User experience spurs buying the business

Just like Victor Kiam of Remington Razors fame, Ray Burr and Donna Campbell liked the product so much they bought the company.

Ray and Donna were dairy farmers from Aria in the King Country who, like many other farmers across New Zealand, relied on using urea to increase productivity. They started out with 360 cows, which over time grew to 520.

“Our system was relying on the increasing use of urea – from 50 kilograms of urea/hectare/year up to 150 kilograms of urea/ hectare/year – but production wasn’t increasing and we were facing major animal health issues: downer cows; Rotovirus; a large numbers of lame cows; an increased reliance on CIDRs [controlled internal drug releases] to get cows in calf; induction to try and maintain an acceptable calving spread; and more,” says Ray.

The breakdown in their system led to a lack of net cash profit and they could see the harsh impact of urea on the farm.

“As a farmer you always try to do your best using the knowledge that you have available, but it wasn’t working on our farm. We were actually going backwards not forwards, and we could see that our farming practices were impacting on the environment and the health of our animals.

“You have a thought in the back of your mind that you are actually producing food for humans and if your animals aren’t performing too good and they’re suffering or not healthy, what are you doing? We needed to look for the technology that would help us farm the way we wanted to farm – sustainably.

“That meant having healthy pastures, healthy animals and a really healthy cashflow, and we achieved all of that within a few years using these programmes. Increased production starts with healthy soil.”

Ray and Donna went in search of support and after seeking advice from several highly regarded experts in agriculture who gave no satisfactory answers, they decided to look outside the square.

The rest, they say, is history. Not only did the farm come back to life but productivity soared (more about this shortly).

So, what was the secret? They found a small business in Waipawa owned by Peter and Daphne Lester that used advanced, science- based systems focusing on the three key elements – soil, plant and animal nutrition.

What farmers and horticulturists need to know is that standard fertiliser has only four of the sixteen elements soil requires to be healthy. When the same four ingredients get dumped on the soil year after year, there is a saturation of those four elements with none of the other twelve soil essential elements being monitored and replaced if necessary.

“This was an exciting time in our farming career as we observed a complete turnaround not only in our farming operation but also in the farm environment. Improvements were taking place every year, we couldn’t wait for calving to start and the new season to unfold; farming for us became an absolute pleasure,” says Ray.

After using Quantum for six years, the Burr’s got a phone call from Peter to see if they were interested in buying the business.

They had already sold the farm and had been having a well-deserved break while contemplating their next move.

“We had 18 years of milking 520 cows, so we were enjoying having a few sleep-ins and taking a year off,” says Ray.

“In 2008 we went from being share milkers to shareholders, buying a 50 percent shareholding in Quantum with the opportunity to buy the business in full.”

In 2016 the Burr’s took over full ownership. To further develop the business and add credibility to their farming system programme, they invited a highly respected vet and animal nutritionist to come out from the US, and he lived with them for about three months while they absorbed all the expertise and wisdom he offered.

“It was a real eye opener and made us realise how far New Zealand had to go and where we needed to be to keep up with the rest of the world.”

Farming practices and their impact on the environment have been some of the hottest and most scrutinized issues, both in local and national politics.

“Farmers are now under a lot of pressure because of rules and regulations about what they can and can’t do. This system encourages farming the farm as an ecological entity, looking at the soil fertility as well as what animals are eating.

“At every step in the food chain we can look at efficiencies and how farmers can get the right efficiencies without going overboard and having a detrimental effect on the environment. Believe it or not, if you do that properly, profits follow.

“That’s been going on for 50 to 60 years. There’s always been enough scientists and people farming under these types of systems that sooner or later sustainable food production would be achieved using the right methods; otherwise when you get it wrong, you have a detrimental effect on soil and animal health,” Ray says.

Donna says moving from the farm into an agribusiness wasn’t an easy transition.

“It was quite a struggle actually, from dealing with 520 cows a day to suddenly dealing with people and selling your wares, but it did help that we had used this system and could personally verify the results.”

Since taking over full ownership, the Burrs have rebranded the business from Quantum to Qlabs and given their science a brand name – Fallian.

Fallian is Scottish Gaelic for healthy and healthy encompasses what the coordinated soil–plant–animal nutrition programmes achieve.

Healthy soil equals Healthy plants equals healthy animals equals healthy environment equals healthy bank balance.

They have also recently been granted a patent for their Ruminant Nitrogen Utilisation Efficiency (RNUE).

Ray says RNUE is one of the most proactive advancements available in New Zealand pastoral agriculture. Basically, by scientifically evaluating farmers’ pastures in the laboratory, Qlabs can determine how much urinary nitrogen and milk urea nitrogen an animal will produce when it comes time to graze that pasture. This is a powerful management tool.

“Farmers who have worked with us to develop this programme have enjoyed shifting their thinking in kg/DM/Ha to asking themselves, ‘what is the true value for my livestock and the environment?”

“This enables farmers to work proactively to gain greater pasture- to-animal production efficiency while reducing their environmental footprint. For me, there is no satisfaction in agriculture than witnessing the enjoyment farmers get out of farming successfully.”

Ray is also strong to point out that while they saw success in using Quantum for dairy farming, Qlabs now has clients across the primary sector spectrum, both conventional and organic producers.

They work with viticulturalists, horticulturalists and agriculture producers, all of whom have had significant success in increased productivity while enhancing their land.

“We test soil here in our lab in Waipawa to determine what essential nutrients are missing, and then we provide the client with a treatment plan to fix all those problems,” says Donna.

“First we improve farm soil health, which is quickly followed by animal health, and then last but not least, the farmer’s health improves as the stress goes down when the costs go down and the profits go up.

“In dairy we have seen production rise by 3,500 kilograms/MS. The farm moved from non-compliance to full compliance, meeting all obligations required by Environment Canterbury in the Red Zone, and profitability increased at the same time, without using any surplus nitrogen at all. That means savings in the region of $60,000 a year because the farmer is not paying for excess artificial nitrogen anymore.”

