Author Archives: Damon Harvey

About Damon Harvey

Damon is the editor and publisher of The Profit. Damon has over 20 years experience as a journalist, content developer, marketer and public relations specialist. Damon is a huge advocate for Hawke's Bay businesses and The Profit was created as a platform to celebrate HB businesses and business people. Damon is also a director of Attn! marketing pr - www.attn.co.nz alongside wife Anna Lorck. He is also a Hastings District Councillor and chairman of Sport Hawke's Bay. In his spare time he loves surfing, mountain biking, crossfit and spending time with his family, which includes five girls! If you've got a great story contact Damon on 021 2886 772 or damon@theprofit.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.

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.”

The road to success for QRS starts with being community focussed – Nigel Pollock

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Nigel Pollock, Quality Roading and Services (QRS) chief executive puts the Wairoa based roading firm’s business award win down to maintaining a balance between economic support for council (which owns QRS) and its social responsibility to the people of Wairoa. QRS won the Hawke’s Bay Chamber of Commerce 2020 Pan Pac Supreme Business Awards at the end of 2020, with Nigel celebrating the win with most of the 87 strong team and a very proud mayor in Craig Little. The Profit interviewed Nigel on what the win means for the business and Wairoa district and what’s next for the business.

Briefly describe what QRS does? Tell me a bit about the businesses – what’s the mix of council and commercial type of business it does?Is all the work based in and around Wairoa or further afield?

Quality Roading and Services is 100 percent owned by Wairoa District Council. We’re known as a council-controlled trading organisation or a CCTO. We have our own board of directors with reporting responsibilities to Wairoa District Council councillors and have been trading for 26 years. Our speciality is civil construction and roading infrastructure. About a third of our work is for Wairoa District Council. Just under two-thirds of our work is for the Government and a small amount of work is in the private sector. We offer a full range of civil engineering skills, experience and equipment. We work mainly in and around Wairoa, which has a geographical footprint covering a third of Hawkes Bay! But we’ve also worked as far south as Bayview, north to Matawai, and west towards Taupo.

QRS was a finalist in 2019 and then took out the top prize in 2020 – it’s obvious the business was performing well – what (if anything did you do differently) to take out the awards?

Our balance between economic support for our owner, Wairoa District Council, and our social responsibilities to the people of Wairoa was, I believe, is the reason we won the Supreme Award. Last year’s award entry process forced us to look at how we navigated 2020 which was a tough year for everyone. Here at QRS a lot of the groundwork had already been done in 2019. We’d invested in diversity, growth, customer service, staff, and greater strategic thinking. We had a strong balance sheet and so were able to rise to the challenges of the difficult year. Our pre-tax profit was 27 percent higher than targeted by securing more work than predicted. Revenue was $10 million more than targeted. Our operating profit before tax and shareholder distribution to Council was $800,685. Our agreed shareholder distribution to Council was $250,000. The numbers reflect QRS’s larger, more complex and challenging contracts.

You passionately spoke out about the people of the organisation in your acceptance speech – how much of a difference does it make having a team that acts as ONE with each feeling that they are making a strong contribution to the firm’s success?

It’s all there in our overarching vision: a strong and successful company, growing the Wairoa community. Ehara taku toa i te toa takitahi, engari he toa takitini which translated means: my strength is not mine alone, it is the strength of many. We’re a family, many staff are actually family with mothers working alongside sons, brothers working alongside uncles. It makes us strong. And I don’t think any of us will forget that night. It was a fantastic feeling to be there along with QRS staff when the company’s name was announced as winner. It was a privilege to see firsthand how proud they all are of the company they work for. QRS whānau are true ambassadors for our district.

QRS is one of the largest employers in Wairoa, this a responsibility that weighs heavily – or more something that the firm wears with pride?

