Carbon pricing and small to medium sized businesses


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A recent presentation I gave to the CEO Institute in Melbourne in May 2011

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Carbon pricing and small to medium sized businesses

  1. 1. Greater Dandenong’s business news June - September 2011Preparing yourbuSineSSThe Price of Carbon - Page 2Disaster Management - Page 6Local wins London bid - Page 11
  2. 2. 2. Stakeholder June 2011 - September 2011City of opportunity FocusContacts: Ron GhigginoRon GhigginoManager Economic DevelopmentSandra GeorgeManager South East Business Networks What a spectacularly busy fewEnquiries to 9238 1550 Fax 9239 5196 months we have had. The Food and Wine Festival; the GreaterPaul Dowling Dandenong Chamber of Commerce’sSouth East Melbourne Manufacturers Platinum Regional Business Awards,Alliance (SEMMA) Ph: 9238 1565 the annual Greater Dandenong Day, and commencement of the 2011 awards program; ManufacturingDeanne Johnson Week; and the Manufacturing Hall ofGreater Dandenong Chamber Fame and the inaugural Melbourne’sof Commerce Ph: 9794 South East Business Awards - to topical “barbecue stopper” of carbon mention just a few activities. pricing but also some very positivePaula Brennan outcomes of responding or workingStakeholder Editorial The success of the Chamber’s Platinum with the environment – about turningPh: 9238 1573 Regional Business Awards 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 Centre4th Floor, 329 Thomas Street very competitive field. Business continuity is something that isDandenong, 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 significantViews expressed by individual contributors in thispublication do not necessarily reflect the views of made a significant contribution to our event (or catastrophe) and we hope somethe City of Greater Dandenong. community so put 20 February in your of the articles in this edition are food forMaterial from Stakeholder, Greater Dandenong‘s diary to participate in the 2012 event. thought for you and your 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 makeacknowledged, e.g. ‘This material first appeared join us to celebrate the winter solstice sure to check the calendar of 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 DevelopmentWorD 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 priceTurlough 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 inEnvironmental Manager at Telstra, Shell and Rio • A critical issue for businesses will beTinto. 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. 3. Greater Dandenong’s business news June 2011 - September 2011 3.inDuStry StoriESweight of years and years of greenhousegas emissions from our industrial activity. Case study: A recent carbon footprint assessment for part of a large businessThere is no point trying to delay or dodge yielded some interesting results for the business and its customers1. It showed thatthe inevitable. I agree small businesses the environmental impact of its services was predominantly a result of serversshould voice their view on the potential and switching devices (routers) which the customer had to purchase to enable thedownside of cheap imports that do not services to work. When this information was shared with the customer, they werenecessarily properly cost a price of able to change their own processes to ensure the most energy-efficient routerscarbon, but they should also be preparing were now used. It also provided a missing piece of information for the customersthemselves for the impact of a carbon price. undertaking their own carbon emissions inventory.Energy and fuel prices are likely to be themain sources of additional costs for your This is not rocket science but it does carbon reduction. Funding for businessbusiness. Based on your current annual require some rigour, attention - detail process redesign should be offsetenergy and fuel bills you can estimate the and analysis: against the impacts of a carbon priceforecasted increases. By knowing where on your business if you were to makethe carbon flows are in your business, 1. Prepare a list of the sources of no changes in the carbon passedyou 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 usesSMEs that produce large volumes of energy, fuel or contributes to landfill. With knowledge of your carbonwaste for landfill, the costs of disposal Don’t limit yourself to the boundaries of footprint you can determine the likelywill increase because of the greenhouse your own facilities – consider what you risks you’ll need to manage and planimpact of methane – a by-product of are purchasing in raw materials i.e. for. The bonus of being proactive islandfill waste decomposition. over and above energy and fuel. that it will also expose opportunities for your business to be a low-carbonBut the specifics of estimating a 2. Rank the sources of carbon according provider in your sector. This may givefinancial impact for your business will to the total tonnage of CO2e (i.e. your business a competitive edge ifvary according to your own systems, equivalent). you act on this knowledge.processes and products. There is no 3. Identify ways to eliminate or reduceway to put all the options in this article See “Measuring our own carbon CO2e from the main sources. 