the canterbury report, summer 2016

SUMMER 2016

THE CANTERBURY REPORT

PREPARED BY CANTERBURY DEVELOPMENT CORPORATION

Forward thinking

A diverse city

Workforce planning

Business and education links

CONTENTS

Information included in this issue of The Canterbury Report was accurate at the time of print. Sources include: Statistics New Zealand; Infometrics Ltd and Canterbury Development Corporation.

Front Cover: The Innovation Precinct at night

Follow our digital profiles to keep up to date with business and economic news as it happens.

@CDCChristchurch

Canterbury Development Corporation

www.cdc.org.nz

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01 Message from the Chief Executive

02 The State of Play - Key economic indicators

04 Mind the gap: a labour market feature

05 Diversity brings a richness of perspectives

06 The critical link between business and education

07 Flying the flag for hi-tech manufacturing

08 International students available to help exporting businesses

09 Brazilian expertise in Christchurch

10 Energy Light expands manufacturing

12 Smish: a recipe for success

13 Good Honest Products goes big

14 Innovation taking flight

16 Hi-Growth Launch Programme a success

18 The countries youngest franchisor

19 vBridge keeps growing

20 Mentoring, a family affair

21 In Focus

FROM THE CHIEF EXECUTIVE

Economic transition continues2016 remains a transition year for the Christchurch and Canterbury economies.

Economic activity in the city remains very high – with activity levels circa. $1.2 billion per quarter for the last couple of years – a level that we are forecasting to remain for the foreseeable future. Gross Domestic Product (GDP) continues to track well for both Christchurch and Canterbury as we transition from a booming high growth rebuild economy to a growth plateau.

Foot traffic in the central business district continues to increase daily as businesses relocate back to the heart of the city and we expect to see a considerable change in the months ahead, particularly as construction in the Cashel Mall area peaks. It is also very heartening to see city visitor numbers continuing to recover well.

In this issue, you will find our regular The State of Play feature outlining insights

from current economic data and analysis as we look to the future. Succession planning in businesses will become more important than ever as cities compete globally to attract and retain talent to backfill baby boomer retirees.

We look at the interface between business and tertiary education, highlighting opportunities for international students and post-graduates to undertake internships and project work with local businesses. We also feature TE Connectivity, a local high value manufacturing firm and the work that they are doing with educators to enhance the student experience. The business finds the insight from students valuable and capitalises on their ideas to refine and grow their business operating model.

Inside you will also find details on our innovation economy which is alive and well across the region. Many success

stories in the innovation system are not well publicised or acknowledged but collectively make a large contribution to our economic success. In this edition, we feature several investment funds who have a focus on the commercialisation of new ideas and start-up enterprises. We also feature several new and innovative businesses that have progressed their business models after learning from those who have gone before.

Economically the city continues to perform well and our expectation is that Christchurch will remain busy for several years to come.

Tom Hooper

Chief Executive Canterbury Development Corporation

THE CANTERBURY REPORT SUMMER 2016 | 1

Canterbury Gross Domestic Product (GDP) Annual Average Percent Change Source: Statistics New Zealand, Infometrics, CDC

THE STATE OF PLAY

GDP

The economies of Christchurch and Canterbury continue to adjust following the above average growth created by the earthquake rebuild.

Overall activity in the economy remains very high, although GDP growth is now at a low level.

The construction sector is operating near peak capacity, having scaled-up dramatically to rebuild the city. However, building consents have eased meaning that activity too will lessen in time as the industry completes work on previously consented buildings.

The spotlight now turns onto the

Key economic indicatorsunderlying economy to drive prosperity going forward.

Annual growth in Christchurch was 0.8 percent in the June 2016 quarter, unchanged from March 2016, but down from 3.3 percent in June 2015. For Canterbury, growth has settled at 0.9 percent in June 2016 quarter, down from 1.0 percent in March 2016 and 3.8 percent in June 2015. Growth is expected to remain at around this level in the near term.

The level of economic activity reached $18.8 billion in Christchurch in the June 2016 quarter and $27.7 billion for Canterbury. Canterbury contributed 12.2 percent of national GDP in the year to June 2016.

“The Building Activity Survey for Canterbury indicates the overall level of activity rose slightly to $1.2 billion in the June 2016 quarter.”

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Canterbury New Zealand

Employment

The Canterbury labour market remained very strong in the June quarter. The unemployment rate rose marginally from 3.0 percent in March 2016 to 3.2 percent in June 2016. Christchurch’s unemployment has been slowly rising, however its reading of 4.3 percent in the June quarter still sits below the national rate of 4.9 percent.

The high workforce participation rate remains a real strength of the economy, with rates of 73.0 percent for Christchurch and 71.5 percent for Canterbury. These are both well above the New Zealand rate of 69.5 percent. A higher workforce participation rate indicates a greater proportion of the population is economically engaged, which helps to disperse the economic benefits of growth.

