Monthly Archives: June 2021

Strata set up to ride the construction boom

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Strata Group is well placed to be at the forefront of the ongoing economic growth of Hawke’s Bay, which is seeing massive investment in commercial, industrial, residential and infrastructure builds.

With a healthy current and future pipeline of work, Strata Group director Duncan Bruce says there’s been a stronger focus on retaining talent and providing career pathways through to shareholding in recent years.

The business was established by Duncan, Russell Nettlingham and Guy Lethbridge in 2008 and since then has accumulated an impressive portfolio of construction projects both in Hawke’s Bay and beyond.

Having previously completed the engineering design of the Porters Hotel and Village Exchange and more recently the Joll Road commercial development in Havelock North, leading the Sunfruit Orchards Distribution Centre development, Strata Group are currently involved in the construction monitoring for the strengthening of the Hawke’s Bay Opera House as well as civil engineering for multiple residential developments in Hastings, Napier, Havelock North and Central Hawkes Bay.

Prior to COVID-19, director Guy Lethbridge stepped away from the business, opening up shareholder opportunities for three up-and-coming team leaders Dan Joblin, Luke Price and Philip Wilkinson.

“We’ve had a business mentor involved in the business strategy, helping us set the future strategic direction and as part of this, we wanted to provide a pathway for key members of the team that included having some ownership in the business.

“This would help us retain talent, and gives both Russell and I the opportunity to step away from the day-to-day hands-on role of working on projects to instead focusing on client relationships and developing new opportunities and innovation.”

“Lastly, it also creates a legacy business; a business that started in Hastings over 12 years ago and can stand the test of time and continue to be involved in the development of commercial and industrial buildings, residential developments and infrastructure projects across the Bay and beyond.”

Duncan says there’s also strong desire to recruit more woman into the business, with a new homegrown Civil Engineering graduate set to start in the new year.

In May this year, Strata was part of the local contracting team that handed over the 20,600 m2 (2.06 hectares) multimillion-dollar Rockit Global facility in the Irongate industrial zone. It was Strata’s second large-scale packing facility project in the area.

Rockit Global chief executive Mark O’Donnell says the company was pleased to partner with a number of companies that have been committed to delivering the project. While I can give credit to all those we’ve been working alongside, Strata and MCL are two local businesses that have performed extremely well.

It’s well reported that there’s a construction boom both in Hawke’s Bay and across New Zealand and Strata is looking to make the most of that boom.

Russell is leading one of the largest industrial building complex projects currently in New Zealand with the $400 million Winstone Wallboards new state-of-the-art plasterboard manufacturing and distribution facility in Tauriko, Tauranga, which will open in 2023.

Other current projects include the $70 million pet food factory for Ziwi in Awatoto, which is a major economic boost to Napier, employing 125 workers in the 12,000 m2 facility.

Duncan says the business is also excited to be involved in Foodeast, a foodhub in Elwood Road, Hastings, that will provide significant opportunities for up-and-coming food processing businesses.

“This is a fantastic opportunity to further position Hawke’s Bay as the food bowl of New Zealand, creating new innovations and food products that will showcase the food growing attributes of the Bay.”

Rockit facility sets new benchmark

The Rockit Global packhouse and storage facility has set a new performance benchmark for the horticulture sector, says Duncan.

Rockit had well outgrown a light-industrial building converted into a packhouse, cool store and administration complex in Cooper Street, Havelock North.

Strata was first engaged in 2016 to look at the design requirements of a modern packing facility.

The first step was to identify where would be the best place for the large facility.

Hastings District Council had created the industrial zone in Irongate, and Strata had already been involved in the development of the first post-harvest facility in Irongate for Sunfruit.

Duncan says the layout of a packhouse was driven by maximizing the use of the site given the site boundaries and fire regulations which on site incorporates a full sprinkler system that protects the entire site.

The complex build and a condensed build time due to COVID-19 added pressure but with a close working relationship with the Hastings District Council consenting team, building consents were able to be staged and more openly and efficiently managed.

“Overall this facility has raised the bar and importantly, we had a good working relationship with the council who appreciated us giving them an early heads-up for when to expect Consent documentation.

