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

Be part of the Hastings success story

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In the context of a global pandemic recovery, investors are reconsidering all capital decisions. Now, more than ever, regional centres are being looked at for commercial property opportunities. And Hastings, is no exception.

Rob Gill, Director and Owner of Hastings Hive, Hastings’ first large scale co-working space, and the larger site that encompasses the Kiwibank National Operations Centre, sought out Hastings to invest due to its good business fundamentals.

“Hastings has excellent infrastructure and acts as the region’s service hub, thus attracting new business, business investment and workers,” Rob says.

The current low interest rate environment supports the case for portfolio diversification, and drives demand for regional centres of New Zealand.

Rob, and wife Jenny, own a small private company with commercial buildings and shared office spaces spread throughout the North Island.

Rob placed a strategic bet on Hastings growing faster and more steadily than most other centres in NZ, saying “the fundamentals of the Hawke’s Bay economy look good, demand should hold up well and growth will continue steadily as more companies move their business and families to the Bay for access to stable staff and better quality of life, that New Zealanders so value.”

The important part for the Gill’s, which rings true for any investment opportunity, is “to be focused on being part of the Hastings and Hawke’s Bay success story, and to put local business first.”

“Developing what the local market will need in the next ten years, is likely a better bet than trying to guess whether a building will make money…and if you want to understand this, just ask the locals.”

Passionate owners and operators breathe life into Hastings

There’s a growing band of locals working to inject new vitality and economic diversity into the CBD. A key player, Rob Hansen – Principal, Hansen Property Group is currently redeveloping the old Hawke’s Bay Today site, now called Tribune, situated east of Heretaunga Street.

The project is a mixed-use precinct of office, retail and hospitality set in an urban garden, for locals and visitors to work, connect, socialise and be entertained.

The fundamentals of Hawke’s Bay “positions it well over this time, and Hastings is currently an affordable place to invest,” Rob says.

In light of COVID-19, and the impact to commercial property, well-known investment adviser and author Martin Hawes says “I think this will be a time when yet again quality comes through…quality of the location and especially quality of the tenant.”

Bay Plaza Investment Director Hugh Lambie, credits the combination of experience and the backing of national tenants for the success of the $4 million redevelopment of Bay Plaza Shopping Centre.

“It (the redevelopment) was a good long-term investment where we’re still continuing to see growth.

“Landlords will be taking a closer look at the quality of tenants and the people behind the businesses. It’s all about the ability of the tenant to be able to pay the rent.”

Bay Plaza was an existing run-down shopping centre, purchased in 2012, with short leases and no capital investment for over a decade. It desperately needed significant capital investment, and experienced developers with strong contacts to bring tenants to Hawke’s Bay.

The growth story of this region enticed ten new national tenants to Bay Plaza, with some of these tenants going on to open additional stores locally.

Bay Plaza owners are currently looking at this region for further investment due to the strong economic fundamentals.

Recovering and thriving

Hastings Business Association General Manager Anita Alder says while so much is still unknown in the wake of COVID-19, what is known is the general desire amongst the kiwi population to support local.

Many Hastings businesses will rely on this sense of community and investment to get them through these lean times and back on their feet.

Ongoing investment in Hastings, including domestic tourism will be an opportunity for Hastings in coming months – a perfect getaway weekend location.

“There is of course opportunity even within a crisis. It allows us the time to reflect, to rediscover what it is most important to us – including giving back, sharing and investing in our community.

“It’s these values that the Heart of Hawke’s Bay needs as we all recover and begin to thrive together,” she says.

Bubble bursts for tourism in the Bay – but it will rise again

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Tourism was the first casualty of COVID-19 with no international tourists flying in, nor any NZers able to travel outside of the region during full lockdown. This was a major hit for many of Hawke’s Bay’s tourism operators as well as the hospitality sector.

Tourism is a major economic earner for the region, to the sum of $690 million and for sometime Hawke’s Bay like many other regions will now be relying on domestic tourism. We will also be hotly competing to lure the likes of Aucklanders and Wellingtonians to the Bay and up against the likes of Rotorua, Queenstown and Nelson. So what do we have planned? The Profit has put some questions to Hamish Saxton, the general manager of HB Tourism.

Tourism has been one of the first sectors to feel the impact of COVID-19. What was the initial response from local tourism operators?
We’re a resilient and positive bunch – but it’s hard when you remove our customers completely. But it’s not just our tourism operators – when you remove the visitor economy from the entire local economy, we all feel it. We lose the vibe and the energy of visitors enjoying the place that we love to show off. When you have no-one to show off to, it’s an extremely lonely existence!

What types of support has HBT provided tourism operators since the crisis began?
As a membership organisation, and as the representative organisation of an important sector of our economy, we worked to provide support, leadership, knowledge, guidance – and what we couldn’t do, we worked to find the right agency that could.

We wanted to be informed (so we could share what we knew), we wanted to be transparent, we wanted to be available, we wanted to be empathetic, we wanted to be the go-to.

In addition, we provided a 12 month membership holiday for members, we increased frequency of communications/updates through newsletter, revitalised our Facebook site for industry/ members, and made access really easy.

We also created an informal Friday “chinwag” sessions with members on Zoom, surveyed members/stakeholders at each level so we can represent (and understand/respond to) the needs of our industry.

We worked with visitor economy/members (eg promoted Chamber of Commerce initiative to members), developed workshops to strengthen businesses as well as worked with the hospitality sector on a deliveries initiative for Level 3.

We developed a Hawkes Bay Tourism Recovery Marketing Strategy – working to generate business from Locals, Inter- regional, the drive market (within 4 hours) and the Fly market domestically.