1for reducing your carbon footprint. In footprint onto our largest customer”essence, what will give you a factual 4. Redesign those “carbon-intensive” 2 for evaluating the carbon risks in parts of the business so that ayour 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 highbasic carbon emissions inventory. there will be a cost to deliver this compared to other parts of the business.Positioning Your business for the FutureW ith a carbon-constrained world inevitable it is up to businesses toset 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 ofexplore 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 ofadvantage 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 itsFesto is one of the world’s largest industrial which operate only during business hours. long-term economic success in a worldautomation companies, supplying Air quality improvements were also of finite resources and limited carryinginnovations in pneumatic, process and made by fitting larger filters on capacity of ecosystems necessitateselectric drive technology delivering compressed air equipment which responsible interaction with theproductivity gains for clients. improved efficiency and reduced environment.Festo have taken advantage of the Local energy use. Festo has reinforced its commitment toIndustry Efficiency Program (LIEP), which A review of waste materials has also minimising the environmental impact ofprovided an independent review of the led to changes at Festo. Compacted its business and products by joining thecompany’s Noble Park site to determine cardboard is now sold to a third party Support 155 Business Program.the sustainability improvement potentialwith water, power and waste savings recycler and is no longer a cost. Festo is its production facility.“Going through the program has re-educated our business in relation toenergy savings and waste managementon a day-day basis. Incorporating ourcompany’s strong environmental focusinto our work environment has been easyto do, and has provided us with ongoingcost savings,” said Gavin Cocks, FestoOperations Manager.
  4. 4. 4. Stakeholder June 2011 - September 2011inDuStry StoriESJaeger Formulationis the Farmer’s FriendA 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 bean increasing prevalence of fungi and sprayed one day and harvested the next.microbial plant pathogens. Most other fungicides have a seven-dayOne 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 changein-field throughout the plant’s development colour. It’s that immediate. And the beauty ofand also in post-harvest storages. Peratec is that it not only kills the infection, itJaegar Australia, one of Australia’s also kills the spore or eggs of the infection.”foremost ‘creative formulators’ of The savings in using one applicationindustrial and commercial cleaning rather than three aren’t just restrictedand sanitation agents, has developed to the cost of purchasing products. Thea product Peratec Fungicide that labour and fuel costs involved in havingis gaining widespread recognition to do three applications at different timesnationally and overseas. can be considerable.Mario Azzopardi, Jaegar’s Managing Established in 1989, Jaegar remains aDirector, said there several unique features small operation with less than 10 staff.of Peratec, which is environmentally However, with the success of Peratecfriendly and can kill botrytis and other and other products, including a non-toxicinfections such as powdery and downy biodegradable graffiti remover, Jaegar’smildew 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 Leads in Cleantech industryT he cleantech industry is growing exponentially across the world. InAustralia, 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 werein terms of the number of companies with suitable Indian organisations. also provided a $3000 rebate to assistinvolved, 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 partTo ensure it stays this way, the Victorian present to a hand-picked audience of of the Victorian Government’s focusGovernment and its Department of about 40 Indian companies. on India, which aims to achieve $60Business and Innovation (DBI) recently million of additional exports in the nextorganised trade missions to the USAand 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 theof approved water projects with the tone for larger trade missions, targetedUnited Nations and the World Bank. The missions and industry promotion over14-delegate mission returned in February the next two years.with significant new business for theAustralian businesses who attended. A 2008 ICN report estimated thatThe second mission to India in 19,000 people were employed by moreApril highlighted Victoria’s general than 300 companies in the cleantechcleantech industry capabilities with industry, which produced revenues ofthe aim to maximise export and $3.5 billion. This number is expected topartnership opportunities. double by 2020.Every participant in the Indian trade To register interest in future cleantechmission had a tailored program of trade missions, contact Peter Hansford atone-on-one meetings in addition to joint
  5. 5. Greater Dandenong’s business news June 2011 - September 2011 5.inDuStry StoriESLeading the way in industrial DesignS 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 RoadThe Beaumont Tiles building in AbbottsRoad Dandenong South, constructed in Council of Australia (GBCA), the City oflate 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’sand construction thus reducing the commercial and industrial Generalenvironmental impact of the building. Manager of Development and a memberMore recently Australand announced of the GBCA committee that developedthat one of its latest projects, a the tool, said Australand was confident27,200-square-metre office and about the demand for green industrialwarehouse to be built on The Key estate buildings. ‘’Tenants and investors arein Greens Road Dandenong South, is increasingly recognising the advantagesexpected to be one of Australia’s first of properties with strong environmentalGreen Star-rated industrial buildings. credentials,’’ he said.The Australand project will aim for a Implementing the next step is thefour-star Green Star Design, leading nearby VicUrban LOGIS North estatethe charge for industrial developments which will set a new standard for entireto follow standards previously set in the industrial precincts by incorporating acommercial marketplace. Greater Dandenong is privileged to be host of cost-effective and future-friendly the home of these developments whichThe company expects the project to have sustainable design features – including are clearly setting the standard foran end value of about $25 million and to water-sensitive urban design, energy- others to retained within the investment property efficient street lighting, recycled waterportfolio of the Australand Property Group. and smart building design. 