ANZ Insight – Change Brings Challenges & Opportunities

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Without doubt, a rapid period of change is coming – creating both opportunities and challenges.  Where a business goes in the future, will depend on mindset, says ANZ’s Agri Economist Susan Kilsby.

“It’s happening across the world. Everything the primary sector is feeling burdened over, can be turn to your advantage in the future by thinking about what the world wants.”

Consumers are caring more about where food is coming from and how it is being produced.  “In a wider-world sense to, looking at businesses in general, it’s not only about making a profit, but how we are making a profit, so everything needs to be done in a more sustainable way.

Increasingly businesses are including ESG (environmental, social, governance) reporting because they are thinking about these critical factors in a longer term.

“It’s also happening at a farm and orchard level, where once it was about the quality of produce that came out the gate, it’s now about treating the environment, animals kindly and your staff well, which can be the difference in a competing market.”

Adding value will be in connecting this with consumers’ needs.  Susan sees this as two-fold. Firstly in having the data and information to prove what’s happening, but, what she believes is going to make the biggest difference around price, are then the stories that come with it and how these resound with people’s emotions.

“Technology will play a significant part in story-telling and connecting to the global audience. While we’ve seen marketing at a country-wide and large corporate level, it’s going to start getting right back to individual farms and were sharing their own stories really well results in being rewarded top dollar.

“It might become as simple as making an online post once a week about what’s happening on the farm, that captures interest and creates a whole group of social media followers who then go out and buy that farm’s own brand of produce,” she says.

ANZ Regional Manager Marcus Bousfield highlighted a recent example of a young and very popular social media influencer in Holland who was looking for carbon neutrality in purchasing food.

“While not every market is looking for that yet, eventually there will be an expectation that it comes with the territory.

“So it’s important to know what’s relevant if you are exporting to a particular part of the world – is it premium taste, coming from a clean and trusted source, or do they have a carbon neutral food sources,” he says.

Where Susan sees huge potential is in the crossover between the primary sector and tourism industries. “In a region like Hawke’s Bay we could get real traction is in these two areas working more closely together.

“We’re are not yet making the most of these real synergies of opportunity around farming and how we’re improving water quality and highlighting these as attractive places to visit and experience.”

“Hawke’s Bay is in good shape with a lot of diversity across the primary sector.  While, the region’s  GDP, per capita, traditionally tracks lower than the national average, in last few years the rate has been as strong as the national growth – and the region’s closing that gap.

“But the reality is there is still a lot of environmental areas to improve on and these challenges are happening all over the world.

“The real messages we’re hearing are coming from the market, not Government, and if we don’t move quickly, unfortunately we’re going to be left behind.”

Marcus says succeeding generations are coming through and driving business with a lot of positivity and they’re looking for ways of being proactive.

As a bank, he says, the ANZ relationship team is out in the field asking those important questions around risk assessment, environmental and sustainable planning  so individual business are set up in the right way.

“We understand it’s heading in this direction so we’re helping get farms and businesses “future ready” to be as resilient as they can to meet the ever-changing needs of the consumer, the environment and financial world”.

Colin Shanley packs away the tripod after 63 years

In 2020 Colin will pack away his theodolite for the last time, drawing an end to a career that has spanned 63 years as a land surveyor. Over this time, he’s seen the emergence of Flaxmere as Hastings’ new suburb, the huge population growth of

Havelock North, and the subdivision of lifestyle blocks and rural properties into more smaller parcels of land.

Every work day morning for many of these years, Colin has got into his trusty white Nissan ute and driven into his office in Avenue Road,

Hastings. The firm has had just three licenced partners in nearly 90 years – Harry Davies who founded the firm Davies Newcombe in 1931, Norman Hewkin and Colin.

Colin attributes his work ethic, professional skills as well as his longstanding involvement in the community to Harry and Norman.

“I joined the firm straight out of school as a cadet and learned the trade. H.C. Davies was a wonderful man and a guy I respected and learned a lot from – not only in surveying but in all aspects of being a surveyor as well as being involved in the community.”

Colin’s work ethic has been exhaustive for his entire career, both in business and as a community leader. He was a three-term Havelock North Borough councillor and after amalgamation with Hastings, he spent two terms on the Hastings District Council.

He has also been a loyal and hard-working member of the Havelock North Rugby Club and the local squash club, spending hundreds of hours on build projects such as rugby and squash club rooms, fundraising for the Village Pool, Havelock North Library and Community Centre, and the restoring of the Village Domain pavilion.

As a land surveyor Colin says his approach has been to ensure that a residential or lifestyle development enhances the surrounding environment both for residents and the broader public.