It’s an absolute privilege and we wear it with pride! We’re the second largest employer in Wairoa after AFFCO. Due to our location and the district’s demographic attracting and retaining potential employees can be seen as a challenge. But here at QRS our objective has always been to be an employer of choice for operational and highly skilled staff whether they be locally sourced, from New Zealand, or another country. We promote the work as a career while championing Wairoa’s lifestyle. It’s a privilege to be able to employ locals and see them thrive and flourish. We invested $7 million in salaries and wages last year. What are the future growth plans for QRS? We are invested in a new operations hub. The 750 square metre hub will provide space for an additional 30 staff, central meeting and briefing rooms, human resource and finance workspaces. It will be a modern fit-for-purpose building at our Kaimoana Rd depot and will help unleash our business efficiency and potential. We’re very grateful to have received support from the Provincial Growth fund to make it a reality. It’s another leap forward in the QRS journey where we invest in our most important asset, our people. They’re what sustains our ongoing growth.

As an employer – and a local business (not a large national just servicing the area) does this change your approach to how you do a job, how you get involved in the community and how you employ and upskill locals?

We operate in a remote rugged area often needing urgent, large-scale emergency slip responses. We’re the only company that can respond quickly and with the right kind of machinery and expertise from the Wairoa side. While Napier contractors work northwards, we’ll work southwards. It’s the same between Waiora and Gisborne. That emergency response capability means we’re resourced for large maintenance projects around Hawke’s Bay. With regard to employment, many tenders are now heavily weighted on how much staff training and development is associated with the work rather than on price. Contractors like QRS must show how new and existing staff, particularly Māori, will receive training and qualifications during the project. Eighty percent of QRS staff identify as Māori and last year QRS increased its training budget from $200,000 a year to $450,000 a year. This year we have a record 22 staff in apprenticeships.

As for community support, we believe a thriving community can exist only with the support of all who live and work in it. We love giving back to the community that supports our company and its staff. In recent times we’ve donated money and services to sports teams, science and technology education and events, the Wairoa A and P Show, and the Hawke’s Bay Rescue Helicopter Trust.

As the leader of QRS – what’s the most enjoyable part of your job?

The people. The people around me who have shared values and are prepared to make a difference. Understanding what your purpose is and making sure that it is bigger than oneself is important to me. I get to work with people I respect.  I get to work with people I like.  I also love working with our shareholder and owner Wairoa District Council. Without their support, energy and expertise, this ‘journey’ would not have happened.

How do you give back to a team that has done so well?

I can’t emphasise enough how important recognition is, recognition for a job well done, and in front of your peers, that’s something that can never be taken away. It was an incredible night for the staff that came to the award ceremony. The next week we brought the whole team together for a shared big breakfast. The Mayor came and we were able to share the success face-to-face with everyone and pay our respects to every staff member. We did an exercise that morning asking everyone to write on a piece of paper how they were feeling. Some staff wrote lengthy sentences about their pride, joy and delight. Others scrawled things like “Too Much! and “Kia Kaha!” To me that says we are heading in the right direction.

Where to now for regional economic development

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Economic Development in Hawke’s Bay is set for a big shake-up. However, Minister for Regional Development and local MP Hon. Stuart Nash is urging the region’s councils to have a new delivery model for economic development up and running faster than the proposed timeline of 12–18 months. He is also telling the councils they’ll need to contribute more money for it to be effective.

In February, all five councils across the region – Hawke’s Bay Regional Council, Napier City Council, Wairoa District Council, Hastings District Council and Central Hawke’s Bay District Council – agreed to complete a review by Giblin Group, at a cost of $40,000, which will further develop the preferred option of a Council Controlled Organisation (CCO). The proposed shake up and likely move to a CCO has brought to an end to Business Hawke’s Bay (BHB), an independent business-led economic delivery agency (EDA) but funded by councils. Following the decision by council’s to complete the review, BHB chair Stuart McLauchlan made the tough call to bring the organisation to an end after 11 years.

“The board has wrestled with this decision, as BHB has made a genuine and significant contribution to Hawke’s Bay over the past decade, delivering much needed services to the region’s business community and the wider economic development eco-system. “We are disappointed that we won’t be playing a part in the future economic development of our region and we’re sorry for the impact this decision will have on our people, who have given their all, and put up with considerable uncertainty for a long time.”

