New River

Pharmaceutical Sector

Fri, 29 Aug 2008 00:00:00 +1200

Business conditions in the Pharmaceutical Sector are difficult to neutral for most companies at present. Pharmac works to reduce drug costs in New Zealand which makes it harder for brand manufacturers to profit; retail pharmacies are suffering from new supermarket competition and an effective

Insurance

Fri, 25 Jul 2008 00:00:00 +1200

Most Insurance executives and business owners rate current business conditions as difficult. In general insurance last year claims costs were high and companies were not profitable. This year the companies needed to raise premiums but that has not easy in the highly competitive industry; and tightening economy. In life insurance, the investment side of the business is difficult. However there are some buoyant segments, particularly

Oil & Gas Exploration

Fri, 27 Jun 2008 00:00:00 +1200

The rising oil price, while painful for consumers, is fueling unprecedented exploration, development and revenues in the Oil & Gas Exploration Sector. Previously marginal oil fields sitting idle are now being developed and new areas like the Great South Basin are now being explored. But the price of oil is also having unwelcome side-effects on the Sector. Resources needed like

HEALTH SERVICES SECTOR

Fri, 30 May 2008 00:00:00 +1200

The main goal of executives in Health Services is patient care, as opposed to financial or market considerations in other sectors. And what’s happening with health care in New Zealand currently is demand for services is running ahead of public funding. Funding shortfalls are in specific areas such as emergency care, mental health, and aged care; and with private providers relying on public funding.

Agriculture Sector

Fri, 25 Apr 2008 00:00:00 +1200

Most of the Agriculture Sector is currently at one of two extremes with little in the middle – which extreme depends on what is farmed. Dairy farmers are in a boom time, with very high payouts; although the boom is being tempered by the recent drought. At the other end, sheep farmers are in terrible difficulty
as payouts are very depressed, with prices for lamb less than production costs.

Environmental Technology

Fri, 28 Mar 2008 00:00:00 +1300

Demand for Environmental Technologies is booming. There’s more pressure on polluters to clean up, consumers are demanding more environmentally friendly products; local government is pressuring clients, tourists want to see sustainable management; and one industry segment – Waste Management Materials Recovery – is caught up in the resource boom driven by China.

Computer Services

Fri, 29 Feb 2008 00:00:00 +1300

INDUSTRY OVERVIEW For most companies in Computer Services business is either buoyant or very buoyant. The market for Computer Services is growing. More and more people are using computers and needing services; and there is a proliferation of new technologies and applications where services are required for businesses and consumers.

Fishing & Aquaculture

Fri, 25 Jan 2008 00:00:00 +1300

Industry Overview

For most companies in Fishing & Aquaculture business is either difficult or very difficult. The high New Zealand dollar is cutting export revenues. Traditionally 80% of fish has been exported.

There are some unfriendly government policies, rising fuel costs for vessels, the commoditisation of some shellfish products and ineffective marketing by many companies in the industry.

The most exciting companies – New Zealand King Salmon and Ocean Blue and others – have developed new higher value markets, distinctive products, and a price premium in the market over others.

The New Zealand King Salmon Company
The highest priced salmon in the world
Oceanz Blue
“Huge breakthrough” in Paua farming
Yellow Brick Road
Successfully developed a new market for fish
Clevedon Coast Oysters
Quality brand for local fresh oysters
Island Aquafarms
Developing new species for inshore Aquaculture
Talley's Group
A company that’s “grown tremendously”
Westfleet Fishermans Co-op
Doing well while most in the industry are not
Omega Seafood
Mussel farmer, became a processor and exporter
Kai Moana
New system for catching deep water Tua Tua
Leigh Fisheries
Fishing company succeeding while others are not
AquaCulture NZ
Setting ambitious goals, taking on the government

Horticulture

Fri, 09 Nov 2007 00:00:00 +1300

Industry Conditions

Horticultural markets are getting pulled in opposing directions at present. There’s rising global consumption of fruit and vegetables and demand exceeding supply in some market segments like organics and hops.

At the same time, the high New Zealand dollar is creating major difficulties, especially for exporters. Half of the industry executives and business owners interviewed rated business conditions as difficult or very difficult at present.

The most exciting companies are the ones coming up with new ways to lift the market value of products. Seeka developed a ‘first fruit’ of the season value-premium (“Kiwistart” program); HortResearch invents new fruit varieties and applications for fruit, with some spectacular success like the Gold Kiwifruit; and Blackcurrants NZ is differentiating in markets based on the health benefits in blackcurrants.