In growing their business The Burr’s have become members of the Hawke’s Bay Chamber’s Business Development Group. They are now also getting one-on-one support from Roger Smith, the director of the programme.

Members of the Business Development Group meet fortnightly to identify and solve a $20,000 problem in every member’s business every month.

Roger says already this year the Group has helped each other discover and address $2 million worth of issues.

“As we like to say that is $2 million in the back pocket and not out the back door” he says.

Roger says 1-1 clients also have access to the Programme’s purpose- built diagnostic ‘Business Optimiser’ software that is used to discover the full and immediate profit potential of their business.

“That analysis then allows us to build a longer term growth plan for each individual business to help the owner achieve their work and lifestyle goals” he says.

Here is some feedback from clients on the Group Programme…

  • “We now know how to take our customers from $300 a year spend to over $3,000 a year!”
  • “Our new value-add ideas have increased our price to our customers by 50% and they thanked us for it!”
  •  “Our new sales system is getting us in front of customers that would never have seen us just six months ago!”
  • “We have learned ways to increase our turnover by around $5,000 a week!”
  • “Our new sales script has increased our sales by 20%!”

As for Qlabs, Roger sees it as a genuine ‘challenger brand’.

Roger says a challenger brand usually starts as a small business with a big idea that attacks the ingrained assumptions about a category and the way the incumbents do business. A good example of a global challenger brand is Apple in its early days – with Steve Jobs at the helm. They took computers out of the basement and put them on every worker’s desk. It was an outrageous idea at the time but one that changed the world.

“Challenger brands change the world because they are the ones that have the courage to look at what we all take for granted and ask ‘why’?” Roger says.

“What Ray Burr and Donna Campbell have developed at ‘Qlabs’ is world leading technology that is now a profit making machine for every kind of farm in New Zealand. Ray and Donna are challenging some of NZ’s ingrained assumptions about how things are done – and proving them wrong. They have been so successful they can now guarantee every farmer or grower they work with an environmentally compliant future, greater animal health, much higher productivity and much greater profitability. This really is 21st century land management in action – and it is what New Zealand is crying out for right now. This is a story we should all be shouting about from the roof tops” Roger says.

Waipawa is no Silicon Valley – and it is an unlikely place to find New Zealand’s next technology superstar – but Ray and Donna have no desire to move their business to the big city.

“Our business is all about the ‘health’ and ‘heart’ of the country” Ray says. “We love being in and around the rural community and its people. We live on the land ourselves on a small lifestyle block – and nothing will move us away from here!” he says.

www.qlabs.co.nz

 

Airports expansion set to take flight

A new passenger arrivals area at the Hawke’s Bay Airport will open in early December, drawing a close to stage 1 of the $20.2 million airport expansion.

The expansion project was upgraded by $4.5m earlier this year due to forecasted passenger numbers being higher than first thought. The latest passenger growth figures now foresee one million passengers by 2025.

The terminal when complete will be 74 percent larger than the existing footprint and will include new airline check in areas, an automated baggage handling system, a dedicated arrivals gate, a central hospitality and retail area; new bathrooms, airline offices and an expanded Air New Zealand regional lounge. The rental car concierge area will also be relocated within the terminal.

There will be a central food and beverage hub with the existing café offering Kete upsizing, as well as a new retail offering selling travel essentials and iconic Hawke’s Bay products and a smaller coffee cart service.

Hawke’s Bay Airport commercial manager Dean Smith says the project is running to schedule and the revised terminal will create “a greater sense of place” and promote the best of Hawke’s Bay.

“It’s important that we create a sense of place and that visitors get a true taste of Hawke’s Bay either by visually promoting the region within the terminal or via retail offerings of Hawke’s Bay products such as food and beverages (wine),” he says.

The airport has experienced strong passenger growth with 652,000 passenger movements recorded in the financial year ending 30 June 2017. The current expansion plan was set to cater for up to 800,000 passengers, which it was initially forecasted to hit in 2024, but has since been revised to 2020.

The terminal is expected to be fully completed in the second quarter of 2020.

HB Airport Ltd is completing an airport masterplan which will safeguard the airport into the future. It will also enable the realization of new development opportunities both commercially, increased capacity by incumbent airlines and new entrants.

“Our vision is to be the most vibrant and successful regional airport in New Zealand. We are also very aware of our environmental role in Ahuriri and surrounding areas and it’s important that we have an active environmental management plan,” says HB Airport chief executive Stuart Ainslie.

Irongate takes shape as industrial hub

Hastings District Council recently signed off a newly created industrial zone south of Hastings as well as negotiating with property owners a palatable development contribution rate, that has enabled construction progress.

Long term property owner John Roil was a key figure in the negotiations and has recommenced construction on two sites and welcomed a couple of new tenants.

John’s son Mark has reinvigorated the Cottages NZ brand under the company name MSR Construction and the business has been benefitting from the uplift in the economy. Cottages NZ has been at the forefront of prefabricated building for over a decade – building houses, holiday homes, worker accommodation and commercial premises.

It has built an additional 800m2 factory and large outdoor concrete pad on the Maraekakaho road fronted site and a large concrete pad outside the existing 600m2 facility.

“We’ve now got the ability to have eight or more buildings under construction at any one time both within a factory setting but also do some of the finishing outside.

The 4 hectare site is also capable of storing up to 40 buildings and also has a consent for a further 1800m2 of factory-style buildings.

John has also developed 4ha in Irongate Road where laser cutting business Axis is based.

A shipping container and scaffolding business has also taken a site while John has plans for a further 1800m2 construction facility on the property.

The road and services into the property has also enabled it to be future proofed with potential for a further four sites.

Further down the road Sunfruit Group has opened a 12,000m2 packhouse and coolstore complex which has created 50 new jobs and more could be added with future expansions.

Other fruit growers have their eyes on Irongate and as reported in the May issue of The Profit, Rockit Global Limited and Bostock New Zealand are likely to build at some stage.