You were a casualty yourself – being forced into isolation early, due to being overseas. How did you manage to keep up your connection with stakeholders at that time?

It’s true, I had 9 days of quarantine before Level 4 lockdown commenced. But I had my phone, laptop, zoom, skype, messenger, and Facebook – there was not a minute when I was not contactable. Most of my ‘holiday’ was spent in a hotel room using my phone like a laptop, on emails and reading reports, dealing with the looming challenges of COVID-19 on our sector. It’s amazing how you just adapt to the situation. And then I came home and entered quarantine.

You have managed to turn quickly into looking for solutions, and have sought outside advice and support which helped come up with the Baycation idea, was it hard coming to a conclusion on what idea (s) to run with, or was this a stand out from the start?

Pre-Covid our strategic intent was developing a focus on Wellington, so the pandemic brought this forward and forced us to crystallise our thinking. The relative clarity/guidance from government regarding the alert levels meant that staycations would be the earliest stage of travel (either local or inter- regional). Staycation easily morphed into Baycation, and the concept was quickly embraced by industry, locals and media alike. Our thinking was aligned. We worked with enthusiastic supporters who were so keen to see Hawke’s Bay succeed. We knew we had to work with urgency and work in conjunction with our industry.

Is there any particular type of tourism business/offering that will ride this out better than others?
The answer will be “the types of offerings domestic visitors have demand for”. As New Zealand’s food and wine country, we know that people love coming here for our food and wine offerings, our outdoor leisure offerings – cycleways, walkways, beaches, gardens, our architectural heritage – and our climate. My understanding is that numerous businesses enjoyed our Queen’s Birthday visitors – accommodation, hospitality, attractions, activities and retail! Our challenge will be to out- compete the other 30 tourism regions in New Zealand who will be vying for the attention of our market. We need to get “more than our fair share”.

When do you think we are likely to see the big HB events come back on stream?
I really hope that Level 1 will allow big events to occur. I really hope that the safe management of our health, and our own individual respect and responsibility for the recommended social behaviour will see confidence return without compromise – and therefore the demand for events. Outdoor events may be more palatable in the first instance. We have so many great reasons to attract people to our region and planning is well underway – including the Sotheby’s Hawke’s Bay Marathon, Central Hawke’s Bay Springfling, Hawke’s Bay Arts Festival, Hawke’s Bay Wine Auction, F.A.W.C!, Holly Hospice – and so much more.

Do you think there will be an emergence of a new tourism offering – and what could this/these be?
In normal circumstances, 75 percent of our market is domestic. For the next few months, it’ll be 100 percent domestic and then (hopefully) we’ll have a trans-Tasman bubble. So, our target market already loves what we have, and they’ll be drawn to events. The domestic market will come to visit friends and family. They’ll want to see something familiar and maybe they’ll do something new, which may be something we already have that they’ve not enjoyed before. We have a lot to explore, from the fantastic heritage offerings of Ongaonga to the glorious natural hot springs of Morere (and everything in between) – there’s a multitude of different Baycations to enjoy! They’ll come for our reputation as a food and wine destination, for family leisure and for the holiday vibe. They’ll come for our authentic offerings. Demand will dictate. And lastly, perhaps there will be the emergence of new offerings that I simply can’t predict . What do they say – necessity is the mother of invention – so the entrepreneurial spirit may deliver something the crystal ball doesn’t show.

You are asking Wellingtonians to support HB and come and visit. If you’re thinking of your next holiday destination – where will it be and why?
Like many New Zealanders I have a great desire to catch up with friends and family – and to do a few things I’ve not done before. So, I’ve committed to a you-beaut 7-day motorhome holiday exploring Northland, which will tick the box for doing a few things I’ve not done before, as I’ve not been north of Matauri Bay (and it was a brief, brief visit) . . . friends and family will have to wait.

Industry hungry for tech-savvy EIT graduates

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EIT’s Schools of Business & Computing are ready to kick off a new term, now accepting enrolments for the Master of Digital Business, the Postgraduate Diploma in Digital Business as well as the Postgraduate Certificate in Digital Business. These programmes are delivered at both Hawke’s Bay and Auckland campuses and have been a major draw card for students since their premiere in February this year.

“Graduates of these programmes will be able to harness digital technologies, manage technology for businesses and improve digital transformation for organisations. The demand for tech- savvy managers has never been greater,” says Dr Sabine Hoffmann, Head of School for both Business and Computing.

Courses cover topics such as data analytics, e-commerce and e-business, digital marketing, digital entrepreneurship and innovation and management of emerging technologies.

Sabine Hoffmann says, “The employability of graduates is our number one focus. With their advanced digital skills, graduates will meet the growing demand for digital know-how and will be highly sought-after in the job-market.”

Lately, the schools have added other cutting-edge qualifications to their portfolio responding to the increased demand from industry. The Master of Logistics and Supply Chain Management, the Postgraduate Certificate in Logistics and Supply Chain Management as well as the Postgraduate Diploma in Logistics and Supply Chain Management are designed for working professionals who want to advance their expertise and keep up to date with a fast-evolving industry.

All these programmes share some courses to enable students to move across disciplines in business and computing and craft a study plan to suit their professional pathway. At the end of the day, it all comes down to job relevance.

Well-trained employees are the backbone of New Zealand’s economy.

The school is also dedicated to connect their students with local businesses – a win-win-situation for students and industry alike. Dr Tom Hartley, senior lecturer at EIT’s School of Computing, for instance is in the process of developing a student-run International Student Business Hub (ISBH).

Expecting to roll out in August this year, the programme plans to support Hawke’s Bay’s international business community by bringing them together with EIT’s bright international business and computing students.