“MCL did a great job as construction lead and one key decision to pre-order building materials before COVID-19 ensured that downtime was kept to a minimum.

“Special mention must go to key Strata Group team member Andrew Murphy our Industrial Projects Leader who was involved from the start and who has been a big part of this projects success.

“Every business involved worked hard and gave it their all. It was fantastic to work with the likes of Worleys, MCL, Redsteel, Active, Almak and everyone else involved.”

www.stratagroup.net.nz

How shared spaces slash office running costs.

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Office lease rent accounts for only around a third of your total cost of occupancy, so you can see there are some hidden costs in leasing your own office. Costs that you may not understand upfront, but be locked into for at least three years, sometimes much more.

So before you make up your mind between leasing an office, or renting in a shared space, have a look at our comparison, which shows that serviced offices in a shared space are around half the total occupancy cost.

Furthermore, in a shared office you pay for the space you need and when it comes time to grow – you can up-size by taking a larger serviced office, or expand into the interconnecting office next door.

And if you need to down-size? That’s just as simple, move to a smaller office or even a dedicated workstation in our co-working area. Recent COVID-19 lockdowns demonstrated how important rental flexibility is for small and large businesses.

Now your business might only need a small office for four or more staff, but that doesn’t mean you can’t make a big impression with your clients or new staff.

You might only need a 20 or 40m2  serviced office but this comes with full use of over 512 sqm of beautiful architect designed shared facilities, for you and your staff to enjoy.

This is a major benefit of co-working spaces, that provide unbeatable sqm occupancy costs, when compared with leasing your own office.

At Hastings HIVE this works out around $75 per sqm for an eight person private serviced office, which includes all outgoings (like rates, maintenance and landlord insurance) and most of the OPEX items like IT and networking services, power, cleaning, rubbish, office and kitchen supplies and so much more.

As well as getting an affordable workplace, you will also get the best of what an office should have with fantastic break-out spaces and meetings rooms, superior internet fibre connectivity, luxury style bathroom with showers, and a well equipped kitchen/cafe with free espresso coffee.

All of this with only your printing as an additional cost!

New Zealand’s leading engineering firm Beca are recent arrivals at Hastings HIVE. Matt Sanders, Beca Hawke’s Bay Market Leader says the HIVE ticked the most boxes as a suitable office.

“We wanted a space that was going to be quick and easy to set up with all the facilities we needed.

“The Hive has this and more! We have our own serviced office with the flexibility to scale as we need, ultra-fast fibre and IT server capacity that we can utilise as we grow and fantastic break out areas including a café/kitchen and all the meeting rooms we could need. For a detailed comparison please see: https://www.hastingshive.co.nz/servicedofficecosts

A new era for MCL Construction

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MCL Construction has built hundreds of commercial, industrial and residential buildings for others in Hawke’s Bay but for the first time in 72 years, it will commence building its own purpose-built construction facility.

It will also be the first time MCL will move from the site in Kaiapo Road it has occupied since 1949.

MCL Construction managing director John Bower said the company will move its factory and offices  2.5 kilometres south down Maraekakaho Road to a 1 hectare greenfields site near Tumu ITM and the new Irongate industrial zone.

This is another significant milestone for the business, following the introduction of new directors Philip Mitchell, one of the firms project manager/quantity surveyor, and Michael Bush, the financial accountant, in 2017.

“This is a fantastic opportunity for MCL to design and build its own modern construction facility that will include a joinery factory and offices.

“Our current site was once surrounded by orchards but is now very residential and I’m sure many of our neighbours will be happy to see us move on,” says John Bower, managing director at MCL.

MCL will commence construction of the 2,100 m2 joinery factory this month (June) with the 350 m2main office, which will be designed around a central open atrium, starting in November.

John says there’s a strong focus on attracting more females to the business.

Leading the way has been Sarah Mason, who’s been with MCL for 18 years, and for the first time in the company’s history, a female – Denise Otto – has been appointed to lead the joinery division, which offers high-end commercial and residential joinery.

Denise moved with her family from South Africa to New Zealand in early 2019 and she and her husband had previously owned a joinery business. Denise has a diploma in architecture with a specialist interest in joinery design, delivering the complete package with manufacturing and install management.