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 insulatedGreen 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 Springvaleis 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 adevelopment. are stored, which is used to flush ‘beam’ (radiator) suspended from theWith the building nine metres longer toilets, top-up the air cooling towers ceiling allows denser cool air to fallthan the Empire State Building is tall, and irrigate the landscape. It can also to the floor, replaced by warmer airthis means plenty of roof space — be used for general non-potable use moving up from below. The runningapproximately 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.comArchitects, designer of the building, said energy and materials include:
  6. 6. 6. Stakeholder June 2011 - September 2011DiSAStEr 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 forResponding to ‘known’ factor was the Y2K ‘bug’, with businesses investing resources to ensure minimal disruption. The increasing costs of oil and electricityMajor 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 theD id you know that each Council has a Municipal Emergency ManagementPlan (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 aremanagement 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 ControlThe MEMP is developed and alternative measures to manage risks Centre (MECC) is ready to operate inimplemented 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 monitoredwithin 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 plansearthquake or any other emergency severe flooding occurred in several parts and comprehensive insurances, shouldevent which could have a broad impact of the municipality. be in place to protect your business andon the local community. reduce the impact on the business and During the 4 February flooding eventThe 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 continueand recover from emergencies that could to the event. The MECC consisted of a to operate the business if such a disasteroccur in the City of Greater Dandenong. occurred? How soon could your team, including emergency partnersActivating and coordinating emergency such as the SES and Victoria Police, that business re-open and operate effectivelyresources is an integral part of the coordinated emergency responses to after a major disruption? Would yourcouncil’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 sufficientlyincreased 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 thoseor activation of the MEMP. Council, working night and day to questions and develop their ownThis MEMP is administered and manage the emergency activities plan, the Victorian Government Officemaintained by the municipal including traffic management, road of Small Business has produced anemergency management team and closures, monitoring of stream levels, information sheet available online atchaired by the Municipal Emergency planning for escalation scenarios and by searchingResponse Officer (MERO) Oliver Vido, evacuation of affected residents. for ‘Emergency Contingency Planner”.
  7. 7. Greater Dandenong’s business news June 2011 - September 2011 7.inDuStry StoriESPrepare for the inevitableA 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, builda vehicle crash, power grid overload orearthworks 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 limitedcan 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 “businessbeen made for a “graceful shutdown” ofcomputers, 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 itsDamage can also occur to sensitiveelectronics through spikes, surges, Paul Riva, Upsonic’s Managing Director, various sites.brownouts and noise, which are said every business has a different need. courtesy of Keith Pakenham -CFA Strategic CommunicationsDiligent ProceduresSave Retailer from $1M+ LossW hen fire engulfed and destroyed the Compleat Angler store in LanghorneStreet 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 theyear, 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 regularlyVowing not to let the fire destroy the insurance, which involved updating and and test the backup copybusiness, the first step co-owner Glenys amending the policy to ensure that if * store backups off-siteCooper Loft took a search for new there was a total loss, as happened in ourpremises. 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 buyingnew store, we could get stock and start business interruption, updated inventory procedurestrading quickly. We had comfort in values and considered seasonal stockknowing that we had off-site backups of adjustments. This process ensured we * maintain a supplier contact databaseall 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 mailoutsRetail Manager and data from our backups, announcing the relocation was * have a disaster management planour team went to work creating purchase out within three weeks and helpedorders. Our suppliers were great. They had generate business.