Tom will be working alongside Associate Professor Jonathan Sibley and others on a research project to investigate the advantages that the programme will provide for EIT’s international students and how the programme could link our domestic businesses with international commerce.

Sabine says, “Engaging with EIT’s highly-skilled international students will enable local businesses to connect to the world. And these connections are what EIT values, fosters and continues to create.”

Cultural connection important for HB Airport

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Visitors arriving to the redeveloped Hawke’s Bay Airport will be enveloped by a sense of place and a connection to the special character of the land the airport is based on in Ahuriri.

The airport is on schedule to celebrate the opening of the new terminal in February 2021, after a $20.2 million expansion project that has seen the terminal nearly triple in size.

Although there has been a couple of set backs, including COVID-19 lockdown, the final stages are now being completed with the centralized hospitality and commercial hub as well as the Air New Zealand lounge.

Local artist Jacob Scott, on behalf of local hapu Mana Ahuriri, has been involved in the project since its inception. He has been engaged to design the interior ceiling which when finished will connect visitors to the region and its people by telling the stories of the local area, Ahuriri and its connection to other places in the world.

The whakairo panel installation will form a part of the larger redevelopment project which incorporates further storytelling into other elements of the building’s structure including the outdoor entrance forecourt and the road entry works on Watchman Road.

Jacob says the airport is not only an active public space but serves as an airport that can project artistic ideas on a massive, public scale.

The artwork comprises over 250 plywood panels, approximately 180 running meters, carved using digital machining technology by Lattey Group in Hastings. The completed panels will be suspended above visitors as they enter and move through the airport terminal, forming a single continuous art installation through the interior of the terminal.

In working with local iwi to identify content for the designs, a decision to focus on ideas connected to the airport locality and purpose was made.

The inspiration for the design comes from the Kuaka, a native bird of the area and is a symbol of passage or voyage, of strength and endurance and of journeys and discovery as the Kuaka travels 29,00kms to Alaska and back each year. At the end of their journey the Kuaka feed in the estuary surrounding the airport and the birds provide a link to the world around us.

The fact that the birds travel this far to feed, in this place is significant and as Ngahiwi Tomoana, Chairman Ngāti Kahungunu says “the Kuaka make the longest flight of any man creature or even man-made plane without refueling. This little bird arrives with the wisdom of both worlds, both sides of the veil, that of the living, and that of where those who have passed on dwell”.

As a site of departure the airport is Hawke’s Bays connection with the wider world. It is a lift off point for connections made through trade, enterprise, social and cultural connections.

Jacob says the story has been ever- evolving since the initial concepts were developed prior to construction commencing. He says interwoven into the design is the formation of the land, which underwent significant change with the 1931 Hawke’s Bay earthquake.

Further inspiration has also been the impact of COVID-19, which impacted on the aviation sector grounding flights globally.

“There has been recent turmoil, but we are welcoming people back to Hawke’s Bay again and our people will also take flight and explore the world again, just like the kuaka. We can take flight and go anywhere and anyone will be able to come here from their place too.

Hawke’s Bay Airport chief executive Stuart Ainslie says the design brief was outlined in three key priorities; Express our unique regional identity, Uplift the profile of creative practice in the region and Improve visibility of creatives on a national and international level were identified.

“This project exemplifies how these aspirations are enacted and it will provide a unique setting that will welcome visitors on holiday and for business to the region.”

Family Business pumped for the future – Harris Pumps

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Stephen and Michael Harris are the third generation to take the helm at Hastings-based firm Harris Pumps and Filtration and the cousins are determined to take the business to the next level, joining business growth organisation The Icehouse’s Owner Operator Programme and recently getting support from the Regional Business Partner to work through the shock of COVID-19 .

Stephen Harris anticipated trouble ahead when the effects of the pandemic had the potential to hit their supply chains in Europe and Asia earlier in the year so he started ordering extra products and supplies.

“We stocked up on pumps from Europe and Asia and thankfully the freight kept coming in.” Initially, when lockdown hit in New Zealand there was a group of staff ready to work but the phones were quiet and staff numbers required in the office were cut back. Workshop staff were in their own bubble and staff came up with ideas to maintain safety with workshop hours, for example, staggered. “We couldn’t send staff in the same vehicle and the costs went up for sure.”

April’s revenue has been slashed but Stephen knows they were fortunate to continue being operational, particularly as farmers were being hammered by the drought and needed their specialist support. Most supplies weren’t too hard to get – with the exception of polythene and PVC pipe.

“We had to prove that the pipe was required for essential services and the suppliers were just very nervous about getting the supply to us. Some were also charging a premium for delivery.”

Before COVID-19 hit the business, Stephen and Michael made the decision to join the Icehouse Owner Operator Programme facilitated by leading business coach Michaela Vodanovich.

They had heard about The Icehouse from Tim Masters from Masters Plumbing who had completed the Icehouse programme a few years back.

“We needed a push – we had grown up with the business and just kept doing things they way they were always done and I guess you fall into that trap of sticking with the way things were done in the past. We tended to get busy with the everyday work but since we’ve been in The Icehouse Michaela has made us think about the future and finding out the key things that we needed to sort out to work smarter.

“We delegate better and we have created a leadership team which is working really well. We promoted our office manager into an operations manager role and she has been absolutely brilliant – she’ll say what needs to be said. We are incredibly fortunate with her and with all our staff. I think everyone enjoys their roles and for most it’s not just a job.

“We have a lot of staff that have been here for a long time and we now sit down together for a lot more meetings and that’s meant there’s more ideas coming from those staff. Sometimes you only think about things from your own perspective so the value in gaining staff input has been valuable. During lockdown we really needed those different views especially when we were trying to decipher the Government information because a lot of it was quite grey.”