“It’s great to see the transformation of the business with a greater female presence. Having a joinery manager who’s a woman is really refreshing.”

Another trail-blazing female in the industry is Hastings-born construction project manager Kayla Oughton who has a Bachelor of Building Science with majors in Environmental Science and Project Management.

If MCL’s track record is anything to go by, you can expect Kayla and Denise to be around for many years to come, like John at 30 years, who still pales in tenure  to John Caccioppoli who has been with the company for 60 years, recently retired Mark Adams for 44 years and many other project managers and site managers.

John says MCL is particularly proud of the many tradespeople who have undertaken apprenticeships over the years. Presently there are 4 apprentices at varying stages of their time. We take great pride in having long serving loyal staff who train further into site management.

“There have been hundreds that have completed their time at MCL, many of whom are still with us today. We take great pride in retaining long-serving loyal staff.”

MCL’s presence can be attached to many prominent buildings across Hawke’s Bay including the new Eastern Region Police headquarters, the New Zealand Gold Architecture Award winning Iona College’s Performing Arts Centre and Information Resource Centre, Pak N Save Tamatea, the KiwiBank customer service centre in Hastings and the shared work space Hastings Hive, Business HQ and Club Hastings.

John says the Hawke’s Bay construction scene is riding a wave with projects on stream for at least the next 12-18 months with projects such as The Crossing – a retail hub in Taradale Road and a new building for Ministry of Social Development in Napier and new Petfood Factory in Awatoto.

 

“There’s significant forward work, which is great. There is pressure though around building supplies and labour but we’re well positioned to continue growing.”

MCL employs over 110 staff, from labourers, apprentices and carpenters to site managers and administration staff.

The MCL banner also features MCL Interiors, which specialises in suspended ceilings, office partitions and passive fire.

MCL is proud to be actively involved in the community supporting the likes of the MCL Construction Triple Peaks Challenge, Lowe Corporation Rescue Helicopter, and Havelock North junior rugby.

Visit www.mclbuild.co.nz

The Dark Web – Beware!

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What is the dark web?  The dark web is a part of the internet that is not indexed by search engines and is a hidden collective of internet sites only accessible by a specialised web browser. It is used for keeping internet activity anonymous and private, which can be helpful in both legal and illegal applications. While some use it to evade government censorship, it has also utilised for highly unlawful activity.

On the dark web, hackers can buy stolen user email and software accounts to break into the computers of unsuspecting victims. They can hack bank accounts and get their hands on critical personal information to commit identity fraud.

Chances are you and your organisation have digital information caught on the dark web and is available to cybercriminals. Detail could include login credentials for your email or social media accounts, private financial information like credit card numbers or online banking credentials. Considering the above, developing strategies for protection from potentially crippling breaches is something you need to be proactively thinking about.

Here Are Some Strategies for End-user protection against exploitation by the dark web

Regardless of being a business, parent, or any other user of the web, you’ll want to take precautions to keep your information and private life off the dark web.

Identity theft monitoring 

Dark Web monitoring is critical if you want to keep your private information from being misused. All types of personal data can be distributed online for a profit. Passwords, physical addresses, bank account numbers, and IRD numbers circulate in the dark web all the time. Leaks of personal data can also lead to damage to your reputation via social fraud.

Antimalware and antivirus protections 

These are equally crucial to prevent malicious actors from exploiting you. The dark web is filled with information theft from malware-infected users. Attackers can use tools like keyloggers to gather your data, and they can infiltrate your system on any part of the web. Computer security programs like ID Agent and Webroot are comprehensive and cover identity monitoring, antimalware and antivirus defences.

Change your passwords and follow some basic rules

Enforce a schedule in your organisation that ensures staff change their passwords for critical business applications and encourage them not to use their work email address for personal applications, like Facebook and Instagram. You can even schedule and set automatic reminders that let team members know it’s time to change their password. Encourage your team to take on these strategies with their personal email and financial accounts as well.

Review your cybersecurity regularly

With new cyber threats appearing constantly, committing to a regular cybersecurity assessments and check-ups are common sense. Even when you think all your IT policies and procedures are secure, cybercriminals are trying to develop workarounds to exploit you, steal your data, and sell it on the dark web.