  8. 8. 8. Stakeholder June 2011 - September 2011StAtiStiCSCity of Greater Dandenong Economic Activity IndicatorsProperty Sales Activity January to March 2011A s anticipated, the March 2011 property sales data shows improvement in the property market with small rises in medianprices 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 bequarter. The sharp slowdown of activity in the property market an isolated occurrence or simply related to parcel size rather thanobserved during the 2010 4th quarter seems to have had very little price per M². Industrial and commercial property vacant saleseffect on property prices. showed very little activity with only one vacant industrial propertyWith 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 pricesshowed 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 ofThe median residential site value price decreased from $329,000 Greater the previous quarter to $275,000 during the first 2011 quarter, The suburbs with highest median prices during the Marchhowever the number of sites sold increased significantly from six to 2011 quarter were Keysborough and Springvale South with41. This median price change seems to be the result of a greater $410, 000 median price followed by Noble Park North andnumber of smaller blocks sold during the three months to March2011 compared to the last 2010 quarter.Industrial capital improved property sales slightly decreased from24 in the December 2010 quarter to 21 in the March 2011 quarter withthe median price falling from last year’s peak of $572,500 during theDecember 2010 quarter to $470,000 during the March 2011 quarter.This median is still higher than the $437,500 median recorded duringthe 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 DandenongMedian Residential Prices by Suburb City of Greater Dandenong December Quarter 2010 March Quarter 2011 No. of Sales Improved No. of Sales ImprovedDandenong 45 $333,500 32 $281,500Noble Park 36 $340,750 46 $346,000Dandenong North 22 $380,893 23 $369,000Springvale 11 $490,000 15 $395,000Noble Park North 8 $373,750 16 $405,600Keysborough 13 $430,000 17 $410,000Springvale South 13 $425,000 10 $410,000
  9. 9. Greater Dandenong’s business news June 2011 - September 2011 9.StAtiStiCS, GrAntS AnD opportunitiESSpringvale with $405,600 and $395,000 respectively. During December 2010 quarter compared to the September 2010the same period, the highest demand for housing was in quarter. This amounts to over $152 million or 3.32 per cent of allNoble 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 anquarter, all suburbs exhibit variations in median price. amazing 40 per cent amounting to over $67 million during theMost CGD suburbs offer various housing stock available for same period representing over 41 per cent of all commercialsale ranging from small units to second and third home- works in the Melbourne South East (MSE) region and 9 perbuyer 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 overBuilding Investment $56 million with 371 permits issued in the three months toThe total value of all building works in the City of Greater December. In total, there were 478 permits issued in the City ofDandenong increased by more than 20 per cent during the Greater Dandenong during the December 2010 quarter.building permits City of Greater DandenongOctober to December 2010 Housing Commercial Industrial Other Non Housing TotalCity of Greater Value of Building Work $m $56.87 $67.39 $6.70 $21.20 $152.16Dandenong Source: Building Commission, building activity data Number of Permits 371 68.00 18 21 478Metropolitan Value of Building Work $m $3,205.96 $790.71 $44.19 $539.37 $4,580.23Melbourne Number of Permits 16437 1764 107 646 18954MSE 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 OpportunitiesG row Me the Money is an online program designed to help small-to-medium-sized businesses become moresustainable 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 or phone 13 72 26tools, 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 needsof small-to-medium business, but the program is open to • Free Business Review conducted by skilled industryall Victorian businesses interested in reducing resource business advisers. These reviews will help businesses betterconsumption 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 • Tailored Advisory Services (TAS) grants can help businessesThe 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 ofguarantee, are educational in nature, and the information shared is $20,000 (excluding GST) to engage a consultant/s to makeconfidential 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 businessesTaxation Office’s (ATO’s) ‘Business Portal’ – a fast, convenient and to have a researcher from a university or public researchsecure way to lodge and view activity statements, request refunds agency within their business to help develop and implementand communicate on specific topics. new commercial ideas. RIB grants provide funding for upThe Tax Office also has measures to help small businesses to 50 per cent of salary costs, to a maximum of $50,000, forstruggling to manage their tax payment obligations. This each placement between two and 12 months.assistance can incorporate negotiated payment arrangements,
  10. 10. 10. Stakeholder June 2011 - September 2011nEW 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 fellowThe 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 or email collaboration and innovation. 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 FuturesLeading the way innew manufacturingT he Victorian Direct Manufacturing Centre (VDMTC) has beenestablished 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 lessthe 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 producedglobally competitive. The centre will strengthen engagement from difficult-to-fabricate materials suchDirect manufacturing is a revolutionary between Victorian industries and as titanium, for advanced applicationsconcept 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 manufacturing will increase manufacturing’s environmental impact. and search Victorian Directflexibility and customer responsiveness – The technology is particularly suited to Manufacturing Centre or contact Drand significantly reduce time to market, low-medium volume, higher value and Mahnaz Jahedi Director of the Centre atcosts, energy consumption and waste. difficult-to-manufacture materials and
