Monthly Archives: June 2018

Central Hawke’s Bay – all set to Thrive

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Central Hawke’s Bay is defined by its boundaries, from the base of the 200-million-year-old Ruahine Range out to the Pacific Ocean on the East Coast. State Highway 2 runs through the centre of the region, with Napier’s port and airport around 70 kilometres away. Central Hawke’s Bay (or CHB as it’s usually referred to) is also well served by rail, with a station in Waipukurau en-route for trains running from Wellington to Napier, via Palmerston North.

Waipukurau and Waipawa are the largest townships, with many other settlements dotted around the region including Elsthorpe, Tikokino, Takapau, Otane and Porangahau.

CHB’s economy is largely based around the primary production sector, with the largest contributor being agriculture, along with its related food processing facilities and supporting agribusiness. Although accounting for only five percent of Hawke’s Bay’s regional population, CHB produces 20 percent of its exports. The Takapau freezing works Ovation’s processing facility provides vital employment for CHB residents as well as the greater Hawke’s Bay population, with many employees from Hastings and Napier making the daily trek to CHB for work.

Tourism is also a big earner for CHB. Mayor Alex Walker reports more than $26 million is brought in each year through events, cycling and walking trails and beach-related activities.**

While agriculture and tourism may be prosperous, economic indicators for the 2016 calendar year show CHB was the only

district in Hawke’s Bay to record a decline in the value of both consented new dwellings and new non-residential buildings.

The good news is that in general, CHB is experiencing increased capital value growth for properties. The median residential property value in Waipukurau lifted from $215,500 in April 2017 to $281,000 in June 2017.

Andrew Chambers is a registered valuer and owner of the Property InDepth franchise for Hawke’s Bay, covering CHB. He says the residential property markets in Waipukurau, Waipawa and Otane are active and steady.

“Purchasers include those trading up in property (second and third homebuyers), investors and first-time homebuyers, including those who commute to Hastings or Napier for work. The lower capital entry levels have allowed a number of first homebuyers to get their foot on the property ladder and the lower fuel costs and current interest rate environment have contributed to making the first home purchases possible. I think CHB will continue to be a steady and stable market due to affordability issues in Hastings and Napier and any slowdown will likely come from interest rate rises and upward pressure on fuel pump prices, the latter being in the spotlight at the moment,” he says.

Andrew notes there appears to be less vacant retail space in Waipukurau than there has been for some time, with commercial rents stable and the uptake of space a reflection on the improved farm-gate returns experienced for the past few years. Likewise, domestic housing rents have been stable for a number of years, with modest growth over the past 12 months.

Primary production accounts for around 95 percent of CHB’s land use. While the residential sector in New Zealand is in the spotlight at present, Andrew says the rural property market has a dynamic of its own with different drivers.

“The CHB lifestyle property market tends to mirror the residential market and has seen a lift in sales volumes and general appreciation in capital values. The sector including large farms has seen a steady number of transactions. New Zealand is at a crossroads of sorts though; with the average age of the New Zealand farmer around 65, succession plans for these properties can be somewhat difficult if ongoing family ownership is desired versus selling on the open market.

“There has been a trend to increase the size of farming operations over the past 10 to 15 years, but the capital required along with the element of ‘fairness’ in some family situations has meant that the next generation has opted out as they do not wish to carry large debt burdens. As a result, there has been an increase of company farming operations and syndicated farm ownership.”

Business Hawke’s Bay reports that there is a large area of rural land in CHB that has “untapped potential” and that the district could benefit from “increased employment opportunities”.

Andrew agrees that CHB is not thriving but holding its own.

“Waipukurau provides a vital service centre to a large farming community. There has been huge uncertainty around the Ruataniwha Water Storage Scheme (the dam). It is my personal opinion that the dam would have provided a much needed injection for CHB, but I am not sure that particular soap opera is over yet.

“If house prices in Hastings and Napier continue the current upward trend, I think you will see more first homebuyers looking more closely at the CHB towns and commuting. If the dam is ever given a green light, I envisage this would create a quick, above-average level of growth in the short term, levelling out to a moderate level of growth.”

With the dam issue now out of its hands, it’s a case of wait and see for CHB.

With a brand new council comes a bold new vision that will see Central Hawke’s Bay thrive well into the future.