“Our role is to always ensure that the quality of the environment is enhanced.”

Over his career Colin has seen Havelock North grow from 3,500 residents to over 15,000 and Hastings from just over 30,000 to over 70,000, as well as the emergence of Flaxmere in the late 1960s.

Shanley & Co was heavily involved in the development of sections in Flaxmere through to the early 1990s and at one stage was surveying 300 sections a year. He says that if it wasn’t for residential planning changes and an over-zealous social welfare system, Flaxmere could have looked considerably different today.

Initially Flaxmere had a grand entrance with sections larger than 700m2 along Flaxmere Avenue, which backed onto an extensive park (Flaxmere Park), but over time and as you go further into the suburb development, the housing standard deteriorated.

“A good form of development not only caters for the people who go into that environment but also the surrounding community. We’ve always looked to enhancement but there can be areas that become detrimental to residential growth and worthwhile development.”

At the opposite end of town, in Havelock North, the sleepy village has become a bustling residential and commercial hotspot that could have been shaped more differently had the Havelock North Borough not merged with Hastings.

Colin says that prior to the merger there was an opportunity, thanks to some good planners, to create a masterplan for the village. This included new residential development in Arataki, to the north, which is now only just being realised.

The Arataki extension was a proposed growth area that would provide Havelock for a population of 14,000.

However, Colin says all that has happened isn’t a criticism of amalgamation, more a reflection. He says with further residential development proposed over the next five years with Brookvale and Iona set to accommodate over 700 houses, along with a retirement village to be built in Te Aute Road, it’s time to look at a new masterplan that will relieve congestion in the CBD, around schools

and connectivity to Hastings.

“There’s no doubt that Havelock will need a third arterial road connecting to Hastings and that will happen to the south at St Georges Road, at the existing bridge across the Karamu creek.”

As Colin looks back on his career, he’s reluctant to single out his own personal achievements or any specific development but when pressed, he says the Enfield lifestyle development near Paki Paki is a standout.

He’s particularly proud of the relationships the firm has developed with many landowners across the district, as well as the long-standing contribution made by many of his loyal staff. Frank Nijssen has been with the firm for over 38 years and Aaron Britten for 28 years.

As he prepares to exit in 2020, he says that although the firm hasn’t kept pace with modern technology, he’s enthusiastic about the next era of the firm without him at the helm.

“I have had huge satisfaction in doing what I’ve done. We’re a bit old-school but that comes from the foundations of the business and the early years I spent with Harry Davies.

“We are a bit behind the eight ball when it comes to a modern practice but there will be a new environment here that means the firm will be very much alive and well after I’ve gone.

“I’m pulling out at the right time and in good heart. The new administration will move Shanley & Co onwards and upwards.”

Aaron Brittin has worked for Colin for nearly 30 years, starting straight out of high school and he’s in awe of what Colin has achieved in a professional capacity as well as his dedication to the community.

“He is devoted to his work and his integrity is unique and goes beyond the call. He deals with people in such a fair way and I’ve never seen him get flustered,” Aaron says.

Professionally, Colin is so well respected by his peers, many of whom have started their careers under his wings.

“They are in awe of his work ethic and how many survey plans we complete over the course of a year.”

Aaron says as a boss, you couldn’t get a better mentor and it’s no surprise that staff have stayed long term with the business.

“He’s taught me everything I know and is an icon within the survey profession,” Aaron says.

Call for Young people to get involved and take lead in horticulture

Outgoing Hawke’s Bay 2018 Young Fruit Grower of the Year Lisa Arnold is calling on more young people to get involved and take the lead in her industry.

“Hawke’s Bay needs more young people for our horticultural industry because its growing careers.  Every year the region is planting thousands of apple trees and more orchards, along with creating new sustainability initiatives,” Arnold said.

“We want young people to get involved and take the lead.”

Arnold, a HB Young Orchardist Group member, is an orchard operations assistant with Bostock New Zealand.  She created history last year as the first woman to win the prestigious and strongly contested local title.

Attending the Horticultural Field Days this week, Arnold says she’s looking forward to supporting this year’s finalists in the HBYFG competition, which is going from strength to strength.  She is also featuring at the Hawke’s Bay Regional Council’s stand as part of highlighting productive sector success.

Ask her what the future holds for both her and Hawke’s Bay and the first word that springs to mind is – Wairoa.

She recently purchased an acre of good fertile land in Wairoa where she hopes to grow crops in a district she says is on the cusp of exciting opportunity and growth.

