Best business – over $50m

During the past 18 years New Zealand’s BCS has become the biggest player in airport baggage handling systems in Australia. Now the company is looking for new markets and training its gaze on services and solutions for customers.

If you’ve flown across the Tasman in the past year, there’s a four-to-one chance your bags were navigated through an Australian airport and delivered to your side by a BCS baggage system.

New Zealand company BCS sells logistics hardware, automation controls and elegant software solutions, mainly in the aviation sector. Chief Executive Patrick Teo says the company is the supplier of choice to airports, airlines, freight and industrial customers in Australasia and, increasingly, around the world.

BCS Airport Systems provides design, fabrication, installation and commissioning of complex baggage handling and security screening systems. The company develops the entire system, from machinery to software, and follows up with a “whole of life” infrastructure support plan.

Established in 1993, BCS now employs 300 staff across its global group sites, which include eight cities in Australia, as well as Malaysia, North America and a new subsidiary in Mexico

BCS has 75 percent market share in Australian airports and it is estimated 80 percent of all checked-in baggage in Australia is handled by a BCS baggage handling system. Its share globally is growing with systems delivered in over 40 countries.

Mr Teo says BCS aims to grow and geographically diversify its contracting business while transforming the entire business to an innovation-led solutions and services company. Currently it is weighted towards contracting and infrastructure support with 2 percent of revenue derived from its third business unit, services and solutions. The plan is to grow services and solutions to 30 percent of the business in the next three years.

“We are rapidly adjusting to being a world class globally-successful New Zealand company capable of scaling to $100 million and beyond,” Mr Teo says.

BCS’ revenue in 2011 was $71 million, of which $69 million was earned overseas. The company aims to achieve its $100 million revenue goal by 2013.

Its magnets are used to produce over 80 percent of the world’s silicon chips. The company’s products are used to manufacture flat-screen televisions, smart-phones including the world-leading i-phone, and solar panels.

Buckley Systems has offices in Auckland and Boston and employs 260 plus staff with a combined manufacturing space of 15,800sqm. Every month, the company uses 500 tons of steel, 45 tons of aluminium and 16 tons of copper. On average 10 smaller companies are working on Buckley Systems projects at any one time, contributing roughly 120 jobs to the Auckland area.

Chief Executive Mike Lightfoot says the company places extreme importance on product quality and employs a dedicated quality assurance team to constantly monitor production.

It also boasts top talent when it comes to the technology of electromagnets.

“We have engaged and retained technical experts with leading knowledge and skill sets in engineering disciplines integral to the manufacture of electromagnets,” Mr Lightfoot says.

The company collaborates with universities around the world to find new uses for magnetic technology. It recently worked with Massachusetts Institute of Technology (MIT) on a medical magnet project and is also moving into the medical realm with work on proton and photon therapy as a cancer treatment.

Buckley Systems is also starting to work in security, with the development of powerful magnetic scanners.

Mr Lightfoot expects revenue to grow 41 percent in the next two years, from $69 million in 2011.

Christchurch Engine Centre has drawn on global networks to grow its share of the aviation maintenance, repair and overhaul business.

The Christchurch Engine Centre (CHCEC) has grown into one of the aviation industry's most renowned maintenance, repair and overhaul facilities.

Through a joint venture with Pratt & Whitney and Air New Zealand, CHCEC is part of Global Service Partners, Pratt & Whitney's worldwide maintenance, repair and overhaul network, which enables a CHCEC to respond quickly to customer inquiries 24 hours a day and ensure no inquiry goes unanswered.

This rapid customer response also helps to maximise the possibility of converting these customer inquiries into engine overhauls which ultimately leads to greater market share.

General Manager Brendon McWilliam says distance from its customer base is a major challenge for the company, especially with freight costs for an engine sometimes in the hundreds of thousands of dollars. However, typical of kiwi ingenuity, the facility has employed creative solutions to overcome this hurdle.

“We have forged out our own formidable reputation which is now becoming well-known in the world market for quality and service, and is further enhanced through our stakeholders, Pratt & Whitney and Air New Zealand, industry leaders in their own right.

“In addition to offering competitive prices, our overall value proposition and renowned customer service is critical in ensuring global airlines send their engines to New Zealand, often having to pass the competitors' door in the process,” Mr McWilliam says.

CHCEC was established in 2001 and has steadily grown its business year-over-year.

McWilliam says CHCEC financially contributes to the local Christchurch and New Zealand economy in approximately $35 million in wages and salaries and expenditure in the form of services, material and equipment exceeding $15 million annually.

Downer NZ has enjoyed success through its reputation for on-budget, on-time, safe and socially-conscious infrastructure projects in the Pacific. 