Less than a year into the new triennial and with a drive to understand what their constituents want for the future of the district, the newly elected councillors of CHB ventured out into the community.

As part of the annual plan or ‘Thrive’ process, the council held 10 separate meetings in a format where people could discuss their ideas as opposed to the more traditional method of lodging written submissions.

Mayor Alex Walker says this method was chosen because there was confusion between public engagement and public consultation.

“As a new group of councillors we knew coming in that we had a community that felt a bit disconnected from what council is doing,” Alex says.

“The traditionally described methods of consultation end up being quite combative and confrontational, which is actually not conducive to solving problems.”

According to Alex, councillors knew that CHB needed to have plans in place that not only allowed current generations to prosper today but well into the future.

“It is a move away from councils doing things for you to councils doing things with you, where good engagement is feeding good decision-making,” she says.

“It is a subtle shift in the way local democracy could and should be working and that is a really important driver for me.”

It seemed to have worked for council, which Alex reports received great feedback from its constituents.

“A really positive thing that came out of it was the sense of pride that people have for CHB,” she says.

“They are really committed and really love everything that we have here, what we stand for and our sense of community.”

So effective was the engagement approach, Alex says it produced a two-part report that will be used by council as a cornerstone document to guide not only their annual plan but the long-term plan’s budgets and policy frameworks.

“It’s going to feed into all the key documents that we have and also into the business plan that council operates under,” she says.

“The next step is council working through the priorities and what the big transformational moves are and what we need to do to make some of these come to life.”

The first-time mayor admits that one of the things that surprised her was how strong the common themes were that came out of the 10 meetings held in different parts of the district, such as connectivity, prosperity and respect for the environment.

“I think the amount of consensus there was on what was viewed as important for CHB, it probably shouldn’t have surprised us but it did,” she said.

On the other side of the coin, Alex says that while a strong sense of identity as a district came through in the common themes, each of the smaller communities such as Porangahau and Tikokino have their own clear identity.

“So, one of the initiatives that will come out of this is the idea of doing community plans for each of our settlement spaces so that they own and drive the way that council works with them,” says Alex.

So how does ‘Thrive’ support local businesses?

“Thrive benefits the whole community – schools, families and businesses. It is for everybody,” says Alex.

“When it comes to business, it is about creating a positive space; what benefits the community will benefit business.”

What started out as a values-based discussion amongst elected representatives has become a concept embraced by the CHB community.

“Thrive turned into a term that clearly encompassed our vision for the district, being able to thrive and grow and be successful,” Alex says.

“This is not just my vision, it is not just the council’s vision, it is the vision of the whole community.”

 

Zeelandt Brewery – connecting the old and new

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It doesn’t get much more Kiwi than this: a brewery run out of a large steel shed just off the Napier–Taupo highway. There’s even a Kingswood ute parked outside.

But on closer inspection, there’s also a strong European vibe at Zeelandt Brewery in Eskdale.

Zeelandt is the Dutch province New Zealand is named after and founder Chris Barber says he picked it as his beer brand to signify a brewing connection between the old world and the new that dates back hundreds of years.

Chris has brewing in his blood. His great- great-grandfather,JessePrestidge,starteda brewery in Hororata near Christchurch in the late 1880s.

Chris was never a home-brewer but stepped into the industry through a job at Cornwell’s St Austell Brewery in the UK in 2004, followed by a spell at Auckland’s Hallertau Brewery, and then more time in the United Kingdom completing a diploma in brewing technology.

Chris’s family bought land in the Esk Valley in 2007, which is now home to Petane Station, the wine label run by his brother Phil, as well as the craft brewery that opened in 2012.

Zeelandt (pronounced “Zay-land”) is focused on producing “true to style” European-style beers, although that’s not all it does.

“Most of our beers have that European influence,” Chris says, “although we do have an American pale ale, Long Range Bomber, and our seasonal fresh hop pale ale, Pulling Cones.”

While Zeelandt’s brews are available at a number of Hawke’s Bay outlets and also in the main centres, Chris says one of his current priorities is to increase distribution to help grow the business.

And while craft beer enthusiasts can currently pop in and buy the beers, he also has plans to turn the Esk Valley headquarters into more of a visitor destination featuring both Zeelandt beers and Petane Station wines.