“Wairoa’s on the move, it’s going to be the place to be.”

“It has great soil, weather and access by road and rail is improving, locals are friendly and there’s available land with affordable housing, not to mention the weather and being close to the beach!”

Growing up in Gisborne and now living back home in Hastings where she was born, Arnold says as well as work, Hawke’s Bay is a really great place live.

“You can get outdoors, we’ve got Te Mata Peak, the beaches and it’s a great place to get out walk your dog”.

Youth connectors paves way to the top for job starter

Topline Contracting managing director Taurus Taurima is leading from the front when it comes to upskilling and inspiring his 26 strong workforce.

Taurus has gone back to school, joining 10 of his team, to do the EIT Hawke’s Bay’s Infrastructure Works course.

“Many of the team don’t have formal qualifications from school or otherwise, so the EIT course was a good opportunity to gain a qualification that’s aligned to the work we do.

“I thought, why not join them? My main focus is to point them in the right direction and to create opportunities for these young men – most of whom are young Māori fathers – to become achievers and good examples for their children.”

The EIT certificate course covers industry specific skills, plant and equipment maintenance and operation, health and safety and first aid. Other workers are doing a similar course in Civil Trades through national industry training organisation (ITO) Connexis.

Taurus says it’s pretty hard to recruit skilled workers in a strong economy and he’s now worked out a plan of having a good mix of skilled and/or experienced staff while giving some young and inexperienced a chance.

One of these is Keil McClutchie, who was offered a labourer’s position as part Topline Contracting managing director Taurus Taurima with Keil McClutchie of the Hastings District Council’s Youth Connector initiative.

Keil had returned from five years working as a scaffolder in Australia but was struggling to find a permanent job.

At the same time Taurus was approached by the council’s Youth Connector team to see if he had any roles available, as he had previously taken on job seekers from Ministry of Social Development.

The timing was perfect. Keil was prepared for the interview by a council’s Youth Connector team member and he duly got the job.

For Taurus, who started out as a labourer himself over 10 years ago, he wanted someone with the right attitude; he would do the rest.

“You know if they’re not right if they’ve taken three days off in three weeks. Keil was really keen both to work and learn from others. I’ve partnered him with a good foreman and Keil’s doing everything right.

“Giving a young person a chance from the Youth Connector programme is worth it. There’s a support network that helps the transition into work.”

Keil is enjoying his new job and learning new skills. He’s recently been working on the enhancement of Flaxmere Park.

“It beats staying at home. I’m learning a trade and there’s a good bunch of guys here to work with. I’m keen to make my way up through the business and I’ve got a good boss who leads from the front.”

Hastings District Council started the Youth Connector programme in 2017. It was given a $1.7 million funding boost from the government in 2018.

Hastings District Council social and youth development manager Dennise Elers says the annual target is to place 80 youth in work. With three months to go, 77 have already been employed, with 28 current job seekers. Council has engaged with 45 businesses and 22 have signed up – the annual target is 30.

“We are really pleased with how the programme is going. We’re very close to achieving all our targets and we are thrilled that 22 local business are supporting it.”

She says there is a strong emphasis on pastoral care, both in preparing youth for employment opportunities as well as follow-ups once they’ve been placed in a job.

“We try to make it as easy as possible for both the worker and the business owner. You do get the good and the bad but we do everything we can to ensure we get the right match,” she says.

EIT front foots once in a generation sector change

Eastern Institute of Technology is pumping. 2019 sees an increase of 680 students up on last year’s record 10,325 people engaged in tertiary education through its three campuses in Hawke’s Bay, Tairāwhiti (Gisborne) and Auckland, across certificate, diploma, degree and post-graduate.

“Relationships with our communities are strong,” says Mark Oldershaw, EIT deputy chief executive.

Courses and programmes are constantly reviewed to meet learner and industry needs – the horticulture sector story featured on page 43 aptly demonstrates this. Students across all schools are successfully gaining employment or go on to further studies (2017: 75 percent in employment, 25 percent in study).

Then in mid-February this year, Minister of Education Chris Hipkins announced a Review of Vocational Education (ROVE) that put the institute into overdrive.

With only a six-week window to provide feedback on what Mark describes as “the most significant review of vocational education provision across New Zealand that we have ever seen. A once in a generation change”, intense activity ensued.

“While some of what the Minister has proposed is warranted, there is great risk that Hawke’s Bay will lose our regional autonomy to meet social and economic needs. EIT may no longer have the agility to respond with training to fill workforce skills gaps,” Mark says. “There was absolutely no question that we needed to respond with as much strategic and deep thinking as our collective intellect could provide.”