After three years constructing 150km of road, bridge and causeway in Vanuatu, Downer NZ is well established as an expert in delivering Pacific infrastructure projects.

Downer has been in the Pacific since 1983 when it constructed the Palau International Airport for the US Navy as part of a joint venture.

Since then, Downer NZ has completed projects as diverse as a school in PNG, an airport in Kiribati and a power station, bridges and a wharf in Fiji.

Downer NZ’s customers are the governments of developing Pacific nations. Projects are typically funded by agencies such as the World Bank and the Asian Development Bank.

Downer NZ Chief Executive Cos Bruyn says: “The Pacific comprises mainly developing countries. Generally all have similar infrastructure challenges – a need for better roads, better water supply, better sewerage, better communications, cheaper and more accessible power supply.

“Funding agencies are looking for innovative, experienced, reliable contractors who can deliver sustainable engineering practice with a zero tolerance of bribery or corruption.”

During the past three years, Downer has constructed 150km of roading, bridges and causeways in Vanuatu – a $US65 million project funded by the Millennium Challenge Corporation and the New Zealand government aid programme.

Thirty Downer NZ staff were deployed to Vanuatu between 2008 and 2011, and an average of $US100,000 was injected into the local economy each week through wages for 300 Ni-Vanuatu (indigenous) employees and subcontractors.

Mr Bruyn says safety management is crucial for Downer NZ, both at home and when working overseas. “The Vanuatu project has achieved a proud record of no loss time injuries for 840,000 hours worked.”

In the last year, Downer NZ reported revenue of $1.2 billion, of which almost $53 million was from offshore earnings. The company’s international earnings were just over $10 million in 2008.

Orion Health has achieved its goal of becoming an internationally recognised health information technology (IT) vendor and New Zealand’s largest privately owned software exporter.

Orion Health is a 100 percent privately owned software company specialising in healthcare IT. Founded by Chief Executive Ian McCrae in 1993, it has developed intuitive, world leading healthcare IT products and successfully implemented its solutions in more than 20 countries around the globe.

Orion Health first started selling its products internationally via the internet in 1994. It went on to establish its first “office” in the United States in 2002 and has since grown to have 500 staff in 14 offices across nine countries.

Orion Health’s largest markets are the US, Canada, the United Kingdom, Spain, Australia and New Zealand. Newer opportunities are being pursued in Japan, China, the Middle East and Europe.

Mr McCrae says: “Our vision is to become New Zealand’s first billion-dollar software exporter by developing a next-generation suite of eHealth technologies.”

Orion Health’s four key markets are hospitals or hospital groups; government health departments; health IT vendors and medical equipment manufacturers.

The company’s products provide solutions for health information exchange, clinical workflow and data integration. For clinicians, these products provide secure, easy access to a single best patient record – helping them make better decisions about the care they provide their patients. For patients, it allows secure access to their health record – helping them to engage with their care providers and be in control of their own health.

Mr McCrae says customers range from hospitals such as the Auckland and Canterbury District Health Boards, to regional healthcare organisations such as the Ministry of Health in Singapore and state-wide solutions in the US.

The company increased its workforce by 67 percent in the past year and operating revenue has climbed 134 percent in five years. Orion Health’s 2011 operating revenue was up 42 percent on the previous year, and of this 94 percent was earned overseas.

Six years ago, the company focused its efforts primarily in the GPS or positioning market but had since started tapping into new areas.

Chief Executive Brent Robinson says its global manufacturing and sales has given the company a relatively unique advantage in terms of market reach and geographical presence. It has also created opportunities to transfer expertise across different parts of the company.

Rakon’s targets well-performing customers of reasonable size or competitive advantage in growth markets and provides them with superior solutions. An ability to identify niche markets and develop solutions requiring high degrees of specialisation and innovation has spurred its success.

 “As an example we spent time and effort understanding the difficult GPS market so we could sell into it effectively. We have continued to adopt this approach, with innovative products continuously being designed and developed for all of our markets”.

Partnerships with other global technology players have provided mutual benefits. Rakon’s partners have assisted in pulling through demand for it products and Rakon has enabled solutions with previously unattainable performance.

It recognised early on the importance of establishing a presence in the Asian market. Since 2006 Rakon has grown from having one New Zealand facility to nine design and manufacturing facilities around the globe, including three in China. It also has 14 offices in 11 countries.

In China and India, Rakon has established its manufacturing operations as joint ventures, recognising that partnering with trusted local businesses was the most efficient way to enter those markets. The joint ventures have enabled Rakon to engage closer with its partners and win more business with its customers.