“It would be great to go down the beer garden route so we can showcase our products at the brewery and hold a few more festivals or events to highlight our seasonal beers.”

Chris believes Hawke’s Bay has developed a strong craft beer scene over the past few years and he’s confident enthusiasm for local brews will continue to grow.

“We’ve had great support over the years from Hawke’s Bay’s best restaurants and bars,” he says.

“Craft beers are continuing to chip away at the mainstream market. We’ve got a good mix of breweries in Hawke’s Bay, each doing their own thing.

“That can only help the market and hopefully it continues to inspire the region’s restaurants and bars to sell more local beers rather than just going down the mainstream channels.”

www.zeelandt.co.nz

Business Hub turns 3

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The Hawke’s Bay Business Hub is maturing into a busy and vibrant resource that’s being well utilised by the local business community.

2018 marks the third birthday of Hawke’s Bay Business Hub. The Hub, as it’s more commonly known, is a key initiative of Business Hawke’s Bay, the business-led economic development agency with a region-wide focus, devoted to creating the right climate for businesses to thrive in the Bay.

Carolyn Neville, CEO of Business Hawke’s Bay says that the Business Hub is a focal point and fantastic resource for the region’s business community and delivers a collaborative environment focused on business success and growth.

“We’re seeing record use of Business Hub facilities from a range of businesses, social enterprises and individuals, and the ways in which we serve business is growing all the time.”

To make sure the business community knows what’s available, how to make use of Business Hub facilities and to illustrate the versatility of the venue, a photoshoot was recentlyheld.Theresultingimagesshowcase a modern, flexible facility, that can support a wide range of activities including a training session, product launch, workshop, board meeting, networking event or recruitment drive. The Business Hub can cater for small or larger groups of up to 60, and the all-inclusive room hire is surprisingly cost effective.

Hawke’s Bay Business Hub:

  • Light, bright and modern meeting and conference rooms
  • A range of room sizes and facilities, with modest daily rates
  • Free WiFi
  • DIY espresso coffee
  • Presentation/multimedia equipment available according to the room hire, and covered in the hire price
  • Commercial grade kitchen facilities
  • Conveniently located in Bridge Street, Ahuriri

Hawke’s Bay Business Hub’s resources and rooms are available to everyone, says Carolyn Neville.

“We welcome visitors and there’s an open invitation to the business community to drop by and see us.

“If you’re in Napier for business and have a gap between meetings, feel free to drop- in and experience the buzz of The Business Hub. It’s free, and you never know who you might meet. Grab a DIY espresso coffee (for a gold coin donation), tap into our WiFi, perch on a stool at our white board tables in the breakout area and watch our vibrant business community in action.”

Hands-on-help for business people to develop and grow their business

The Business Hub is much more than a collection of rooms and well-appointed spaces, says Carolyn Neville.

“It’s the place where Hawke’s Bay business people come to learn, share, connect, grow their skills and unleash their business potential.

“At the Hub, people can get hands-on-help to develop their skills, grow their business and

make the right connections. For example, the response to the Hub Connect 123 pilot programme and in particular, the business starter session (featured in February’s The Profit) has been outstanding.

“We are gearing up to do much more in 2018 to make sure we provide businesses and business people with the right kind of support, starting with Friday Coffee Talks.

“It’s is a brand-new initiative incorporating a welcome end-of-the-week caffeine hit as well as valuable business networks, business insight, and the support to power businesses forward.

“We’ll have a barista brewing up the flat whites as industry experts share their entrepreneurial journey, wisdom and lessons learnt along the way. The event format is a 45-60 minute interactive presentation followed by plenty of time for Q&A and networking over coffee.

“These sessions are suited for anyone thinking of starting a business, new to business or wanting to gain more

understanding to help grow their current business. Sessions will be relevant, practical and interesting. They’re great value for money and well worth the investment of time away from work. Every coffee talk will have practical take away learnings.

“And for those with a business problem, The Hub’s Ask an Expert session, also on selected Friday mornings, is free and the chance to get initial advice followed by a referral for specific, detailed support.”

Fridays at Hawke’s Bay Business Hub:

• Business insights with the Friday Coffee Talks guest speaker series covering a range of business relevant topics ranging from marketing, on-boarding for new employees and market validation ($15 Business Hub members, $20 standard). Check Business Hub website for dates.