Seeka Kiwifruit Industries Ltd
Big, vertically integrated, structure enables new advantages for the industry e.g. Kiwistart
HortResearch
International leaders in developing new fruit varieties, invented the Gold Kiwifruit
Blackcurrants NZ Ltd
Export business quantifying the health benefits of blackcurrants to consumers
Ashley Berrysmith
Owns NZ Freshcut and Sproutman, highly innovative, Progressive supplier of the year
Terranova Seeds Ltd
Growth business based on new varieties of seeds for crops and fruit
Daltons
Well-liked older family owned company in range of new areas e.g. gypsum, coconut fibre
Just The Berries
Building business on a health platform, attracting a market-premium
Zelam Ltd
Provide encapsulated formulas for crop protection
Kiwi Fresh Ltd
Small company, start up in wholesaling, challenging the larger players
Kipp’s Patch
Successful business, grows micro-greens as flavour enhancers/garnishes for restaurants

Financial Sector

Mon, 15 Oct 2007 00:00:00 +1300

Industry Conditions

The Financial Sector is having some challenging times at present with Finance Companies struggling to attract deposits, investors being more cautious across the board and the credit crunch impacting locally. It’s not all doom and gloom however. Merchant banks are having a good flow of deals; NZX stockbrokers are doing well as are some investment firms. The most exciting companies are those winning in the middle of the current difficulties.

South Canterbury Finance because it’s still doing well in difficult times, Rabobank because it managed to raise $900 million with a capital issue to a cautious market, and Interest.co.nz with it’s role in stimulating positive debate in the Sector. New names for most will probably be Murray and Company, a South Island investment bank doing “a lot of work on the east cost of Australia”, and Moneytree Brokers, recently awarded the Mortgage Broker of the year.

South Canterbury Finance
“A company still doing well in difficult times”
Rabobank
Raised $900 million from a capital issues to a cautious market
Murray & Company
Quiet achievers in investment banking, doing business on East of Australia
Interest.co.nz
Financial important portal stimulating positive debate in the industry
ASB
Always up near the front, “strong following by the person in the street”
First NZ Capital
Top investment bankers in New Zealand by market share
Moneytree Brokers
Winner of industry award for Mortgage Broker of the Year
GE Money
Growing by acquisition
New Zealand Finance
Multiple threads to strategy, possible about to go on an “acquisitions spree”
Kiwisaver (Companies)
Companies that have come up with new products in response to Kiwisaver

Road Transport

Mon, 10 Sep 2007 00:00:00 +1200

Industry Conditions

“Road transport is about as exciting as watching grass grow – we’ve all got the same gear and are doing pretty much the same thing” said one respondent in this month’s Search for Exciting Companies which looked into the Road Transport Sector.

Nonetheless, other executives and business owners pointed out standouts. These are companies placing a strong emphasis on staff, paying staff good rates and investing in driver safety and training.

Acquisitions are also a key trend of the growth companies – 90% of drivers in the industry are owner-drivers (even in larger companies) and there is a shortage of drivers overall.

Companies with “good systems”, “good gear” or “well-maintained gear” also rate very highly with executives and business owners.

For the majority of respondents Road Transport is a highly competitive low-margin business, subject to increasing costs at present – fuel, road user charges, interest rates and staff costs. However, a minority do rate business as buoyant at present. These are companies with either niches or a wider range of services on offer, such as Mainfreight who are a logistics company rather than just road transport.

Mainfreight
Outspoken industry leader, trendsetter, strong financial results, international growth
Tranzliquid Logistics
Solution-oriented for petroleum and dangerous goods, strong emphasis on staff training
Alexander Petroleum Services Limited
Successful, petroleum and dangerous goods transport, well maintained equipment
Linfox Logistics
Rapidly growing company, refrigerated transport.
Fliway
Rapidly expanding through acquisition of other companies
Express Couriers Limited
Dynamic, enterprising, offers a wide range of service, exploring sustainable business
Dynes Transport
Professional operation with late model gear, working with Fonterra
Five Star Distribution
Rapidly growing, successful operation, works well with competitors and values staff
Miller Davis Freight
Customer-focused business, easy to deal, very well maintained vehicles
Symons Transport
Very well presented company, takes pride in equipment, keeps all gear in good condition

Plastics Manufacturers

Mon, 20 Aug 2007 00:00:00 +1200

Industry Conditions

Things have been pretty tough for Plastics Manufactures lately. 60% rate business difficult or very difficult.

The high New Zealand dollar is the main problem. It’s made exporting less profitable and competing imports cheaper for the local market. Still, 20% of Plastics Manufacturers rate their business as buoyant at present. They tend to be niche players or those in the more complex rather than commodity (plastic bucket) end of the market.

The most exciting Plastics Manufacturer is Adept, a company said to be a “price setter”. Adept develops new Veterinary and Healthcare products. One of the companies most well known products is the Wesand Clip. It sells 18 million of these clips a year to abattoirs internationally. The number two and three companies, Elastomer Products and Talbot Plastics, also produce sophisticated plastic products, as opposed to commodity, for local and export markets.

Adept
Creates new products for Veterinary and Healthcare industries, highly successful exporter
Elastomer Products
Supplies for technical products and extrusions for export, “world class” production
Talbot Plastics
Make range of complex products, hand help GPS and “Kain Mail” (plastic chain mail)
Alto
Makes a wide range of plastic products used by many New Zealanders
Millennium
Injection moulder for Veterinary and Healthcare industries
MT Containers
Recycling plastics for domestic and industrial products like handles and barstools
Acron Plastics
Makes industrial displays and components including the screens for Navman

Sporting Goods Manufacturers

Mon, 16 Jul 2007 00:00:00 +1200

Industry Conditions

This month’s exciting companies looked at Sporting Goods Manufacturers.