In 2011 the company recorded total sales of $189 million, of which 99 percent was earned from exports.

Family-owned SKOPE Industries has developed an international reputation for innovation in heating and refrigeration technologies. 

From the day SKOPE Industries was launched 45 years ago, the intention was to build a high-quality brand built on innovative design and manufacturing excellence. 

From that vision has grown a family-owned company that now employs 415 people in a combined research, design and production plant in Christchurch and a team of 18 sales staff across Australasia.

Managing director Guy Stewart says SKOPE’s range of products includes commercial refrigeration appliances used by corporate beverage companies in the soft drink, dairy and alcohol industries; foodservice refrigeration for front and back of house in bars, restaurants, cafes and foodservice industries; heating products; and SKOPE Services, a financial and logistics company providing leasing options for corporate beverage companies.

Underlining SKOPE’s commitment to improvement, it boasts the largest design and innovation centre of its kind in Australasia.

Beyond design and manufacture, Mr Stewart says his family business seeks to build strategic relationships with global leaders in supply (such as Haier in commercial refrigeration and Muller in heating), and with leading companies on the demand side of the business, such as Coca Cola Amatil. These strategic relationships ensure SKOPE is constantly exposed to current refrigeration market issues.

The focus on meeting customers’ needs with cutting edge technology has resulted in high export-based returns. In the year ended June 2010, 30 percent of SKOPE’s revenue was generated through new product development and nearly 100 percent of this revenue was earned overseas. 

In the 2011 financial year, 80 percent of SKOPE’s products were exported, generating international revenue of $66.5 million.  Total revenue was $83.8 million. In spite of a recessive business environment, SKOPE recruited 107 new staff in 2010.

Canterbury’s largest private-sector employer, Tait Communications, has 42 years experience delivering mission-critical radio communications to customers around the world.

Tait’s vision is to become the best company in the world at delivering radio solutions for its clients in the public safety and utilities sectors. Tens of millions of people depend on Tait-enabled organisations to keep their lights on, cities flowing and communities safe.

Its purpose is “to build long-lasting benefits for its customers, employees, the community and the country”.

The company has built its reputation as a manufacturer of radio communications solutions, but the business is evolving to provide managed services, delivering increased long-term value to customers. This includes design, deployment and support services, as well as managing and operating clients’ systems.

Tait Managing Director Frank Owen says: “Our objective is for revenue from managing and operating clients’ systems, rather than the sales of radio equipment and software, to reach 30 percent of total revenue in the next three years.”

As part of its aggressive growth strategy, Tait is focusing on two sectors internationally: public safety/government agencies and utilities, whose operations rely on effective radio communications.

“Customers are now looking for outcomes rather than just products. Building a thriving services business and focusing on core sectors where we can provide solutions that add real value remains crucial for our continued growth.

“Our efforts are focused on targeting and understanding these segments, and building and designing products and solutions which are optimised for these customers.”

In 2010, Tait’s revenue exceeded US$150 million, of which 95 percent was earned offshore. Tait invests more than 14 percent of its revenue in R&D and has facilities in Houston, Brisbane, Singapore and the UK. To better access growth markets Tait opened new facilities in Vienna, Melbourne and Beijing in 2011.

Westland Milk Products manufactures and sells more than 90,000 metric tonnes of dairy products a year, 84 percent of which is sold overseas. The dairy company exports to over 40 countries around the world and has more than 70 customers globally.

Chief Executive Rod Quin says the majority of Westland’s core business is ingredients for other businesses, particularly those making nutritional products. It also retails products such as its own Westgold Butter to markets such as Azerbaijan, Hong Kong and China.

Over the course of the last three years Westland has enjoyed growth in product volume and value. Annual sales revenues have increased by $170 million or 53 percent while export earnings have grown by $123 million or 43 percent.

Westland is the third largest processor and exporter of dairy products in New Zealand. It sources and processes more than 500 million litres of milk annually into a range of dairy ingredients and finished products, from milk powders and butter pats to advanced nutritional products for the sports and infant milk powder market. Revenue for 2011 was $525 million, of which $380 million was earned offshore.

Westland has approximately 340 West Coast-based dairy farmer shareholders and more recently shareholders based in Canterbury within its cooperative structure, and employs more than 400 staff across an office, warehousing and milk processing facilities in Hokitika and Christchurch, and subsidiary yogurt maker EasiYo in Auckland.

The West Coast community and economy relies heavily on the dairy industry to thrive. In the past 10 years Westland has delivered solid profits to shareholders and contributed to the West Coast and New Zealand economies with a surplus in excess of $360 million paid to farmers in 2011.