He says the board will now work collaboratively with Councils to try and preserve as much value and IP from BHB’s activities as possible; including its people and securing the future of the two Business Hubs, as well as BHB programmes serving start-ups, the food and fibre and hi-tech sectors, along with regional talent attraction and retention.  The date of the wind up will be determined as part of the transition arrangements to be negotiated with the Councils. BHB, which has also operated the shared Business Hub in Ahuriri since 2015, has received a total of $320,000 a year from the councils – just 3 percent of a total $10 million investment by councils. Hawke’s Bay Tourism receives 15.7 percent of the total funding.

The review recommended the disestablishment of BHB and the establishment of a CCO instead. The report also stated at least a further $1.6 million in funding was needed for it to be effective. It also recommended that the Business Hubs in Ahuriri and Hastings continue to be funded. Councils will now independently receive the final report before deciding how they will each participate and contribute to the delivery of economic development.

However, it’s likely that Hastings and Napier will be asked to stump up the most cash, with Wairoa and Central Hawke’s Bay ratepayers already expecting a significant rate increase.

In an exclusive interview with The Profit, Stuart Nash, who also holds the portfolios for small business and tourism, has put the acid on councils to have a new organisation structure, including the appointment of a new chief executive, within six months.

“Twelve to eighteen months is far too long. I can’t see why a new chief executive can’t be recruited within three months and a new organisational structure up and running within six. What this would require, of course, is for the councils to quickly agree on a new way forward and divert some of their current local economic development budget into a region-wide organisation.

“This is certainly what I would like to see as Minister. The region runs the risk of missing out (again) if we don’t have a highly functional EDA operating for 12 to 18 months.”   Stuart also believes the council’s current approach of operating their own economic development resources isn’t helpful and that a better coordinated approach is the best way forward.

“My understanding is that there is around four to five million dollars spent directly across the region by the various councils on economic development.

“As Minister of Regional Economic Development, I would like to see a more coordinated approach taken by councils across our region to economic development. So, it’s not so much a matter of money, but rather a strategic agreement – and then operational implementation – on the way forward that is of highest importance.   “The fact that around five million dollars is spent by the various councils on their own economic development strategies, and yet there is no regional EDA, is incredibly frustrating and counterproductive to regional economic growth.

“Let’s face it, if one of the Bay’s towns and/or cities does well, the whole region benefits.” Stuart also hopes that the councils consider the inclusion of the strongly performing entity Hawke’s Bay Tourism as part of the new economic development model. “Hawke’s Bay Tourism does a fantastic job and really stepped-up post-Covid to maximise the region’s tourism potential.   “There are around 15 EDA that also have the regional tourism organisation (RTO) incorporated within their operational structure.

“As minister for both Tourism and Economic Development, I have asked my officials to provide me with an analysis on the most optimal structure given the ability to compare the different models across the country.

“I am certainly not against the concept; in fact, I may well recommend this structure to the councils going forward.”

Stuart adds that Hawke’s Bay Tourism also has a high level of transparency and accountability back to the Hawke’s Bay Regional Council, whereas none of the councils have representation on the board of BHB and yet BHB demanded ratepayer money for operational funding.   “With regards to BHB, there was perhaps a disconnect between private sector and public sector understanding of the important role of key stakeholder accountability.”

Meanwhile, as this council consultation works its way through political decision-making and community consultation, Business Hawke’s Bay is likely to cease operating – either prior to or after the current funding ends in June – as well as leave much in limbo. Something that Minister Nash will keep a very close watch on.

 

All Blacks help kickstart new local business

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A small Hawke’s Bay business has been able to use some heavy weights influencers to help launch their business. Sensory Haven 4 Kids sells quality, affordable products that can provide comfort and security for both children and adults who are challenged by Sensory Processing Disorders, Anxiety, Fetal alcohol disorder, Attention Deficit Disorder (ADD), Dementia and Autism.

Business owners Lynair Bergman and Angela Howlett launched the business in February 2020 and became one of 100 businesses across New Zealand that got to use the marketing grunt of the All Blacks and ASB Bank to launch their products.

