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Home / Sponsored Stories

New data shows profits on the up for businesses relocating to Tauranga

27 Nov, 2016 04:00 PM
NOW PLAYING • Priority One: Tauranga a city of opportunity
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From saving $5 million over five years to reducing distribution costs by 57 per cent, two new case studies add weight to the advantages of doing business from New Zealand’s fastest growing region.

Whether it's Brother International (NZ) Limited saving $5 million over five years or Jenkins Freshpac Systems enjoying a 57 per cent reduction in distribution costs - there's growing evidence of businesses reaping the competitive advantages of moving to Tauranga.

Such is the increasing demand from investors, developers and businesses exploring opportunities in Tauranga that economic development agency Priority One has now released a 3D animated video showcasing the region's competitive advantages and some of the planned city centre developments.

Priority One Strategic Projects Manager, Greg Simmonds. Photo / Supplied.
Priority One Strategic Projects Manager, Greg Simmonds. Photo / Supplied.

Priority One Strategic Projects Manager, Greg Simmonds, says the project was a collaboration with Carrus Corporation and 3D animation experts Animation Research Limited in Dunedin. "Using the latest technology, we have developed a fly-through video of Tauranga city that dynamically showcases where we are heading in the next few years.

It is already proving to be an excellent platform for us in discussing opportunities for investment, development and business relocations to the region."

In the video presentation businesses, including Brother International and the Jenkins Group, cite strong benefits in choosing to move their businesses to Tauranga.

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Brother International Executive Chair, Graham Walshe. Photo / Supplied.
Brother International Executive Chair, Graham Walshe. Photo / Supplied.

Brother International Executive Chair, Graham Walshe, describes their move as a clear-cut business decision. "When we decided it was time to move to a new location from our outgrown Lower Hutt premises, we took a wider view of where we might relocate. We commissioned Deloitte to evaluate all cities with ports throughout New Zealand. The business case stacked up for Tauranga, showing we could save $5 million over five years. And the good news is, this has proven to be the case."

Graham says the cost savings was one of the most resounding reasons for them in choosing Tauranga, but it certainly wasn't the only one. "The close proximity to New Zealand's largest port was a huge factor. Our cost of freight has been substantially reduced and we now have two-hour access to 60 per cent of our customer base, instead of the eight to nine hour access we'd previously had from our Wellington base. Add to that the fact that the build costs here are around 30 per cent cheaper than in competing locations, it made very good business sense for us to choose Tauranga as our base."

Meanwhile for the Jenkins Group, settling on Tauranga as home for their newly formed entity Jenkins Freshpac Systems Ltd has delivered a 57 per cent reduction in distribution costs and a significant increase in efficiencies, with lead times reduced to the extent that they can now reach around two-thirds of their customers within the same day. Managing Director Tony Sayle says they're understandably very happy with their move to Tauranga.

Jenkins Freshpac Systems Ltd, Managing Director Tony Sayle. Photo / Supplied.
Jenkins Freshpac Systems Ltd, Managing Director Tony Sayle. Photo / Supplied.

"The reduced costs and increased efficiencies have enhanced our ability to meet increasing levels of customer service demands. Tauranga suits our needs extremely well.

We're in close proximity to the Port of Tauranga for importation of equipment and raw materials and our location at Tauriko Business Estate represents a cross roads for distribution and servicing, not only nationally but for both Eastern and Western Bay of Plenty based customers. We're very pleased to be here."

Both Brother International and the Jenkins Group highlight the enviable lifestyle opportunities the Bay of Plenty offers as an additional benefit both in attracting and retaining a skilled and talented team. "All of our Freshpac Systems staff made the move down from Auckland," says Tony. "Staff retention has been incredibly high since we've been here and, with less traffic, more affordable housing and the enviable lifestyle, we're also finding there's a growing local talent pool of people to support our business needs."

Graham Walshe agrees, saying "Brother's greatest asset is its people; they are what has made this company so successful, so ensuring our staff came with us was fundamental to our move. Most significantly, we retained all our staff because they wanted to come to Tauranga!"

Greg Simmonds says moving to Tauranga can also be an efficient process, with the strong support structure in place in the region. "As the region's economic development agency, we work closely with businesses looking to relocate here and build their competitive advantages. We can assist across a broad range of business needs from consenting and infrastructure requirements to making valuable connections into the local community, supporting families in finding housing, schools to suit specific needs, and helping relocating partners find employment opportunities."

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"We're a growing region for growing businesses. We welcome contact from any business wanting to work with us to explore opportunities in Tauranga - the country's fastest growing region."

For more information or to talk to Priority One contact Greg Simmonds or visit www.priorityone.co.nz

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