KEY POINTS:
Giant radio systems exporter Tait has scored a major United States deal, after winning the right to supply the federal Government with high-tech equipment.
Bill Fredrickson, president of Tait Radio Communications in the US, said the company had just become registered as a preferred supplier of equipment to
Government organisations.
The deal would mean it could sell thousands more units to the lucrative US, Canadian and Mexican markets, and might be worth about US$20 million ($25 million) during the next two to three years.
Fredrickson estimated Tait had now become the fourth or fifth-largest supplier of land mobile radio equipment to North America.
Fredrickson is based in Houston for the Christchurch-headquartered business, which will now be registered on the US Government's general services administration contract.
Because New Zealand lacks a free trade agreement with the US, Tait had to tender in a highly competitive bidding process to supply US Government departments with equipment.
"Now we're on the GSA, it makes it easier for the federal Government to do business with Tait," Fredrickson said.
The new deal gives Tait access to sell its radio equipment to US federal and state public safety, utility and transport businesses.
The US radio communications market is a US$2.5 billion sector, Fredrickson said, and Tait will now have direct access to supply police, fire, emergency, power, water, gas, bus and rail businesses with its equipment.
US border and customs control, land management services, firefighters, forestry services, national parks and others can also now all buy Tait's sophisticated FM radio equipment, he said.
But to secure the deal, Tait had to prove to US officials that it would "substantially transform" the equipment when it brings it from New Zealand into the US. However, it will continue to be manufactured in New Zealand.
Tait hopes to supply its two-way portable radios to many public safety organisations, including the New York Fire Department.
Tait makes in-building communications systems which enhance protection in emergencies.
Police in Grand Forks, North Dakota, are already using Tait's radio gear.
Two-way portable land radio systems were far superior to mobile phones in a disaster and for first-response emergency services, Fredrickson stressed.
"Our equipment is a mission-critical communications system sold specifically to police, fire and emergency services. In an emergency or disaster, you can't rely on the public system with a cell-phone," he said, citing bombings and terrorism when mobile phone systems became overloaded or critically damaged.
Tait's big growth path in the US has been assisted by New Zealand Trade and Enterprise's Beachheads programme which provides assistance to Kiwi businesses overseas.
Fredrickson said that before 2005, Tait had relatively flat sales and was not achieving its potential.
Officials at NZ Trade & Enterprise's offices on 41st Street in New York said the Tait deal was extremely significant and an example of what could be achieved by highly skilled specialised Kiwi companies which had cracked the US market.
Fredrickson addressed 300 people at a New Zealand Trade and Enterprise event in New York on Tuesday night and told them of Tait's businesses in the US and how, although the company was highly successful in North America, its headquarters would remain in Christchurch.
BIG TAIT DEAL
* Christchurch-based Tait becomes a preferred supplier to the US Government.
* The deal could be worth US$20 million over the next two to three years.
* Tait sells two-way radio systems, and has been exporting for more than two decades.
Anne Gibson was a guest of New Zealand Trade & Enterprise in the United States.