“We created the business because we have always had a passion for working with and supporting children and adults with sensory differences.

The products that were available on the market were hugely expensive which made them unreachable for many of the families we worked with. This was the driving factor to starting the business.”

Although some may think the timing of a launching a business wasn’t ideal, just business prior to a six week lockdown, thanks to ASB’s Borrow the All Blacks campaign, the idea of getting one of the world’s most recognisable brands, the All Blacks, helping out, is something that is usually well out of reach for small businesses.

“When the All Blacks competition came along  we were looking for ways to promote our business and thought what better way to promote ourselves than to have NZ’s sporting stars showcase what we have to offer.  “COVID lockdown allowed us the time to stop and think about our passion and what we wanted to do. We knew there was a need for reasonably priced products to support children and adults with sensory processing differences.

“We researched and sourced online quality affordable products and for the items we couldn’t access we found people within the community that helped us to have these products made locally. “Having the All Blacks involved was hugely exciting  and a real privilege to have them showcasing some of our products. It means further exposure for us and will draw attention to what our business has to offer.   The business is now kicking goals and they’re confident that they’ve got a product range that’s making a positive difference.

We know that our products will make a real difference in people’s lives as already we have had some fabulous reviews, and the positive changes they have made. “We would like to thank you ASB and the All Blacks very much for the opportunity. ASB reviewed nearly 2000 entries to select the 100 small to medium Kiwi businesses that will get a share of the bank’s New Zealand Rugby sponsorship through the ASB Borrow the All Blacks campaign. The bank’s executive general manager of Business Banking, Tim Deane, says the campaign was an innovative way the bank can lend a hand beyond the financial. “Borrow the All Blacks is our way of lending more than just money to hardworking SMEs who are the very backbone of New Zealand’s economy.

 

Record making start to 2021 in commercial property activity – Danny Blair – Colliers HB

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Colliers Hawke’s Bay has kicked off 2021 with the largest January and February since inception in 2004.

The economic rebound experienced in the third and fourth quarters of 2020 post the lockdowns led to a rise in a number of local economic indicators, as a broad range of sectors reignited in an attempt to make up for the lost periods of activity. The rebound across many measures has been strong, particularly retail spending, residential and commercial real estate and export conditions.

This has buoyed local conditions, providing cautious confidence in occupier and investor decision-making. There are a number of underlying economic benefits the Hawke’s Bay enjoys including a growing population and employment opportunities which support commercial real estate activity. Investors are conscious that a rebound and resumption in more normal market conditions are eventuating due to the forced short-term nature of market disruption. As a result, investors are turning their focus towards the solid market conditions leading up to COVID-19 and reviewing the fundamentals. Investors are postulating that the current uncertainty created by COVID-19 could be accommodated in many circumstances, especially if incorporating longer-term projections.

Office

Despite caution in the office sector due to the rise in remote working, an active development sector is forecast over the next five years. Supporting some of the optimism is the economic and business performance outlooks. One measure to keep an eye on is the recent changes in the number of filled jobs reported by StatsNZ. It is still early days, and overall growth rates are still below COVID-19 levels, but some trends that show office occupier demand returning are appearing.

Industrial

Strong leasing market fundamentals, which have seen vacancy rates holding at low levels and upward pressure on rentals, have underpinned the positive sentiment towards the industrial sector amongst investors. The results of the latest Colliers investor sentiment survey found that investor confidence across the country was a net positive 45% (optimists minus pessimists).

Retail

There have been some clear winners in the retail sector after a challenging 2020. Latest data released by StatsNZ indicated core retail card spending in December 2020 totalled $6.68 billion, an increase of $1.14 billion from the previous month and 4.8% higher than December 2019.Consumable and durables recorded the biggest spending increase as Kiwi’s spent up strongly in liquor, supermarket and grocery stores. A new milestone was also recorded with spending on food and beverage services surpassing the $1 billion mark for the first time on record. The nonfood and beverage large format retail sector have also benefited, with strong spending in the furniture, electrical and hardware category, with spending up 12% compared to December 2019.