Earnings

Earnings in the region have plateaued following a period of strong growth. For workers in Canterbury, average weekly earnings including overtime in the June 2016 quarter were $943.25 - up marginally from $926.61 in June 2015. Earnings in Canterbury have typically been lower than for New Zealand overall,

however recent growth in Canterbury has narrowed the gap. Average earnings across New Zealand in the June 2016 quarter were $978.92, only $35.67 more than Canterbury.

Construction

Construction activity continues at a very high level, although there are signs of a gentle easing.

The Building Activity Survey for Canterbury indicates the overall level of activity rose slightly to $1.2 billion in the June 2016 quarter. Building activity has sat just above $1 billion per quarter for the past two years and is likely to ease from this level over the next two years.

The value of residential building consents in Canterbury has declined by seven percent on average over the past year. This trend is likely to continue as the housing stock is restored to pre-earthquake levels. Non-residential building consents have also declined, however this is a volatile measure - and a number of major projects are yet to be consented - such as the convention centre and metro sports facility.

Performance of Manufacturing

The manufacturing sector is the city’s export powerhouse and has also benefitted from construction demand. The BNZ-Business NZ Performance of Manufacturing Index (PMI) indicates the sector in Canterbury has been in continuous expansion since March 2014, bar a negative blip in January 2015. The PMI for Canterbury recorded 52.6 in August 2016, above the rise/fall mark of 50.

A strong manufacturing sector is important as the economy transitions away from the rebuild.

Performance of Services

The BNZ-Business NZ Performance of Services Index (PSI) indicates the Canterbury/Westland services industry has been in continuous expansion since March 2014. In August, the PSI recorded 56.3, well above the rise/fall mark of 50. Nationally, the sector is doing well, with a reading of 57.0 in August and in continuous expansion since January 2011.

Earnings Average Weekly Earnings $ - All Employees Source: Statistics New Zealand Employment and Earnings Survey

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Christchurch Canterbury New ZealandTHE CANTERBURY REPORT SUMMER 2016 | 3

Mind the gapOver the next 15 years a large proportion of Canterbury’s population is expected to reach retirement age. This, combined with an expanding economy, is forecast to create a significant gap in the labour market as demand for workers exceeds supply.

ECONOMIC FEATURE

Research by Canterbury Development Corporation (CDC) economists’ estimates by 2031, approximately 72,500 workers are expected to retire and over 94,500 jobs will be created through economic growth. This means that 44 percent of additional vacancies will be due to retirement, compared to historical figures of approximately 20 percent.

CDC Senior Economist Dr Peter Fieger says as a large proportion of workers retire, the economy will continue to grow with the city capitalising on migration from the rebuild.

“Our forecasting predicts over 167,000 new vacancies by 2031 from economic growth and retirement, on top of the ‘business as usual’ transition of workers between jobs. These dynamics will lead to a huge amount of competition between employers to recruit and retain skilled workers,” he said.

CDC expects to see strong economic growth across all sectors, particularly

in the manufacturing, technology, healthcare, agriculture and professional services sectors. These sectors will represent strong opportunities for young people entering the workforce.

On average, 5,800 school leavers enter the Canterbury workforce each year, which is sufficient to meet the demand for workers up until 2021. After this, employment growth and retirement will surpass local supply meaning employers will be competing nationally and internationally for skilled workers.

Dr Fieger says employers should be looking at their workforce now and thinking about succession planning, retention and how to attract young people and migrants to their business or sector.

“This labour force gap should be on every businesses’ radar so they can start planning. As a region we also need to be looking at how we can showcase Canterbury as a great place

to live, work and study to attract more workers.

“In our favour is the fact that Canterbury comprises 52 percent of the population and 56 percent of Gross Domestic Product of the South Island, offering the largest labour market and widest choice in employment, training and education. This makes the region an attractive destination for domestic and international migration,” he said.

He says while the labour market gap will be substantial, it doesn’t have to catch businesses unaware.

“We have time to position Canterbury nationally and internationally as a city of opportunity.”

All businesses should be developing robust succession plans

“Our forecasting predicts over 167,000 new vacancies by 2031 from economic growth, on top of the ‘business as usual’ transition of workers between jobs.”


DIVERSITY FEATURE

Diversity brings a richness of perspectives Christchurch’s population will become more diverse as the city uses migration to offset a predicted shortage of workers.

Twenty-nine percent of Christchurch’s population under the age of 35 currently identify with non-European ethnicity, with this figure set to rise to 37 percent by 2031. That is in contrast to just 21 percent in 2001.

CDC Chief Executive Tom Hooper says figures show ethnic diversity has already changed enormously in the city in recent years, making it more multi-cultural. Diversity growth has come from those who identify as Chinese, Filipino and Indian.

“This shift – which was accelerated by the rebuild attracting migrant workers – is particularly noticeable in playgrounds,

schools and tertiaries, but is also starting to change the face of the workforce and will do so even more in the future. Migration is essential for Christchurch, as it grapples with an ageing population that will constrain local labour supply.”

CDC predicts the total proportion of Christchurch’s labour force that identify with non-European ethnicities will increase from 27 percent in 2015 to 39 percent in 2031.

