By ELLEN READ
Outsourcing production and careful targeting of potential markets means two brothers can run an internationally successful small business from Wainui, near Opotiki.
Kelly and Richard Hughes established Advanced Traffic Supplies in May 2001 and have since developed and sold traffic management products both here and overseas.
The business was
formed after Kelly returned to New Zealand from seven years spent working as a paving contractor in Britain. As part of that job he installed recessed manhole covers, which disguised the access chambers in cobbled areas.
No suitable product was available here so Kelly and his brother set about inventing one, known as the Wunder-Cover.
The company has moved on towards easing the frustration of motorists forced to stop at pedestrian crossings controlled by traffic lights when there are no pedestrians about.
With the help of an Industry New Zealand grant, Kelly Hughes completed a business exchange to Britain to help test the company's pedestrian detection system, X-FLO.
The system uses sensors placed under rubber mats fixed into the pavement to detect when pedestrians are waiting to cross the road.
The sensors form part of an inductive loop that, when connected to a controller, detect the presence or absence of a pedestrian.
X-FLO can also tell if a pedestrian has left the crossing, in which case it will cancel the request for a "cross" signal.
This means motorists are not forced to stop at empty pedestrian crossings.
Kelly Hughes says the system has the potential to greatly improve traffic flow, and the behaviour of motorists and pedestrians.
The system has already been sold in the United States, Singapore, Thailand and Holland. Closer to home, units have been installed in Auckland, Christchurch, Rotorua, Tauranga and Palmerston North.
So how has this happened with a staff of two working from the Bay of Plenty?
Production of the units is outsourced and generic processes are used.
Because of that, production can be increased by bringing in extra manufacturers.
"We don't want to be tempted to put up a shed or buy a factory or anything. That's not the part of the business we're interested in," Kelly Hughes says.
By default, the company has developed a rubber moulding process to make the mats and they are keen for another company to pick up on the technology as manufacturing is not their core business.
Also, a lot of marketing work is put in to identify the best people and companies to target overseas.
It's a two-step process of educating the market about the concept of kerbside control and then convincing them that the system developed by Advanced Traffic Supplies is the way to go.
"We realise there's no way we can physically make a presentation to every traffic controller in the world so we have to specify our targets," Kelly Hughes says.
Contacting advocates of pedestrian safety - such as walking and cycling groups - is another way to publicise the product globally.
The company is investigating the best way to approach the UK market.
The brothers set about compiling their own contact list by visiting every UK council website and getting details of staff and contractors.
As a prerequisite to supplying the UK traffic industry, products must be "type approved", which also involves implementing a Quality Assured Management System.
To satisfy this requirement the company has recently achieved ISO 9001:2000 status.
And the pitfalls of their idyllic but isolated base?
Slow internet access and a lack of reliability from couriers and freight companies.
"But it's probably more of an issue convincing people that New Zealand is an okay place to deal with," Kelly Hughes says.
"After that, they don't know or care where in New Zealand we're based."
Another important factor, he says, is letting the business evolve naturally.
"We haven't mortgaged the house to chase the dream," he says, adding that he thinks too many small companies make the mistake of bringing in too many outside professionals who don't add much value but can be a big drain on resources at the critical early stage.
Advanced Traffic Supplies has been engaged by several people wanting help with developing their own products.
Invention helps motorists go with the flow
By ELLEN READ
Outsourcing production and careful targeting of potential markets means two brothers can run an internationally successful small business from Wainui, near Opotiki.
Kelly and Richard Hughes established Advanced Traffic Supplies in May 2001 and have since developed and sold traffic management products both here and overseas.
The business was
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