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Carbon pricing and small to medium sized businesses
1. Greater Dandenong’s business news June - September 2011
Preparing your
buSineSS
The Price of Carbon - Page 2
Disaster Management - Page 6
Local wins London bid - Page 11
2. 2. Stakeholder June 2011 - September 2011
City of opportunity
Focus
Contacts: Ron Ghiggino
Ron Ghiggino
Manager Economic Development
Sandra George
Manager South East Business Networks What a spectacularly busy few
Enquiries to 9238 1550 Fax 9239 5196 months we have had. The Melbourne
www.greaterdandenong.com Food and Wine Festival; the Greater
Paul Dowling Dandenong Chamber of Commerce’s
South East Melbourne Manufacturers Platinum Regional Business Awards,
Alliance (SEMMA) Ph: 9238 1565 the annual Greater Dandenong Race
www.semma.com.au Day, and commencement of the 2011
awards program; Manufacturing
Deanne Johnson Week; and the Manufacturing Hall of
Greater Dandenong Chamber
Fame and the inaugural Melbourne’s
of Commerce Ph: 9794 8881
www.greaterdandenongchamber.org South East Business Awards - to topical “barbecue stopper” of carbon
mention just a few activities. pricing but also some very positive
Paula Brennan outcomes of responding or working
Stakeholder Editorial The success of the Chamber’s Platinum
with the environment – about turning
Ph: 9238 1573 Regional Business Awards Gala
pbrenn@cgd.vic.gov.au challenges into opportunities ranging
Evening, with over 700 attendees, has
set a new benchmark for celebrating from sustainable building design,
Address: awards for the region. Congratulations manufactured products, electric vehicles
to all the winners and runners-up in the or to responding to major weather events.
Business Development Centre
4th Floor, 329 Thomas Street very competitive field. Business continuity is something that is
Dandenong, Victoria 3175 always with us whether it is succession
The phenomenal success of the ‘Take
a Swing for Charity Golf Day’ has planning or responding to a significant
Views expressed by individual contributors in this
publication do not necessarily reflect the views of made a significant contribution to our event (or catastrophe) and we hope some
the City of Greater Dandenong. community so put 20 February in your of the articles in this edition are food for
Material from Stakeholder, Greater Dandenong‘s diary to participate in the 2012 event. thought for you and your business.
business news may be reproduced for non-
commercial purposes provided the source is There are still more events to come, so As always enjoy the read and make
acknowledged, e.g. ‘This material first appeared join us to celebrate the winter solstice sure to check the calendar of events.
in the City of Greater Dandenong’s Stakeholder at the Shortest Lunch on 22 June.
publication, June - September 2011’. Ron Ghiggino
This edition looks not only at the very Manager Economic Development
WorD froM tHE EXpErt
Carbon Pricing and Small
to Medium-Sized businesses:
Don’t Wait to See What Happens
Article by turlough Guerin,
I n recent months the media has been
whipping up a storm over how a carbon
tax will send us all into poverty. The view
The bottom line is that a carbon price
will be another risk for businesses to
manage. BUT in some instances, a price
has been that a carbon tax is yet another on carbon will provide an opportunity,
lever for the government to pull to grab both in forcing businesses to review and
more revenue and everyone and every update their operations to become more
business is going to suffer from a price efficient, and in providing new industries
being put on carbon. and products to service a new carbon
Here are some realities: regime. How can your business take
• Australia has commitments under advantage of these opportunities?
the UN to reduce national greenhouse In this article, I propose that SME leaders
gas emissions; (if they haven’t already) ought to consider
• Australia won’t be leading the world if it getting a view of how carbon flows
introduces a carbon tax. Many countries through their business. This will enable
have already implemented a tax or an understanding of how a carbon price
Turlough Guerin, Chairman Access Melbourne, scheme for putting a price on carbon; is likely to impact your balance sheet.
Board Advisor Climate Alliance and Former A carbon price has never been costed in
Environmental Manager at Telstra, Shell and Rio
• A critical issue for businesses will be
Tinto. www.au.linkedin.com/in/turloughguerin keeping a competitive advantage in a our economy before and the environment,
new tax regime. specifically the atmosphere, has carried the
continued page 3
3. Greater Dandenong’s business news June 2011 - September 2011 3.
inDuStry StoriES
weight of years and years of greenhouse
gas emissions from our industrial activity. Case study: A recent carbon footprint assessment for part of a large business
There is no point trying to delay or dodge yielded some interesting results for the business and its customers1. It showed that
the inevitable. I agree small businesses the environmental impact of its services was predominantly a result of servers
should voice their view on the potential and switching devices (routers) which the customer had to purchase to enable the
downside of cheap imports that do not services to work. When this information was shared with the customer, they were
necessarily properly cost a price of able to change their own processes to ensure the most energy-efficient routers
carbon, but they should also be preparing were now used. It also provided a missing piece of information for the customers
themselves for the impact of a carbon price. undertaking their own carbon emissions inventory.
Energy and fuel prices are likely to be the
main sources of additional costs for your This is not rocket science but it does carbon reduction. Funding for business
business. Based on your current annual require some rigour, attention - detail process redesign should be offset
energy and fuel bills you can estimate the and analysis: against the impacts of a carbon price
forecasted increases. By knowing where on your business if you were to make
the carbon flows are in your business, 1. Prepare a list of the sources of
no changes in the carbon passed
you can prioritise efforts on where to greenhouse gas emissions in your
through your business.
reduce or substitute this flow. For other business. Look for anything that uses
SMEs that produce large volumes of energy, fuel or contributes to landfill. With knowledge of your carbon
waste for landfill, the costs of disposal Don’t limit yourself to the boundaries of footprint you can determine the likely
will increase because of the greenhouse your own facilities – consider what you risks you’ll need to manage and plan
impact of methane – a by-product of are purchasing in raw materials i.e. for. The bonus of being proactive is
landfill waste decomposition. over and above energy and fuel. that it will also expose opportunities
for your business to be a low-carbon
But the specifics of estimating a 2. Rank the sources of carbon according provider in your sector. This may give
financial impact for your business will to the total tonnage of CO2e (i.e. your business a competitive edge if
vary according to your own systems, equivalent). you act on this knowledge.
processes and products. There is no
3. Identify ways to eliminate or reduce
way to put all the options in this article See “Measuring our own carbon
CO2e from the main sources. 1
for reducing your carbon footprint. In footprint onto our largest customer”
essence, what will give you a factual 4. Redesign those “carbon-intensive” 2
http://slidesha.re/hFNCAz
basis for evaluating the carbon risks in parts of the business so that a
your business is to identify and collate competitive edge is established. This 2
That is, where the tonnes of CO2e (t CO2e)
these carbon emission sources. This is a is where it counts. It is highly likely per unit of production or revenue is high
basic carbon emissions inventory. there will be a cost to deliver this compared to other parts of the business.