Within the first week, Mark and Chris Collins EIT Chief Executive had digested the ROVE proposal and marketplace intelligence around it. Overarching values were established – that any response, and the process to develop that response, would put people first and foremost. The focus being on the impact on the community and employers. Regional connectedness would be clearly demonstrated as crucial to EIT’s sustained success. “From the outset we utilised a principles- based approach. We were driven by the need to propose constructive feedback and solutions,” says Glen Harkness, EIT ROVE project manager.

Mark and Glen lead the project group. EIT’s executive team had ROVE steering group responsibilities added to their workloads. Extensive consultation with staff across all three campuses resulted in both academic and administrative staff volunteering to work on a number of workstreams, holding focus sessions to explore the proposal’s impact on EIT, what was supported, and where alternative ideas were needed.

The Wellington-based ROVE team spent a day in Hawke’s Bay meeting with staff, students, EIT Council and executive. An extremely well-supported stakeholders’ meeting was also held. Mayors or their representatives from Central Hawke’s Bay to Wairoa attended, expressing concerns about the region’s potential loss of direct input in determining how the tertiary institution could continue to respond to local education and training needs.

Initially one regional submission was planned. The region’s mayors, iwi and business leaders were all keen to vocalise their support for EIT. The resulting submission had 18 signatories from throughout East Cape and Hawke’s Bay.

“As time progressed it became apparent that one regional submission could not contain the level of detail that was coming out of the ideas from EIT,” said Glen. “The questions being asked in the consultation process required more comprehensive answers.

“It is such a critical issue that we needed to model with a finer level of detail how we could operate and connect with the community while still providing the Minister with the solutions he was seeking.”

In its second submission following further staff consultation and a solid level of agreement, the proposed EIT model sets out how strong regional governance and leadership can be preserved.

It promotes regional Boards to lead and govern tertiary education in their respective regions. Regional education and training delivery plans would be developed in consultation with local iwi, industry, community, students, region and the overarching central entity. Regional providers would deliver to the plans, giving a “real life, real learning fit for the real world”.

In addition, the EIT model has an overlay that demonstrates how industry and the Minister’s proposed industry skills boards would connect to the plan.

“We accept that some of what the Minister has stated as his reasons for the review are warranted but it’s critical that we present an alternative view. The tertiary vocational sector is not as broken as central Government makes out, certainly EIT is not struggling.

“We believe that despite the incredibly short timeframe, we’ve provided a much- improved model for stronger and better provider-based training,” sums up Mark.

“I am extremely proud that once again EIT has shown an amazing ability to pool together to contribute to a significant piece of work. I believe our submission reflects both our history and what defines us now, but also makes a very strong case for the values and principles we hold to be incorporated into a possible new model.”

Minister Hipkins indicated he wants the new entity that arises from the ROVE process to be in place on 1 January 2020. Work over the subsequent year or two will be needed to transition all 16 polytechnics and institutes of technology into the one new entity.

More information about ROVE and EIT’s submissions can be found at https://www. eit.ac.nz/about/reform-of-vocational- education/ – a page dedicated to sharing information on the review proposal and the EIT response.

Attracting high tech talent to the Bay

You’d be hard pressed to describe Hawke’s Bay as New Zealand’s Silicon Valley but Tom Wallace, the founder and CEO of fast-growing local software company Re-Leased, can’t see why it couldn’t be.

Re-Leased is on a mission to double the size of its current team of 60 staff, and that involves doing all it can to attract software developers to the region – even offering them a $5,000 relocation bonus to move here.

“I don’t see any reason why Hawke’s Bay can’t be a really great tech hub,” says Tom, who founded Re-Leased in 2012.

“We’ve got great people, we’ve got a great environment, we’ve got all the technology you need to be able to communicate and work with anyone around the world. Location is no barrier to developing world- beating software.”

Re-Leased sells a cloud-based commercial property management platform – think Xero for landlords, property managers and tenants.

The company is already processing rent transactions worth $500 million a month for clients in 40 countries and it has ambitious growth plans over the next three years, which include opening a US office.

“We want to do it all from the Bay and we need really skilled people who can help us with that,” says Tom.

“We’ve got a great team here at the moment and we want to keep building around that team. We figured there were two options: to bring people in from the outside or train them up internally. We decided to go for a combination of both.”

The company is looking to hire .NET developers, quality assurance and user- experience specialists, as well as filling a range of sales, marketing and operations roles.