Economy is performing better than forecast

Action taken by the government and Reserve bank to insulate, as far as possible, NZ business from the impact of COVID-19 and the relative success the country has had in dealing with the virus has seen the economy outperforming original forecasts. Treasury now expects New Zealand’s GDP to grow by an average rate of 4.2% across 2021 and 2022 outpacing Australia (forecast 3.6%) and the USA (forecast 3.5%). While unemployment rates are expected to increase, they are much lower than original expectations.

The unemployment rate is forecast to peak at 7.8% as opposed to earlier predictions of 9.8%, according to latest Treasury forecasts. Government policies including business tax refunds, small business cashflow loans, wage support and mortgage holidays successfully limited job losses and company failures. The Reserve Banks quantitative easing and reduction and stability in the OCR until March 2021 has improved market liquidity, kept interest rates low and boosted investment confidence.

The road to success for QRS starts with being community focussed – Nigel Pollock

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Nigel Pollock, Quality Roading and Services (QRS) chief executive puts the Wairoa based roading firm’s business award win down to maintaining a balance between economic support for council (which owns QRS) and its social responsibility to the people of Wairoa.

QRS won the Hawke’s Bay Chamber of Commerce 2020 Pan Pac Supreme Business Awards at the end of 2020, with Nigel celebrating the win with most of the 87 strong team and a very proud mayor in Craig Little.

The Profit interviewed Nigel on what the win means for the business and Wairoa district and what’s next for the business.

Briefly describe what QRS does? Tell me a bit about the businesses – what’s the mix of council and commercial type of business it does? Is all the work based in and around Wairoa or further afield?

Quality Roading and Services is 100 percent owned by Wairoa District Council. We’re known as a council-controlled trading organisation or a CCTO. We have our own board of directors with reporting responsibilities to Wairoa District Council councillors and have been trading for 26 years. Our speciality is civil construction and roading infrastructure. About a third of our work is for Wairoa District Council. Just under two-thirds of our work is for the Government and a small amount of work is in the private sector. We offer a full range of civil engineering skills, experience and equipment. We work mainly in and around Wairoa, which has a geographical footprint covering a third of Hawkes Bay! But we’ve also worked as far south as Bayview, north to Matawai, and west towards Taupo.

QRS was a finalist in 2019 and then took out the top prize in 2020 – it’s obvious the business was performing well – what (if anything did you do differently) to take out the awards?

Our balance between economic support for our owner, Wairoa District Council, and our social responsibilities to the people of Wairoa was, I believe, is the reason we won the Supreme Award. Last year’s award entry process forced us to look at how we navigated 2020 which was a tough year for everyone. Here at QRS a lot of the groundwork had already been done in 2019. We’d invested in diversity, growth, customer service, staff, and greater strategic thinking. We had a strong balance sheet and so were able to rise to the challenges of the difficult year. Our pre-tax profit was 27 percent higher than targeted by securing more work than predicted. Revenue was $10 million more than targeted. Our operating profit before tax and shareholder distribution to Council was $800,685. Our agreed shareholder distribution to Council was $250,000. The numbers reflect QRS’s larger, more complex and challenging contracts.

You passionately spoke out about the people of the organisation in your acceptance speech – how much of a difference does it make having a team that acts as ONE with each feeling that they are making a strong contribution to the firm’s success?

It’s all there in our overarching vision: a strong and successful company, growing the Wairoa community. Ehara taku toa i te toa takitahi, engari he toa takitini which translated means: my strength is not mine alone, it is the strength of many. We’re a family, many staff are actually family with mothers working alongside sons, brothers working alongside uncles. It makes us strong. And I don’t think any of us will forget that night. It was a fantastic feeling to be there along with QRS staff when the company’s name was announced as winner. It was a privilege to see firsthand how proud they all are of the company they work for. QRS whānau are true ambassadors for our district.

QRS is one of the largest employers in Wairoa, this a responsibility that weighs heavily – or more something that the firm wears with pride?

