The PrintNZ Conference took place over two days at Auckland’s Heritage Hotel and featured speakers from Europe, USA, Australia and New Zealand

Keynote speakers, Göran Roos and Gareth Kiernan mixed a little slice of good news with a large portion of grim reality in their conference addresses.

Roos, honorary professor at Warwick Business School in the UK, spoke of his experience in changing businesses in Europe with an emphasis on how printers can use a manufacturing strategy to set their businesses up for success.

He pointed out that the technology-driven structural change in the industry began in the 1980s and the key challenges include becoming skilled in multi-dimensional-based competition to create value; managing and benefiting from continued technology convergence; moving from competing in value chains to competing in business ecosystems; migrating from products to solutions; increasing management competences and capabilities; understanding the drivers of success in small-to-medium enterprises; and implementing change processes that make the firm more innovative.

He said, “The good news is that the knowledge exists on how to make these transitions and what a good end-state looks like. This has characteristics such as low-to-no financial debt, high reinvestment of profits, a narrow focus on a niche strategy, very high competence in things such as the emotional impact of colour, shape and tactile perception, and loyal, competent low-turnover employees that are continuously trained to stay ahead of the game.”

He said print businesses need to think broader, using more media, including electronic media, than just print; to develop and maintain new competencies; to get an appropriate understanding of the market; and to use any type of business performance enhancing tools and develop and stick to a clear strategy.

Gareth Kiernan, managing director of Infometrics. He explained the implications of the current global outlook for commodity prices, financial markets, confidence, investment and hiring decisions, as well as household spending growth in New Zealand. He advised caution, saying, “We may be past the worst of the European debt crisis but there are still risks. Infometrics are not picking a full-scale meltdown but uncertainty and bank funding costs remain high.”

He added that with growth dampened by the aftermath of the earthquakes and the government’s tight fiscal position and its curtailing of spending, we have reached the point where banks need to issue debt but people want higher interest rates before they part with their money. He said, ““I am hopeful that from early next year, we will benefit from improved world growth. Most forecasters are looking at 2-3 per cent GDP growth in the next year. Business could expect interest rates to rise over the next two years but they should stay below five per cent.

Lessons from Christchurch
Jeff Pryde, from loss adjusters McLarens Young International and Caxton Press managing director Bruce Bascand delivered a sombre presentation on their business-related experiences following the Canterbury earthquakes.

Pryde pointed out that the region had exoperienced 11,000 seismic events the first in September 2010. He recommended that all companies should seek business interruption cover for 18 months if possible, otherwise, they faced a 50/50 chance of going to the wall in the event of a disaster. Businesses should also check the terms of their rental and lease agreements regarding their obligations on even wrecked or inaccessible buildings.

Mr Bascand described how tough survival had been for his business, with no access to its site for extended periods and ultimately losing its iconic building. He praised his bank and for the majority of people who had a positive attitude but expressed frustration with the insurance industry and the lack of leadership shown for businesses.

He endorsed Pryde’s advice on businesses taking out interruption insurance, adding other suggestions such as having a board with independent advisors, cultivating sub-contractors, befriending their bank, using an insurance broker and keeping plant and equipment valuations up to date. Separating out various elements of insurance could help. For instance, if a company also owned a building but had that in a separate trust, then it could claim on the loss of rental income. In that kind of situation, companies should establish an off-site meeting place; have a list of staff emails and addresses to maintain information flow; process accounts online; maintain offsite back-ups; and access good employment advice.