To meet its staff growth goals, Re-Leased has allocated $10 million over the next three years for what it’s calling a ‘Homegrown Talent Activation’ campaign – a dual strategy that involves a combination of training aspiring developers from within Hawke’s Bay as well as attracting more experienced people to the region by offering the $5,000 relocation bonus.

At the same time, Re-Leased plans to offer students studying computing at EIT practical experience by supporting the institute’s internship programme. It’s hoping those students will turn out to be a good fit for the company and will move on to becoming permanent staff members.

“In launching a recruitment drive we are sharing what our Napier team already knows – that Hawke’s Bay offers a lifestyle, a working environment and a growing professional ecosystem that can attract and retain the best people to build a global property-technology business,” Tom says.

He believes building that ‘ecosystem’ will produce an upward spiral of IT industry growth for the Bay, which will ultimately deliver a positive payback for Re-Leased.

“The more success we have, the more success other companies will be able to have here, and it will really build up Hawke’s Bay as a [tech industry] destination. It’s about building out the whole ecosystem, because if there’s an ecosystem then we’ll have resources we can tap into as well, and if more strong companies grow alongside us, it’s really going to snowball.”

There’s already plenty of momentum in the local technology sector.

Re-Leased is part of the tech hub cluster of businesses on Ahuriri’s Bridge Street, which includes Xero, NOW, DataNow and several others. That co-location has provided a valuable boost for – and helped build a sense of energy and vibrancy amongst – the players in the tech scene.

Tom believes that if businesses like his can grow staff numbers strongly, it will take that vibrancy to the next level and make it easier to recruit highly skilled staff for Hawke’s Bay roles.

He’s also excited about Re-Leased’s plans to work more closely with EIT, saying there’s a need to fill a gap in the local jobs market, which was evident to him when he left school about a decade ago.

“Previously the options have been to either leave Hawke’s Bay and go to university or stick around and do a trade. There’s another option now: to stay in the Bay, get a great tertiary education and then work on a world- class high-tech project.”

EIT assistant head of schools David Skelton says the institute’s Bachelor of Computing Systems Internship Programme allows industry and education to work together to build our regional capability in IT skills.

“We welcome Re-Leased’s participation, which will offer our students new, valuable experiences,” he says.

Business Hawke’s Bay CEO Carolyn Neville says the company’s Homegrown Talent Activation plans “represent a multimillion- dollar investment in new, well-paid, high-tech jobs that will, in turn, help build the Bay’s reputation for innovation and further diversify our regional economy”.

It’s early days for the Homegrown Talent Activation campaign, which was only launched in late March, but shortly before The Profit went to press, Tom said Re-Leased had been “flooded with inquiries” after announcing the $5,000 relocation bonus. The company was in the process of reviewing a stack of CVs from potential job candidates interested in making the move to the Bay.

An early success for the initiative had been raising the profile of the region among tech industry jobseekers.

“We’ve needed to start making sure there is awareness that there is that option out there. A lot of the time people don’t look for jobs in the Bay because they assume there’s nothing here,” he says.

A company can’t embark on an ambitious expansion strategy without a balance sheet to support it, and Re-Leased is in the fortunate position of having sourced funding to at least get it started on the growth journey it wants to take.

In the middle of last year, the business raised $2.3 million from New Zealand and UK investors in its first external capital round.

It’s a member of the NZTE Focus 700 group of exporters and in 2017 received a Callaghan Innovation Growth Grant to support its research and development efforts.

Tom says given the company’s rapid growth, it will have to raise further capital at some point “but we’re happy with how far we’ve got since last year’s capital-raise. Everything is tracking really well to that plan.”Re-Leased earns more than 70 percent of its revenue from overseas customers, with its highest- growth markets being Australia and the UK.

The more it invests in its skilled development team, the more it will be able to add value to its clients by offering them more high-tech solutions, Tom says.

“We’re making businesses far more efficient, allowing them to grow and we’re solving their problems, so if we can help them do that, we’re obviously adding a lot more value and creating value for ourselves,” he says.

“As we build up new and more sophisticated technology, we can work with much bigger clients too – that’s a natural journey for a software company. We’re working with some really good clients now, which is really exciting.”

It’s an encouraging outlook from a business that’s decided that, while its customer base is global, it’s home will remain in Hawke’s Bay.

Earning and learning helps build career

Apprentices Jade De Har and Harry Algie both agree that learning a trade has been a great decision that will set up their careers in the construction sector.

Jade is one of three female apprentices at Gemco, and the only one training to be a carpenter. A go-getter, Jade left school at 16 years of age and managed a restaurant for 10 years before deciding to take up a trade.

“I love working with my hands and at Gemco, every day I get the opportunity to do something different.”