While key clients were maintained during lockdown, including food producers, farmers and growers, Stephen said it was interesting to see what people wanted to buy. “Strangely a lot of products and fittings weren’t things we would normally sell so I think people were trying to utilise what they had lying around.”

Through the connections made on the Owner Operator Programme Stephen is looking to work with specialists to develop online strategies and e-commerce.

“If this happens again , the ability to sell online might be something that is really useful – who is to say this thing doesn’t come back – there’s always the potential for it to happen again – hopefully not, but the risk is there.”

A Smart way to clean

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Gary Singh always wanted to have his own business. Gary and his family moved to Hawke’s Bay in 2008 and he started to work for a local commercial cleaning business.

He worked hard but wasn’t sure if an opportunity to buy into a commercial cleaning business would eventuate. So he left and went to work at BP Bayview as a café manager. While there, the opportunity came up to buy a café in Hastings, but Gary realised that although he loved making lattes and flat whites, he wasn’t so confident in the kitchen making food.

It was around the same time that the owner of the cleaning business he had worked for was ready to ease into retirement and asked Gary if he was interested in buying the business.

“We looked at the books and decided to give it a go.”

But two weeks out from settlement, the cleaning business’s largest client and over 50 percent of revenue decided to go elsewhere. This was a huge setback and as the sale transaction had already commenced, there was no chance to renegotiate.

Gary and wife Deepti decided that they would give it a go and Gary hit the streets looking for new cleaning contracts as well as building a reputation for quality cleaning.

Through sheer determination and hard work, that initial setback has been the springboard to creating a successful business and it’s Gary’s optimism and planning that will also get the business through the COVID-19 setback.

Over the last 18 months Gary has invested significantly in technology. Although commercial cleaning is labour intensive, Gary is set to launch app-based technology that will enable artificial intelligence (AI) cleaning audits.

The app is currently being fine-tuned via a trial with some of his team and some local clients.

Presently the business undertakes manual cleaning audits every 45 days, but AI will enable technology-based daily audits.

The technology ensures consistency of the quality of the cleaning job as well as improving processes and communications with the client.

During the COVID-19 lockdown, Gary’s business was significantly impacted, with many commercial businesses closed and not requiring daily cleaning services.

However, rather than dwell on the pending lockdown, Gary started to look at what opportunities would arise.

Two days out from lockdown he had worked with his cleaning chemical supplier and they were ready to launch a new service offering that would immediately cater for the businesses classed as essential services.

“Ninety percent of the businesses that we clean were closed but we needed to provide a service to those that were regarded as essential service businesses.”

He researched both the Ministry of Health requirements as well as the World Health Organisation’s recommendations and could see a higher level of santisation would become mandatory.

“We knew it was not going to be normal going forward. A few things would change and we needed to adapt to these scenarios. We realised that santisation service provisions were going to be big going forward so we were working harder to ensure we grabbed the most of these circumstances.”

It was hard work to find the right equipment but Gary purchased two santisation cleaning machines to capture the new evolving market.

“It was hard to find the resources but it was also important not to rush and then get caught buying too much of something that might not work – it was important we made good decisions and got the right products.

“We were lucky, we’ve got a good team and we found the right product just before we went into lockdown, so it was fortunate that we had a little bit of cashflow coming in.”

Gary says that as a business owner, he needs to lead from the front, no matter how hard the storm is and not let negativity set you back.

“It’s important to keep yourself positive. There’s a lot of negativity out there and rather than thinking about what’s going to happen, think about what you have at the moment and just keep going.

“My wife was fantastic. Sometimes my face would show the story and the worry, but she would say ‘don’t worry, it will be ok’. Those little words and that support around you make a difference to your mindset and when your mindset is clear, nothing is going to stop you.”

Gary is now in the final preparations for rolling out his new AI- based cleaning app. Watch this space.

The land of plenty will rise again

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Big things were expected from 2020. Hawke’s Bay’s economy was hot to trot and regarded as one of the strongest performing regions across New Zealand.

But, that all came to screaming halt on March 25 when Prime Minister Jacinda Ardern announced that businesses and schools across the country would go into lockdown and we would be forced to stay home for at least one month.

This was a huge jolt to the economy and we could already see the catastrophe that was taking place in other countries such as China and Italy.

The global stock markets went into freefall, dropping at levels not experienced since the GFC in 2007–08 and the Great Depression of 1929–33.

For Hawke’s Bay, many wondered whether all the good work that had been done in recent years to get the economy into such a strong position was going to come undone by COVID-19. We knew that hospitality and tourism were going to be the earliest COVID-19 casualties but what would be next?

Over recent years we have seen unprecedented levels of commercial, industrial and residential development across the Heretaunga Plains as well as in Napier City. Back in 2018, The Profit published a feature profiling over $600 million in construction work.

Meanwhile, our horticulture sector has also been booming, with new varieties planted and increased production; and the viticulture sector had perfect growing conditions that has winemakers calling it a vintage for the times.

The only blip for the region was in farming, which wasn’t based on price of product but a severe drought that has crippled farmers, especially those on the outskirts of Hastings and in Central Hawke’s Bay.

We’re now in a post-COVID-19 environment in New Zealand; we have all resumed our businesses and many of us are holding our breath to see what recovery looks like. For some, the journey is going to be long, longer than a cold winter; tourism is unlikely to get to the same levels for some years to come.