• Specialist advice with Ask an Expert – a free drop in session over two hours on Friday mornings that includes experts such as lawyers, accountants, HR/health and safety, and Regional Business Partners. No appointment necessary. Check Business Hub website for dates and the expert line up for each session.

• On-site barista; gold coin koha for a coffee.

Carolyn Neville says that 2018 is gearing up to be a big year for Hawke’s Bay Business Hub.

“We’ll be launching even more new ways to support the business community, drive business growth and contribute to the regional economy. We’re passionate our region and helping it to grow.”

For more information: www.hbbusinesshub.co.nz/hubevents or drop in to 36 Bridge Street, Ahuriri.

Project a winner for business and charity

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It’s a fundraising mission with a difference: fitting out an aging 40-foot container to give it a new lease on life.

Repurposing the large, blue shipping container into a multipurpose, habitable and consented transportable building is a major task for the small team at Architecture & Interiors Ltd.

Once the months-long ‘Life Box’ project is complete, the container will be auctioned off by Bayleys Real Estate with the proceeds going to Look Good Feel Better (LGFB), a charity supporting people with cancer.

Architecture & Interiors’ managing director Melissa Burne says as well as supporting the charity, the project is an exercise in professional development for the Hawke’s Bay architectural firm and a way to build relationships with other industry professionals.

It would also help educate the public on the process involved and the true costs of completing such a container build project.

“With so many new builds and renovations on the go in Hawke’s Bay at the moment and with small living rising in popularity, we wanted to truly reflect the processes from consenting and compliance to working with many contractors and the council,” says Melissa.

“We are committed to best practice techniques and working with a shipping container has been a real eye opener for my staff and myself. It has been a fantastic team building exercise for us all.”

The company has set aside time every Friday to work on the project, which Melissa says has received incredible support from other businesses.

“A large number of suppliers and contractors have not hesitated in getting involved with us as we embark on this project.”

The team say they chose to partner with Look Good Feel Better because the effects of cancer are close to the hearts of many. LGFB Hawke’s Bay spokesperson Clare O’Higgins says the charity is excited to be involved in the project and really admires Melissa and her team for taking it on.

“As a charity we support those people going through cancer treatment to feel good about themselves again, and let’s face it, the container is getting a bit of a makeover as well, so this is a perfect fit,” Clare says.

Open days will be held at Architecture & Interiors’ Pakowhai Road base during the course of the construction to give the public opportunities to view progress on the container as the project proceeds.

Architecture & Interiors is documenting the project on a blog that can be found on the firm’s website: www.architectureandinteriors.co.nz.

Boxing clever: building a business out of a shipping container

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From coffee outlets to homes and offices, container buildings are springing up all over Hawke’s Bay. What’s driving this trend and what are the advantages of doing business out of a metal box?

It started in 2011 when Al Borrie opened ‘The Box’ – a modified shipping container transformed into a coffee outlet in Clive.

Another container café – Tamara and Pete Melville’s ‘Magnet’ – popped up on Napier’s Marine Parade in the summer of 2016/17.

Then last year Melissa and Ant Campbell opened their Red Bridge Coffee container shop just off Waimarama Road in the Tuki Tuki Valley. Its popularity prompted them to replicate the concept with a second container outlet that’s recently begun trading on Pakowhai Road, Hastings.

Meanwhile, a growing number of Bay residents are choosing to live or work out of the modified steel boxes and container suppliers and building industry professionals say they’re dealing with a growing number of inquiries from potential box-dwellers.

So, what’s the attraction from a business perspective?

Melissa Campbell says when she and Ant were initially looking to set up their Red Bridge venture, they wanted to do something with a bit more flexibility than a traditional coffee cart.

A 20-foot container offered more room, both for the layout of the kitchen and so that customers could stand and sit inside. It also meant an awning could easily be attached, expanding the available cover from the sun and rain.

Melissa says before buying the new container, she did a lot of research and due diligence, including searching Pinterest for container build design and fit-out ideas.

The resulting build wasn’t cheap compared to other options but has delivered a structure

that’s fit for purpose and is also easily relocatable, if they ever decide to move.

She says anyone thinking about undertaking a container build needs to ensure they consider all the costs involved – including aspects such as electrical supply and plumbing – to ensure a realistic budget is put together.