Developed countries around the world are all facing the challenge of an ageing workforce, meaning Christchurch will experience strong competition in attracting migrants and retaining existing workers.

“We need to look at how we promote ourselves as a city and region, both

“Twenty-nine percent of Christchurch’s population under the age of 35 currently identify with non-European ethnicity, with this figure set to rise to 37 percent by 2031. That is in contrast to just 21 percent in 2001.”

Diversity brings a richness of perspectives, cultures, food and entertainment

nationally and internationally. There are many great reasons to live in Christchurch – the job opportunities and the lifestyle are just two of them – and we need to make sure this message is getting out there.

“Diversity brings a richness of perspectives, cultures, food and entertainment and puts Christchurch on an even playing field with other diverse cities across the globe like London, Sydney and San Francisco.”


In today’s fast-changing world it’s never been more important for business and education to work closer together.

Technology is driving change at an exponential rate and altering how businesses operate, creating jobs that never existed before and new fast-growing industries. Highly skilled and generalist employees are becoming increasingly important, with education providers needing businesses to be involved to help shape the skills and qualifications of the future workforce.

That was a key motivator for CDC establishing Nurturing Home Grown Talent Working Group – which brings technology businesses and high-value manufacturing businesses and education representatives together. The group supports initiatives influencing

younger people’s career choices and raising the profile of local businesses.

CDC Project Manager of Education and Skills Louise Hawkins said young people, parents, whanau, educators and businesses all need to be aware of future workforce changes so potential and existing employees can make informed career choices and businesses can attract and retain employees.

“We are all learning together,” she said.

“Businesses are working with education as they see the need for the corporate world to take leadership and increase students awareness of current and future career pathways. For business it can enable fresh, new thinking, leading to potential new ways of working

The critical link between business and education

How businesses are working with education and existing employees• Internships• Work experience• Shadowing• Mentoring• Career fair attendance• Bespoke initiatives

whilst it also prepares students for life beyond education. Businesses also build internal capability as existing employees are empowered to lead and manage initiatives with students.”

Interested in finding out more? Contact Louise Hawkins on 03 379 5575 or [email protected]

EDUCATION


Helping young people, parents and educators to see the career opportunities in hi-tech manufacturing is a passion for Roland Sommer.

The TE Connectivity plant manager, who is part of CDC’s Nurturing Home Grown Talent Group, has been bridging the gap between business and educators through various means over the last 18 months.

TE Connectivity – part of a Swiss-based global corporate – is based in a new purpose built factory in Hillsborough and manufactures for the electronics industry. Initiatives the business uses to engage educators and students include hosting visits from different

high schools and Tech Educators New Zealand, active internship involvement, placement of high school students on work experience and participating in Shadow Tech for Girls’ day, where a staff member mentored a student for a day.

Visitors to the business often had outdated perceptions of what a factory was like and were surprised to see how modern, light and clean the site was.

Roland wants young people to understand the sheer enjoyment they can get from working in hi-tech manufacturing.

“Manufacturing is a creative process. There is a lot of pleasure in seeing

Flying the flag for hi-tech manufacturing

something physical that you have made. We have people working on the shop floor that are manufacturing parts for jet packs. There’s not many jobs you can say that,” he said.

Roland said there were a lot of benefits to the business showing corporate responsibility and giving back to the community by working with the education sector, including raising the profile of TE Connectivity locally.

“It also helps with recruitment. Our last permanent hire was someone who was here on an internship. The business was expanding and it was a case of right place, right time. Then there are the altruistic reasons as well, of course.”

He encouraged other businesses to look at what they can do to help develop the tech eco-system and connections with education.

“In Christchurch there are approximately 4,000 new roles expected to be created in the tech sector by 2025, a 50 percent increase on today’s numbers. We want our young people to know what opportunities exist.

The broader industry needs to help nurture the eco-system.”

BUSINESS AND EDUCATION

www.te.com/christchurch

“There will be approximately 4,000 new roles in the Christchurch tech sector by 2025.”

Bridging the gap between students and businesses


Businesses with exporting ambitions are being sought to take part in Canterbury’s inaugural Job Ready Programme for locally educated international students.

The programme, being run through Christchurch Educated, started in September and matches employer project and internship needs with the skills tertiary students or graduates can bring. International students can assist with projects requiring cultural awareness, foreign language expertise, overseas connections and research.

Job Ready Project Manager Simon Anderson said this is a great opportunity for businesses to

Locally educated international students are available to work with local businesses

capitalise on the global awareness and understanding, connections and talent of international students.

“The students are looking for paid or unpaid internships. Prior to being selected for the programme they will complete a series of workshops that prepares them for work in New Zealand. The programme also provides on-going support and follow-up for both the business and intern throughout the project.”

A typical internship is up to three months for both training and delivery of the agreed project. Some interns are already available, with more due to come on board in early 2017.

International students available to help exporting businesses

The Job Ready Programme is supported by the Canterbury International Education Leadership Accord, University of Canterbury, Lincoln University, Ara Institute of Canterbury and CDC.