Positioning Your business for the Future
W ith a carbon-constrained world
inevitable it is up to businesses to
set their own sustainability path, and
Measures implemented on site included
• assessing power use of lights, water
now actively pursuing a similar strategy
for timber waste from inbound shipping.
boilers and air conditioners; Another initiative introduced the use of
explore the opportunities that sustainable more environmentally friendly water-
practices can bring. One business taking • installing low-watt lights in office areas
based cutting lubricants, instead of
advantage of these opportunities is Noble • putting timers on air conditioners difficult-dispose-of-oil-based products.
Park company Festo Pty Ltd.
• investing in programmable water boilers As a company, Festo recognises that its
Festo is one of the world’s largest industrial which operate only during business hours. long-term economic success in a world
automation companies, supplying
Air quality improvements were also of finite resources and limited carrying
innovations in pneumatic, process and
made by fitting larger filters on capacity of ecosystems necessitates
electric drive technology delivering
compressed air equipment which responsible interaction with the
productivity gains for clients.
improved efficiency and reduced environment.
Festo have taken advantage of the Local
energy use. Festo has reinforced its commitment to
Industry Efficiency Program (LIEP), which
A review of waste materials has also minimising the environmental impact of
provided an independent review of the
led to changes at Festo. Compacted its business and products by joining the
company’s Noble Park site to determine
cardboard is now sold to a third party Support 155 Business Program.
the sustainability improvement potential
with water, power and waste savings recycler and is no longer a cost. Festo is www.festo.com.au
throughout its production facility.
“Going through the program has re-
educated our business in relation to
energy savings and waste management
on a day-day basis. Incorporating our
company’s strong environmental focus
into our work environment has been easy
to do, and has provided us with ongoing
cost savings,” said Gavin Cocks, Festo
Operations Manager.
4. 4. Stakeholder June 2011 - September 2011
inDuStry StoriES
Jaeger Formulation
is the Farmer’s Friend
A gricultural crops-such as grapes,
potatoes and other vegetables,
fruits, cereals and even nuts-are facing
pose any risk to human health. It is
biodegradable and only has a one-day
withholding period, so crops can be
an increasing prevalence of fungi and sprayed one day and harvested the next.
microbial plant pathogens. Most other fungicides have a seven-day
One innovative Noble Park business has withholding period,” he said.
invented a multi-purpose solution to fight “Farmers know if it’s working within half Before.
these diseases on greenhouse productions, an hour as affected leaves start to change
in-field throughout the plant’s development colour. It’s that immediate. And the beauty of
and also in post-harvest storages. Peratec is that it not only kills the infection, it
Jaegar Australia, one of Australia’s also kills the spore or eggs of the infection.”
foremost ‘creative formulators’ of The savings in using one application
industrial and commercial cleaning rather than three aren’t just restricted
and sanitation agents, has developed to the cost of purchasing products. The
a product Peratec Fungicide that labour and fuel costs involved in having
is gaining widespread recognition to do three applications at different times
nationally and overseas. can be considerable.
Mario Azzopardi, Jaegar’s Managing Established in 1989, Jaegar remains a
Director, said there several unique features small operation with less than 10 staff.
of Peratec, which is environmentally However, with the success of Peratec
friendly and can kill botrytis and other and other products, including a non-toxic
infections such as powdery and downy biodegradable graffiti remover, Jaegar’s
mildew in the one application. turnover has doubled this year, which
“Peratec utilises per-oxygen chemistry points to a healthy growth path.
After.
that does not leave toxic residues or www.jaegaraustralia.com.au
Victoria Leads in Cleantech industry
T he cleantech industry is growing
exponentially across the world. In
Australia, Victoria is leading the nation
activities such as site visits. Austrade
auspiced the Indian trade mission and
ensured that participants were matched
The trade mission to India was the first
of a number planned by the Victorian
Government. Eligible companies were
in terms of the number of companies with suitable Indian organisations. also provided a $3000 rebate to assist
involved, the people employed, and with airfares and accommodation costs.
industry turnover. Three capability presentations were also
organised so each participant could The multi-sector trade missions are part
To ensure it stays this way, the Victorian present to a hand-picked audience of of the Victorian Government’s focus
Government and its Department of about 40 Indian companies. on India, which aims to achieve $60
Business and Innovation (DBI) recently
million of additional exports in the next
organised trade missions to the USA
and India. two years in addition to the existing $2
billion of Victorian exports to India.
The first mission to the USA was in pursuit The Trade Mission’s visit in April set the
of approved water projects with the tone for larger trade missions, targeted
United Nations and the World Bank. The missions and industry promotion over
14-delegate mission returned in February
the next two years.
with significant new business for the
Australian businesses who attended. A 2008 ICN report estimated that
The second mission to India in 19,000 people were employed by more
April highlighted Victoria’s general than 300 companies in the cleantech
cleantech industry capabilities with industry, which produced revenues of
the aim to maximise export and $3.5 billion. This number is expected to
partnership opportunities. double by 2020.
Every participant in the Indian trade To register interest in future cleantech
mission had a tailored program of trade missions, contact Peter Hansford at
one-on-one meetings in addition to joint Peter.Hansford@dbi.vic.gov.au.