  11. 11. Greater Dandenong’s business news June 2011 - September 2011 11. ConGrAtulAtionSnissanCasting turnsover a newLeAF London OlympicsA $21 million deal was secured by Nissan Casting in Dandenong to manufacturethree components for Nissan’s new all-electric LEAF vehicle. Contract for STiManufacturing, Exports and Trade MinisterRichard Dalla-Riva announced the contractat 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 towin for Nissan Casting Australia, for our company, Advanced Polymer Technology London with investigations looking at UVautomotive components sector and for local Australasia (APTA) heard that London stability and playability with top hockeymanufacturing,” 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 pink100 workers at the Dandenong plant and will Before STI could tender for the supply and colours was undertaken for people indrive exports worth up to $160 million. construction of the Olympic hockey pitches the venue, such as umpires, players andThe 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 lightscheduled to start in mid 2012. By 2013 the From scores of submissions only four were condition including natural light, half-lightplant 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 Polymercontributed to the investment through the awarded the tender in the latter half of Technology, which is the manufacturerGreen 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 sameThe LEAF vehicle, the world’s first zero- “LOCOG (London 2012 Organising facility and we have a very experiencedemissions 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, adminthe United Kingdom and will be available in and testing to do before details could be people and tech people. We work as aAustralia in mid-2012. announced,” Jill said. team and that’s what helps us win large and prestigious tenders.” In a dramatic departure from the traditional green hockey surface, the 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. 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& ProgramsRegular 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 LeadersPrograms: 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 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 procurementFor information on these and (Bronze). Kia Dandenong provided the Hole-in-One auctioneer John Shore’s talents practices and capabilityother SEBN activities, phone raising $400 for ‘nothing’ from requirements of some of our opportunity. Many otherManager Sandra George on one local company! local manufacturing icons businesses supplied goods9238 1576 or email and educate members on and services to make the day a A great ‘team’ event 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 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. 13. Greater Dandenong’s business news June 2011 - September 2011 13.together to strengthen manufacturing knowledge and capabilityPreparing tomorrow’s business leaders.Where is your company at?Article by Michael BurkeIt 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. YouPicture this - business the grandchildren, monthly be vulnerable as a potential also need to accept that theowners heading towards lunch with the mates and so leader and more likely to make successor is not you, and northeir 60s at a rapid rate and on. Maybe you want to be mistakes so the first point is to will they ever be. Accept thedesperately wanting more working on some high-level make sure they have mentoring differences and move 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 bequestion marks over potential business. Whatever you want someone who has been through leaders when they start tointernal successors and no to do, if you can identify how a similar experience and seen build confidence in theirdocumented plan in place to ability to deal with any issuesaddress the situation. Sound Michael Burke and the “Generation Next” group. that come their way. Thefamiliar? 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 wastalking about succession Write down a planplanning and the need for it. Your next steps from thisNot many of us took it seriously. article should be to:Then the GFC came along anddistracted us. As we emerge • write down the things thatinto the next phase of growth you need to do over the next(at least according to most 30 days to start planningeconomists and the OECD), to “hand over the baton”handing over the business – make sure you put datesto someone else has now against these actionsbecome a harsh urgent reality • jot down the name of two orfor many. Succession is back three potential successors inon the agenda but is now an the businessurgent issue. • write down your plan B ifThe key question is, “Is your your preferred successorbusiness ready to hand over doesn’t work out.the baton?” There are three you will spend your time this the lessons and mistakes ofkey 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 SpecialistGet yourself ready Secondly, organise a and accredited facilitator of business. Unless you want to training program that coversWhen the penny drops that ease out of the business, then the consulting and senioryou will need to exit your leadership skills, general management network, chances are you won’t! commercial training andbusiness smoothly, the biggest Mindshop. He also leads the Identify and skill-up successors people skills. Get them to mix South East Business Networksbarrier to your exit will be you. You need to think about and network with other young Generation Next program. ForThis business has been yours. leaders who are at a similar more details contact Michael potential successors. Get yourFor many business owners stage of development. via email at mburke@bcag. potential successor leading athey were there at the start. It or at small part of the business, to Make sure you back youris hard to let go. or Sandra George at South get them understanding the potential successor everyThe starting point is to look at role of a leader. Maybe it is a time. Don’t talk behind their East Business Networks onhow you want to be spending pilot project. If you can, make backs; don’t chastise them in Youth Services WeekC GD Youth Services and SEBN teamed up to run aYouth Mentoring Breakfast as Two young business leaders - Daniel Flynn (Thankyou Water) and Tirren Staafpart of National Youth Week. (Obese Records) spoke aboutMayor Roz Blades welcomed their business experiences,45 local secondary school inspiring the young leadersstudents who engaged with of tomorrow to ‘have a go’! Amore than 50 local business great time was enjoyed by all,mentors volunteering their time with additional mentoring andto enjoy a conversation with work experience offered andstudents on career choices plenty of new schools-industryand workforce expectations. initiatives being discussed.