Businesses wanting to find out more, or to register for the programme, should visit www.christchurcheducated.co.nz/ live/job-ready-programme

EDUCATION


Raquel Magliari knows first-hand how beneficial it can be for both international students and businesses to team up through internships.

The Brazilian, who recently completed a graduate diploma in sales and marketing at Ara Institute of Canterbury, carried out a six-month internship with design and advertising agency Strategy Creative this year.

The project looked at developing tactical practices to expand the Strategy brand specifically in Brazil, with the business currently having studios in Christchurch, Wellington, Auckland, Sydney and Tokyo.

Raquel says the skills she developed through her studies at Ara and her working background in advertising and film production, as well as previous professional contacts, served her well in delivering the project.

She thinks the Christchurch Educated Job Ready Programme is a good initiative for both international students and businesses to take advantage of.

“New Zealand is a comparatively small market and success depends on making lasting relationships. International students understand their home markets and can bring this knowledge to Christchurch companies.”

Strategy Creative Group Marketing Partner Geoff Cranko agreed that internships can bring positive results.

“The project Raquel focussed on was researching the São Paulo market, making personal introductions and aiding local understanding during face

to face discussions in Brazil. Depending on the outcome of the discussions we now have underway, Raquel will likely be involved again in the future.”

Raquel moved to Christchurch with her husband Arthur Machado in January 2015 after visiting the city while on holiday in 2013. The couple would love to stay on in the city, but that will be

International student, Raquel Magliari with Strategy Creative Group Marketing Partner, Geoff Cranko

Brazilian expertise in Christchurch

“Internships are beneficial to both international students and businesses.”

contingent on whether or not they can now find full time jobs to extend their visas.

Raquel explains “whatever happens, we have loved the experience. If we end up going back to Brazil, our time here will only have enriched our professional development.”

EDUCATION


side of the business from their sales. Last month (October) they opened an adjoining building on their Cumnor Terrace site which has been fitted out as a manufacturing facility.

“It will allow us to triple our manufacturing capacity. Our product is hi-tech and bespoke and lends itself to being made in New Zealand. We can do things our overseas competitors can’t do,” Nelson said.

He said the restructure will help them assess how strong the manufacturing side of the business is, as it won’t be propped up by the sales element that acts as a distributor for global brands.

Coinciding with the manufacturing expansion, the business has also

The can-do attitude that saw commercial lighting company Energy Light move into manufacturing is helping it to continue to grow.

The Woolston-based business, which started in 2004, initially represented importers. It began manufacturing after developing an energy efficient product for lighting large spaces like warehouses about ten years ago. Manufacturing stepped up a gear in 2013 when a supplier they used went into liquidation and with orders to fill they decided to try making an extrusion-based lighting system themselves.

Their success so far means co-founders Nelson Duder and Ralph Booth have recently separated the manufacturing

MANUFACTURING PROFILE

recently embarked on the Enterprise Excellence programme run by CDC. The programme aims to improve efficiencies and develop company culture and Nelson said the timing made sense.

“We are making a significant investment in a manufacturing facility and also needed to look at what other improvements we could make. New Zealand is not the cheapest place in the world to manufacture and we need to be efficient. But it’s not just about how efficient we are; it’s about looking at the culture we have and getting all our staff invested in it.”

There are 29 staff working in Christchurch and another four based

Energy Light expands manufacturing


Enterprise Excellence The Enterprise Excellence programme is customised to drive efficiencies across a company’s value chain from production planning to finished goods and from orders to delivery. Large and medium sized businesses attempting to reduce waste and gain improvements in productivity have gained both process and cultural benefits from this programme.

For full details about the Enterprise Excellence programme, including eligibility criteria, speak to one of our client managers on 03 379 5575 or visit www.cdc.org.nz

www.energylight.net

in a sales studio in Auckland – an area of strong growth for the company.

The programme is helping staff find solutions to everyday problems they face at work by working together on the business. While it was always a challenge to find time to focus on improvements, instead of business as usual, small changes started making a difference and encouraged larger ones.

One example was a team put together to look at manufacturing stoppages and production errors. There was a perception that these were mainly caused by external factors but data was gathered over three weeks that showed 75 percent of these were due to internal issues.

“By collaborating, different staff in the production chain looked at how they could cut these issues down. While we realise there is always going to be some human error, by doing things differently it improves everyone’s work day and makes things more efficient.

“We’re changing the culture so staff want to find fixes to problems,” Nelson said.

Another goal for the company is growing their exports – which currently sit at about ten percent of their business – particularly in Australia.

Lighting up Emerson’s Brewery, Dunedin


“Smish connects Christchurch residents from different cultural backgrounds through a love of food.”

Allen Lim and Daniel Chong are onto a winning recipe after developing an app that connects Christchurch residents from different cultural backgrounds through a love of food.

The pair, who both come from Malaysia and coincidentally attended the same primary school before immigrating to Christchurch independently with their families, have co-founded Smish – an app that puts foodies in contact with community chefs. They have been working on the app from innovation hub GreenHouse, a co-working space for digital start-ups operated by CDC, and plan to launch it next month (December 2016).