5. Greater Dandenong’s business news June 2011 - September 2011 5.
inDuStry StoriES
Leading the way in industrial Design
S ustainability has become an essential
ingredient for any new development.
Australand has been involved in the
development of the Green Star Industrial
tool, working with the Green Building
Beaumont Tiles site
in Abbotts Road
The Beaumont Tiles building in Abbotts
Road Dandenong South, constructed in Council of Australia (GBCA), the City of
late 2009 by the Pellicano Group, was Greater Dandenong and the end owner,
a leading example of incorporating Australand Property Trust.
sustainability into the planning, design Chris Mackenzie, Australand’s
and construction thus reducing the commercial and industrial General
environmental impact of the building. Manager of Development and a member
More recently Australand announced of the GBCA committee that developed
that one of its latest projects, a the tool, said Australand was confident
27,200-square-metre office and about the demand for green industrial
warehouse to be built on The Key estate buildings. ‘’Tenants and investors are
in Greens Road Dandenong South, is increasingly recognising the advantages
expected to be one of Australia’s first of properties with strong environmental
Green Star-rated industrial buildings. credentials,’’ he said.
The Australand project will aim for a Implementing the next step is the
four-star Green Star Design, leading nearby VicUrban LOGIS North estate
the charge for industrial developments which will set a new standard for entire
to follow standards previously set in the industrial precincts by incorporating a
commercial marketplace. Greater Dandenong is privileged to be
host of cost-effective and future-friendly
the home of these developments which
The company expects the project to have sustainable design features – including
are clearly setting the standard for
an end value of about $25 million and to water-sensitive urban design, energy-
others to follow.
be retained within the investment property efficient street lighting, recycled water
portfolio of the Australand Property Group. and smart building design. www.gbca.org.au
Ikea/Harvey * Skylights deliver a happy balance
Norman on-site
rainwater storage
between providing natural light and
heat transfer issues. Approximately five
per cent of the roof is translucent glass
with high-UV values.
* Natural car park ventilation. Because
the building is relatively narrow it
can rely on wind pressure to vent
the car parking levels that have an
open facade. Additional ventilation
is provided via fans that activate
when carbon monoxide sensors are
triggered. This eliminates the use
of exhaust ducts and also reduces
energy consumption.
* Insulation. The building is insulated
Green Building Designs
above the recommended level to ensure
the mechanical system works to its peak.
* Windows. All the glazing is shaded,
Adapt to Changing Climate providing natural light but preventing
heat transfer by direct sunlight hitting
the glass.
T he new Ikea and Harvey Norman
Homemaker Centre in Springvale
is a great example of a sustainable
every bit of water is used throughout
the complex.
* Air cooling. The Ikea store uses an
innovative ‘chilled beam’, water-
“In total, 4.8 million litres of rainwater based cooling system where a
development. are stored, which is used to flush ‘beam’ (radiator) suspended from the
With the building nine metres longer toilets, top-up the air cooling towers ceiling allows denser cool air to fall
than the Empire State Building is tall, and irrigate the landscape. It can also to the floor, replaced by warmer air
this means plenty of roof space — be used for general non-potable use moving up from below. The running
approximately 55,000 square metres such as cleaning the building and cost is approximately 16 per cent of a
— to capture rainwater. loading docks.” standard system.
Steve Evans, Director of Leffler Simes Other sustainable features to conserve www.ikea.com
Architects, designer of the building, said energy and materials include: www.harveynorman.com.au
6. 6. Stakeholder June 2011 - September 2011
DiSAStEr MAnAGEMEnt
Planning
for all
Contingencies
B usiness continuity management can
be divided into two segments: the
known risk factors that will affect your
business and the more frequent unknown
factors, which can strike at any time.
Perhaps the most well-planned for
Responding to
‘known’ factor was the Y2K ‘bug’,
with businesses investing resources
to ensure minimal disruption. The
increasing costs of oil and electricity
Major emergencies
also fall into this category.
Fires, floods and earthquakes are
disasters that are beyond our control
and highlight our vulnerability. Add to
this energy disruptions, such as the
D id you know that each Council has a
Municipal Emergency Management
Plan (MEMP) - an over-arching document
Council’s Manager Infrastructure
Services. Test exercises are conducted
Longford gas explosion in 1998 when
there was no gas supply for nearly
annually to ensure council’s systems three weeks.
facilitating council’s total emergency and procedures detailed in the plan are
management planning response and up to date. Test exercises also ensure That’s why it’s important to be prepared.
recovery initiatives? You need to identify preventive and
the Municipal Emergency Control
The MEMP is developed and alternative measures to manage risks
Centre (MECC) is ready to operate in
implemented in partnership with through a business continuity plan.
the case of a major emergency.
lead emergency agencies to address Risks need to be identified, assessed,
emergency issues which may occur We are relieved that the MEMP and analysed and tested; then monitored
within the municipality. These events MECC have not often been called upon, and reviewed regularly.
could include major fire, flood, but they were invoked recently when This, along with good financial plans
earthquake or any other emergency severe flooding occurred in several parts and comprehensive insurances, should
event which could have a broad impact of the municipality. be in place to protect your business and
on the local community. reduce the impact on the business and
During the 4 February flooding event
The aim of the MEMP is to detail the MECC was activated in order to your employees’ lives.
arrangements to minimise, respond to guide council’s response and recovery Do your processes allow you to continue
and recover from emergencies that could to the event. The MECC consisted of a to operate the business if such a disaster
occur in the City of Greater Dandenong. occurred? How soon could your
team, including emergency partners
Activating and coordinating emergency such as the SES and Victoria Police, that business re-open and operate effectively
resources is an integral part of the coordinated emergency responses to after a major disruption? Would your
council’s day-to-day operations. back-ups really be effective if everything
minimise the impact of the event.