  14. 14. 14. Stakeholder June 2011 - September 2011inDuStry & 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- 140Smart Location for Frankston Dandenong Road, the former home of Mercury Marine which is moving to VicUrban’sCommunity Kitchen Gardens Logis Industrial Estate in nearby Greens Road. CB Richard Ellis Senior ManagerT he GPT Group’s Parkmore Shopping Centre has introduced an innovativeapproach 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 seasonalfood comes from. cooking demonstrations, hands-on pot “This lease was one of the largestThe Centre has created two kitchen decorating and potting a plant, which single bulk goods deals to begardens filled with more than 100 children can then take home. completed in the Victorian marketseasonal 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 challengingat home. thinking that oranges are grown on the market conditions, retailers areA large rooftop garden (12 crates) supermarket fruit tree, they can learn committing to longer leases inand 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 growthGPT’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 kitchenand its social investment program garden with free membership where According to Mr Cooper theaimed at enhancing the well-being of the members look after their garden, sow State Government’s $290 millioncommunities in which GPT operates. new crops and harvest crops according revitalisation of Dandenong is to the season. A monthly workshop with renewing investor and tenantAs part of its partnership, GPT has confidence in the area. Thisintroduced The Magic of Growth Program, a guest presenter and a newsletter featuring a recipe from Stephanie lease closely follows two significantwhich includes events designed to help property sales in the main street ofpromote the Foundation’s principles of Alexander are included. Dandenong for more than $2 million.pleasurable food education and positively Community and school groups are invitedinfluence children’s food choices. to visit and tend the garden at any time. The Super A-Mart Homemaker Centre will employ about 35Joel Bridgwood, Parkmore’s Marketing people when it opens later thisManager, said the Magic of Growth year and will be its third Victorianprogram of activities includes the Little store.Fulfilling local dreamsInvestment in Greater Dandenong has not been limited to the industrial,commercial and retail markets, withanother new building about to crop up atChisholm TAFE’s Dandenong site.The DREAM project, a new $9.5million trade training centre, hasbeen enabled by a consortium of five located facility with state-of-the-art construction, plumbing, engineeringsecondary 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 theGovernment initiative. Due to launch late this year, the two- local schools Chisholm is continuing toThe centre will give students of all five storey centre will offer trade training be a catalyst for career pathways forschools access to a single, centrally programs including building and people in this region.
  15. 15. Greater Dandenong’s business news June 2011 - September 2011 15.inVEStMEntRollforming Sets up Own HomeA ustralian Rollforming has left ‘home’ and bought new premises in GaineRoad, 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 in2001, its main customer was Bombardier Australian Rollforming is widely regarded “We are still a major supplier to Bombardierfrom 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 milliontook over the factory that was used to rollforming, fabrication and project investment in Greater Dandenong throughmake 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 Ten Law Firm InvestmentO ne of Australia’s top 10 law firms has opened an office in Dandenong. The new Gadens Dandenong TeamIn March this year Gadens lawyers,which has been providing servicesto Victorians since 1845, commencedbusiness with a full complement ofprofessional and support staff.The office will soon have five partners,two senior associates and a three-person support team operating fromits Robinson Street office. Some of thepartners studied and undertook theirarticles in Greater Dandenong.Patrick Walsh, Chairman of GadensMelbourne, said establishing inDandenong was a strategic decisionand one that was supported by theState Government’s identification ofDandenong 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 providesinspirational, particularly those at the Greater Dandenong as a major hub of private client legal servicesPremier Regional Business Awards. It Victoria’s manufacturing industry, which including family law, wills andreinforces 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”.