“It’s been impressive what politics are formulated, we certainly will manufacturing sector be protected has achieved in his Tourism Minister’s be working with Metals NZ to advocate against practices such as non- Key’s out. portfolio, which was based on a well our industry policy document which conforming products or dumping? thought out strategy and leadership - I clearly spells out what we believe So what does can only imagine the benefits to our will future proof a sustainable local With so many questions to be answered, industry if he’d have created a similar manufacturing sector. it’ll be interesting to see which parties it mean for our Ministry of Manufacturing growth respond best to meet our needs and strategy for us! Instead, our sector and It’s time to think about what policy will subsequently win our votes.” members? R&D has been the remit of Minister apply to incentivise R&D spending for – and now that he’s poised our small, medium and large companies, to become Finance Minister, the question or how we’ll fight for a level playing field we have to ask is who will take over? against imports. A week on from the announcement that John Key is stepping down as Prime Minister we’ve had some time to digest the news and I also hold hope that with a charismatic Will the implementation of our perhaps form an opinion on what it all actually means for not only the country, but the metals industry as well. In this time, we’ve leader appearing to now be missing in government public sector procurement seen the National Party quickly aligned itself behind following clear Key endorsement, and likely a bit of fresh blood in all parties - the election focus will come rules be a priority? Will Rule 22 which the form of Deputy Prime Minister . back to where it should be: the policies. doesn’t require main contractors to subject subcontractors to the balanced The question is will this policy model work for National in the next election without the magic of a crowd pulling John Key, or is this In this pre-election stage where party decision making criteria go? Will our Wolfgang Scholz | Director the chance for the opposition to get the upper hand? Either way, at HERA we believe it’s worth considering the ripple effects this may have later down the track.

Reflecting on Key’s reign. Nick Inskip | Industry Development “Funding mechanisms have been With this in mind it’s a good idea for any General Manager particularly difficult to secure in the members looking to seek funding to Under Key’s leadership, the National party has fostered what many perceive to be good economic stability - and it’s this very research and development space – and think ahead and get early applications stability that has resulted in slight market reaction and a business as usual momentum following his announcement. If anything, under the financially focused lead of underway under the current rules while it’s a testament to the environment Key and his team have created over his three terms of leadership - despite the challenges of English this could potentially get tougher. they can.” the GFC, natural disasters, Pike River and pony tail pulling. We only have to look to the market trading post the Italian referendum which saw the government in power defeated and the Italian prime minister resign or the increased uncertainty post President- elect and to know that this subtle reaction is a rarity. Michail Karpenko | Welding Centre “For the welding fabrication sector it is of steel structures in recent earthquakes, General Manager really too early to draw any conclusions and we’ll continue focussing on quality But now that the dust has settled the thoughts of policy change, Labour in leadership, and of course whether the newbie will be on how all of this will affect us, but we through the Steel Fabricator Certification able to fill Key’s shoes have started to arise. ASB Chief Economist Nick Tuffley said there won’t be much impact in the short term, hope that the structural steel industry (SFC) scheme, supporting our members but coming into the next election things become less clear. Likely he’s right - people get spooked by change. will remain a very strong driving force. with research and technical advice, and running courses to upskill our workforce The ‘what if’ scenarios... The positive development of this sector and keep them in line with international is underpinned by excellent performance best practice and a competitive market.”

Bill English as PM. Little leads labour to ? Stephen Hicks | Structural Systems “For the structural sector, the market ensure awarding work is not based on government. General Manager development activities that began at cost alone, along with encouraging HERA’s inception are paying off with a closer economic relations with healthy market share for structural steel through driving harmonization between From a fiscal point of view, he’s very With the removal of Labours main in multi-storey buildings - and it’s hoped AS/NZS standards. experienced, strong in economic obstacle to winning the election now a thriving economy will continue under affairs and seen as a safe pair of hands - removed, it’s likely there are many smiles English. As we look forward to the changing something markets put a lot of faith and around their camp the past week. political environment of , trust into. However, globalisation has meant that its hoped the government will resist It’s a bit too early to be making any calls, procurers need to be more educated the temptation to provide quick fixes We know he’s big-business friendly, but what is clear is that this could be the in their purchasing habits; in particular through regulation, rather than through centre right, pro asset sales and likely to chance for Labour to move New Zealand a government more supportive of the consensus based approach in usher some movement in the NZ super enough to vote them in, by revisiting and industry quality control initiatives to standards.” restructure. An English-led government pushing some long term issues that have will be a policy driven one – with a very been left unaddressed over the last eight financial and commercial approach to years and flying the flag that it’s time for a So there you have it – rest easy, but do your homework. funding mechanisms, infrastructure new approach. development and growth. When it comes to understanding if your business could be affected in the long term, taking the time now to do a quick analysis of Something to think about with this your external opportunities and threats under a changing political environment can go a long way in helping you identify strategic His challenge will be keeping a relatively change will be the prospect of a focuses needed for the new financial year so you stay ahead of the game. tidy and seamless transition on a strong Green, Labour and NZ First coalition, path ahead of the next elections, while sparking concerns it will be difficult to Remember, that as your industry support our doors are always open if you feel some research is required to better understand the simultaneously pitching rejuvenation get consistent agreement across three circumstances – particularly if you feel you’ve discovered something that might adversely influence industry off the back of this. and something different to the Key/ parties if this happens. If warranted, we can take a closer look ahead of time so we can better inform a proactive approach, rather than as a reaction to English/Joyce combo of National. market movement. And, if it is an advocacy issue or training that is need, we’ll be able to leverage our relationships with Metals NZ and like-minded organisations so our industry has the right support at the right time.

Do you have a potential research topic off the back of Key’s resignation that could benefit from some early research? If so, What’s our view? contact Director Wolfgang Scholz via email [email protected] or phone +64 9 262 4848. While the ‘what if’ scenarios are interesting to ponder our team at HERA have mixed thoughts on what these changes will Want to get a grasp on the funding environment going forward before there’s any potential changes? Please contact mean for our industry and it’s future... Industry Development General Manager Nick Inskip on [email protected] or via phone +64 9 262 4750.