Accordingly, levels of response can be on site was lost? Are you sufficiently
increased or decreased without the need This included emergency response insured for such a business disaster?
for formal declaration of an emergency staff from various services, including To help business respond to those
or activation of the MEMP. Council, working night and day to questions and develop their own
This MEMP is administered and manage the emergency activities plan, the Victorian Government Office
maintained by the municipal including traffic management, road of Small Business has produced an
emergency management team and closures, monitoring of stream levels, information sheet available online at
chaired by the Municipal Emergency planning for escalation scenarios and www.business.vic.gov.au by searching
Response Officer (MERO) Oliver Vido, evacuation of affected residents. for ‘Emergency Contingency Planner”.
7. Greater Dandenong’s business news June 2011 - September 2011 7.
inDuStry StoriES
Prepare for the inevitable
A power failure is one of the worst
events to occur for any business.
Whether it’s caused by a lightning strike,
usually more frequent than blackouts.
Businesses can be prepared for
“We sit down with the customer and
ascertain what their load is and how
long they need to support that load for.
such events with an uninterruptible We then design a system to fit, build
a vehicle crash, power grid overload or
earthworks gone wrong, it can happen. power supply (UPS), which regulates the system for them, install it and then
the incoming power to acceptable maintain it.”
The effects of a sudden power failure parameters and can supply a limited
can be devastating if no preparation has With UPS costs starting from about $165,
amount of power when mains power fails. it is a worthwhile investment in “business
been made for a “graceful shutdown” of
computers, point of sale, manufacturing Dandenong South business Upsonic continuity management”.
systems and other important equipment. Power supplies three levels of UPS that Upsonic Power supply uninterrupted
suit small, medium or large business. power services to Council across its
Damage can also occur to sensitive
electronics through spikes, surges, Paul Riva, Upsonic’s Managing Director, various sites.
brownouts and noise, which are said every business has a different need. www.upsonic.com.au
Images courtesy of Keith Pakenham -
CFA Strategic Communications
Diligent Procedures
Save Retailer from $1M+ Loss
W hen fire engulfed and destroyed the
Compleat Angler store in Langhorne
Street Dandenong in November last
stock processed ready to ship just waiting
for the new delivery address.”
“The shock of the fire affected all the
staff, but with teamwork the grief was
Knowing that virtually everything eased as everyone worked towards the
year, it was thanks to diligent business was covered by insurance provided common goal of re-opening.”
procedures that it was able to open valuable security.
three weeks later and capture important Glenys’ key tips are:
Christmas and holiday trade. “Earlier in the year, with our broker,
I had completed a total review of our * make sure backups are done regularly
Vowing not to let the fire destroy the insurance, which involved updating and and test the backup copy
business, the first step co-owner Glenys amending the policy to ensure that if * store backups off-site
Cooper Loft took a search for new there was a total loss, as happened in our
premises. case, the loss would be reduced. * review insurance policies regularly
“I was confident that once we had a “We included items such as loss of profit, * maintain monthly/seasonal buying
new store, we could get stock and start business interruption, updated inventory procedures
trading quickly. We had comfort in values and considered seasonal stock
knowing that we had off-site backups of adjustments. This process ensured we * maintain a supplier contact database
all our data,” Glenys said. got back on our feet quicker. * maintain a customer database for
“After buying a new laptop, reloading MYOB “A flyer mailed to 19,000 customers quick mailouts
Retail Manager and data from our backups, announcing the relocation was
* have a disaster management plan
our team went to work creating purchase out within three weeks and helped
orders. Our suppliers were great. They had generate business. www.compleatangler.com.au
8. 8. Stakeholder June 2011 - September 2011
StAtiStiCS
City of Greater Dandenong Economic Activity Indicators
Property Sales Activity January to March 2011
A s anticipated, the March 2011 property sales data shows
improvement in the property market with small rises in median
prices as well as number of sales compared to the December 2010
median price from $320,000 during the December 2010 quarter to
$640,000 during the March 2011 quarter but limited sales - 7 and 6
sales respectively - mean the increase in median price could be
quarter. The sharp slowdown of activity in the property market an isolated occurrence or simply related to parcel size rather than
observed during the 2010 4th quarter seems to have had very little price per M². Industrial and commercial property vacant sales
effect on property prices. showed very little activity with only one vacant industrial property
With 159 properties sold at a median price of $377,000, the capital sold during the March 2011 quarter.
improved residential properties sales during the first 2011 quarter As expected, during the March 2011 quarter market prices
showed a slight improvement when compared to the 148 properties increased especially in terms of capital improved properties,
sold at a median price of $373,750 during the last three months of 2010. which is the most considerable property sector in the City of
The median residential site value price decreased from $329,000 Greater Dandenong.
in the previous quarter to $275,000 during the first 2011 quarter, The suburbs with highest median prices during the March
however the number of sites sold increased significantly from six to 2011 quarter were Keysborough and Springvale South with
41. This median price change seems to be the result of a greater $410, 000 median price followed by Noble Park North and
number of smaller blocks sold during the three months to March
2011 compared to the last 2010 quarter.
Industrial capital improved property sales slightly decreased from
24 in the December 2010 quarter to 21 in the March 2011 quarter with
the median price falling from last year’s peak of $572,500 during the
December 2010 quarter to $470,000 during the March 2011 quarter.
This median is still higher than the $437,500 median recorded during
the 2010 March, June and September quarters.
Remarkably, commercial capital improved property doubled in
*
*property values not shown for Dec-10 and Mar-11 due to insufficient number of sales to establish a median. Source: City of Greater Dandenong
Median Residential Prices by Suburb City of Greater Dandenong
December Quarter 2010 March Quarter 2011
No. of Sales Improved No. of Sales Improved
Dandenong 45 $333,500 32 $281,500
Noble Park 36 $340,750 46 $346,000
Dandenong North 22 $380,893 23 $369,000
Springvale 11 $490,000 15 $395,000
Noble Park North 8 $373,750 16 $405,600
Keysborough 13 $430,000 17 $410,000
Springvale South 13 $425,000 10 $410,000
9. Greater Dandenong’s business news June 2011 - September 2011 9.
StAtiStiCS, GrAntS AnD opportunitiES
Springvale with $405,600 and $395,000 respectively. During December 2010 quarter compared to the September 2010
the same period, the highest demand for housing was in quarter. This amounts to over $152 million or 3.32 per cent of all
Noble Park with 46 and Dandenong with 32 properties sold. building works in the Metropolitan Melbourne area.