Local campaigns swarm the Bay

There’s been a lot of rhetoric about supporting local businesses first – buy local, shop local, travel local – and there’s been a multitude of support local campaigns, such as Hawke’s Bay Chambers’ Be in the Bay, hospitality’s Hawke’s Bay at Home, We are Team Napier, LocalEyes Hawke’s Bay, the list goes on …

Retailers in our CBDs have woken up to the fact that as well as having a physical retail presence, many have moved into the virtual world of e-commerce, not only selling to locals
but shoppers across New Zealand and the world.

The massive surge in online shopping saw courier businesses like Aramex (founded in Hawke’s Bay over 30 years ago) recording the equivalent of four Christmas parcel delivery periods between Levels 3 and 2, due to many small retailers creating shopify websites.

During the lockdown, The Profit interviewed 12 local business owners and managers. The 15-minute video interviews were a huge success and revealed several common observations: all of the interviewees were optimistic about their businesses’ futures; they believe our economy will recover quicker than other regions; and they regard our primary sector – produce that we grow from the land – as a unique asset that sets us apart from other regions.

Hastings was once known as ‘the Fruitbowl of New Zealand’ and some suggested that this continues to be our point of difference and our economic backbone – the apples, grapes, dairy and animals that prosper on our fertile land.

Major projects all go

One significant game-changing project already financially backed by $12 million of government funding is a Food and Innovation Hub in Tomoana.

The Hub is a cornerstone project of the Matariki Hawke’s Bay Economic and Social Strategy and aims to attract added value food technology and production as well as act as an incubator for new food producer businesses.

There’s also life in the commercial and industrial development scene with the likes of Rockit Apples’ multimillion-dollar packing facility in Irongate; a $70 million private hospital opposite the Hawke’s Bay Hospital; a new Kmart retail complex in Napier; and the final stage of the Toitoi – Hawke’s Bay Opera House.

An 50-strong call centre for Ministry of Social Development is also set to be established in Hastings. The airport’s $20.2 million terminal expansion is continuing and they are also promoting a $10 million solar farm; while Napier Port’s new wharf construction at a cost of over $170 million is well underway.

Housing at epicentre of recovery

Hawke’s Bay has had a dire need for new affordable housing and Kainga Ora (formerly Housing NZ) is willing to pump hundreds of millions of dollars into local housing solutions. As well as the government agency’s housing roll-out, there’s been record building consents in Central Hawke’s Bay, Hastings and Napier.

Hastings has several major housing developments including Lyndhurst in Hastings, Waingakau in Flaxmere, along with Arataki, Brookvale and Iona in Havelock North. Napier is continuing to develop housing in Te Awa, Mission Hills and Parklands. Retirement village developments are also boosting the economy with new developments in Havelock North and Napier.

CBD Retail transformation includes online presence

For many years long-established local retailers in our CBDs have come under pressure from big-box retailers as well as, more recently, global retail giants such as Amazon.

Many of these retailers haven’t moved with the times into setting up online websites, but COVID-19 forced some to do so and the benefits have been substantial.

The business associations of Hastings, Havelock North and Napier have been busy developing marketing plans for breathing life back into the CBDs. Hastings District Council has allocated $150,000 support for Hastings, Havelock North and Flaxmere campaigns and it will now be up to the retailers and hospitality providers to convert these efforts into sales.

Anita Alder, the general manager of Hastings Business Association says there is an air of optimism from retailers in Hastings. They’ve had tough times before and they’re a determined bunch of sales people.

“As for any SME, COVID-19 was tough and Hastings CBD was not immune to that; however, Hastings is back and businesses are focussed on driving forward.

“Our larger CBD recovery strategy kicks off at the start of July, assisted by funding from the Hastings District Council for CBD recovery and city developments, such as Tribune, and HDC future development/growth plans prior to COVID-19 are back underway.”

Anita says owners are thinking outside of the box, using their entrepreneurial skill sets to drive forward. Many local retailers since lockdown have included online sales and are seeing positive returns from that, while others used the lockdown period to their advantage, such as local bar The Common Room, which undertook a full refurbishment.

“While we are not fully out of the woods and have a way to go in the SME recovery process, we remain focussed and optimistic.”

Napier City marketing manager Pip Thompson said when lockdown was relaxed and retailers were able to reopen, they experienced a Christmas-like trade. Hotels and motels are increasing their trade weekly so all in all business is reasonably bright.

In Level 1 and beyond, Pip has launched a support local campaign, Buy Local–Win Local, with three $500 shopping sprees up for grabs.

“We visited all the retailers in the CBD when they reopened and they all have a very positive, optimistic outlook. They viewed the lockdown as ‘it is what it is’, and took the opportunity to work on their businesses and look at how they can do things differently.

“Many upgraded their websites and enhanced their online presence, which gives shoppers the ability to shop worldwide 24/7, while high-end restaurants took to the takeaway trade and enjoyed the change of service during Level 3.

“Most importantly, all of our retailers/retail assistants have big smiles on their faces and are glad to be back trading and welcoming people into their stores.”

Councils provide economic recovery stimulus packages

Hawke’s Bay councils have submitted a joint bid to Crown Infrastructure Partners for $314 million of government investment funds for ‘3 waters’ infrastructure projects, which includes stormwater, wastewater and drinking water while the Regional Council will appoint a Regional Recovery Manager to coordinate, support and lead economic recovery efforts.

Hastings District Council chief executive Nigel Bickle is keenly aware of the key role HDC has to play to regenerate and revive the local economy.

Nigel says that during lockdown Council was moving quickly to take advantage of government investment opportunities to help the region recover from the unavoidable economic downturn that would follow.