It’s an absolute privilege and we wear it with pride! We’re the second largest employer in Wairoa after AFFCO. Due to our location and the district’s demographic attracting and retaining potential employees can be seen as a challenge. But here at QRS our objective has always been to be an employer of choice for operational and highly skilled staff whether they be locally sourced, from New Zealand, or another country. We promote the work as a career while championing Wairoa’s lifestyle. It’s a privilege to be able to employ locals and see them thrive and flourish. We invested $7 million in salaries and wages last year.

What are the future growth plans for QRS?

We are invested in a new operations hub. The 750 square metre hub will provide space for an additional 30 staff, central meeting and briefing rooms, human resource and finance workspaces. It will be a modern fit-for-purpose building at our Kaimoana Rd depot and will help unleash our business efficiency and potential. We’re very grateful to have received support from the Provincial Growth fund to make it a reality. It’s another leap forward in the QRS journey where we invest in our most important asset, our people. They’re what sustains our ongoing growth.

As an employer – and a local business (not a large national just servicing the area) does this change your approach to how you do a job, how you get involved in the community and how you employ and upskill locals?

We operate in a remote rugged area often needing urgent, large-scale emergency slip responses. We’re the only company that can respond quickly and with the right kind of machinery and expertise from the Wairoa side. While Napier contractors work northwards, we’ll work southwards. It’s the same between Waiora and Gisborne. That emergency response capability means we’re resourced for large maintenance projects around Hawke’s Bay.

With regard to employment, many tenders are now heavily weighted on how much staff training and development is associated with the work rather than on price. Contractors like QRS must show how new and existing staff, particularly Māori, will receive training and qualifications during the project. Eighty percent of QRS staff identify as Māori and last year QRS increased its training budget from $200,000 a year to $450,000 a year. This year we have a record 22 staff in apprenticeships.

As for community support, we believe a thriving community can exist only with the support of all who live and work in it. We love giving back to the community that supports our company and its staff. In recent times we’ve donated money and services to sports teams, science and technology education and events, the Wairoa A and P Show, and the Hawke’s Bay Rescue Helicopter Trust.

As the leader of QRS – what’s the most enjoyable part of your job?

The people. The people around me who have shared values and are prepared to make a difference. Understanding what your purpose is and making sure that it is bigger than oneself is important to me. I get to work with people I respect. I get to work with people I like. I also love working with our shareholder and owner Wairoa District Council. Without their support, energy and expertise, this ‘journey’ would not have happened.

How do you give back to a team that has done so well?

I can’t emphasise enough how important recognition is, recognition for a job well done, and in front of your peers, that’s something that can never be taken away. It was an incredible night for the staff that came to the award ceremony. The next week we brought the whole team together for a shared big breakfast. The Mayor came and we were able to share the success face-to-face with everyone and pay our respects to every staff member. We did an exercise that morning asking everyone to write on a piece of paper how they were feeling. Some staff wrote lengthy sentences about their pride, joy and delight. Others scrawled things like “Too Much! and “Kia Kaha!” To me that says we are heading in the right direction.

Investing in local businesses part of private equity strategy

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The Hawke’s Bay economy has been built on the success of the primary sector for many years, but with an emergence of savvy technology businesses, local investors now have the chance to have a stake in privately owned businesses like Te Mata Mushrooms and AskYourTeam.

With term investment rates at traditional banks as low as .75 percent for 12 months, local investors are turning to other investment opportunities as part of the investment portfolios.

Boutique private equity investment company True North, based in Havelock North has two investment funds that include a mix of local and national businesses, with the door open for both new investors as well as local businesses needing capital and business nous to support growth opportunities.

True North launched its first fund, NorthWest in 2015 and $10,000 invested then, is now worth $26,000.

The NorthWest fund has a 55 percent shareholding in Freedom Internet, a leading specialist provider of high quality internet networks into apartment buildings and the accommodation sector throughout Australia and New Zealand; 25 percent in grocery clearance business Reduced to Clear, 51 percent in Havelock North based SaaS company Ask Your Team and 30 percent in MindHive, a technology business that captures quality data for AI purposes.