“We are just finishing the development of the app and testing it. We also need to have enough cooks on board and potential customers interested in using the app as it relies on critical mass,” Daniel says.

Allen says Christchurch is becoming a more diverse city and people wanted to be able to access authentic food from their homelands or to try new things.

“I myself crave foods that are not available on the typical 30 item menu in restaurants. I also understand that many migrants struggle to integrate fully into a new community. Together Daniel and I thought what better than to combine these two things and bring people together through a love of food.”

Daniel agrees the aim of the app is to not only give foodies access to delicious dishes, but to connect communities.

“There are broader benefits too, like helping migrants to become more independent by giving them a way to make money and meet others, without having to pay the overheads of having a full-blown café or restaurant.”

The pair came up with the idea after seeing the food their colleagues brought into work and wishing they could have some too. If the app is successful in Christchurch, they would like to push it out nationally and even globally.

Allen migrated to Christchurch 20 years ago with his parents and sister. He attended Riccarton High School and then the University of Canterbury, where he

Smish: a recipe for success

gained a doctorate in management. It was at university he met up with Daniel again, a childhood friend, who came to Christchurch at age 16 with his parents, brother and sister and completed a masters in physics also at the University of Canterbury.

Both had stints away from New Zealand, with Allen returning to Malaysia for a time and Daniel living in Switzerland for eight years where he completed a PhD in medical physics. However, Christchurch felt like home and each returned with their own families and reconnected once back – giving an opportunity for Smish to be established.

BUSINESS PROFILE

Founders Allen Lim (left) and Daniel Chong


FOOD AND BEVERAGE PROFILE

Sales manager Dawn Ballagh said the aim of getting 10 new customers each month was proving an easy ask at present.

“In just the first week of September we had 12 new customers join us. Traditionally the colder, winter months are our quietest time but month on month we are just getting bigger and bigger,” she said.

The growth meant the business had to move to larger premises, shifting into its current Wigram site on Michelle Road in January 2015. The location, which has a small café and retail shop attached, was four times as big as their Annex Road site and already they are looking at bringing shipping containers onto the site to be used for storage – freeing up room for further expansion.

Steven and Dawn attribute the business’ success to being able to innovate to the needs of customers and having passionate, committed staff. Both have worked as chefs and understand what their customers want to serve up to diners.

“Chefs generally move around a lot as well and will take us with them as suppliers. We have had one chef take us with them to four different places since we began business,” Steven said.

Getting back into the baking game was only supposed to be a small scale affair for Steven llenberger.

The founder of Good Honest Products, who previously started Divine Cakes and Breads of Europe, had a lot of former customers asking him if he would consider making artisan breads and baked goods again. So he started with bagels and macarons and thought he’d keep things low key.

Fast forward four years and the company now employs 26 fulltime staff and supplies to 300 Canterbury cafes and restaurants and 42 supermarkets around the South Island. Last year they were the 14th Fastest Growing company in New Zealand on the Deloitte’s Fast 50 list, with a growth rate of 378 percent during the previous three years.

“I was going to keep it nice and small and simple to run. But opportunities kept on presenting themselves by people coming to us or niche markets presenting themselves and the growth has happened quite organically,” Steven said.

“When we started we were buying flour by the bag; now we buy it by the pallet.”

Good Honest Products goes big

www.goodhonestproducts.co.nz

The business is not only innovative with the products it creates, but also in how it interacts with customers. Online ordering was introduced 12 months ago and has proved popular for many, although ordering via telephone or email is preferred by others.

“We believe we are the only bread supplier in Christchurch that offers online ordering. Bread orders made before 3pm are delivered the next day,” Dawn said.

Steven, who considers himself a serial entrepreneur, says the scope the business has to expand into new products means it is something he can see himself involved with for a number of years yet.

“We are super proud of what we make. They really are good, honest products – not full of E numbers or preservatives,” he said.

It would seem the public agree, as the company continues to get bigger and bigger.

Macaroons are a staple of Good Honest Products

Founder Steven Ilenberger


The Christchurch-based angel investor group was formed in 2015 and now has 35 members, most of whom are experienced investors or have been involved in establishing businesses previously.

Canterbury Angels chair Ben Reid says the partnership will bring more investment into innovative companies in the Canterbury region and around New Zealand.

“The new investment partnership with NZVIF means that when Canterbury Angels invests in a new company, NZVIF will match investments dollar-for-dollar – giving both investors and entrepreneurs confidence that the investment round will be successfully completed.”

He says the focus will be on new companies emerging in Christchurch and nearby. However, members will also invest in syndicated opportunities throughout New Zealand to ensure there is a broad portfolio of companies.

“Based on our experience to date, we expect to see a healthy deal flow. There are a lot of innovative ideas in Christchurch that are seeking capital. We have two universities which produce high quality research.

Grant winner prepares for commercialisation

The inaugural $50,000 Proof of Concept Grant winner John Morris has been working hard to prepare his ground-breaking electrical filters initiative for commercialisation.