Work with an IT provider who understands cybersecurity and the associated risk landscape and schedules regular cybersecurity assessments. Indicate that you are keen to identify any potential weak spots that could result in sensitive organisational data ending up on the dark web.

Keep your team in the loop 

While you and the other users might not be cybersecurity experts, everyone has an important role to play in minimising your risk.

Explain dark web cybersecurity threats clearly and consistently to your team. Let them know that they must be vigilant. When you include your team in your cybersecurity effort, you not only stress how important it is, you also empower them to play an active role in a well-rounded cybersecurity strategy.

Beware of unfamiliar links and downloads

Also, be sure to tell your team that they should keep an eye out for any email communications or pop-ups that seem suspicious. Even legitimate-looking emails from everyday service providers like your bank, utilities or Microsoft asking for details or asking you to validate information should be treated suspiciously. Cybercriminals are constantly looking for ways to trick users into handing over information that can then be sold on the dark web.

Encourage users to watch out for email phishing or ransomware scams. Tell them to be wary before clicking on any unfamiliar link. Above all, encourage an open-door policy where team members feel comfortable approaching you about anything that seems suspicious. Remind them that if they doubt that a link or email is legitimate, they should always report it to management or your IT provider.

Return of the Brains trust

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If there is a silver lining when talking about the global COVID-19 pandemic, it has to be the return to our shores of thousands of highly skilled Kiwis.

For years, New Zealand has been a casualty of what has been termed ‘brain drain’, as highly qualified New Zealanders left in search of opportunities aboard.

Recent figures show that over 50,000 expats have already returned home, with predictions that as many as 500,000 are likely to make their way over the next few years.

What will returning Kiwis encounter on their return to the homeland?

One of the first issues of reverse migration, is likely to be a period in managed isolation and quarantine facilities and the associated cost. Legislation has been passed to enable the Government to recover some of the costs of managed isolation and quarantine facilities for those returning to New Zealand. The COVID-19 Public Health Response and Amendment Bill provides a legal framework to allow the Government to set payment terms, exempt groups of people and waive charges in cases of financial hardship. New Zealand citizens, permanent residents and temporary entry class visa holders are all sharing the costs in varying degrees.

When returning Kiwis finally find freedom on the other side of MIQ, what will the landscape look like?

This population of people are bringing with them advanced skills and networks obtained through their international experiences and New Zealand needs to ensure that these benefits and experiences are shared and captured to enhance the local economy.

While some will have the flexibility to work remotely for international employers, many will be seeking work within the domestic job market. They will benefit from the recently signalled employment law changes which aim to improve employees’ entitlements, increase the minimum wage and sick leave entitlements.

While a considerable number may settle in Auckland, the provinces will benefit too. The purpose of a recent survey carried out by Kiwi Expat Association (KEA) was to better understand offshore Kiwis and their intentions, such as their timeframes to return home, skills, industry experience and wealth, as well as their needs upon return.

The survey indicated that while 32% of returnees intend to reside in Auckland, the remainder are looking to return to the regions, with 22% leaning towards somewhere they may not have lived before.

The big question – what does this mean for our housing market, which is already under the spotlight given recent changes to the Residential Tenancies Act, increasing housing prices and new tax rules in the past year?

While there is continued pressure on the housing market, the effect of the legislative changes announced in March 2021 by the Labour Government are likely to flow through. These changes are intended to make the property market fairer for first home buyers and to take out some of the ‘heat’ from the market. The changes include an extension of the Bright Line Test which sees tax paid on any capital gains made if an investment property is sold within a set period. The extension of the bright-line test from five to ten years will effectively see a longer lock-in period for property investors and is intended to slow down property sales.

Another change was the removal of interest rate deductibility from investor housing. Proposed to begin in October this year, deductibility on mortgage interest will be reduced by 25% increments for existing property investments and will be fully phased out by April 2025. This policy will generate a significant amount of additional tax to be paid by property investors and will weigh on cashflows and potentially impact decision making.