The council’s has stated that its overall vision for the 118-hectare Irongate Industrial Zone is to provide a suitable zone for ‘dry’ industries requiring a large land area and from small to large building areas. The required average lot size is one hectare, with a minimum of 5000m2.

John Roil is still holding out hope that the Hastings Saleyards will relocate from Stortford Lodge to Irongate at some stage in the future.

John suggested the idea over 15 years ago when he presented options to the users of the saleyards. His view hasn’t changed that it would release the existing site to be used for residential or commercial development and enable a modern and future-proof sale yards facility.

“It was a good idea at the time and nothing has changed. It still is, and in fact it might be more relevant to move today with the pressure on residential housing in Hastings.”

Opera Precinct humming along

In August 2019 the first of three stages of the Hawke’s Bay Opera House Complex will reopen to the public, after it was closed in 2014 due to earthquake risk.

The estimated $30m Hastings District Council Project is part of a major overhaul of the Hastings CBD and could well be the catalyst for additional developments including a hotel.

Hastings District Council Group Manager community facilities and programmes Alison Banks says the large scale project is tracking well, but there’s high anticipation from the community to see it reopened.

“The strengthening of the opera house theatre has gone very well and is on time. There’s been a slight delay with the Plaza but that was to ensure that the multi-purpose venue had the right roof structure and we’re now consulting with the public on what they would like to see the municipal buildings used for.

“Early feedback is that they are very keen to see it being a mix of commercial use, such as hospitality, as well as community usage,” she says.

The Hawke’s Bay Opera House was built in 1915 in the style of Spanish Mission. Both the opera house and neighbouring Municipal Buildings (built at about the same time) carry Heritage One status.

The proposal includes a plan for the laneway between the Opera House and the Municipal Building – with ideas including making it a ‘light path’.

Gemco has painstakingly strengthened the Opera House via a process which saw each of the 100-year-old unreinforced earthquake-prone brick walls encased in steel rod mesh, which is ‘pinned’ to the brick with reusable plastic boxing then erected and concrete poured into the recess. That results in an average 300cm- thick wall of concrete, laid up against the old bricks.

For the Opera House precinct’s project manager Herman Wismeyer of Focus Project Management, there was a strong desire to be involved in this legacy and iconic redevelopment.

Having grown up in Hastings and performing on the Opera House stage, Herman wanted to lead the project, which would create a complex for the next 150 years.

When the redevelopment was first mooted Herman was working as a project manager for Opus in the earthquake ravaged Christchurch, but he packed his bags and door knocked on the council in the hope of being involved.

“This is the key building of the district. It’s the heart of Hastings and it’s been closed for too long.

“After a rigorous procurement process which involved successfully responding to a RFP, Focus was appointed as the lead project management company.

He’s pulled together what he regards as the “A team” that when the project is full completed, they will all be incredibly proud of what has been achieved.

“It’s an all local team and it’s what I regard as a high performance team that could now go on to any project and have the same success.

“Everyone’s mana is on the line and we’re determined not to disappoint both the council and the residents of Hastings. The project certainly has had its challenges but we’ve all met them head on and it keeps ticking over,” Herman says.

Commercial developments in excess of $600 million boost our economy

Across Hawke’s Bay there’s a wave of large-scale commercial development that’s having a major impact on our economy.

It’s estimated that there is more than $600 million worth of construction projects that are either currently underway or soon to commence. We’ve tried to provide as comprehensive a list of ‘just completed, under construction and proposed large-scale projects’ to paint the picture.

The list is exhaustive and businesses within the construction sector such as Gemco Construction, Strata Group, Red Steel, Turfrey and RDCL are flat out on projects such as the $14 million-plus Hawke’s Bay Airport expansion, the $22 million-plus Hawke’s Bay Opera House & Arts Precinct, the $16 million EIT Institute of Sport and Health and the Joll Road commercial hub.

  

The latest commercial and industrial consent activity for Hawke’s Bay shows total floor space of 6,254 square metres with a projected value of $25 million.

This is the strongest level of development since mid-2016, with further consent applications likely over the remainder of 2018.

Project managers such as Nick Ward and Herman Wismeyer are overseeing large- scale projects with big budgets and pressure- cooker deadlines.

As well as the demand on commercial projects, residential development is also booming while the newly created industrial zones in Irongate and Omahu are attracting new businesses.

If you listen to the banks, you will hear them also talking up the Hawke’s Bay economy.

In the July quarter, ASB Bank pumped Hawke’s Bay up to a five-star rating and the third-best performing regional economy (just below Otago and Bay of Plenty).

Across at Kiwibank, they’ve given Hawke’s Bay a seven out of ten; while only Westpac has painted a gloomier picture with its June regional economic round-up saying our economy could be at a tipping point.

ANZ Bank East Coast regional manager Gavin Shing says the Hawke’s Bay economy has been buoyant for some time, supported by a lower interest rate environment, property value appreciation, tourism growth and a strong primary sector.

“Such business confidence drives investment – in fact, it is critical – and that’s readily evident across the region at present, especially in the form of property development.

“As the many construction projects indicate, business expansion initiatives, the inevitable demand for more post-harvest infrastructure and RSE worker accommodation, building renovations including a flight to workplace quality, residential property development, and the forecast demand for services infrastructure (airport, port, health centres, etc.) have all materially contributed to our region’s prosperity.”

Gavin says that with all this growth, Hawke’s Bay is fortunate to have numerous well- established and reputable construction companies.

“A lot of progress can be unwound when things go wrong and thus reinforcing the need for thorough project planning, e.g. employing qualified expertise, ensuring accurate project costings with provision for contingencies, securing sufficient pre- sales/lease contracts where applicable, and ensuring building compliance.

“Many construction companies are still looking at good project pipelines, hence together with the ongoing availability of capital and business confidence, the foreseeable future looks bright for Hawke’s Bay,” Gavin says.

Positive outlook to continue

Experienced property developer and Mackersey Construction director (now called MCL Construction) David Mackersey says there’s a lot of positivity, which a few years back he thought might last until 2018, but he now believes it will continue for at least a further two years.

