The final instalment of nzherald's Business Summer series about resilient SMEs.
KEY POINTS:
One of the turning points for Masport in the manufacturer's almost 100 years in business came when New Zealand relaxed its importation rules in the early 1980s.
The protection of New Zealand manufacturers before the 'Rogernomics' period, gave Masport scope to manufacture a wide selection of products thatranged from fridges to vacuum pumps. But when the floodgates were opened to imports, the Mt Wellington-based manufacturer - well known today for its lawnmowers - was forced to redefine its strategy and product offering.
"Pre 1980s, it was a highly protected environment with subsidies for companies in New Zealand but from Rogernomics on, all those things were taken away," said Masport general manager Steve Hughes.
"Lowering tariffs made it difficult because we were competing with products from Asia."
To maintain a competitive edge against its imported counterparts, Masport has over the years invested time and money into the research and development of its products to ensure they stands the test of time.
"You need to maintain a unique point of difference and we believe we have a brand that is strong, reliable, well designed and made to last."
Mr Hughes says New Zealand, where it currently holds a 50 per cent slice of the market, is a mature one for Masport. Therefore, it has had to expand overseas and the main focus at the moment is Australia.
"Growth for us has to be in exporting products."
"Australia is extremely important because it is five times bigger than us, so we have the opportunity to do well."
Countries including Australia, England and Switzerland help generate over 50 per cent of Masport's total sales, which Mr Hughes declined to disclose except to say it's in the order of $50 million.
Being a New Zealand-based company has been key to Masport's longevity because this country is synonymous with quality, Mr Hughes said.
Like many manufacturing peers, Masport has been forced to move a large part of its manufacturing base to Asia.
"The high value of the New Zealand dollar has made it difficult to produce in New Zealand."
But in keeping with the New Zealand-made aspect, the company's research and development department still remains at home.
"When we go overseas, (Masport products) look different than the ones in Europe and Asia."
"Our challenge is to prove to consumers our products are good quality and value for money."