John, who is a post-graduate student at the University of Canterbury and works as an electrical engineer, received the award in April 2016. The grant aims to help turn ideas into a marketable product or service and was open to all Canterbury-based publicly funded research organisations.

John has undertaken an intensive research and development programme since winning the grant, funded by CDC and Return On Science. His initiative, of which the detail is still under wraps, has the potential to dramatically reduce the size and cost of filters used in electrical networks worldwide.

“Steps have been taken to obtain protection for the intellectual property relating to the concept so we can now begin to talk to our potential customers and start scoping out a commercial strategy.”

He said his post-graduate research had been breaking new ground and helping with the development of the ideas.

“It’s been a busy few months as we strive to get ourselves in a position to talk in a commercial sense to other parties about what we are doing.”

Canterbury Angels flying with new partnership

The New Zealand Venture Investment Fund (NZVIF) is partnering with the recently formed Canterbury Angels to invest in start-up companies.

INNOVATION IN CANTERBURY

www.canterburyangels.nz

The newly opened Vodafone xone

We work closely with other parts of the innovation ecosystem in Christchurch, such as EPIC, Lightning Lab, GreenHouse and the newly-opened Vodafone xone. As new start-ups emerge from the ecosystem, this partnership will help to provide some of the early stage capital to meet their needs.

“Our expectation is that the partnership will run for around four to five years, investing in around 10 to 15 young companies during the first few years. NZVIF are committed to match funding on a 1:1 basis with Canterbury Angels investors, it doubles the capital available to a company than would be the case if we did not have the partnership.”

This is the sixteenth partnership NZVIF has entered into through its Seed Co-Investment Fund. To date, NZVIF and its angel partners have co-invested around $142 million into over 150 companies.

NZVIF investment director Bridget Unsworth said that the new partnership is needed to keep up the momentum in the angel investment sector.

Innovation taking flight


Powerhouse powers ahead

CDC congratulates Powerhouse Ventures Limited (Powerhouse) on its recent listing on the Australian Stock Exchange.

As one of the founding investors in the intellectual property commercialisation company, CDC has helped support the Powerhouse portfolio – which now consists of 19 businesses and provides employment for over 150 full time equivalent employees.

CDC Chair Dr Garth Carnaby says, CDC’s original $1.2 million seed investment in 2009 has been instrumental in enabling the incubator to develop a business model that is the envy of other regions.

“We are extremely pleased that Powerhouse has secured this capital injection which will enable the business to reinvest in and diversify its portfolio,

The grand winner was Anteater, a niche food wholesaler which supplies wild harvested, imported and farmed edible insect products to high-end restaurants and food producers. The business, whose products have been on the market since May 2016, won $15,000 cash and financial services to the value of $5,000 from PricewaterhouseCoopers.

Entre is a not-for-profit company, under the University of Canterbury, which aims to foster and cultivate entrepreneurial spirit among university students. The awards recognise winners of the five-month long $85K Challenge – an incubator-style competition that helps budding start-ups to become operating businesses.

For a full list of winners visit www.entre.canterbury.ac.nz

Anteater’s Duncan Shand (from left), Rebecca De Prospo and Peter Randrup were the grand winners of entre’s $85k challenge this year

enabling and enhancing the growth of research based business start-ups significantly across the country from a Canterbury base.”

CDC continues to be a strong supporter of the start-up business community in Christchurch and Canterbury. It is exciting to see Powerhouse move to the next stage of its development where it has an enhanced ability to invest in innovative, high-growth potential businesses of the future.

www.powerhouse-ventures.co.nz

Anteater cleans up

CDC congratulates the teams that received a slice of the $85,000 prize pool up for grabs at Entre’s Annual Awards last month (October).


2016 Hi-Growth Launch Programme a success

HGLP feature

detractor, or +100, where everyone is a promoter.

CDC Business Development Manager Innovation Gill Dal Din, who runs the programme, was pleased participants found it of great benefit.

“The NPS score is a good way to gauge if we are meeting the needs of businesses on the programme. The majority of participants were ‘promoters’ – giving a score of nine or 10 that they would recommend the programme to a friend or colleague. So this is a great result for us.”

She says many of the businesses are already experiencing good outcomes from putting into practice learnings from the programme.

“That’s exactly what we want to happen. There are tangible, positive growth outcomes from taking part.”

Participants in this year’s Hi-Growth Launch Programme are keen to recommend the 12-week course, run by CDC, to other Christchurch businesses.

The annual programme, which is designed to grow and develop businesses with the potential to scale-up, ran from April until July this year with nine businesses taking part. Through workshops and practical hands-on mentoring from some of New Zealand’s most successful business people and entrepreneurs, they were provided with business advice and knowledge to ensure they were more prepared and equipped to operate within the fast-changing business world.

A survey of the nine 2016 participants gave a Net Promoter Score (NPS) of +89. NPS measures the willingness of customers to recommend a company’s products or services to others and can be as low as -100, where everybody is a

HI-GROWTH LAUNCH PROGRAMME FEATURE

One of the most popular sessions was when three business owners came in and shared their ‘war-stories’ with participants. The popularity of the session meant more real-life business stories would be considered for next year’s programme. Other presenters spoke about topics such as business development strategy, building networks and marketing in a digital world.