“Council invests well over $100 million per year to deliver services, maintain assets like our roads and develop critical infrastructure. A good chunk of that ends up as wages for employees of our suppliers and contractors, and that money is then in turn spent with businesses from supermarkets to shoe shops. We are a key stimulus to the economy.”

Following the call from government for ‘shovel ready’ projects, in just a matter of days Council pulled together applications not just for its own programme of work, but also in partnership with its fellow Hawke’s Bay councils.

“We already had 28 projects worth more than $16m that we could resume at Level 3, but this additional funding will help keep people employed and businesses alive without creating a huge rates demand on our community.”

The government responded positively to council’s funding applications and to date has committed to investing over $9 million in Hastings redeployment
opportunities (as part of a wider region allocation) to be used for local roading projects that will bring hundreds of new jobs into the region.

This will include $9.5 million to improve State Highway 51 around Waipatu Marae including upgrades to footpaths and iWays in the area.

Continued communication with key government agencies also saw the announcement of a $500,000 contribution towards drought relief that will benefit the district’s rural community, and the establishment of the MSD contact centre in Hastings.

Central Government has also pledged to invest in building 200 new homes in Hastings, where council is partnering with Kainga Ora to be just one of two cities in New Zealand to pilot a place-based approach to solving the current housing shortfall.

Napier ready to roll

Napier mayor Kirsten Wise says the development of our economic and social recovery and renewal framework for our community is well underway.

Council has a capital works programme in excess of $100m but has lost two potential major projects – the swimming pool complex, which has gone back to the drawing boards and no government funding for the national aquarium.

However this is partly offset with a new civic centre, a food processing plant at Awatoto and several residential developments. Napier is also the home of the Port and the Airport and this will continue to provide offshoot economic stimulus.

“So much is currently unknown about the extent of impacts and pressure points for Napier as we leave lockdown and venture into a new normal under Level 1.

“We want to be agile in responding to the needs of our community over the next 12-18 months. The framework will provide for agility and responsiveness in recovery initiatives, while ensuring that we remain focused on However this is partly offset with a new civic centre, a food processing plant at Awatoto and several residential developments. Napier is also the home of the Port and the our wellbeing goals; make decisions based on evidence; and partner with iwi, businesses, not-for-profits, and our community in the recovery and renewal journey,” Kirsten says.

Record council consents and PGF funding a positive hit for CHB

In Central Hawke’s Bay, the council has worked with its local government counterparts to pull together a list of ‘shovel-ready’ capital projects as part of regional stimulus packages to the Provincial Growth Fund (PGF) and Crown Infrastructure Partners (CIP).

The PGF package for Central Hawke’s Bay District Council (CHBDC) included 10 projects across areas such as roading, vegetation management, social housing, and walkways and cycleways, with a total value for these projects approximately $40 million.

The CIP package for the region focussed on three waters infrastructures, and CHBDC had six projects including domestic water supply and wastewater. The total value for these projects for CHBDC is approximately $89 million.

Council is also working with several commercial enterprises on large and medium-scale developments, some of which are applying for PGF funding. These projects have the potential for significant economic uplift for the district, both in their construction phase and ongoing contribution to our economy.

In April the council recorded a strong monthly high of $6.5 million worth of building consent applications lodged in April – a 180% increase on last year’s value for the same month and of a similar value to the $6.7 million worth of building consents lodged in March.

$15 million in projects to move Wairoa forward

Wairoa Mayor Craig Little says the district is continuing to push forward with millions of dollars’ worth of improvement and enhancement projects having received more than $15 million in additional central government funding through the PGF.

He says the investment is spread across the district in a range of building, construction and enhancement projects to support council’s aspiration to make Wairoa the best it can be.

“Our latest boost was around $2.5 million for roading and construction projects, which was part of the $15.24 million for Hawke’s Bay through the Government’s Worker Redeployment Package, announced in March.”

Wairoa work will see the replacement of the Patangata Bridge at Whakaki, realignment of the Nuhaka River Road at Nuhaka and repair of the Rangatahi Dropout at Mahia.

Other physical works include nearly $5 million for a town centre revitalisation project; $7 million towards the sealing of the Mahia East Coast Road; $2.2 million for bridge strengthening; and $400,000 for the creation of a regional digital hub in the Wairoa library.

A business case is also being conducted to look at all the options for access into the peninsula, and the realignment of the Nuhaka/Opoutama Road and access to Wairoa will further be improved with the $5 million funding for ‘pre- implementation’ work on the Waikare Gorge safety realignment project on State Highway 2 between Wairoa and Napier.

A series of non-council independent and iwi projects that directly relate to employment have also received PGF support.

“This work is just the beginning. Council continues to partner with local iwi and the Hawke’s Bay Regional Council on a range of vital projects that we hope will also receive Government support.”

Business HB ready to support local businesses

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As New Zealand emerges from its COVID-19 lockdown, around the country business and community leaders are turning their thoughts to regional recovery.

We are now confronted by a deep global, national, and local recession, the sharpness of which is unprecedented. It will be a slow, persistent climb out of this recession, back to some sense of normality.

New Zealand is well used to regional crises. Since 2002 there have been 71 states of emergency declared due to natural events; four a year, on average with the associated economic, social and environmental impacts for the communities affected. Globally, there has been a trend for financial and economic shocks every decade or so. Supporting businesses to prepare for these shocks, to respond to them and to emerge

stronger on the other side is a key challenge for every regional economic development agency in New Zealand.

Patterns emerging through the current COVID-19 crisis, in an economic sense are also new, variable, and complex with regions, sectors, communities and individual businesses all being affected differently. SMEs and certain sectors like tourism, retail, events and hospitality are disproportionately affected while others are under pressure in food supply
and health response. Supply chains and international trade are affected, and around the world central banks are using quantitative easing and monetary policy to boost demand. Local businesses and communities are trying to understand and respond to the ongoing impacts of the crisis while also trying to maintain day-to-day operations.