In 2019 True North launched an Agri-fund, DueNorth, to take advantage of the considerable agricultural opportunities on offer in Hawke’s Bay and further afield, this fund has a 45 percent investment in Te Mata Mushrooms, a company that last year announced a $40 million expansion project including a $19 million government loan.

True North chief executive Ian Black says they’re keen to not only find local investors but also up and coming local businesses to add to the two portfolios, saying that it’s a win- win for business owners and investors as well as the region’s economy.

“Private equity performs a key role in accelerating a business owners business plan, as often they don’t have enough capital to take advantage of rapid growth opportunities and outpace the competition and instead they end up struggling from milestone to milestone.

“if we use Te Mata Mushrooms as an example. We injected new capital from investors as well as government money via the Provincial Growth Fund and this has allowed the business can invest into a new facility and get into job creation far more quickly.

Dean Prebble, a Venture Partner with True North adds that there is a focus on adding other Hawke’s Bay businesses into the funds, especially agri-tech and food businesses due to Hawke’s Bay’s natural advantage in the primary sector.

“Investing in a portfolio of private businesses is great for local economies, if you can get some of that money that’s sitting in relatively passive equity funds and get it working and creating jobs, all of a sudden there’s growth in the region. “

Ian says True North looks to invest in privately owned growth businesses that have transitioned from start-up and early expansion mode with a preference for technology businesses as well as agriculture and food production, sectors that are

driving New Zealand’s exports, and which will become more important to the economy in the post-COVID-19 world.

“There is no guarantee of performance. Returns will vary during the period that new investors are brought into the syndicate, as new businesses are acquired, and as each business takes advantage of the opportunities in the market. Our target for each syndicate is to achieve a return of 20 percent per annum.

“While such investments carry risk, we endeavour to spread the portfolio over a range of businesses, to mitigate specific company risk. NorthWest and DueNorth follow a transparent and accountable process, providing full access to the accounts and regular investment updates.

As well as injecting new money into these growing businesses, the company also provides governance and operational expertise. A pre-requisite of each investment is a highly performing chief executive that has also invested in the business, a compelling and competitive product or service with proven demand and market opportunity and a scalable business model.

True North was established by former PWC partner and co- founder of Ask Your Team Andrew Bayly, now a non-executive director alongside Paul Yortt, an experienced early stage investor and company director.

Andrew and Paul were later joined by Rob Wheater who returned to New Zealand after international roles with Schneider Electric. They have built an experienced team including Ian who has had an extensive international career in software and Dean, a former New Zealand Trade Commissioner based in Taiwan.

“We provide investors with a high level of confidence in a strong return. This is founded on our due diligence approach, our extensive business experience and ability to bring further capital to the table.

Ian says this reduces the risk and enhances the opportunity for success in their our chosen investments.

“We have a proven track record of growing business to provide superior returns to investors, and by always taking a seat on the Board of our investments we can provide good governance support.

“The Hawke’s Bay region has tremendous growth opportunities ahead and we are privileged to play our part in supporting the local economy.

Drainways – from supporting role to lead position

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Hawke’s Bay has been a sea of traffic cones and fenced- off infrastructure work sites as large-scale civil projects such as the Hastings District water network rebuild and the many residential subdivisions and industrial projects take off.

At the heart of some of these private enterprise projects and local and central government work is local civil and commercial infrastructure business Drainways, which has shed the sub- contractor role to become lead contractor in recent years.

Drainways managing director Mark Currie said the time was right to come out of the shadows of other businesses and step up to lead contractor status on the confidence of a strong regional economy that has attracted people to move to Hawke’s Bay; a housing shortage; and local government securing Covid-19 recovery funding from central government for ailing infrastructure and upgrades of roads and pathways.

A licensed drainlaying and certified water reticulation company, Drainways was established in Hastings in 1976 by Owen Currie, who today remains active in the business but has handed over the day-to-day reins to his sons: Mark (managing director) and Brendan are responsible for business development; Jaydon is the training administrator and H&S coordinator; and Carlton is a project manager.