David and his business interests have been involved in many developments in Hastings, Havelock North and Napier’s Ahuriri and Onekawa, including Porters Hotel and Village Exchange in Havelock North, The Crown Hotel and Navigate Seaside Hotel complexes in Ahuriri, and the BNZ Partners and Staples Rodway facility in Hastings.

“The duration of the construction boom is unprecedented; the cycle has definitely lasted a lot longer than first expected.

“From the development side of things, most of our properties are fully leased and a number are new businesses establishing themselves in the Bay.

“There’s significant opportunities going forward. We tend to lag behind some of the other areas such as Auckland and Tauranga, so there’s still growth opportunities as we catch up.”

David points to new retirement villages planned, including one in Havelock North, as well as the large-scale residential development in the Iona/Middle roads area.

“These all turn into commercial opportunities within the village; a possible supermarket development will eventually come to fruition.

“There’s also demand for apartment living close to the village and we are considering a new development that would include offices, apartments and additional car parking in Joll Road in 2019.”

Construction book remains full

Gemco Construction recovered from the GFC in around 2012/2013 and has had year- on-year growth ever since.

The Havelock North-based business has been involved in many of the high-profile projects in the Bay such as the MTG, the Sports Park grandstand and several buildings at EIT Hawke’s Bay, and it currently has it on its books the Hawke’s Bay Opera House complex, the Hastings Health Centre and 15 Joll Road. It also recently finished the $11.8 million endoscopy building at the Hawke’s Bay Hospital.

Managing director Darren Diack says there’s been five years of sustained growth and the business has at least another 12 months of work on its books.

“The book is full and the only way we could take on more work is if we had more staff, but it’s important that we manage the demand rather than over commit and then get hit by a downturn.

“History says that you get about five to seven years of growth with some peak years towards the end, and then it flattens out for three to five years, so we need to bear this in mind.”

Food Hub offer economic diversification
Hastings businessman Trevor Taylor has been the champion of a Hawke’s Bay food hub for several years.

Trevor’s business interests include Tomoana Warehousing, Tomoana Transport and Elwood Road Holdings Ltd, all based on 22.5 hectares of land in Elwood Road, Hastings.

Since 2012, he’s been promoting a food hub on this land and he’s had success in attracting water bottler NZ Miracle Water, food and beverage can manufacturer Jamestrong Packaging, a Fonterra brand distribution centre as well as a food grade storage facility, which is owned by Tomoana Warehousing.

His vision is for Hawke’s Bay to have a food innovation centre that broadens the region’s economic reliance on traditional sectors such as apple production.

“I want to see more diversification in food production, with the region not relying so much on the likes of the apple industry. The region will be better off with a wider focus on other food production activities. It is happening but it would be great to see it happen a little bit quicker.”

While Trevor is promoting a food hub on his land, the Hastings District Council is leading a Hawke’s Bay Food Innovation Centre project that has secured $215,000 from the government’s Provincial Growth Fund for a feasibility study that is being undertaken by Sapere Research Group.

The study will look at the value of an innovation hub, similar to the Waikato Innovation Park, where businesses work together to share ideas and look at how they each add value to new products that have already moved past the research level and are being commercialised.

Tomoana Food Hub is currently working on six strong leads from food processing businesses keen to relocate to Hawke’s Bay. The hub is offering long-term lease opportunities, not ownership, as its objective is to create inter-generational revenue creation with investment partner Maungaharuru-Tangitu Trust.

“There’s heightened interest at the moment with some businesses looking to consolidate facilities that are on satellite sites to one larger site and benefiting from new technology and improved productivity. There’s also greater awareness of what we can provide within a food hub with clustering and working in collaboration.”

Napier projects add to positive outlook
Napier City Council chief executive Wayne Jack says that although some economic pundits are suggesting an economic slowdown, particularly in Auckland as well as internationally, he believes there’s significant public sector investment occurring over the next few years in Hawke’s Bay to support the local economy and the flow-on impacts from that investment to help ride through any potential ‘bumps’.

He says that part of the Matariki Regional Economic Development Strategy is to have a coordinated capital works programme to provide transparency and confidence to the construction sector.

“We want to communicate to the construction sector about what’s planned over the next one, three, five and ten years across Hawke’s Bay across all government sectors, so it gives them some confidence to bring on more resources.”

Napier City Council projects alone should provide much of this confidence.

In the pipeline is a $41 million aquatic complex (expected to get underway in 2019) and a $55 million redevelopment of the National Aquarium of New Zealand, which if it goes ahead will create 291 jobs and add $23.07 million to the region’s GDP during the construction phase.

The council is also looking at a new civic and administration building as well as a future home for the Napier Library.

It is also in the final stages (as we go to print) of evaluating an RFP for a hotel to replace the current civic building, which has been closed due to earthquake risks.

These projects contribute to the council’s vision of ‘A vibrant and sustainable city for all’ and are linked to the council’s City Vision strategy that focuses on high-quality urban design and is underpinned by six guiding principles. The City Vision: Small City Big Ideas strategy won the Excellence Award for Best Creative Place category at the Local Government NZ Excellence Awards in 2017.

Already rolled out via the strategy has been the redevelopment of Marine Parade, a destination playground at Anderson Park in Taradale and a parklet in Tennyson Street.

60+ projects in Hastings pipeline
Raoul Oosterkamp, manager strategic projects and partnerships at Hastings District Council, says he’s never seen the level of construction activity in Hawke’s Bay that’s currently occurring.

He says based on industry feedback, indications are that current activity levels will continue for at least three more years. His team of five key account managers who sit within the council’s Economic Growth and Organisation Improvement Group are currently working on 60 projects of varying scale and complexity. Of these, those with a development focus equate to more than $400 million of projected investment into the district’s economy over the next 24 months.

“This is just in Hastings, for the projects we are aware of. We estimate the figure across Hawke’s Bay to be in the order of $600–700 million.”

Raoul says the unprecedented growth has seen council invest into its key account service capacity, enabling it to work more effectively with business owners and developers for the benefit of the region.

