouse group Foundation’s funds go “TOO MANY BUSINESSES through the couple’s ownership, to charitable causes, the FOUNDER THROUGH LACK the Foundation (21 percent) and remainder is dedicated to OF FINANCIAL AND OTHER several family trusts. putting investment funds into SUPPORT AND MY AMBITION 125 start-up companies and IS TO IMPROVE THE RATE OF The money is being put to venture capital firms to help THOSE THAT SURVIVE THE good use but Sir Stephen is them become established and CRUCIAL FIRST YEAR AND particularly proud of three to think globally. Sir Stephen’s THEN GO ON TO BECOME major efforts: investment company K1W1 SUCCESSFUL EXPORT • The community foundations Ltd has invested over $100 EARNERS.” When The Warehouse – a joint venture with the million seed and venture capital. founder Sir Stephen Counties-Manukau district He says too many businesses Sir Stephen Tindall Co-founder Tindall mentioned during health board which seeks to founder through lack of financial a TV interview that he was reduce youth unemployment and other support and his looking for causes that his by training young people into ambition is to improve the Sir Stephen recalls that when charitable foundation could hospital and health jobs rate of those that survive the he established The Warehouse support, he was overrun • The Youth Connections crucial first year and then go on 33 years ago, he was motivated with requests. scheme matching employers to become successful export by driving prices down and a to young people in Auckland earners. determination to offer New That was in 1994, when his Zealanders goods at more that has created 500 jobs Sir Stephen puts a high priority nationwide chain was floated affordable prices. The profits per year on businesses that survive on the share market and he came as a result of delivering long-term by ensuring they and his wife established the • The Red Shirts in Schools on that goal. are relevant, provide what Tindall Foundation to handle 21 programme run by The customers want and create “If you’re only profit driven, your percent of the dividends from Warehouse ‘red sheds’, value for them. business won’t stand the test the sale. which has driven an attitude of time.” change. It helped to transform Through the Foundation’s work At the time Sir Stephen was teenagers who would turn he hears amazing stories of still CEO of the Warehouse, up late and without any work innovation. The Foundation has and his wife Margaret was SNAPSHOT ethic, into different people set out to help those with great busy with five children. So he ORGANISATION: TINDALL in the workplace who enjoy ideas, a sound plan and good contracted someone to advise FOUNDATION interacting with customers. people. him on where the greatest BASED: AUCKLAND needs were and quickly learned The Foundation is helping fund He recalls how he learned on WORK: FUNDING that already there was some programmes that promote child the job for five years doing both CHARITABLE AND fantastic work being done welfare and prevent the abuse university study and part-time COMMUNITY by many organisations. The of children. work. “It makes it cheaper to ORGANISATIONS. INVESTING Foundation started by providing study because you get paid and IN STARTUP COMPANIES bulk funding to the faith-based it’s a more practical approach. WITH GLOBAL ASPIRATIONS organisations doing this work. Unless we move towards this approach it will be difficult for The Foundation set about to many who will get into debt. fund a community foundation movement in New Zealand and “Governments need to value now 14 foundations have been healthy societies, as healthy formed. From an investment of societies promote better $2.5M the Tindall Foundation economies.” has seen these foundations raise $30 million in cash and an estimated $250 million in money promised for local causes around the country.

16 BUSINESS – THE BEATING HEART OF NEW ZEALAND FUJITSU NEW ZEALAND EMPOWERING PEOPLE IN THE WORKPLACE. JO HEALEY MANAGING DIRECTOR

As a division of a huge Japanese Healey’s executive leadership multinational, Fujitsu New is 45 percent female, which “WE NEED TO Zealand can live the maxim represents real progress. ENSURE THERE IS AN “think global, act local”. Most However she admits that UNDERSTANDING THAT obviously it benefits from the Japanese base is more TECHNOLOGY UNDERPINS being part of an organisation of male centric and that the BUSINESS IN SO MANY 170,000 people in 70 countries conversation on the benefits RESPECTS. IT IS ALL that spends $NZ2.2 billion a year of diversity may take longer ABOUT PEOPLE WORKING on research and development. to have an impact. WITH PEOPLE TO UNDERSTAND BUSINESS Not all that R&D is immediately Embracing diversity helps Fujitsu AND ENABLE SOLUTIONS Jo Healey is living and relevant to New Zealand, but as NZ nurture talent, mentor, AND SERVICES TO DRIVE solutions are found, for example motivate and upskill its people. leading the dream of BUSINESS GROWTH in areas like the rural sector, they equal opportunity in Healey says moves towards AND SUCCESS FOR OUR are available for use here. the workplace. greater diversity have been CUSTOMERS.” “We have a strong local welcomed in New Zealand Healey is Managing presence as well as global even if the discussion is still in Jo Healey Managing Director Director of Fujitsu in New strengths that bring capability its early stages. One of the keys Zealand, a technology and a strong financial position. was signing up to the United company demonstrating its Most of our customers have Nations Women’s Empowerment “There’s still some hesitation empowerment of women been with us for over 10 years,” Principles. from parents and teenagers and commitment to diversity. Healey says. about taking up IT as a career. Development and growth of It’s a shining example of how There is a perception that you The company has been busy skills and talent remain a key corporates can improve diversity would spend all day in front of adding new services such as focus for the continued growth in their workplaces. a screen. We need to ensure cloud computing and mobile of Fujitsu’s business. there is an understanding Healey leads a company technologies. It is one of a Healey would like New Zealand that technology underpins enjoying strong growth, handful of companies invited governments to do more in business in so many respects. employing 850 people spread onto government panels that the technology skills IT is all about people working over nine offices and nine other make crucial buying decisions development area. with people to understand support locations. about technology, solutions and business and enable solutions other services. As one of New Zealand’s top and services to drive business five technology companies, it Healey’s interest in diversity growth and success for our offers end-to-end IT services was piqued when last year customers,” Healey says. that encompass all the principal she attended an executive procurement functions for leadership course and chose hardware and software, support diversity as her key study topic. SNAPSHOT services, project management, Diversity is an important part COMPANY: FUJITSU application development, of Fujitsu’s corporate social NEW ZEALAND testing services and full responsibility. BASED: WELLINGTON outsourcing on behalf of public WORK: IT HARDWARE, and private sector organisations. In Fujitsu’s terms, diversity SOFTWARE, SUPPORT covers everything from gender, SERVICES, PROJECT age, ethnic background, sexual MANAGEMENT orientation, disabilities and religion. It sees a diverse staff as bringing real strengths to companies.

BUSINESSNZ 17 CONTACT US BusinessNZ Level 6, Lumley House, 3-11 Hunter Street, Wellington 6011 PO Box 1925, Wellington 6140 New Zealand Ph: +64 4 496 6555 [email protected] www.businessnz.org.nz

ENVIRONMENTAL PROFILE: This publication is printed on an environmentally responsible paper manufactured under the environmental management system ISO 14001 using elemental chlorine free (EFC) pulp sourced from sustainable well managed forests. The plastic mailing wrap used is a biodegradable product that breaks down completely when exposed to moisture, heat and natural UV light.