Jade did a pre-employment course with G & H Training and as part of this she was placed at Gemco for some work experience.

“I could see that there were lots of opportunities here and I like being creative, so I worked hard to impress my foreman so that I could get an apprenticeship.”

Twelve months on, Jade sees a long-term future at Gemco. She is also about to start another exciting new chapter in her life as she is due to have a baby later in the year.

During her time at Gemco, Jade has worked on a wide range of projects, all of which are helping her develop a broad range of skills and experience. In the past year she’s worked on the Hastings Crematorium, Hastings Health Centre, Delegat winery and the new commercial complex on Joll Road, Havelock North.

“I’m a person who does not ask for a hand, instead I’ll tell my workmates that I can do it.”

While on maternity leave Jade plans to continue her apprenticeship education via BCITO in preparation for the next stage of her career.

Harry is in his third year of a plumbing and gas fitting apprenticeship. Although some of his mates headed off to university, Harry enrolled in a pre-trades course at EIT at the beginning of 2016 before joining Gemco later in the year.

Harry was keen to stay in Hawke’s Bay and ‘learn and earn’ while completing his four-year apprenticeship and making the most of working within a large multi-trade construction company.

“There’s a great group of people here at Gemco and everyone is keen to help me. We always have a wide range of projects on the go.

“Better still, I am earning and learning, I have no student loan to pay off and I’m saving money.”

As for the future, Harry hasn’t ruled out a stint out of Hawke’s Bay, whether that’s within New Zealand or overseas, but he is keen to run his own business at some stage.

“It’s a fair while off yet though. I enjoy it here, it’s a supportive environment but at some stage it would be great to have my own business.”

Leading construction firm builds future workforce

The construction industry is booming in Hawke’s Bay. It’s at unprecedented levels both in large-scale commercial projects as well as in the residential housing sector.

In the November 2018 issue of The Profit we estimated there is about $600 million worth of commercial construction projects either currently underway or set to commence. Over and above this is the housing boom, up 38 percent on last year.

Construction companies and other trades-related businesses have full books. It’s an enviable position but while businesses like Gemco have had a hot run with major builds such as the Hawke’s Bay Opera House, Hastings Health Centre and Delegat winery, a pinch point is having enough skilled labour.

However, Gemco is doing something about it. With a 140-strong workforce, Gemco managing director Darren Diack says they generally have over 20 percent of their staff made up of apprentice builders, plumbers, electricians, painters, plasterers and joiners, to ensure they are future-proofed.

“Some will stay on once they are qualified and some will leave; and more importantly, some will become leaders within Gemco. Regardless, we are proud to be contributing to the growth of tradespeople in Hawke’s Bay,” Darren says.

As Gemco’s general manager Chris Olsen says, “when you’ve got a large engine to turn, it’s important to focus on the future”, and the Havelock North-based business maintains a steady stream of apprentices progressing through the ranks.

Gemco currently has 35 apprentices at varying stages of their three- and four-year apprenticeships. The current crop includes

nine mature adult apprentices and three females, with the remainder school leavers.

Chris says they finish their time with a wide range of skills and experience, due to the wider exposure to all the trades within the business as well as the variety of commercial and residential work.

“They pick up a range of skills from their more experienced workmates, as well as getting a varied perspective from other trades,” Chris says. “They are the future of the business and we offer a really good learning space with a wide variety of projects that we have on the go at any one time.”

Chris adds that the mature adult apprentices have decided to take the step up from labourers or tool hands due to the current demand for qualified staff and the opportunities that arise.

Brent McAsey, who oversees the development of the budding tradespeople, says back when he was doing his time, getting into a trade was usually the career path for academic underachievers who didn’t go to university.

“However, that’s no longer the case. Apprentices may start on an hourly rate just above the minimum wage but they are not racking up debt as a student and there are strong career pathways within our sector,” he says.

Gemco, which was formed 18 years ago, has former apprentices who have worked their way up through the business as well as some who have gone on to start their own business or use their experience as a platform to other career options.

Apprentices like Jade and Harry (featured in our supporting story) spend 44 hours on the tools each week working towards achieving the practical components of their qualification, as well as completing theory education via the EIT School or Trades and Technology or BCITO.

“They can go as fast or as slow as they like in earning their unit standards but they work a full week on the tools,” Brent says.

Apprentices at Gemco are also given the opportunity to take on more responsibility as ‘Site Safety Reps’ on larger construction sites; undertaking site inductions, safety inspections and providing support to the Site Foreman.