It’s also important to have detailed conversations with your builders to ensure they have the correct vision of what you’re looking to achieve, says Melissa.

Melissa’s advice is echoed by Brian Wynne, national sales manager for ContainerCo, a nationwide container depot operator and container hire and sales business.

Brian says ContainerCo has seen strong growth in the container modification side of its business as interest in container builds continues to grow.

He says a container can be turned into a cost-effective business building but, like Melissa, he advises anyone with a container build idea to prepare a comprehensive budget.

While the initial cost of buying a container may seem cheap, people are often surprised by the high cost of making the required modifications, he says.

If you have the trade skills necessary to do the fit-out work yourself, it can be a very cost-effective building option, Brian says.

“Whereas if you have to get people in to do the work for you, it can get expensive.”

Business people scoping out a possible container project also need to include in their budget costs such as electricity and water. Will you use generator power or mains on your site, and what will be the respective costs of either running the generator or installing an electricity supply? How much water will your business require each day, and where will you source it from?

Every council has different requirements for consenting container builds, Brian says, so it’s important to go to them with architectural drawings and as much information as possible to streamline the consenting process.

“If you have everything ready and you’ve thought about the process they’re more inclined to help you and pass it through.”

Landscape architect Willie Murphy of Pollen Workshop is into his third year working out of a 20-foot high cube container beside his Te Awanga home.

Pollen’s design philosophy is centred around the creation of simple, highly functional spaces and Willie says having an “up-cycled” repurposed shipping container as his office is “a beautiful reflection of this attitude”.

With ranchsliders running most of the length of one long side of the office, there is plenty of natural airflow to keep the office cool through the hot Hawke’s Bay summer.

Temperature control is also helped by the addition of a timber and coloursteel roof and timber slats on the outer walls to stop the metal frame of the container absorbing too much heat.

Brian says considerations around temperature control need to be top of mind with any container build because the interior of a closed, uninsulated container can hit 50 degrees in the hot sun. That said, there are various ways of cooling, insulating and achieving airflow, which need to be factored into the budget as part of the build.

Lighting is another key consideration and again there are a number of options, including installing a false ceiling with LED downlights.

“The more natural light you have the less it feels like you’re sitting in a container,” Brian says.

Melissa says when she and Ant decided to open their second Red Bridge Coffee café at Pakowhai Road, they were able to implement some design improvements as a result of what they had learned from the first container build.

That process was aided by engaging Hastings firm OTTO Engineering, which specialises in designing and manufacturing container builds.

OTTO Engineering managing director Matt Heeringa says making the most of the limited space available is a rewarding challenge when working on a container project.

“Some clients know exactly what they want while others give us very little in the way of a brief, so we have a lot of design freedom, which can be nice.”

As an engineer who has always loved working with steel and also enjoys the challenges of combining it with wood and other materials, Matt says he is excited by the current trend towards container builds, which has captured the public’s imagination.

For business owners, the novelty of a container conversion can even help attract customers, he says.

“It’s something with a different character. People are quite interested in having a look inside a container café because it’s a diversion away from what they were originally manufactured for, so it’s quite cool and interesting.”

Tumu Timbers – nailing its market

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Pallets and bins may look simple to build but for one of New Zealand‘s largest manufacturers, Tumu Timbers, there’s a level of sophistication that’s getting the best from what others would regard as the off-cuts.

Tumu Timbers, based in Irongate Maraekakaho, has been supplying a range of pallets, bins, wooden packaging and timber products to a wide range of industries since the early 80s. The business – part of the TUMU Group of companies, some of which are neighbours – is set out across the nine-hectare site.

In the early days the construction process was manual – from the grading of timber through to hammering the pallets together – yet today the constantly growing facility uses computer software, digital grading scanners, automated assembly lines and a trial is about to get underway involving robotics.

Jobs are safe however; although technology is helping increase productivity, staff numbers have grown over the past eight years from 80 to 150.

Tumu Timbers general manager James Truman and operations manager Andrew Cranswick can easily reel off the statistics but as impressive as they are, they’re also focussed on ensuring the 150 staff and their families are part of its success.

In terms of productivity and reliance on the core material – pinus radiata – Andrew easily rattles off the impressive numbers.