When comparing the last 2010 quarter and the first 2011 The value of commercial building work increased by an
quarter, all suburbs exhibit variations in median price. amazing 40 per cent amounting to over $67 million during the
Most CGD suburbs offer various housing stock available for same period representing over 41 per cent of all commercial
sale ranging from small units to second and third home- works in the Melbourne South East (MSE) region and 9 per
buyer family homes. Hence the differences in prices depend cent in Metropolitan Melbourne.
on the type of stock available at the time.
Domestic and Residential (Housing) works were worth over
Building Investment $56 million with 371 permits issued in the three months to
The total value of all building works in the City of Greater December. In total, there were 478 permits issued in the City of
Dandenong increased by more than 20 per cent during the Greater Dandenong during the December 2010 quarter.
building permits City of Greater Dandenong
October to December 2010
Housing Commercial Industrial Other Non Housing Total
City of Greater Value of Building Work $m $56.87 $67.39 $6.70 $21.20 $152.16
Dandenong
Source: Building Commission, building activity data
Number of Permits 371 68.00 18 21 478
Metropolitan Value of Building Work $m $3,205.96 $790.71 $44.19 $539.37 $4,580.23
Melbourne
Number of Permits 16437 1764 107 646 18954
MSE Value of Building Work $m $364.73 $165.18 $10.74 $87.22 $627.86
Number of Permits 2410 213 34 80 2737
% of MSE (Melbourne Value of Building Work 16% 41% 62% 24% 24%
South East)
Number of Permits 15% 32% 53% 26% 17%
% of Melbourne Value of Building Work 2% 9% 15% 4% 3%
Number of Permits 2% 3% 17% 3% 3%
Grants and Opportunities
G row Me the Money is an online program designed to
help small-to-medium-sized businesses become more
sustainable and save money. It provides businesses with the
deferred activity statement dates and a free electronic calendar
to help small businesses meet their tax and superannuation
guarantee obligations. Visit www.ato.gov.au or phone 13 72 26
tools, resources and support to use less energy and water,
create less waste and save money. The Australian Government’s Enterprise Connect offices provide
a range of services and grants to business. These include:
Grow Me the Money has been designed around the needs
of small-to-medium business, but the program is open to • Free Business Review conducted by skilled industry
all Victorian businesses interested in reducing resource business advisers. These reviews will help businesses better
consumption and improving environmental sustainability. understand their business strengths and weaknesses and
provide them with strategies to achieve their goals.
Contact (03) 8662 5480 or visit www.growmethemoney.com.au
• Tailored Advisory Services (TAS) grants can help businesses
The Australian Tax Office offers FREE assistance visits to small follow through on the recommendations of a Business Review.
businesses. These visits are covered by the Commissioner’s TAS grants reimburse half the cost up to a maximum of
guarantee, are educational in nature, and the information shared is $20,000 (excluding GST) to engage a consultant/s to make
confidential and will not be used for any other purpose. The service those changes.
can also be used to help set-up programs such as the Australian • A Researchers in Business (RIB) grant allows businesses
Taxation Office’s (ATO’s) ‘Business Portal’ – a fast, convenient and to have a researcher from a university or public research
secure way to lodge and view activity statements, request refunds agency within their business to help develop and implement
and communicate on specific topics. new commercial ideas. RIB grants provide funding for up
The Tax Office also has measures to help small businesses to 50 per cent of salary costs, to a maximum of $50,000, for
struggling to manage their tax payment obligations. This each placement between two and 12 months.
assistance can incorporate negotiated payment arrangements, www.enterpriseconnect.gov.au
10. 10. Stakeholder June 2011 - September 2011
nEW tECHnoloGiES
Local Food
Manufacturer Pops
into innovation event
T he City of Greater Dandenong is
part of the collaborative South
East Melbourne Innovation Precinct
Flagship present on the development
of BARLEYMax™ a new super grain.
Steven Strong from Dandenong South
(SEMIP) project – a unique partnership food manufacturer, Popina Foods then
between the Victorian Government, presented on how Popina secured the
CSIRO, Monash University, Australian rights to commercialise the grain, and
Synchrotron, Small Technologies
market it through a series of products
Cluster, and Greater Dandenong,
Kingston, Knox and Monash councils readily available on supermarket shelves.
working in consultation with industry. Andrew Scully from CSIRO’s Future
SEMIP has three key themes: Manufacturing Flagship gave an overview
of the CSIRO’s progress on developing
CONNECT businesses and researchers
effective flexible electronics into
ACCELERATE development of new packaging, which could revolutionise the
innovative businesses packaging industry.
EXCITE by creating places to learn, work, On 16 June SEMIP will be holding its first
live and invest. Innovation Showcase, a full day event
Consistent with those themes, SEMIP providing opportunities for innovative
continues to host a series of innovation business people to interact with fellow
The new Popina BARLEYMax™ range workshops aimed at encouraging innovators, local researchers and
researchers and local businesses to government partners. Register now at
gather and discover new opportunities for www.innovation2011.com.au or email
collaboration and innovation. register@innovation2011.com.au
The latest of these events was ‘Hungry
for Innovation’ a food and packaging
innovation workshop held in April.
The event attracted food and packaging
businesses from across the precinct to
hear Tony Bird from CSIRO’s Food Futures
Leading the way in
new manufacturing
T he Victorian Direct Manufacturing
Centre (VDMTC) has been
established in Melbourne by a
Established with the support of the
Victorian Government, the consortium
includes 10 Victorian companies,
products Also called 3D-printing or
additive manufacturing, the technology
can result in savings in labour, time,
consortium led by CSIRO to help make Swinburne University of Technology, materials and energy-leading to less
the state’s manufacturing industries more Deakin University and CSIRO as impact on the environment. Additionally,
environmentally friendly, productive and research providers. the process allows parts to be produced
globally competitive. The centre will strengthen engagement from difficult-to-fabricate materials such
Direct manufacturing is a revolutionary between Victorian industries and as titanium, for advanced applications
concept where components are research agencies, revitalise key in the aerospace, defence, mining,
manufactured directly from powder, manufacturing sectors, create biomedical and automotive industries.
ribbon or wire in a layered manner. new highly-skilled jobs and reduce Sound interesting? Visit www.business.