Chris adds that the benefit of working at a larger construction firm is the exposure to a mix of large-scale construction and smaller domestic projects, as well as learning from many experienced tradespeople.

He says a big issue going forward is the pending demise of the 90- day trial period, which has enabled the business to give someone a go who may not have had the strongest CV.

“It will hurt our industry [the loss of the trial period] as firms like ours probably won’t take the punt on someone who we have a slight doubt over. We just won’t take that risk as we have in the past and that’s sad, as many of them go on to become very good tradespeople.”

Chris, who served in the army, says there’s many similarities between the armed forces and the trades industry.

“It’s [trades] similar to the army in that there’s a lot of comradeship, especially within a large firm like ours where you create long-lasting friendships. Also, your skills are transferable to other jobs.

“There’s also a lot of interaction with the other trades and you inadvertently learn skills from your peers,” Chris says.

Recruiting and maintaining apprentices is an ongoing challenge and learning curve for Chris and Brent, who admit that the old way of leadership no longer cuts it with the Generation Z.

“We have to be smarter and understand where they have come from and where they are going. Youth do have a different attitude than our generation, especially with the influence of technology.

“It’s important that they have an attitude of wanting to be here and wanting to succeed.” One of Chris’s life learnings is: ‘You just have to want it bad enough and the rest you can be taught’.

“We want everyone to have the attitude of giving everything a go and giving it everything they have got, and then if it doesn’t work out, just learn from it. One of the best ways to learn and some of the most important pieces of advice we give them is don’t be afraid to fail, and if you’re going to do something, don’t be afraid to ‘fail big’.

“It’s about learning, growing, taking risks and producing the very best we can for us and them and the future of our industry.”

Legacy to give back creates career pathway

Skilled labour and the lack of it is a big issue that has received plenty of media headlines over the last 12 months.

Across Hawke’s Bay, many businesses are calling out for skilled labour and one Hastings-based business has come up with an innovative partnership with Hastings Boys’ High School (HBHS).

Patton Engineering’s trial last year with HBHS was so successful that not only have other engineering businesses such as McLaren Stainless and DSK also jumped on board, but the technology department at the school is becoming the envy of other schools around the country with modern equipment and a healthy stock pile of materials.

Patton Engineering has a long history with HBHS, with current director Mike Patton and former director Gavin Patton (recently retired) being old boys.

When new shareholders and directors Johnno Williams and Andrew Burn took over the business in 2018, Patton Engineering was performing strongly but struggling to recruit skilled labour locally.

The idea to partner with the school came at Gavin’s farewell. After 19 years working for Mike and Gavin, the new owners decided that they wanted to give more back to the local community.

The question was how?

With plenty of work coming in the door, the pressing issue was skilled labour.

“We would get CVs with the belief that the person was highly skilled, but in many instances that wasn’t the case. They weren’t as capable as what they were telling us, so we started doing tests instead and when we got them into a welding situation, many couldn’t perform,” says Johnno.

As a short-term solution they decided to recruit nine staff from the Philippines, but they were determined to find a long-term local solution.

“We have an aging workforce and we need young kids coming through and learning off these older guys.”

That’s when Johnno turned up at the headmaster’s office.

“I went and saw Rob with some pretty big aspirations but he wanted to make sure that it wasn’t a one-off opportunity.

“I told him we were committed 120 percent for the long haul. To us it’s a journey, not a short-term view, and we wanted to take on apprentices every year going forward.”

After nearly a year (the programme started in May 2018), Patton Engineering has formed a committee; it has more than 23 supporting business involved and head of technology Salla Delport has “600 students learning some form of technology” in a well kitted- out workshop at school, regular placements at three engineering workshops and career pathways.

Rob Sturch says Salla deserves as much credit as Johnno and Andrew, as he’s a teacher whom students love to learn from.

“As a headmaster I’ve learned that students choose teachers, not subjects. If there is a class with 30 and a class with 4 I can tell you straight away who the best teacher is.”

He says the added attraction is that students can also see the potential career opportunities by learning both at school and at the engineering firms.

Patton Engineering managing director Johnno Williams (left) with student and head of technology Salla Delport

“They can see the opportunity to get a job, to earn money, and there’s structure around the learning experience.”

For Salla, he says new equipment with funding support from trusts like One Foundation – purchasing materials at cheaper rates by taking advantage of the buying power of Patton’s and other firms – and getting work experience at engineering workshops is making technology the most popular subject at school. The cost of resources has gone down 75 percent.

“Previously the boys would make something like a steel pencil case as our budget was very limited, but we now spend less on materials like steel but we also get more of it. Students now make things like personal sound systems and BBQs.