Gill says the programme will run again in 2017 and invites businesses to register if interested.

“There is no cost involved but places are limited and the application process is competitive.”

Registrations for the 2017 programme open on Monday 5 December 2016 and close Tuesday 7 February 2017.

For more information, please visit www.higrowthlaunch.com


Candid feedback from 2016 Hi-Growth Launch Programme participants • This is an opportunity to challenge yourself,

your idea/product/service and your approach. Learn, refine and implement.

• It covered so much - strategy, HR, business pitching, understanding growth off shore – and we are still putting things we learnt during our time on the programme into play now.

• It gave the ability to network with other business owners and gain access to resources that may not have been available otherwise.

• There were a wide range of topics and speakers and the opportunity to interact with them, which leads on to further contacts and opportunities.

• It covers a breadth of topics that will challenge your existing operational methodologies, aspirations and provide insights as to what you need to focus on.


Previous HGLP participant becomes countries youngest franchisor

business opened a 400m² head office and training facility in August.

The idea for the business came when Jorgen was working part-time at a home improvement store while studying.

“Customers were constantly asking me whether they could buy kitset or flat-pack products pre-assembled, or have someone come to their house to assemble them,” he says.

“The answer was always ‘no, sorry’ and I realised the store was losing sales because of it. So I decided to launch a business doing what people were demanding. We assemble people’s furniture and kitset purchases so they don’t have to.”

With revenue expected to reach almost $2 million in the next financial year, Ellis says the company can’t keep up with the demand for its services.

“The flat-pack industry is worth $24 billion every single year in the United Kingdom alone, so there’s enormous growth potential for us globally.”

Jorgen Ellis is building his multi- million-dollar kitset and flat-pack assembly business by bringing franchisees on board.

Jorgen, who completed the 2015 Hi-Growth Launch Programme (HGLP) run by CDC, founded Kitset Assembly Services in April 2014 at just 18 years old while studying accounting and management at the University of Canterbury.

Ellis invested $310 of his own money to start the business ($300 for tools, $10 for business cards) and has since sold the Christchurch franchise to one of his best friends earlier this year for $50,000. He’s set up two more in Auckland, one of which he’s also sold on.

The Franchise Association of New Zealand believes he is the country’s – and possibly Australasia’s – youngest franchisor.

He is now on the hunt for franchisees to reach his goal of having more than 1,000 franchisees here and around the world in the next decade. His Albany-based

HI-GROWTH LAUNCH PROGRAMME FEATURE

He credits the HGLP for helping him cope with the businesses rapid expansion.

“Without the HGLP I would have been overwhelmed, but with the support network, skills and knowledge I gained from the programme I’ve been able to embrace the growth and build a strong, sustainable business. Martin Barnes, my allocated business mentor, has been crucial in helping build my own personal business accumen.”

He puts his business success down to two things: extremely hard work and a service that solves genuine problems.

“Increasingly young people are time-poor and, on the other end of the spectrum, many elderly people would rather not put their bodies through the strain the assemblies require.”

Kitset Assembly Services are looking for franchisees

www.kitsetassemblyservices.co.nz


Christchurch tech business vBridge has been on a growth journey since completing CDC’s Hi-Growth Launch Programme last year.

The business, which was formed in 2010 and provides cloud computing services and support, is on track to have doubled its revenue since completing the programme in July 2015.

Founding Director Hamish Roy says a lot of the growth has come from the focus they received on the programme aimed at helping businesses with potential to develop and expand.

“It made us think a lot more about how we approach the market; about our messaging and language.” Fellow Founding Director John Ward agrees.

“We had been operating since 2010 and knew that our product, service and pricing was good – but our messaging to the market was too technical and not consistent. We needed to make it easy to understand and we learnt that through the programme.”

Both Hamish and John, along with Development Manager Ben Young and Chief Financial Officer Sue Higgs, attended the weekly three-hour workshops over 12 weeks. The time

vBridge keeps growing

investment has paid off, with information learned still having an impact on business decisions they make.

Hamish says while the business has been expanding, growth has not come at the expense of their primary goal. Any new products they developed had to stay true to the main driver – cloud infrastructure.

“That came through loud and clear to us on the programme. We’re still innovative but we do business cases for all new product ideas to ensure we are making measured decisions. It brought risk management into the business structure and that has become embedded thinking now.” www.vbridge.co.nz

“The HGLP made us think a lot more about how we approach the market; about our messaging and language.”

vBridge’s future aim is to continue growing while maintaining a strong brand and reputation for quality.

“Making sure we continue providing high quality products and services is very important to us. By doing that the growth seems to follow naturally,” Hamish says.

Founding directors Hamish Roy (left) and John Ward


Father and daughter Chris and Olivia Bell are both volunteer mentors

Mentoring, a family affaira business, which she does as well as working fulltime in sales at TVNZ and running her own Arbonne health and wellness business.

“I decided to start mentoring after seeing my father’s involvement; not only was he helping others but he was getting a lot out of it himself,” Olivia said.