Roadmap to recovery

Here in Hawke’s Bay conversations have begun on what our roadmap for recovery will be. Hawke’s Bay already
has the Matariki Regional Development community, bringing together with one vision, the collective impact of business, Iwi and hapū, councils, and local representatives from Government agencies. Regional partnerships are in place, with valued and established relationships and diverse perspectives for collective and sustainable economic and social impact. Regionally, we can achieve prosperity alongside greater equity, prioritising broader and long-lasting future opportunities, addressing the more complex needs of our people and business. While Government has a key role to play in supporting the region, recovery efforts need to be locally driven.

Business Hawke’s Bay is part of the conversation. Through our membership of Economic Development New Zealand* and partnerships with national economic analysts, we have access to experts, resources and insights to help inform and support a programme for rebuilding and supporting our local economies. The aim is for the region to emerge from the COVID-19 crisis more resilient, agile, and sustainable.

Business at the forefront

Our economic and socially inclusive recovery requires strong business and industry input, advocacy, advice, and leadership. Business Hawke’s Bay is establishing a business leaders’ advisory forum and sector advisory groups to ensure that the voice of industry is heard alongside other partners and is considered at the forefront of recovery efforts, for that is where future sustainable jobs and economic and inclusive growth will come from.

It will also be important to ensure that actions are prioritised giving support to the highest value or most needed. Being agile and responsive, recognising that there are many possible scenarios to plan for should be a key factor in developing our recovery strategy. We already have a programme designed to deliver economic, inclusive, and sustainable growth that focuses on whānau wellbeing, employment skills and capability, resilient infrastructure, economic growth and promoting our place.

More than ever, it’s a time for evidence-based decision-making, to closely monitor progress and to identify appropriate “present-based” measures and indicators. Measures such as traffic counts (traffic busyness is considered an indicator of economic performance), retail spend and internet use which are available more frequently, are being used to evaluate economic impact in real-time. A wider focus on wellbeing, beyond GDP is encouraging everybody
to reconsider definitions of economic prosperity. We also need strong inclusive and sustainable growth indicators to provide a deeper, richer picture of progress. Evaluation throughout, constantly reviewing the impact of actions, adjusting and learning along the way, is the way to go.

Our region will face future economic crises, so understanding what COVID-19 can teach us will help to build a
more resilient Hawke’s Bay business community, for inclusive growth and sustainable returns and an economic development ecosystem to support it.

* Economic Development New Zealand, a national not for profit that empowers and enables individuals and organisations either practicing, or associated with, economic development across New Zealand.

 

Brenda Chapman bids farewell to successful stint at EIT

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Brenda Chapman has been the marketing face and voice of local tertiary education institute EIT for 20 years. You will have heard Brenda’s Canadian effervescent accent on the local radio stations promoting the many courses at EIT.

Brenda started at EIT in January 2000 when there was just over 2000 EFTS (students) and leaves 20 years later with the EIT firmly established as one of the strong education institute performers.

She is moving to Auckland to live with her new partner and is in semi-retirement.

What is your career background in New Zealand?
I was an international commerce trainee conducting market research for the Manawatu Standard Ltd, the Timaru Herald and the Southland Times for 12 months back in 1986/1987. Subsequent roles included Marketing Manager and advertising manager for the Manawatu Standard. I moved to Hawke’s Bay in 1993 and was the marketing coordinator and then the Manager – General Cargo at the Port of Napier. I came to EIT as the Section Manager – Education and Social Sciences in January 2000 and was then promoted into the Marketing leadership role in August 2000.

There will be many highlights – what are some of the ones you are personally proud of?
The many building openings and degree launches (Bachelor of Recreation and Sport, Masters in Health Science), in the early years under Bruce Martin’s leadership as our chief executive.

The events we held to commemorate the 25th anniversary of Nursing, the 40th anniversary of EIT as well as the merger with Tairāwhiti Polytechnic and the establishment of the EIT brand in that region – EIT Hawke’s Bay and EIT Tairāwhiti.

Any funny moments that you recall?

There are many but one that springs to mind is when EIT sponsored a category at the Hastings Business Awards and it coincided with the Rugby World Cup in NZ. The Canadian team was based here – so of course I needed to support them! I wore a red dress, a polar fleece maple leaf shaped hat and a Canadian flag as a cape, whilst delivering the speech. Anything to be memorable for EIT!

Are there any special mentions of people that you have worked with closely?
The many colleagues I have worked at EIT for a long time, it’s a fabulous place to work with a very collegial environment. It’s family friendly and with a great work/ life balance.

Our connections with the business community has also been a highlight. I’ve enjoyed networking with many organisations and the sponsorships that EIT has held – Sport Hawke’s Bay, Hawke’s Bay Magpies, HB Chamber of Commerce, Hawks Basketball, Hawke’s Bay Netball, the Napier and Hastings City Marketing organisations, and the various employers.

You’ve worked under two high calibre chief executives, what was that like?
Both Bruce Martin and Chris Collins have been extremely supportive and always supported our marketing efforts. We have a team of professionals and I have appreciated the support that our employer community has given us.

You have been a champion of EIT at many events, adding your own unique character. Was that important to you?
What I love about our region is that we embrace vibrancy and accept differences. There have been many events that EIT has sponsored and I have enjoyed being able to profile EIT in a memorable way.