“We’re taken a portfolio approach with the account managers being dedicated to either industrial developments, residential or new business opportunities via the government’s Provincial Growth Fund.

“We are wanting to offer consistent quality service and to be able to walk alongside businesses and provide timely advice and technical information as they do their due diligence so that they can make the best investment decision.”

Raoul points to the success of working with Ross Beaton in the establishment of an innovative beverage plant in Whakatu that produces cold pressed apple beverages under the brand The Apple Press as well as a range of Fonterra beverages. The $30 million-plus facility boasts market-leading technology and now employs 40 people.

“The Hastings District Council economic development team is also working on several strong (but confidential) leads for businesses keen to relocate to the region.

“Indications are that Hawke’s Bay is going to change for the better, there’s no doubt about it. The interest in our region has certainly heightened in the last 12 months.”

Returnee sees upswing in vibrancy
Hastings-based project manager Herman Wismeyer of Focus Project Management grew up in Hastings before living in Europe for 35 years. After a brief return to Hastings, he moved to Christchurch to work for Opus after the devastating 2011 earthquake.

Two years ago, he was able to return to Hastings after pursuing his dream role of project managing the redevelopment of the Hawke’s Bay Opera House.

When he left for Christchurch in 2008, he says Hastings wasn’t in a good space but upon his return two years ago, there was a renewed vibe.

“There was a huge difference in the atmosphere when I returned. Hastings was a bit beaten previously but there’s been a huge turnaround.”

One of his first jobs back in Hawke’s Bay was project managing the relocation of local telecommunications company NOW into the Ahuriri tech hub. He’s now project managing the Opera House redevelopment, which will keep him busy until at least the end of 2020.

He recently turned down the earthquake strengthening job at the Rotorua Museum and hopes that Hawke’s Bay moves into a position of continued investment in new buildings.

Herman points to the current strong economy providing a platform for further investment, especially in expanding our economic footprint by attracting new business to the region.

“We’ve been in a catch-up phase with the rest of the country but we now have an opportunity to increase economic growth and attract money and new business into the region, which will in turn create new jobs and further lift the positive atmosphere.”

Health services part of new landscape
Hawke’s Bay health service developments are in great health under the project management and care of Nick Ward. A one- man-band with over 20 years’ experience, Nick has become a specialist in his field.

“Working on health projects is certainly very different to standard office and commercial jobs, especially when you get into clinical spaces for specialist and medical procedures,” he says.

He first entered the health development space when project managing the Wellington Zoo animal hospital design. Then 10 years ago, he project managed a primary health facility in Napier and he never left Hawke’s Bay.

Having recently completed Ruakopito, Hawke’s Bay District Health Board’s new endoscopy and gastroenterology unit, he’s now three and a half years into project managing The Hastings Health Centre’s $20 million new campus, which is set to open in March next year.

Project management is a multidisciplined role that demands strong inter-personal  and communication skills, with the ability to coordinate a whole lot of people and processes and bring it all together, says Nick.

Having an independent, specialised, qualified and skilled project manager is a key and essential component right through any project lifecycle.

“In the role you need knowledge about every aspect – land development, architecture, space planning, engineering, building services, planning, costing, consenting, tendering, contract law, construction process and methodology, contract administration, materials, all sorts. You also chair a lot of meetings, manage a large group of people, write a lot of instructions and programmes while looking after budgets and all financials.”

Nick might have plenty of balls in the air but he makes time to share his knowledge and enjoys spending time with a keen group of EIT students studying architectural technology.

“It’s fantastic to see young people in Hawke’s Bay learning and keen to be part of a growing industry, which has great career opportunities and future job prospects.”

Investor confidence at a high

As well as buildings being built, there’s also been plenty of sales action on the commercial property sales scene.

Colliers International broker Danny Blair recently sold a multi-tenanted property at 100 McLeod Street, Hastings, which is anchored by the Hawke’s Bay District Health Board, for $10.4 million.

Another recent large property transaction was a portfolio of four big box premises at The Park Mega Centre sold for $21 million.

Danny says the price and yield achieved for the McLeod Street building is testament to the desirability of Hawke’s Bay commercial real estate.

That assessment is backed up by the latest Colliers International confidence survey, which found more investors are optimistic about the region’s market performance than in almost a decade.

A net positive 16 percent of respondents expect conditions in the Hawke’s Bay commercial property sector to improve over the next 12 months – the second-highest result since the survey began in 2008.

“Investor confidence has clearly been building in Hawke’s Bay’s commercial property sector. In the first quarter of 2018, sales activity was the strongest in almost two years.”

Recent CoreLogic sales data analysed by Colliers shows total commercial property sales in the first quarter of 2018 reached just over $47 million. That is likely to increase to $55 million once reporting data catches up.

The industrial sector accounted for most of the transactions but bolstering overall sales activity this year has been solid turnover in the office, retail and commercial mixed-use sectors.

Non-industrial commercial property transactions accounted for 41 percent of the commercial sales value and 46 percent of total sales activity so far this year.

Would you like your project profiled in upcoming issues? Contact Damon on damon@attn.co.nz

Art Deco Beer – combining a quality brew with a local identity

When Hawke’s Bay-based beverage company Parkers decided to add a craft beer to its portfolio, it started with a simple objective.

“Our aim was to produce best-in-class beer,” says Parkers founder Doug Speedy.

“Before we considered the branding, our starting point was that the beer had to be good.”

Doug spent about six months researching pilsners and IPAs – the two varieties Deco City Beer launched late last year.

“It involved a lot of tastings of other people’s beers in the quest to find the right flavour profiles. We wanted the profiles to be quite accessible for a craft beer – and not excessively hoppy – so people who were new to craft would find it approachable as well as appealing to seasoned craft beer drinkers who have reached peak hop,” he says.

“We wanted to appeal to the drinkers of mainstream European lagers, to encourage them to move across to craft beer.”