Chris, who is retired but has run his own business as well as being a chief executive for the International Aviation Academy of New Zealand and its parent organisation the Canterbury Aero Club, is proud Olivia has got involved in mentoring too.

“As a mentor I had used her in the past as someone to run ideas past for some of my clients, especially when their products were aimed at her demographic. I’m delighted she is now a mentor in her own right and can pass on her commercial expertise to businesses in need.”

Chris has worked with nearly a dozen businesses over the years and said there have been a lot of rewards over the years.

“The main highlights have been seeing businesses grow and become more

A father and daughter duo are helping Christchurch businesses succeed through their volunteer work with Business Mentors New Zealand, which turns 25 this year.

Chris and Olivia Bell – two of the 340 mentors currently volunteering in Canterbury for the not-for-profit organisation – are both happy to give their time and advice to business people starting out, wanting to grow or needing support with specific challenges.

The regional mentoring programme is one of the service offerings delivered by CDC through the national Regional Business Partner programme. The skills and background of mentors are specifically matched to the needs of individual businesses.

Since Business Mentors New Zealand started a quarter of a century ago the organisation has worked with more than 70,000 companies across the country, helping support local economies and creating jobs.

Chris, in his 60s, has been a mentor since 2008, while Olivia, 33, just joined in March this year. She is already mentoring

BUSINESS MENTORS

www.businessmentors.org.nz

Business MentorsLooking for mentoring support to shape strategic direction or use as a sounding board, or even to become a Business Mentor? Please contact Jill Taiaroa on 03 353 6860 or email [email protected]

profitable during recent hard times and also the prevention of business closures because of help from mentoring. I try to always be available as a sounding board for future decision making,” he said.

Canterbury Business Mentors manager Jill Taiaroa, who has been with the mentoring service in the region since it began, said it is a big milestone for the organisation to celebrate 25 years of operation. Its success was largely due to the commitment of the volunteer mentors and the clients they work with.


and innovation as the city reconstructs itself on every level – architecturally, environmentally, economically and socially.

The event will bring together social enterprise practitioners, policy makers, social entrepreneurs, community leaders, investors, activists and academics from around the world.

The theme will be “Ka koroki te manu – creating our tomorrow” and will provide an opportunity to share knowledge, build networks and discuss how to create a more sustainable future.

CDC is proud to be a partner of the New Zealand Organising Committee led by the A- kina Foundation who secured the opportunity to host the forum in 2017.

For more information, visit www.sewf2017.org

Champion Canterbury Business Awards winners

CDC congratulates the winners of the Champion Canterbury Business Awards 2016.

The annual awards ceremony was held in late September with heritage and technology taking out the top honours. The Isaac Theatre Royal won the supreme award in the small enterprise category, while ARANZ Medical Ltd – who specialise in 3D scanning equipment to assess wounds and custom-fit orthotics and prosthetics – took out the supreme award in the medium/large enterprise category.

More than 1,000 people attended the awards, of which CDC is a major sponsor. In their fourteenth year, the awards recognise local businesses for their talent, innovation and diversity.

For details of the winners and to consider entering in 2017 visit www.championcanterbury.org.nz

last three years. The strategy is to be presented to the new Council for endorsement following the local body elections last month (October). CDC will begin monitoring progress on the strategy following its endorsement.

New Zealand Tech Week: 6-14 May 2017

Christchurch is set to join the national series of events which will be held to celebrate, educate and showcase New Zealand technology businesses during New Zealand Tech Week 2017.

If you have a tech event which you’d like to run or help support during this week or if you’d like to learn more about the week visit www.techweek.co.nz

Christchurch secures international conference on social enterprise

Christchurch is at the forefront of the growing social enterprise movement and has been announced as the host of the Social Enterprise World Forum 2017.

Christchurch was chosen due to its unique model of community resilience

Catherine Beard of Export NZ (left) and Michaela Blacklock of CDC, present Luke von Zeller of Infratec with the Champion Global Operator Enterprise Award at the Champion Canterbury Awards

In FocusChristchurch Economic Development Strategy review

The city’s economic roadmap – the Christchurch Economic Development Strategy (CEDS) – has recently been reviewed by CDC in consultation with delivery partners and stakeholders.

CEDS is collectively owned, with over 20 implementation partners across private and government sectors, including CDC. CDC is also responsible for preparing and monitoring the strategy in support of the Christchurch City Council Community Outcomes Framework and in particular the objective of a prosperous economy.

CEDS was first launched in 2013 and identified Christchurch’s long term growth goals and priorities to 2031 in order to create a stronger economy and deliver a better quality of life following the 2011 earthquakes.

This 2016 review includes extensive consultation with stakeholders and considers the dramatic change which has occurred in Christchurch over the

NEWS SNIPPETS


Canterbury Development Corporation

Level 1, 99 Cashel StreetChristchurch 8011, New ZealandPhone: 03 379 5575Email: [email protected]

For more information about Canterbury Development Corporation’s programmes and services please email [email protected]

the canterbury report, summer 2016

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