Direct manufacturing will increase manufacturing’s environmental impact. vic.gov.au and search Victorian Direct
flexibility and customer responsiveness – The technology is particularly suited to Manufacturing Centre or contact Dr
and significantly reduce time to market, low-medium volume, higher value and Mahnaz Jahedi Director of the Centre at
costs, energy consumption and waste. difficult-to-manufacture materials and Mahnaz.Jahedi@csiro.au
11. Greater Dandenong’s business news June 2011 - September 2011 11.
ConGrAtulAtionS
nissan
Casting turns
over a new
LeAF London Olympics
A $21 million deal was secured by Nissan
Casting in Dandenong to manufacture
three components for Nissan’s new all-
electric LEAF vehicle.
Contract for STi
Manufacturing, Exports and Trade Minister
Richard Dalla-Riva announced the contract
at the plant in March with Victorian State
O ne of the first things Jill Long from
Sports Technology International (STI)
did when she started with the company
respect and attention it deserves,” Jill said.
Once STI had won the tender,
Manager Jayne Facey and Nissan Australia extensive testing was carried out by
was open a new project folder on a tender everyone involved including officials,
CEO Dan Thompson.
that wasn’t to be issued for five years. photographers, broadcasters and the
“This contract, which was won against the
That was back in 2005 when Dandenong STI/APTA team in London and Australia.
odds of strong global competition, is a terrific
South businesses, STI and its sister Large samples were air freighted to
win for Nissan Casting Australia, for our
company, Advanced Polymer Technology London with investigations looking at UV
automotive components sector and for local
Australasia (APTA) heard that London stability and playability with top hockey
manufacturing,” he said.
had won the right to host the 2012 players called in to play on it.
The contract secures the jobs of more than Olympic Games. Testing of the vibrant blue and pink
100 workers at the Dandenong plant and will
Before STI could tender for the supply and colours was undertaken for people in
drive exports worth up to $160 million.
construction of the Olympic hockey pitches the venue, such as umpires, players and
The plant is currently being upgraded in it had to pre-qualify, which involved a the audience, and for broadcasting,
preparation for the contract with production submission of several hundred pages. with filming under every possible light
scheduled to start in mid 2012. By 2013 the From scores of submissions only four were condition including natural light, half-light
plant is expected to be producing 22,000 invited to tender, including STI. and artificial light.
components per month.
Competing against leading European “While STI has its name on the tender,
The Federal and State Government have and North American suppliers, STI was just as important is Advanced Polymer
contributed to the investment through the awarded the tender in the latter half of Technology, which is the manufacturer
Green Car Innovation Fund and the Victorian 2010, but it wasn’t until the end of March of Poligras.
Government Business Assistance Grant. this year that it was officially announced. “Both companies work out of the same
The LEAF vehicle, the world’s first zero- “LOCOG (London 2012 Organising facility and we have a very experienced
emissions five-door family hatch, is already Committee) and FIH (International team on site including engineers,
available in the United States, Japan and Hockey Federation) had a lot of planning designers, chemists, scientists, admin
the United Kingdom and will be available in and testing to do before details could be people and tech people. We work as a
Australia in mid-2012. announced,” Jill said. team and that’s what helps us win these
www.nissan.com.au large and prestigious tenders.”
In a dramatic departure from the
traditional green hockey surface, the www.sti-sports.com
colour of STI’s Poligras Olympia pitches
for London 2012 Olympics will be the
striking colour combination of blue pitch
and pink surrounds.
“The blue and pink combination was one of
the suggested layouts by us, so it’s gratifying
they settled on this colour combination.”
It’s not STI’s first break with tradition.
For the Sydney Olympics, the STI/APTA
team pioneered an alternative colour
pitch combination when it designed and
manufactured a rust terracotta colour
surrounds. And for the Beijing Olympics,
STI/APTA produced red and gold
surrounds to the pitches.
“We respond to every tender with a fresh
and clean approach; there’s no cutting and
pasting from other tenders. We give it the
12. 12. Stakeholder June 2011 - September 2011
SoutH EASt BuSinESS nEtWorKS (SEBn)... bringing people
these pages feature stories from Council’s Business networking Department,
South East Business networks (SEBn), together with the South East Melbourne
Manufacturers’ Alliance (SEMMA inc) highlighting their work with industry and
the diversity and innovation typical of the manufacturing sector in this region.
2011 networks Craig Spence
takes a swing
& Programs
Regular network Groups:
• General Manufacturing
• Export
• OH&S
• South East Quality Network
• Manufacturing ‘Xcellence’
• Women in Business
Take a Swing for
• ‘Manufacturing –
Beyond 2010’
• Tomorrow’s Business
Charity Golf Day
Leaders
Programs:
T he 2nd City of Greater
Dandenong – Industry
‘Take a Swing for Charity’
Greater Dandenong calendar.
The Sandhurst course
and the community that we
encourage all to put MONDAY,
20 FEBRUARY 2012 in their
once again provided a
Golf Day held on 21 February challenge to the players, but diaries now and if anyone
• 5S Visual Workplace would like to sponsor next
at the Sandhurst Club professional Craig Spence
• Lean Leadership Academy achieved its target $50,000 for was at hand for all to buy year’s event – contact Sandra
Wallara Australia. ‘tips and tricks’ to help them George on 9238 1576 or email
• Lean to Green Academy SEBN@cgd.vic.gov.au
This phenomenal result for out. A great day was had by
• ‘Generation Next’ all, with many commenting
a local charity event was
Leadership Forum on the great atmosphere of
(partnership with Burke
Corporate Advisory)
made possible thanks to
the incredible generosity of the day, certainly helped by
Mayor Roz Blades inviting
Meet the
Buyer Series
the business community –
Wallara client Andrew to help
• CEO MasterMind Group especially the major sponsors,
read her welcome speech!