He says about 10 truck and trailer units transport timber to site every day. “Or if we laid timber end to end, it would stretch the distance from here to Australia seven times a year, that’s 40 to 50 kilometres of timber a day,” he says.

In finished product, Tumu Timbers builds approximately 800,000 pallets and between 50,000 to 100,000 bins each year. Of the 800,000 pallets (which are used mostly for the apple, kiwifruit and industrial sectors), 75 percent are exported across the world. If pallets produced were stacked on top of each other they would reach the heady heights of Mount Everest every four to five weeks.

The mix of technology and manual labour pumps out about 5,000 units across two shifts, totalling 22 hours of operation a day.

So how many nails are used in the process? Enough to build around 20,000 houses a year, or in actual nail numbers, 75 million!

Yet for all the numbers, James hopes that the business is not just well regarded for its business success but as an employer of choice.

“The business has increased production significantly for the growing demand for bins and pallets, especially within the horticulture sector, and automation has helped this but not at the expense of losing staff, in fact the opposite has occurred.

“We embarked on a series of automation instalments eight years ago. During that time, a lot of people perceived automation would replace jobs but instead we’ve gone from 50 staff to 150 staff.

“Automation has enabled us to do things better and grow. We have increased volume and are now servicing more customers. We’ve just realigned staff in the process for better utilisation.”

As sectors such as horticulture have grown so has the demand for pallets and bins. But a log of timber is cut for many uses, from building houses through to industrial uses, such as bins and pallets.

As the construction industry is also booming, the demands on timber are stretched. Tumu Timbers sources timber from more than eight sawmills, including sister company Kiwi Lumber.

“Our sheer volume means we need to rely on a range of mills such as Pan Pac, Red Stag, Tenon and Kiwi Lumber. Availability is becoming an issue with a lot of logs being exported. Historically it has been cyclical; previously we would have been able to buy timber for the seasonal demand but now you need to commit all year round.”

As demand increases for timber, the bit in the middle (what Tumu Timbers uses) is under more pressure from the building sector.

This pressure has led to the introduction of new grading technology and computer software to get more out of the raw material.

“We used to manually grade timber with people marking out defects with a crayon based on their visual assessment of a knot.

“Now with computer software and digital grading using cameras and lasers, we can utilise more of the timber and reduce waste while not over spec’ing things.

“A human can probably mark three to four grades on a board of timber while a scanner can instantly identify hundreds of defects and work out which ones can still be used to meet the product specification.”

James says that with technology becoming ever present in the facility, there is more of a focus on upskilling staff.

“We are upskilling staff all the time and looking to recruit, which like many other businesses is sometimes difficult.

“Potential job candidates probably look at us and think we only have people cutting timber using manual docking saws but we’ve got a skilled workforce. We’ve got tradespeople, qualified engineers and timber machinists and we offer apprenticeships and strong career pathways – both within the business and the wider group of businesses.

“One area we have been struggling with is management trainees – ie. future managers – they are hard to find. It’s sometimes hard to convey to someone young about a future career but we have opportunities that can grow into leadership roles.

“The view we’ve got is that TUMU Group is big enough for fantastic career opportunities. You can come in at the factory floor and work your way up; and if you outgrow this business, there’s the other businesses within the group – so if there’s a road block within the business that they are in there’s usually an opportunity elsewhere.”

James says a core business objective is to promote the business as a great place to work.

“That’s about offering a range of things to create a desire to work here. We’ve always been very capable on the safety side having invested a lot of money in safety improvements, but over the past two years, we have focussed on well-being of staff and whanau.”

A well-being committee has been established and the company provides a range of programmes to improve general health including medical checks and mole maps through to encouraging diet and fitness.

“We are currently going through a life- changing challenge. We have 20 staff who are undertaking a programme of fitness activities in our association with the Giants boxing academy in Hastings.

“We also provide free fruit and healthy lunch options and we’ve had some great results not just in staff participants but also their families.”

It looks like Tumu Timbers is fit for purpose and will continue to grow in line with the industries it serves.

www.tumutimbers.co.nz

Irongate Industrial Zone – Opening the gate to development

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Irongate, south of Hastings, has long been earmarked as a “dry industries” hub and as the regional economy continues to boom, that vision is finally being realised.