As he worked on developing what would eventually become Deco City Beer, Doug had been talking to Simon Gilbertson, co-founder of Napier contract brewing facility bStudio.

bStudio, a top-end, multimillion-dollar brewery built using state- of-the-art German equipment, opened last year in the old National Tobacco building, which is depicted on Deco City cans.

One of its founding customers was cult Wellington craft brand Garage Project and since opening, the facility has been busy brewing and packaging beers for a range of clients around the country.

Doug says Parkers initially looked at starting its own brewery but decided it made more sense to use bStudio.

“They’ve got the best equipment and the best staff. On a global scale, they’re the best at what they do.”

bStudio has a canning line and the decision was made to produce beer in cans rather than bottles for quality reasons, Doug says.

“Beer keeps better in cans, it’s as simple as that. There’s no light- strike, no oxygen exposure. On top of that, it chills faster and is lighter to carry.”

With flavour profiles and brewing facilities sorted, Doug turned his mind to branding and says the Deco City Beer name was born.

“It was a no-brainer, really. Those of us involved in the company are from Napier. The beer is brewed in the former National Tobacco building, the most photographed art deco building in New Zealand, if not the world.”

But before the naming decision was made, Doug talked to the Art Deco Trust, and those discussions have blossomed into a strong working relationship, which is a win-win for both organisations, he says.

Deco City has become the official beer of the trust’s annual Napier Art Deco Festival.

The brand is now in about 600 retailers around the country and more than 90 per cent of production is sold outside of Hawke’s Bay.

That makes it a strong promotional tool for attracting visitors to the Bay, as well as an ideal brand to have on hand at the trust’s events.

The beer will expand its presence at next February’s festival with a Deco City tent bar being set up near the Marine Parade waterfront. Doug says he plans to partner with other local brewers to showcase Hawke’s Bay craft beer at the event.

By then the Deco City range will have expanded. Doug says a third variety, a pale ale, will be released in time for Christmas.

parkers.kiwi/decocitybeer

WilliamsWarn: taking local brewing technology to the world

After originally targeting homebrewers wanting a simple, quick way to make quality beer, Hastings company WilliamsWarn now has its sights set on a second, larger market – the hospitality sector.

WilliamsWarn launched its BrewMaster appliance in 2011 leveraging their unique pressure fermentation system, building up a base of customers keen on an easy way to brew beer or cider at home, or even in the office, in just seven days.

“The BrewMaster got us on the map with home users who are able to use it to brew world-class beer,” says Jeremy Absolom, the company’s general manager commercial.

“The challenge with it was that because it was a handmade New Zealand product it came with a large price tag. But what it did was nail our brand to the quality beer our appliances can produce in that one-week time period.”

Since then WilliamsWarn has been able to address the pricing issue through some new designs and manufacturing partnerships in China, which has brought unit costs down.

The company has now gone on to develop the BrewKeg, a trademarked innovation (like the BrewMaster) that allows the brewing process to be completed utilising any fridge or chiller, and then dispense the beer through a normal tapping system or kegerator.

“What that did was allow us to use different size pressure fermenters (BrewKegs) and open up to the opportunity of working in hospitality,” says Jeremy.

“Over the past couple of years that’s where our real focus has been – on developing a range of products and ingredients that suit bars, restaurants and cafes that want to develop their own branded beer or cider, and either produce on or off premises for their customers.”

The company’s BrewKeg allows bars to become brewpubs.

The BrewKeg system even allows WilliamsWarn customers to scale- up to the extent that they’re effectively running small breweries with a low carbon footprint.

“Because of our modular system, you can have breweries using 50 or 100 BrewKegs and producing tens of thousands of litres a week. It allows them to scale as demand grows, as opposed to having to put a big lump sum up front to build, say, a big German-style brewhouse.”

As well as saving on the significant capital costs of establishing a brewery, the BrewKeg system – where WilliamsWarn provide all the required ingredients – doesn’t need a high-ceiling building or the specialist staff normally associated with large-scale brewing.

“BrewKegs can operate in a fairly normal facility, with regular ceiling heights, normal floor weights and the same level of staff you’d employ in any bar or restaurant, because they’re working to recipes rather than having to make all the ingredients from scratch,” says Jeremy.

With a renaissance of people enjoying fresh beer off tap and increasingly looking for locally produced food and beverage, the BrewKeg concept is generating a lot of international interest and is behind a strong period of growth for WilliamsWarn, which has doubled its staff numbers over the past couple of years to 14.

“It’s early days but we’ve certainly got growing interest in a number of key global markets,” says Jeremy.

“Because of the simple nature of more sustainable brewing using BrewKegs, we’re finding we can get people up and running in different parts of the world without having to spend a lot of time training them. We can do a lot of that remotely.”

www.williamswarn.co.nz

Mastering the plumbing business

Tim had been working as a contractor in Hawke’s Bay before making the decision to move to Port Headland, travelling around the Pilbara in Western Australia, setting up massive infrastructure for satellite mining camps – housing developments for between 2 to 5 thousand people. The money was amazing and the driving eye-opening.

“I covered some huge km’s, often driving 5-6 hours to fix a tap. It was the Australia that you wouldn’t otherwise see – vast desert. It was awesome.”

Coming home in 2012 Tim knew he wanted to set up on his own. He opened an office in King Street in Hastings, with a part-time office person and one other plumber joining him. There was plenty of work and it was hard to know which jobs to take and how to manage the business growth, having had no business management training.

“I went to an event and listened to another owner speaking about his experience with The Icehouse and thought it sounded practical and could work for me.”

Tim was able to access NZTE funding from the Regional Business Partner in Hawke’s Bay which gave him the extra push to get into the local Owner Operator Programme, facilitated by Michaela Vodanovich and incorporating one on one business coaching with monthly workshops and action groups.

“Getting started with The Icehouse, I realised how naïve I was, but I quickly picked up more and more skills from the workshops and the other people on the course. I had been a bit worried about paying

Jay Jay Kettle and Tim Masters at their new offices in Hastings.

for the programme but the funding we were able to access did make a big difference. I started pushing ahead and was gaining clarity as well as momentum so the cost wasn’t an issue – looking back it was a no-brainer – suddenly I was adding another plumber and another plumber.

