EXECUTIVE INTERVIEW VISION, MISSION, PURPOSE, RESULTS Canberra’s Hotel Hotel As featured in CITY STOPOVER: ATOMIC DOWNTOWN DARWIN The CEO Magazine the212 sky's the limit RUBBING NOSES WITH CHURCHILL’S POLAR BEARS REGUS’S JOHN HENDERSON For more info visit HARRIS SCARFE’S GRAHAM DEAN Millenial attire: ADORE BEAUTY’S GET WITH IT KATE MORRIS AKUBRA’S STEPHEN KEIR theceomagazine.com RED SPOT CAR RENTAL’S DAN MEKLER HOT TIPS theceomagazine.com ISSN 2201-876X 5SMSFs 33 PLUS: MASERATI’S QUATTROPORTE • CULTURE CLUB: ENGAGING MINDS 9 772201 876005 $19.95 incl. GST. Issue 55, March 2016 Aussie icon Its distinctive, wide-brimmed hat has been an icon of Australian culture for more than 130 years, and Akubra is now focused on extending its product range and reach to guarantee many more years of success. IMAGES LINDSAY MOLLER onesty, fairness, quality, and generosity epitomise the Akubra brand. These values have been important since its foundation more than a century ago and are still an integral part of its operations today. Fifth-generation family member Stephen Keir has been leading the company as managing director since 2007. He has a hands-on Happroach to leadership and knows the business well, drawing on his almost three decades worth of experience. “Akubra has been going since the early 1880s,” Stephen explains. “It started off in Tasmania, then moved to Sydney. Then we moved it up to Kempsey on the mid north coast of New South Wales in 1974. I have been working here since 1990. Basically, my father started me off on the factory floor and I did probably 10 years there in the fur-cutting and hat-making parts of the business. Then he stepped me up to general manager while he was still managing director. When he retired, I took over his role. “A lot of what we do now hasn’t actually changed for a long time, but I suppose technology has been the biggest change in this business. Being a manufacturer of a product like ours—and it’s such a small industry around the world—there is not actually a lot of chance for change. There is not a lot of innovation when it comes to machinery and everything to do with the hat industry.” While its processes might not have changed a great deal, Akubra itself has, broadening its portfolio of products. It has expanded its range to keep up with the latest fashions, now boasting more than 100 different hat designs—including the straw, trilby, and fedora. It has also extended its reach into some wallets, bags, Name Stephen Keir IV and belts, mainly on contract work. Company Akubra Hats Pty Ltd Position Managing Director Stephen says manufacturing in Australia can be a tricky industry to be in. So HQ Kempsey NSW many other clothing and apparel manufacturers have sent their operations Employees 90 57 EXECUTIVE INTERVIEW EXECUTIVE INTERVIEW “It’s not easy being a a very flat management structure here,” manufacturer in Australia, Stephen says, “and the CFO, the but it does set us apart. The production manager, and I weren’t spending enough time on our retail majority of people who buy network and our customers. We needed our products are all very someone to coordinate all of that and to vocal in regard to Australian- also look after our export customers. We made, and I think people are trying our best to keep in contact and do everything the right way, but in understand why we do charge all fairness we were probably letting that a little bit more.” - Stephen Keir slip a bit because we just didn’t have In the next 10 or so years, Stephen “In addition to that, I would like to enough time in the day to do it. So we anticipates that Akubra will double its expand our hat range. I would like us to have hired Andrew and he is basically production of hats, as well as expand its get into making some other leather offshore, but Akubra is staying true to its coordinating our sales team in Australia factory to cater for greater demand. products. Hopefully, all of that will be roots. “I think it sets us apart from our as well as our retail network, getting “With the succession planning that we going in an upward trend. I think we are competitors,” Stephen says. “The playing things a bit more organised and taking a are trying to do, I think that is a doing really well with that plan, so we field is not fair when it comes to bit more of a coordinated approach to realistic aim,” he says. “My sisters have will see what the future holds.” manufacturing at the moment. The our sales. He is also going to be spending two children each and I have got three free-trade agreements you need might a lot of time trying to get our export children, so one of them might come help, but when you are competing secured the Defence Force contract for groups; we have people anywhere from market going in an upward movement and step into the business. Maybe they against products that are made by another five years. When that finishes, 18 years old to 65 years old. It feels a bit because it is fairly flat at the moment. will want to have a go. At the moment, “Hard work, passion, integrity and commitment are the hallmarks of family business. These values people who are paid a pittance to work, there are four one-year contracts up for like a family, and we all probably spend There are markets, for example in the none do, but we don’t know what’s are the basis for the 20+ year relationship between it can be hard. There is 28-per-cent duty grabs, and Stephen says he is confident more time here with our workmates than US, which we haven’t really spent a lot of down the track, as my children are Akubra and Packer Leather–both multi-generation family businesses.” - Lindsay Packer, Chairman of the on our products going into China, for that the business will continue to have a we do with our families at home, to be time on but we should.” quite young. Board, Packer Leather Pty Ltd example, and if I wanted to I could bring solid contract with the government for honest with you. something in from China and there the next nine years. “That contract is would be a 5-per-cent duty on it. something that I am pretty proud of, “Kempsey on the North Coast has There’s just no level playing field. There’s actually,” he adds. reasonably high unemployment rates, so a lot of red tape in manufacturing, and people really appreciate every job. There there are a lot of things that we have to In addition to that, Stephen says, he is are not many businesses around and not comply with that factories overseas incredibly proud of Akubra’s great a lot of manufacturing anymore. I think Australian Performance Leather don’t. That’s why they can offer super- workplace culture. Being a family-run when people get a job, they are quite competitive prices. The OH&S laws in business that is not publicly listed means appreciative to have it.” Since 1891 five generations of the Packer family have created some of the world’s many places overseas are just about that there is no pressure from best leathers. Today Packer Leather is recognised internationally and holds non-existent compared to here. shareholders regarding profit and loss, This family feel extends across to preferred supplier status with many major global brands. With a continual and therefore it is a great environment Akubra’s supply chain. Stephen has investment in R&D we have developed technologies that create distinctive “So it’s not easy being a manufacturer in to be in. open lines of communication with the finishes, improved performance and new standards in leather quality. Australia, but it does set us apart. The company’s partners and ensures he gives With a strong working relationship that spans many majority of people who buy our products “We are a very hands-on business,” he them lots of face-to-face contact. With decades, Packer Leather and Akubra have formed are all very vocal in regard to Australian- continues. “A lot of our employees have many of its raw materials, such as made, and I think people understand had their fathers and sons, mothers and rabbit fur, coming from overseas, a uniquely Australian partnership. why we do charge a little bit more than daughters, and cousins and relatives Stephen travels regularly to maintain the hats brought in from overseas. It’s work here. It’s got a different feel to it, I transparency and support. Last year, always a challenge. Every day it’s a think, being a family business. Our staff Akubra hired a general manager of challenge, but I am prepared to take it turnover is very low. People get a job sales and marketing, Andrew Angus, who head on.” here and they tend to stay until they will take some of the pressure off Stephen retire. I think it’s that family atmosphere and help him to nurture the supply-chain Since World War I, Akubra has provided that everyone really likes. It’s not a relationships in Australia and abroad. Australian service men and women with high-pressure situation or anything, but more than two million slouch hats, and I think everyone just gets on fairly well.