While the true effect of these recent changes to is yet to be seen, returning Kiwis can be sure that the Government is focused on improving the supply of housing to the market. This is also the intention with the recent review of the Resource Management Act.

While it may not be a smooth home coming for all, many Kiwis will simply be grateful to return to a country which has been largely unaffected by a global pandemic. And for us who are already here, we should see the influx of those returning home as an opportunity for growth and connection.

AUTHOR: Christine Symes is a director at Bramwell Bate and provides advice on a range of matters including property, company and commercial, trusts and estates, and Wills and Power of Attorneys.

christine@bramwellbate.co.nz

Conroy’s keeps moving forward

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Family-owned business Conroy Removals celebrate 50 years in 2022 and despite one of the most challenging times in their history, dealing with both the COVID pandemic and a flood wreaking havoc at their Onekawa, Napier base, the father and daughter-run operation has emerged stronger than ever. Just prior to COVID, general manager Fiona Conroy followed in her father David’s footsteps, joining The Icehouse business owner’s Programme at the Hawke’s Bay Business Hub.

Growing up, there was a hard and fast rule for Fiona Conroy – no joining the business until she had been out in the world to decide if it was a path she was really interested in.

Ever since she can remember, Fiona has been immersed in the family business. “That was just life, there was always the trucks and holiday work in the office.” After a “much-loved” OE and finishing a Bachelor of Business Studies, an opportunity came up to join the Wellington branch. “I thought I’ll give it 12 months and see how it goes” plus having finished uni’ studies meant there was a back-up plan “just in case things didn’t work out”.

Fiona eventually took the Conroy’s sales rep’ position in 2003 covering the Wellington, Manawatu and Wairarapa regions. Now back in Hawke’s Bay, Fiona is Conroy’s GM, based in the original Lipton Place Onekawa offices, juggling three children and being a director of local business, Pacific Powder Coating run by husband Joe Koenigsberger.

Off the back of the property market, this year’s growth at Conroys has been significant.

“There is a big push for house moves out of the cities. The continual lockdown for Aucklanders meant if they have the opportunity to leave, then it into the regions.

“The trucks are definitely seeing a north to south flow. We thought our international part of the business would tank post-Covid but Kiwis are coming back from all over the world.. “In August last year the inquiry for the sales team from Aussie spiked and it really hit us in December. Then we saw a plateau because people couldn’t get a booking in a quarantine hotel but now, with the bubble, we are seeing another lift of Trans-Tasman traffic. But the international shipping is a real headache. We have a contract as a moving group for preferred rates and space and it’s still a real struggle to to get any space at all.“

The commercial side of the business was also busy with people buying new furniture and doing home renovations.

Looking back on the lockdown Fiona admits initially it felt like a panic. “Getting everybody home, we had a full diary – there was massive pressure. Only some small elements of the business were considered essential and effectively 70% of our work stopped at Level 4.”

“Dad and I came into the office and sat at opposite ends of the boardroom and just worked through how we were going to make it work.”

Fiona had joined the Icehouse in early 2020 to develop her management and leadership skills.

“I had enrolled in the Owner Operator Programme but suddenly when Covid hit, I felt overwhelmed with the unknown ahead and thought, what am I doing starting now but actually in hindsight the timing was ideal. We have been foot down ever since and that’s where I have appreciated being in the Icehouse. I have been able to step out of the office for a few hours or Zoom with the other owners in the programme while also having the one on one coaching with Michaela Vodanovich. The coaching time has been totally invaluable to pause and reflect. Michaela is so experienced and has been direct and straight up. You tend to lose focus when you are really busy and the strategic plan gets lost, so now I have been able to work on the plan during coaching sessions instead of trying to do it in the weekend. Being able to do the Programme in Hawke’s Bay has also been a godsend.”

And then there was the November flood to deal with – repairs are on-going.

“It’s a disruption and a whole layer of something we didn’t need to deal with. Our main challenge this year is keeping up with demand for moving services and recruiting staff. The driver shortage nationwide is huge and we need to focus on enticing people into the transport industry and learning our trade – not easy when there are so many jobs opportunities available. We are hoping the government will ease border restrictions in the months ahead – we need people which is a challenge we share with many Hawke’s Bay businesses.”