One of the first things I learnt from the Icehouse was, if you want to be a bigger business then you need to act like a bigger business so we invested in software that could run massive crews, even though at the time we only had a few staff.”

Tim also learnt about the importance of high-quality customer service to the business and what that looks like.

“I know that’s one of the key reasons we are so busy today, together with top notch, quality workmanship – customer service remains our focus.”

Now the business has 10 staff, including plumbers, gasfitters, drainlayers, a digger and truck driver plus apprentices and two office staff in a bigger office in King Street. They cover a mix of commercial and residential services for Hawkes Bay’s top builders and Masters is one of only a few local companies to offer central heating – a feature that many people moving to Hawke’s Bay from Europe can’t be without.

Jay Jay Kettle is the face of the business as the office manager and is taking more responsibility from Tim. A need to understand strategic aspects of the business meant Jay Jay required new skills and management tools. Tim enrolled her in The Icehouse Effective Leadership Programme at the Business Hub, a three month programme of workshops and coaching, to support and develop managers in their individual roles.

“Over the last year or so I have been picking up a lot of work that Tim used to do and now I feel like Tim can focus on growing the business and I have the confidence to take on more responsibility, including recruiting staff and dealing with issues that come up.

Learning how to be a better communicator and take positive and different approaches to day to day challenges was valuable and we all learnt so much from each other on the Programme.

Sometimes you think you’re the only one dealing with complex issues but The Icehouse makes you realise you’re not alone.”

For Tim, the chance for Jay Jay to do an Icehouse programme was perfect timing, not only just for the business but also allowing him to plan for some much-needed time-off.

“The leadership training has given Jay Jay a deeper understanding of the business, allowing me to focus on the jobs I need to be across and the big tenders.

“I’ve also got a trip planned to the States later in the year and to be able to leave the country with confidence that everything will be ok is pretty cool – we’ve come a long way.”

Business angels at the ready

Much-needed ‘angel’ funding is beginning to flow into local start-up businesses thanks to a new group that brings entrepreneurs and investors together.

Deals are being done between Hawke’s Bay entrepreneurs and members of a new group established to bring together local investors willing to provide venture capital to early- stage and growth businesses in the region.

The Hawke’s Bay Angel Investment Group (HB Angels) is a network of entrepreneurs and professional investors prepared to collaboratively invest in and support local entrepreneurial talent.

The group has more than 30 members and recently established a board chaired by Havelock North businessman Dean Prebble, a former New Zealand Trade and Enterprise trade commissioner.

Dean has been the driving force behind establishing the investment group, which held its first meeting in November last year.

“There is a tremendous pool of talent in the region and HB Angels will be able to provide capital and support to help those businesses grow and expand,” Dean says.

Other members of the newly-formed board are Jonathan Norman (vice-chair), Rick Cranswick (treasurer), Sharon Chapman and Ailne Bradley.

“The vision of using the private sector to unlock, support and attract fresh entrepreneurial talent to Hawke’s Bay through robust opportunity identification and the building of investment portfolios under a fund structure is a proven model nationally and will benefit the local and regional economy,” Dean says.

To date HB Angels has facilitated relationships with local private equity groups and Manawatu Investment Group (MIG), which has seen a number of early-stage Hawke’s Bay businesses receive time and capital from members.

The group is part of a national association of similar regional organisations – the Angel Association of New Zealand – and would typically make equity investments in businesses of anywhere between $50,000 and $1 million.

Rick, the former chief executive of the region’s largest chartered accounting practice Crowe Horwath, said it was encouraging to see the level of interest shown by both entrepreneurs and investors since the formation of the group.

Its board is made up of people with a broad cross-section of skills that would help the group move forward, he says.

“Entrepreneurship is alive and well in Hawke’s Bay and there is now a place to come to get support and perhaps funding. Importantly, the group works with The Icehouse to help entrepreneurs with businesses needing funding to get investment-ready, so they’ve got a better chance of getting deals over the line.”

Dean says the group’s previous meetings in November, May and August were supported by Napier City Council and were well attended, generating strong interest from potential members.

The New Zealand angel investment community has been going for about 10 years and clubs around the country have a total of about 650 members. Over the past decade, $500 million has been invested into nearly 1,000 deals.

“HB Angels is the 12th club in New Zealand,” Dean says.

“Although Hawke’s Bay has a lot of other groups and entities investing in start-ups, this is the first formalised angel investment group.”

Club members usually meet once every two months and at each event, members can expect between two and four presentations from start-up ventures based either within or outside the region.

Members are able to decide whether, and how much, to invest in any particular deal presented to the club and often several members will invest jointly.

Aside from investing directly through the group’s nominee company, members are also able to take a stake in what would be the group’s first start-up fund – a portfolio of least 10 investments.

This type of portfolio approach improves the risk/return profile of an investment. Given the start-up nature of the type of investments angels are making, long- term returns can range from zero to large multiples of the original investment.

For commercial investments, where several investors are involved in the same deal, the group plans to work closely with MIG, a Palmerston North-based group with a 10- year track record of angel investment.

“We encourage investors to become actively involved in the investment process,” Dean says.

“Opportunities to participate in due diligence and take on a ‘lead investor’ role are available to members, with coaching and support provided to fulfil these roles.”

Katie Nimon takes the wheel

Katie Nimon has been working in her family business – Nimon Luxury Passenger Transport – since she was 14. Now she’s been recognised as a leading influencer for Hawke’s Bay tourism.

When this year’s Hawke’s Bay Tourism Awards were announced in September, Katie Nimon was honoured with a special individual accolade that seems very appropriate: Ambassador for Tourism in Hawke’s Bay.

It’s a reflection of more than just of her role as a key player in the local tourism industry; she’s been championing the Bay for years.

“When I was working in advertising in Auckland (about three years ago), my workmates used to joke about me being the ambassador for Hawke’s Bay,” she chuckles.