Experts in underground life support systems, Drainways specializes in civil and commercial water and drainage systems, working with water pipe sizes from 20 mm to 500 mm and drainage from 100 mm up to 1,200 mm plus.

“We had built a strong reputation as a sub-contractor but we weren’t in charge of our own destiny. In 2012, we decided it was time to step up as a lead contractor and we haven’t looked back.

“Like the projects we usually do – which are below ground – that’s what you could say about us as a business, that we’ve operated out of the spotlight, but now we’re front and centre.”

Since then, Drainways has been pre-qualified by Hastings Council as a ‘Complex A’ contractor, which enables it to undertake large council projects, and it is also a preferred supplier to the Napier City Council.

As a result, Drainways has been involved in leading some of the projects within the Hastings District Council’s $65 million water network investment, and has secured civil works and town house service connectivity on two large-scale retirement villages for the likes of Ryman Healthcare and Oceania Group.

These days you’ll see Drainways branding on safety fencing on major projects across Hastings, Napier and beyond.

At the heart of the business is a culture of inclusion for its growing staff, something that both Mark and Brendan say sets them apart from the large national firms.

“Our staff all know what’s happening with the business, what our targets are, our sales and how projects are tracking. We celebrate our successes together and we also invest in our staff to continue upskilling and progressing their careers within the business.

“We’ve recently had several of the team complete their tickets, either for reticulation, which is outside the land’s boundary, or drainlaying, which is inside the boundary.”

Brendan says it’s been great to work on two high-profile commercial projects and says this is an area where Drainways hopes to secure more residential and commercial development work across the region.

He says the Gracelands project was Drainways’ first major commercial job as lead contractor and involved all the civil works for 50 retirement apartments and dwellings in Pakowhai Road.

Soon after, Drainways was awarded lead contractor for all civil and town house drainage, earthworks, roading, surfacing, paving and topsoil on the $100 million Ryman Healthcare retirement village in Havelock North.

Generosity and goodwill on a giant scale

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2020 was certainly a tough year; one that none of us will forget and we will all feel the impact of for years to come.

As we start 2021, there’s hope that Hawke’s Bay – which hasn’t been hit as hard as other provinces – will fare better.

We’re very fortunate that our economy doesn’t rely on just one sector – think Queenstown and tourism. We may be regarded as an economy that relies on the primary sector but we’re well diversified with agriculture, horticulture and viticulture as well as aquaculture.

We’re also a desirable lifestyle location and as more Kiwis return home to New Zealand, demand on housing and infrastructure is going to increase, leading to major build programmes. Unfortunately,

though, it’s also driving house prices up to unprecedented levels.

The profile of New Zealand as a safe place to live has also received a major boost from the way that we have managed the Covid-19 pandemic.

However, there are many people who are struggling to make ends meet. Buying or renting a house is becoming incredibly difficult and the cost of necessities – food and electricity – as well as the lure of consumerism products is placing immense pressure on many families to get by.

Locally, you only have to drive past Nourished for Nil in Hastings early afternoon to see the ever-growing queue of people collecting much-needed food parcels.

It’s why we must congratulate many of our local businesses and voluntary organisations for getting behind a range of amazing local causes. Their contribution and the need of giving is only going to increase.

One example of generosity and goodwill is the annual Craggy Range Christmas event, whereby the winery and other local businesses such as Lowe Corporation, Furnware and Advanced Plumbing, along with the police and New Zealand Fire Service’s paid and volunteer members, came together to pack over 4,500 Santa sacks full of books, sports equipment and sleeping bags.

The amazing vision of the Peabody family and the support of local businesses created a memorable festive buzz demonstrating aroha that runs throughout our community.

The Santa sacks not only put smiles on the faces of children across Hawke’s Bay and Wairarapa but will have also provided a sigh of relief for many parents, who would otherwise have been sacrificing hard-earned wages or government financial support to put something under the tree.

The sad reality is that while we packed 4,500 Santa sacks in 2020, many more will be needed by the end of 2021. As we move through 2021, consider how you support our community. It doesn’t need to be financially but rather by volunteering your time, experience and skills to make a positive contribution.