“What’s great is that Year 12s go to Patton’s, DSK and McLaren’s to learn welding and they are using the same equipment.”

Ektaj Singh is one of three boys chosen for an apprenticeship with Patton Engineering. In 2018 he had hands-on experience in the company’s workshop for one day every fortnight, doing welding and steel fabrication. He says it was a great opportunity and has provided a career direction.

“I love it, but if it wasn’t for the help and direction from my teachers, I wouldn’t be here. The school’s also given me a toolbox and some starting tools.” The idea has paid off and both the school and Patton Engineering are being looked at by both the education sector and the engineering fraternity as the model school/career programme.

2019 – innovation and entrepreneurship

At Business Hawke’s Bay we love BIG ideas and BIG themes. 2019 is Hawke’s Bay’s year of innova- tion and entrepreneurship.

We’re starting a nationwide conversation that celebrates and draws attention to Hawke’s Bay as a place where people with bright ideas can flour- ish. We’re calling on everyone from across the Bay; from schools, from iwi, from councils and from the busi- ness community to join us and help to tell Hawke’s Bay’s stories of inno- vation and entrepreneurship.

Hawke’s Bay offers great lifestyle, world class wines and amazing produce, but for many from outside our region that’s where our story ends. Hawke’s Bay is all these things, but it’s so much more. It’s also a place where creativity and innovation is woven into the fabric of the community. And it’s a place full of opportunity for investors, entrepreneurs, businesses and people with skills.

Business Hawke’s Bay was inspired by the organisers of New Zealand Techweek, who are focused on New Zealand to be globally recognised as a beautiful country where world-leading solutions are born. We’re applying that thinking regionally, showcasing our leading edge innovation and amplifying brilliant ideas.

The Why? Because great things grow here

We believe that greater innovation and entrepreneurship will unlock Hawke’s Bay’s full potential. With everyone on the lookout for opportunities to be more innovative and telling their stories of innovation, together, we’ll start a movement.

Telling a fuller, broader story of Hawke’s Bay will help our region grow, and attract more investors, businesses and people with skills that will add value to the region.

Collectively, let’s showcase the full range of opportunities and tell a “lifestyle plus” Hawke’s Bay story, demonstrating that great things grow here and so do great ideas and great businesses. We want people to know that if they come to Hawke’s Bay they can tap into a creative, innovative and entrepreneurial community.

By showing the talent, the meaningful connections and the support available, we’ll give investors, businesses and people more reasons to do business in Hawke’s Bay.

Innovation Tours of the Bay – a featured Techweek NZ week event

Being innovative is at the heart of Hawke’s Bay businesses and you’ll find it well beyond the technology sector. It’s everywhere, so let’s tell that story. Whether it’s software to grade fruit via a digital image, a frost fan that can save a grape crop, sector leading furniture design for schoolchildren or holistic nutrition to improve health and well-being, all of this innovation and the thinking behind it is borne of Hawke’s Bay.

Let’s stand up and celebrate, connect and collaborate to foster even more entrepreneurship and innovation. To ensure Hawke’s Bay innovations get the recognition they deserve and can attract the talent and capital they need to grow, Business Hawke’s Bay will be talking more about the great work being done here. One way we’re doing this is through “Innovation Tours of the Bay” curated by Business Hawke’s Bay for Techweek NZ 2019, which is being held on May 20-26.

As a Tier 1 Techweek NZ event, Hawke’s Bay’s Innovation Tours will be publicised nationally and internationally; a series of three innovation tours, showcasing business innovation across food and beverage, agribusiness, and sustainability. Each tour will showcase fantastic innovation, entrepreneurship and new technology being developed right here in Hawke’s Bay, giving it well-deserved prominence and recognition.

The Innovation Tours will be an opportunity for building connections and cross pollination, amplifying Hawke’s Bay’s unique and inspiring innovation stories. We’re excited to help promote our innovations and entrepreneurs on bigger stage. Find out more by visiting our website.

Ways you can get involved

We’d love our every facet of the community to join us. As Hawke’s Bay regional co- ordinator for Techweek NZ, Business Hawke’s Bay can support businesses, schools and community groups to create a local Techweek event. Proudly showcase your innovations throughout the year and let us know what you’re doing, so we can build enthusiasm for innovation and entrepreneurship right across Hawke’s Bay all year long.

To be innovative rather than “doing innovation” has been identified as a global mega trend. Let’s nurture and embed being innovative in everything that we do.

2019 – Hawke’s Bay’s year of innovation and entrepreneurship. Join us!