“Back then I used to talk about Hawke’s Bay so much – telling everyone to pay it a visit, how it was a great place to go on holiday, or just for a weekend – maybe they foresaw the award, I don’t know!”

In January this year, Katie was appointed general manager of the family business, Nimon Luxury Passenger Transport, where she works with her father and managing director Bill Nimon, mother Sue (administration manager) and uncle Garth Nimon, who looks after the company’s school runs.

Katie, 27, is the fifth generation of the Nimon family to work in the business and she’s been part of the company since she became a part- time staffer at the age of 14.

“I definitely started at the bottom. I was spending most of my time answering phones, filing paperwork and stamping envelopes. Basically, doing everything that no one else wanted to do.”

After leaving school, she studied advertising and marketing at Massey University, finishing with an Honours degree. But the family business has never been far from her mind.

“When I was 18, before I went off to university, I redesigned the logo to what it is now,” she says.

“Then, during my time at university, any free time I had – holidays and the odd weekend – would be spent working in the business, learning every single role that we have. I was doing the charter work, some marketing and PR, covering accounts when people were away, looking after operations.

“That was probably the best learning experience I could have. During that time, we were slowly starting to refine the brand and polish up what the business actually means, so I was effectively working on the brand identity that whole time.”

After completing her studies and spending time working in Auckland, Katie headed back to Hawke’s Bay in 2015 to take up the role as marketing manager at Nimons (as it is fondly known).

“The sunshine called and I followed,” she says.

“When I was younger I’d always wanted to work in advertising, and that’s what I studied and had the opportunity to do, and it was amazing; but the more time I spent away from Hawke’s Bay and away from the family business, the more I realised that was what I wanted to do.”

Then, in January this year, she became general manager, replacing long-serving GM Pete Patterson who had moved on.

“We looked at it and thought, yes, okay, I’m young, but on the other hand, who knows the business as well as I do?”

As general manager Katie retains the marketing role, which she says makes sense because it’s a business where marketing is at the core of what the company does.

“Everybody should be thinking with a marketing mindset, so it made sense that I continue doing what I was doing as marketing manager. In this industry the role is about marketing ourselves and the region as well as about relationship building.

“What’s really important is that you have good relationships with other operators and venues and members of the public. If other businesses don’t believe in what you do, then no amount of marketing is going to help because they are the advocates – they’re the ones who suggest to their customers that they should use your services.”

If taking up the GM role wasn’t enough, Katie is also back studying extramurally, working towards an MBA through Massey University.

While it’s keeping her very busy, she says she’s enjoying complementing what she’s learning through practical work in the business with what the MBA is teaching her.

Over the past three years, and following on from the earlier rebranding work, Katie’s work in the business has included introducing the Nimon Luxury Passenger Transport brand.

While not all aspects of the business are focused on ‘luxury’, she says the branding reflects the fact that a large portion of its operations is focused on the higher end of the market.

It’s a positioning Bill first identified when he realised several years ago that vehicles with high specifications were what the industry was demanding, and what could set Nimons apart.

“We had competitors in the region doing the ‘basic’ approach, and even though at the time there wasn’t a lot of high-end tourism, that’s changed and the arrival of destinations such as The Farm at Cape Kidnappers have brought a different type of business to Hawke’s Bay,” she says.

“Likewise, with the arrival of high-end cruise ships and growth in the number of touring groups and individual travellers looking for a top-quality experience, we’ve been ready for that change in the market, rather than waiting for it to happen and then responding to it.”

But Katie says the business – and the tourism industry in general – can’t afford to focus solely on high-end travellers.

“I think there’s a place for every kind of business and every kind of offering. We talk to people regularly who want our advice on how to get into the cruise market or tourism in general and we tell them the most important thing is offering something for everybody.

“We’re very aware that we’re not in Auckland, where you might be able to be top-end-only and still be successful. But if we only offered top-end services here, we wouldn’t be busy all the time.

“I was recently talking to a new operator who was interested in targeting the top end and I told him you don’t want to discount the backpackers because they still have money to spend, albeit not as much.

“It doesn’t mean that everybody shouldn’t offer quality and I think that’s completely different. If you are offering an affordable, accessible product, it still needs to be high quality, it just might not have all the bells and whistles that a top operator might have.”

She says the industry should always have in the back of its mind that today’s backpackers and freedom campers could potentially return to New Zealand as tomorrow’s luxury travellers.

Cruise ship passengers, who might only spend a few hours in the region, should also be thought of in the same way.

“People on cruises might be here for six hours. It’s not long and often they don’t spend much money in the region, but we’re here to put our best foot forward and give them a great experience. Then they’ll come back, bring their families and stay for a week – that’s what we want and that’s our opportunity.

“That’s how we’ve got to treat any visitor – the potential for more. A backpacker may come here freedom camping but in 10 years’ time, when they’ve got money to burn, they might come back and stay in luxury accommodation.”

One of the challenges for Nimons, she says, is it represents two industries – transport and tourism – which often have conflicting requirements.

“The thing is not to put yourself in one box, because if we had put ourselves only in the transport industry box we wouldn’t have even considered the possibility of seeking Qualmark Gold certification. But because we’re also a tourism operator and we see the value of respecting and protecting the environment and making sure we are role models for our visitors, we went for it.

“We tried really hard to offset our carbon footprint and we achieved Qualmark Gold status. As a tourism operator that’s not uncommon but as a transport operator, it is. We’re one of only two coach companies in the country to achieve it.”

Nimons is a business where there’s a constant need to ensure the customer experience is unique, says Katie.

“It’s the personality of the driver and that feeling that customers have when they get onboard one of our vehicles. That’s what you’ve got to keep in mind every day. It’s more than just getting someone from one place to the next – because anyone can do that – it’s what you can do differently.

“The most important thing is thinking more about the experience than the product. The product is the bus and the experience is what you do with it. You can have the world’s nicest, most modern vehicle but if you’ve not got the entirety of the service at that same level, it’s not going to be a complete experience.”

Nimons.co.nz