(partnership with KPJ Group (Gold); Grenda
CEO Institute) Corporation (Silver); the ARM
Group and Norden Conversion
The day concluded with a
dinner and auction which
raised in excess of $11,000 with
SEMMA’sof theMeetto raise
2011
series is designed
awareness
the Buyer
procurement
For information on these and (Bronze). Kia Dandenong
provided the Hole-in-One auctioneer John Shore’s talents practices and capability
other SEBN activities, phone raising $400 for ‘nothing’ from requirements of some of our
opportunity. Many other
Manager Sandra George on one local company! local manufacturing icons
businesses supplied goods
9238 1576 or email and educate members on
and services to make the day a A great ‘team’ event between
sgeorg@cgd.vic.gov.au very special event in the City of CGD, industry, Wallara the processes and policies
required to conduct business
with them.
Focus on Export
seminar. With the Australian Companies including Siemens,
dollar hitting a record high Bolwell, Jayco, Volgren and
against the US dollar in recent Toyota have presented at
months, Victorian exporters these forums – all identifying
S outh East Business
Networks (SEBN) is
continuing its focus on export,
international customers.
Danny Burrows from
TradeWorthy Consulting
- particularly those in the
manufacturing sector - are
potential opportunities and the
series also enables commercial
seeing their profit margins opportunities between
partnering on a number of provided participants with members to be identified.
decline. The seminar covered
occasions in 2011 with the information on the steps More than 80 members
key economic factors driving
Department of Business & required to comply with an FTA our currency; what foreign attended the March forum
Innovation to deliver a series and how to use this information exchange risk means for with Bombardier which
that is both relevant and topical to negotiate improved margins exporters, and practical highlighted the global nature
for local exporters. with their customer base. management strategies for of local procurement and the
The first seminar in April Companies wanting to know exporters to protect against opportunities that many local
focused on Free Trade more about FTAs can find foreign exchange losses. manufacturers may have as
Agreements (FTA) and how further information at www. Another seminar on this topic is global suppliers.
Victorian companies can export.business.vic.gov.au
being planned so keep The next forum is scheduled for
actively use an FTA to drive Managing Currency was an eye out for details on the August and open to SEMMA
export growth with their the key issue at the following next event. members only.
13. Greater Dandenong’s business news June 2011 - September 2011 13.
together to strengthen manufacturing knowledge and capability
Preparing tomorrow’s business leaders.
Where is your company at?
Article by Michael Burke
It is becoming an all too
common occurrence.
your time in three years
time. Is it travelling, playing
lots of golf, more time with
sure it is heading a team of
people that will challenge them.
In the early days they may
front of others. In fact, build
them up in front of others,
as long as it is not false. You
Picture this - business
the grandchildren, monthly be vulnerable as a potential also need to accept that the
owners heading towards
lunch with the mates and so leader and more likely to make successor is not you, and nor
their 60s at a rapid rate and
on. Maybe you want to be mistakes so the first point is to will they ever be. Accept the
desperately wanting more
working on some high-level make sure they have mentoring differences and move on.
work-life balance, but actually
business opportunities two built into their training program.
working longer hours. With People start to become great
days per week to help the The mentor should ideally be
question marks over potential business. Whatever you want someone who has been through leaders when they start to
internal successors and no to do, if you can identify how a similar experience and seen build confidence in their
documented plan in place to ability to deal with any issues
address the situation. Sound Michael Burke and the “Generation Next” group. that come their way. The
familiar? If so, read on. This mentoring program is now accepting new early stage of succession is
participants. Contact Sandra George. about building confidence.
Five years ago everyone was
talking about succession Write down a plan
planning and the need for it. Your next steps from this
Not many of us took it seriously. article should be to:
Then the GFC came along and
distracted us. As we emerge • write down the things that
into the next phase of growth you need to do over the next
(at least according to most 30 days to start planning
economists and the OECD), to “hand over the baton”
handing over the business – make sure you put dates
to someone else has now against these actions
become a harsh urgent reality • jot down the name of two or
for many. Succession is back three potential successors in
on the agenda but is now an the business
urgent issue.
• write down your plan B if
The key question is, “Is your your preferred successor
business ready to hand over doesn’t work out.
the baton?” There are three you will spend your time this the lessons and mistakes of
key things you need to do. should give you a goal to start succession with their own eyes. Michael Burke is a Business
wanting to ease out of the Improvement Specialist
Get yourself ready Secondly, organise a and accredited facilitator of
business. Unless you want to training program that covers
When the penny drops that ease out of the business, then the consulting and senior
you will need to exit your leadership skills, general management network,
chances are you won’t! commercial training and
business smoothly, the biggest Mindshop. He also leads the
Identify and skill-up successors people skills. Get them to mix South East Business Networks
barrier to your exit will be you.
You need to think about and network with other young Generation Next program. For
This business has been yours. leaders who are at a similar more details contact Michael
potential successors. Get your
For many business owners stage of development. via email at mburke@bcag.
potential successor leading a
they were there at the start. It net.au or at www.bcag.net.au
small part of the business, to Make sure you back your
is hard to let go. or Sandra George at South
get them understanding the potential successor every
The starting point is to look at role of a leader. Maybe it is a time. Don’t talk behind their East Business Networks on
how you want to be spending pilot project. If you can, make backs; don’t chastise them in sgeorg@cgd.vic.gov.au.
National Youth Services Week
C GD Youth Services and
SEBN teamed up to run a
Youth Mentoring Breakfast as
Two young business leaders
- Daniel Flynn (Thankyou
Water) and Tirren Staaf
part of National Youth Week. (Obese Records) spoke about
Mayor Roz Blades welcomed their business experiences,
45 local secondary school inspiring the young leaders
students who engaged with of tomorrow to ‘have a go’! A
more than 50 local business great time was enjoyed by all,
mentors volunteering their time with additional mentoring and
to enjoy a conversation with work experience offered and
students on career choices plenty of new schools-industry
and workforce expectations. initiatives being discussed.