Head south out of Hastings along Maraekakaho Road and just outside the city limits you hit a busy industrial patchwork of large and small businesses – some old, some new – sprinkled between large tracts of bare land.

This is Irongate, a ‘dry industries’ zone envisaged by Hastings District Council as a magnet for new businesses as the region’s economy booms.

And while much of the zone remains undeveloped, the council’s vision is beginning to be realised, with several new companies spending millions on new facilities at Irongate over the past few years.

One of the most visually impressive new buildings is the Sunfruit Group packhouse and coolstore, a 12,000 sqm building on the SH 50A-side of the zone. It’s hard to miss it as you drive along the southern section of the expressway.

Sunfruit Group, which has growing and packing interest in Hawke’s Bay and the Waikato, built the new packhouse to enable the company’s expansion as pipfruit exports go through a period of strong growth.

The company told media last year the new facility would generate 50 new jobs and more could be added with future expansions.

It moved into the new property in time to begin processing this year’s crop.

Other fruit growers have their eyes on Irongate, including the Rockit Apple brand. In April the company was granted resource consent by the district council to build a substantial coolstore and packhouse facility on an 8.5-hectare property on Irongate Road East.

According to the company’s consent application, the development will include a 25,100 sqm industrial building and the site will also be Rockit Apple’s national and global headquarters.

The office facilities will be designed to house up to 50 staff, a number the company expects to be employing by 2023.

The packing and processing side of the business will employ up to 340 seasonal staff working over two shifts at peak times.

With hundreds of staff now employed at well over a dozen businesses in Irongate – and hundreds more set to flock to the area under planned new developments such as Apollo’s – the zone is clearly demonstrating its potential as a driver of economic growth for the Hastings district and the wider Hawke’s Bay region.

Hastings District Council Group Manager economic development and organisation improvement Craig Cameron says the overall vision for the 118-hectare Irongate Industrial Zone is to provide a suitable zone for ‘dry’ industries requiring a large land area and from small to large building areas. The required average lot size is one hectare, with a minimum of 5,000 sqm.

“Example industries include cold storage, logistics, processing, warehousing and distribution,” Craig says.

“The driver is to respond to increasing demand from industry, particularly those supporting our booming horticulture industry. Encouraging industrial development aids in council’s stated aim of growing sustainable jobs in the region.”

But the development has been slow and controversial, with landowners fighting a 15-year battle with the council over the level of development contributions that are appropriate to get water, wastewater and roading services built in the zone.

“I would say that Hastings missed out on at least 12 years of economic development potential due to the inaction and a lack of understandingofthebusinessopportunities it was losing,” says Irongate landowner John Roil.

“Council will say this was due to the economic downturn and the global financial crisis but if you ask any person that was involved with Council from the immediate area, they will advise you that the main reason was due to the development contribution policy,” and a lack of engagement with the stakeholders,” says John, himself a former Hastings district councillor.

“As an example of the development contributions as they were in 2015, to construct a 5,000 sqm shed would have set you back $540,000 per one-hectare site and you would be required to install sacrificial services if you wanted to develop before the council provided these services.”

“It took an Environmental Court case plus meetings with the affected landowners to provide the catalyst for council to change their view and as a consequence, a variation to the District Plan was signed off in February this year,” John says.

The development contributions (DCs), equivalent to $54 per square metre under the 2015 figures, have now been reduced to a proposed $8.57 per square metre under the council’s draft long-term plan.

Asked about the significance of reducing the DCs, Craig says the council was only able to recover costs with regard to development contributions.

“A number of elements have come together at Irongate to enable council to lower the DCs from the initial estimates. Those include developers paying early in the life of the project thereby lowering interest costs; the increased size of the zone, which spreads the cost over a wider area; the removal of storm water from the infrastructure after input from landowners; and bringing the infrastructure installation in under budget,” he says.

“The importance of bringing the DCs down is to fulfil council’s obligation to only cover costs and, of course, it makes development cheaper, thereby encouraging projects to go ahead,” he says.

Council has also appointed a key account manager to Irongate in Jennifer Bainbridge with the goal to streamline the council service delivery.

Improvements to the zone’s roading infrastructure include the rebuilding of Irongate Road West and the installation of a roundabout at the Maraekakaho Road and Irongate Road intersection. Those projects are expected to be completed during the 2018/19 financial year.