Will the identity of EIT remain strong on the east coast?
The people who have studied at EIT and the staff who have supported them are the foundation of the region. These people have contributed to the local economy and the improvement of the quality of health of the citizens of our region – Hawke’s Bay and the East Coast.

While there is the establishment of the NZIST organisation, the people who have studied and worked at EIT will continue to improve the economy and the quality of life of our region.

You have also been a big advocate for Hawke’s Bay – why is that so important to you?
Hawke’s Bay is a fantastic place to live, work and play. EIT is a cornerstone to that – we have over 800 people on the payroll, and over 10,000 students studying at EIT.

My focus has always been about EIT making a positive difference to people’s lives – whether that is students/ graduates and employers. Making it easier for everyone to achieve their goals – whether that is personal or work.

The Alternative Board proves to be a winner

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TAB was first featured in The Profit in 2018, when it was launched in Hawke’s Bay by Wayne Baird and Russell Jaggard. Back then, Wayne and Russell were just starting to establish TAB, seeing the opportunity to offer the model that was benefiting small businesses across New Zealand and the world.

The more conventional advisory structure for a business is to have a governance board, made up of experienced business people across a range of business competencies such as financial, legal, human resources and marketing and sales.

This type of structure is usually for medium-to-large businesses and is particularly common in the corporate sector as well as the not-for-profit sector.

TAB was launched in 1990 by US entrepreneur Allen Fishman as a way for small businesses to get the benefits of a board structure. In 2012, Aucklander Stephen James introduced TAB to New Zealand and it’s now in nine cities and towns across the country.

Wayne Baird is the franchisee for Hawke’s Bay, Gisborne, Taupo and Wairarapa, with Russell being joined by experienced business leader and start- up extraordinaire Ailne Bradley as board facilitators.

Having been a board director and chair myself for the past 14 years, it was a pleasant surprise to turn up for a TAB meeting and be asked to go to the white board and rate out of 10 how I was feeling about my own business and also how I was feeling personally.

New Zealand had just moved from COVID-19 Alert Level 3 to Level 2 and so the four of the five members of the TAB I was joining were all happy to see each other in person, instead of via a Zoom video conference call, therefore they were in relatively high spirits, with the lowest rating being 7.5 (and this was me!).

Wayne hosted of the TAB meeting that was attended by local business owners Carol Reid of Soulpreneurs, Kay Castles of Admin Plus, Alieta Uelese of Learning Innovations and newcomer Joanna Monteith of Consult Ltd. Absent was Dr Sundar Jagadeesan of new dental practice Dentiq, who had only just reopened his practice and had a backlog of patients to treat.

The agenda for the meeting followed the TAB’s well-honed formula that affords everyone around the table equal opportunity to provide updates on their business, and then report on progress from actions they agreed at the previous meeting before presenting a new challenge or opportunity their business is facing.

Following the biggest disruption to businesses and the economy and the world strike on March 24, you would have expected the mood of the table to be sombre, but in fact it was largely the opposite.

The forced physical closure of their businesses and lockdown spent at home had given these business owners the time to not only keep business going and staff motivated but also to adjust their businesses to the new normal.  When it came time to put forward a recent challenge or opportunity, the true benefit of the TAB board format came into its own.

As each member addressed their fellow board members, they were scrutinised first, responding to a range of questions, some expected but many unexpected.

The appeal of the process was that the room wasn’t full of ‘yes’ or ‘no’ people, nor those who had a vested interest due to being a staff member, director/ governor or an investor/shareholder.

The questions were tough and the advice even tougher. And that’s the gold of TAB. There are no hidden agendas, you get what you give, as your time to put something forward soon comes.

For small business owners it can be a lonely place leading from the front but with TAB, there is genuine support as well as accountability.

As the facilitator, Wayne gave everyone an opportunity to firstly ask questions rather than risk going straight to the possible solutions.

This was an easy trap for me to fall into and I quickly realised that I couldn’t shoot straight to what I thought was a solution. Instead, by asking questions you get to fully understand the situation each business owner is experiencing before putting forward any suggestions, ideas or advice.

I like to think of myself as an ‘ideas person’, so this was particularly challenging, but the approach works. Not only does it draw out the full picture but it enables the business posing the issue or opportunity to get a broader and more external perspective.

Everything is confidential; there’s no risk of ideas being leaked. As an observer I signed a confidentiality agreement, so I’m not going into any detail on what was raised.

However, two members had challenges they wanted to moot about how to evolve their businesses, while the other two members were looking at solutions to get the best out of their teams.

My summation was that the challenges and opportunities weren’t anything I hadn’t heard before but it was the process – the listening, line of questions, advice and agreement for action – that was unique.

There’s accountability and it’s not to those within your business that perhaps you can make excuses for not actioning as promised.

To close the meeting, Wayne asked each member what they intended to action before the next meeting and it was recorded. After the formal meeting, Wayne contacts and works with each member on their actions.

Kay Castle sees many benefits in becoming a member of a TAB board, saying that she always gets something valuable to further develop her administration support business.

“We all share ideas and our experiences and there’s a high level of confidence and trust in each other. We’re also very fortunate to have Wayne and the opportunity to tap into his wealth of knowledge.”

Like the board meeting format, the final word must go to Wayne (not me …).
He says his personal vision is to work alongside as many SMEs as possible to help them reach their own goals and visions for what they want their business to be.

“When you ask questions, you gain clarity. I often see business owners who leave the meeting with a completely different viewpoint. That’s the beauty of the collective wisdom around the table and one of the aspects that makes The Alternative Board different.”

As we all move out of COVID-19 and look to keep adapting our businesses, it’s worth contacting Wayne at wbaird@ thealternativeboard.co.nz to discuss how TAB can assist.