14. 14. Stakeholder June 2011 - September 2011
inDuStry & inVEStMEnt
A Super New Store
A mong other significant
investments in the local retail
market, Australia’s largest discount
furniture and bedding retailer,
Super A-Mart has announced that it
is coming to Dandenong.
The company has almost 30
across five states, and has now
signed a 12-year lease for an 8000
square metre facility at 132- 140
Smart Location for Frankston Dandenong Road, the
former home of Mercury Marine
which is moving to VicUrban’s
Community Kitchen Gardens Logis Industrial Estate in nearby
Greens Road.
CB Richard Ellis Senior Manager
T he GPT Group’s Parkmore Shopping
Centre has introduced an innovative
approach to teach children where their
Growers Workshops held during school
holidays.
Chris Parry and Cameron
Industrial Commercial Director,
Ben Cooper negotiated the lease.
“These workshops include seasonal
food comes from. cooking demonstrations, hands-on pot “This lease was one of the largest
The Centre has created two kitchen decorating and potting a plant, which single bulk goods deals to be
gardens filled with more than 100 children can then take home. completed in the Victorian market
seasonal herb and vegetable plants that “Our future marketing is themed for some time,” said Mr Parry.
can also be harvested by shoppers to use around fresh food. Rather than children “Despite the challenging
at home. thinking that oranges are grown on the market conditions, retailers are
A large rooftop garden (12 crates) supermarket fruit tree, they can learn committing to longer leases in
and a smaller interior garden in the what the process is and how enjoyable the Victorian bulk goods sector,
fresh food hall (5 crates) are part of fresh food is to eat.” underpinned by population growth
GPT’s partnership with the Stephanie and forecast growth in household
Parkmore’s rooftop garden has been expenditure,” he added.
Alexander Kitchen Garden Foundation designed as a community kitchen
and its social investment program garden with free membership where According to Mr Cooper the
aimed at enhancing the well-being of the members look after their garden, sow State Government’s $290 million
communities in which GPT operates. new crops and harvest crops according revitalisation of Dandenong is
to the season. A monthly workshop with renewing investor and tenant
As part of its partnership, GPT has confidence in the area. This
introduced The Magic of Growth Program, a guest presenter and a newsletter
featuring a recipe from Stephanie lease closely follows two significant
which includes events designed to help property sales in the main street of
promote the Foundation’s principles of Alexander are included.
Dandenong for more than $2 million.
pleasurable food education and positively Community and school groups are invited
influence children’s food choices. to visit and tend the garden at any time. The Super A-Mart Homemaker
Centre will employ about 35
Joel Bridgwood, Parkmore’s Marketing magicofgrowth.gpt.com.au people when it opens later this
Manager, said the Magic of Growth parkmoreshopping.com.au year and will be its third Victorian
program of activities includes the Little kitchengardenfoundation.org.au store.
Fulfilling local dreams
Investment in Greater Dandenong
has not been limited to the industrial,
commercial and retail markets, with
another new building about to crop up at
Chisholm TAFE’s Dandenong site.
The DREAM project, a new $9.5
million trade training centre, has
been enabled by a consortium of five located facility with state-of-the-art construction, plumbing, engineering
secondary schools in the Dandenong equipment, providing students a fast- studies and hairdressing.
area, and funded through a Federal track into a wide range of careers. By working in partnership with the
Government initiative. Due to launch late this year, the two- local schools Chisholm is continuing to
The centre will give students of all five storey centre will offer trade training be a catalyst for career pathways for
schools access to a single, centrally programs including building and people in this region.
15. Greater Dandenong’s business news June 2011 - September 2011 15.
inVEStMEnt
Rollforming Sets up Own Home
A ustralian Rollforming has left ‘home’
and bought new premises in Gaine
Road, Dandenong South.
“However, now that Bombardier has won
contracts to make Melbourne’s new trams,
they need the space back, so we’ve been
projects. Each year more than 270,000
metres of metal are rollformed, shaped,
drilled, punched and cut with precision
thrown out of home!,’’ he laughed. accuracy for each millimetre.
When the company was established in
2001, its main customer was Bombardier Australian Rollforming is widely regarded “We are still a major supplier to Bombardier
from whom it leased factory space. as Australia’s leading special sections and our new, larger premises will better
metal rollforming company with more than position us to serve an increasingly diverse
“Back then it was very convenient,” customer base,” Henry said.
said Henry Wolfkamp, Australian 1300 different products on its books.
Rollforming’s Managing Director. “We It provides a world-class metal design, The company has made a $5 million
took over the factory that was used to rollforming, fabrication and project investment in Greater Dandenong through
make Melbourne’s W-class green and management service to a wide range of its new property purchase and fitout.
yellow trams. national and international engineering www.ausrollform.com.au
Top Ten Law Firm Investment
O ne of Australia’s top 10 law firms has
opened an office in Dandenong. The new Gadens
Dandenong Team
In March this year Gadens lawyers,
which has been providing services
to Victorians since 1845, commenced
business with a full complement of
professional and support staff.
The office will soon have five partners,
two senior associates and a three-
person support team operating from
its Robinson Street office. Some of the
partners studied and undertook their
articles in Greater Dandenong.
Patrick Walsh, Chairman of Gadens
Melbourne, said establishing in
Dandenong was a strategic decision
and one that was supported by the
State Government’s identification of
Dandenong as a growth area and its
$290 million revitalisation investment. David Stevens, General Manager of In addition to corporate services,
“The businesses we have met are Gadens Dandenong said, “We view Gadens Dandenong provides
inspirational, particularly those at the Greater Dandenong as a major hub of private client legal services
Premier Regional Business Awards. It Victoria’s manufacturing industry, which including family law, wills and
reinforces our decision to invest here and makes a very important contribution to estates, and property law.
further service our Victorian client base.” the state’s economy”. www.gadensdandenong.com.au