Meanwhile, one Irongate-based business enjoying the location and experiencing growth is Waipak NZ Ltd.

In May last year veteran plastic manufacturers Polymer Systems International Ltd stepped in to buy the assets and save the job losses of 20 or more Waipak staff.

General manager Dan Crawshaw says since then, they have made significant investments in overdue plant maintenance, and new plant and quality testing equipment at Waipak’s Maraekakaho Road premises, and “the team and the business are humming”.

Waipak has the capability to manufacture a wide range of injection and blow-moulded products such as bottles, food packaging, caps and closures.

Dan admits plastic bottles and closures were not part of Polymer’s business plan until they learned of the opportunity to purchase the Waipak assets.

“It was probably our passion to keep business in the Bay and provide jobs and fresh employment opportunities along with a fresh challenge that spurred us into action,” he says.

“We’ve expanded our production capacity massively since taking over to meet demand and position ourselves better for future growth.”

Dan says there are many advantages in doing business from Hawke’s Bay including easy access to Napier Port, competitive backload rates with carriers, and a strong base of automation and technical processing skills.

“Costs are generally lower than they are in major centres. Polymer Systems has thrived in this central location, and we’re pleased to report that Waipak NZ Ltd is headed in the same direction.”

It’s a sentiment that others will be hoping to echo as the Irongate industrial community continues to grow.

New Zealand’s Apple Industry Leads the World Four Years Running

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The World Apple Review has for the fourth year running named New Zealand’s apple industry the most competitive on the global stage, against 33 major apple growing countries.

Released this week by Belrose Inc, the US based world fruit market analysts, the World Apple Review, stated that the innovations emerging from New Zealand’s apple industry will increasingly impact production and marketing throughout the world.

New Zealand’s high productivity gains helped deliver the outstanding performance, ahead of its closest rivals Chile and the United States.

New Zealand Apples & Pears chief executive Alan Pollard said being named the best in the world is a huge honour and signaled the major significance New Zealand has on shaping and leading the industry on the world stage.

The world leading ranking comes as a huge reward to New Zealand’s $850million apple industry which is celebrating one of its best seasons this year.  This also recognises the efforts of the thousands of Kiwis working across the sector, he said.

“To earn and then retain this world leading title year on year is an outstanding achievement, and rewards everyone who is part of New Zealand’s exciting and dynamic apple industry.

“This is an incredibly exciting time for our apple industry, together we are growing great people and the best apples for the world.

“Our world leading achievements reflect New Zealand’s apple industry’s ongoing investment and commitment to leading and adopting greater innovation, research and development, new technologies, and environmental and social sustainability,” said Mr Pollard.

The World Apple Review highlighted that given New Zealand’s relatively small size, export orientation and distance from major markets, the industry had long relied heavily on innovation to provide it with a competitive edge.

It had been the leader in popularising Gala and Fuji, pioneered the first true club variety JazzR, developed and produced a stream of new varieties Pacific RoseR, EnvyR, SmittenR and KoruR.

Mr Pollard said not only has the industry benefited from this varietal innovation, but the New Zealand Government via its Crown Research Institute, Plant & Food Research, has benefited significantly through royalty streams on these successful varieties.

In ranking the 33 countries, the World Apple Review compares production efficiency, infrastructure and inputs, and financial and market data.  New Zealand was the best performer when all three rankings were combined.

According to the World Apple Review, over the past two seasons, New Zealand’s top performance, through exploiting new growing strategies and technologies produced over two and half times the average yield per hectare compared with the rest of world’s apple growing countries.

In general, off-season exporting countries like New Zealand had been forced to continually upgrade production systems to meet growing demands from the Northern Hemisphere.

For almost three decades, much of the innovation in apple varieties has emanated from New Zealand as the country has sought to offset its geographic disadvantage in accessing world markets.

The report stated that probably the single, most significant measure of innovation in a country’s orchards is the percentage of new varieties in production.  It specifically highlighted how New Zealand was still actively searching for newer apple varieties to remain ahead of the field.

The bottom line on competitiveness, is that it is a moving target –continually moving upwards.

The apple industry needs to always monitor how the competitive bar is shifting and needs to be willing and able to adapt rapidly so they do not lose out in the competitive race, the report stated.