There are only 30 or so, mostly smaller companies, in the industry nationwide. Amongst them there are world leaders. Sporting Goods Manufacturers serve a diverse range of sports, everything from Adventure Sports, Rugby, Land Yachting, Ice Hockey through to Marine Sports; locally and internationally.

Kathmandu was rated the most exciting company and said to be a world leader in its technical capability. Papamoa-based Blokart International is the world leader in land yachts and Palmerston North-based Obo is the world leader in protective gear for Ice Hockey goalies and also makes Rugby headgear. Silicon Coach, more a Sports Information Technology company, provides video analysis tools allowing you to compare your sports technique with top athletes.

Kathmandu
Christchurch based adventure maker, said to be world leader in technical capability
Blokart International
Papamoa-based world leaders in land yachts; designed a new type of land yacht
Obo
World leader in protective gear for Ice Hockey goalies, and maker of rugby headgear
Silicon Coach
Provides video analysis tools to enabling comparisons of your technique to top athletes
Earth Sea Sky
Manufacturer of adventure wear; unlike most, kept its manufacturing in New Zealand
Odyssey 2000
Manufacturer of boxing bags, kick boxing pads and pads for scrum machines
Sealegs
New type of sports boat, the amphibious inflatable
Orca
Wetsuit maker with high local market penetration
Hot Shot Sports
Produces sports gear, and the systems for school sports
Euro Inflatables
Maker of the hot rod of inflatable boats, with stereos and weight racks onboard

Education

Mon, 18 Jun 2007 00:00:00 +1200

Industry Conditions

Business is both buoyant and difficult in education at present. It just depends which market segment you operate in.

Those serving businesses and private paying people are doing well. Early childhood educators are also doing well thanks to the recent government funding increases. The language and international sectors however are declining. This is because of the high kiwi dollar and reputation damage suffered in China with New Zealand language school collapses.

The most exciting education business in 2007 is one run by Alex Findlay and Stephen Fleming (not the cricketer). They are building new independent schools in underserved areas like West and South Auckland. In 2003 most of the exciting education providers had a strong international component. With that area in decline now, none of the 2003 crop of exciting education businesses made the most exciting top list in 2007.

Alex Findlay and Stephen Fleming
Building new independent schools in new areas like West and South Auckland
Boost New Media
Embracing new media and providing a young, groovy feel to new education programmes
Copeland Wilson Associates
Multi-media education programmes, like interactive math exercises
Euroasia
Cross cultural and language training for corporates with offshore markets
Kindercare
Started as a one person childcarer from a caravan now a multimillion dollar business
AIS Saint Helens
Largest private provider of tertiary degrees in New Zealand
St Peter's School (Cambridge)
The home of the New Zealand Golf Academy, a fast growing school in Cambridge
Queenstown Resort College
Luxurious new English school in Queenstown, aligned with Ceaser-Ritz Switzerland
Ngai Tahu out of school tuition programme
Partnering with private providers for quicker results with children’s education
Ministry of Education - Maori preschool development
Developed an early childhood centre in partnership with Ngati Whatua in Auckland
AUT University
Providing an upward feeder system for the best students from private providers

Construction

Mon, 14 May 2007 00:00:00 +1200

Industry Conditions

The Construction Sector is still booming. 86% of executives interviewed for The Exciting Companies Search in Construction rated business as very buoyant or buoyant.

Infrastructure spending is high, commercial building demands exceeds supply, the Energy Sector is building new facilities, and residential housing is still growing strongly. Some executives think Construction activity is “plateauing”. Others think the factors underpinning the growth, like a backlog in infrastructure and immigration growth with residential, will see the boom continue.

Fletcher Construction are rated the most exciting construction company, as in 2003. Industry executives say the company has continued to perform exceptionally well with the new CEO. Fulton Hogan is rated number two, and is said to have “incredible” growth. Amongst other exciting companies an unusual one is Habode. They are creating “truly transportable” homes.

Fletcher Construction
Winning the big projects, doing them exceptionally well, leading the industry
Fulton Hogan
Have incredible growth, expanded from South Island work to national and international
R & J Homes
Innovative construction – new methods, new materials, innovative staff
Building Solutions
Turn buildings others rate as dogs, into valued properties for tenants
Greenbuild
Enabling green construction, through a national database of green building products
NZ Building Supplies
“Healthier Homes” products
Ryman Healthcare
Highly successful developer of aged care facilities
Highway Stablisers
Niche market in development of roads in New Zealand and Fiji
Habode
Developing the idea of “truly transportable” homes
Aspec Construction
New methodologies for construction like their prefabrication processes
James Hardie
Innovative new building products
HEB Contractors
Major growth in the last five years, road and bridge construction