REGIONAL ROUND-UP February 2013
Summary of news and initatives from the region for February 2013.
Free excursions fantastic
FEEDBACK from high school teachers about Sydney Water’s free school excursions at its Water Recycling Education Centre, at St Marys, has been overwhelmingly positive. Ninety two per cent said they would recommend the excursions to other teachers. Ninety four per cent said recent professional development sessions at the centre met their expectations. Sydney Water’s MD, Kevin Young, said the feedback was “fantastic” to hear.
The Hills growth
THE Hills is one of Australia’s fast growing local government areas and that residential growth will continue, particularly around Box Hill and Kellyville North.
Restoring facades
EFFORTS by Katoomba City Council, the Katoomba Chamber of Commerce and the community are under way to restore the art-deco building facades lining the streets of Katoomba’s town centre. Members met late last year to discuss applying for NSW government grants to encourage owners of heritage buildings to paint their facades by providing funding on a dollar-per-dollar spent basis. The grant was offered to landlords of the buildings 10 years ago but the uptake was very low. Members are working on strategies to maximise the grant’s effectiveness if it could be secured again later this year.
Re-enactment preparation
DESCENDANTS of Blaxland, Wentworth and Lawson have been brought together for the first time in preparation for the re-enactment of the crossing of the Blue Mountains, which will take place over 21 days from May 11 this year.
Squadron reformed
NO.35 Squadron, at the Richmond RAAF base will accommodate 10 new Alenia C-27J Spartan Battlefield aircraft, due to arrive in 2015. The re-establishment of the squadron allays widespread fears the Richmond base was winding down operations with the recent loss of jobs as well as the departure of the Hercules. The re-establishment will make Richmond base its home for the foreseeable future. The aircraft were bought to replace the Caribou aircraft that were retired from service in 2009. The government agreed to the purchase of the new aircraft last May, costing $1.4billion.
Scenic Railway upgrade
THE Scenic Railway will undergo a $30 million redevelopment, from January 14, which will include new top and bottom platforms, rail tracks and historical interpretation. The new Swiss-designed railway carriages will comprise the fifth vehicle to operate on the former coalmine track since 1945. The railway, with a 52-degree incline, the steepest passenger railway in the world, descends 310 metres. Operating since 1945, the attraction has carried 25 million passengers on just under 700,000 journeys.
Most unhealthy area
CAMPBELLTOWN, which is the second-poorest local government area in Sydney – after Fairfield – according to ABS rankings, was found to be Sydney’s most unhealthy area, according to Health Statistics NSW. It was the worst performing areas in every category except alcohol-related hospitalisations. More than a quarter of all women in Campbelltown smoke during pregnancy, compared with about one per cent in Willoughby, Sydney’s healthiest area.
Bus service continues
FAIRFIELD City Council has agreed to keep its free City Connect bus service running and has added several new routes. The service was introduced in July 2012 on a six-month trial period, ending on January 23. Fairfield mayor Frank Carbone said he was excited to see the bus service continue this year. "The City Connect Council Bus Service has been created to alleviate cost of living pressures our residents endure on a daily basis," he said.
$250,000 grant
THE NSW Government has granted Liverpool City Council $250,000 to upgrade boating facilities on the St Georges River, and Moorebank.
Staff share award
BANKSTOWN City Council staff have shared in an award for a project to maintain and revitalise Duck River, which includes 9.2 square kilometres of the Bankstown local government catchment. Mayor Karl Asfour said council developed a holistic to improve Duck River. “A significant part of the project was community education surrounding the importance of Duck River and the impacts of urban development.”
Council seeks GM
CAMDEN Council has advertised for a general manager. Council expects the population of the local government area to increase from 57,000 to 270,000 people over the next 30 years. Applications closed on February 1.
Revenue down slightly
REVENUE in furniture manufacturer and retailer, Fantastic Furniture, at Villawood, was $445.8 million last year, slightly down from estimates, but is projected to be about $470 million in February. The group comprises Fantastic Furniture, Plush, Dare Gallery, Original Mattress Factory and Le Cornu. Stephen Heath is the new CEO, following the resignation of Mark Garwood, in December, The Australian Financial Review reported.
New HO in the CBD
URBANGROWTH NSW – the merger between Landcom and the Sydney Metropolitan Development Authority – officially commenced business at its new HO in the Eclipse Tower, in Station Street, on January 1. Staff complement: 113. Landcom moved from the former David Jones building in Church Street. Water and cost savings PARRAMATTA City Council continued to work with businesses, in 2011/12, through the Sustainability Advantage Program to implement water and cost savings of more than 40 million litres per year, and partnered with Sydney Water to deliver a water efficiency program for small and medium businesses.
Yogurt competition
THE recent boom of frozen low fat yogurt in Australia will see Wowcow, which entered the Parramatta market late last year, soon to meet competition from YogurBerry. YogurBerry Australia is based in Rydalmdere. Both companies have outlets across Sydney.
Council taking action
PARRAMATTA City Council is pursuing legal action against of Bar 35 (Barnaby’s Restaurant) in Phillip Street, in the CBD, of alleged offensive noise at night following complaints by nearby residents.
$450 million project
A 20-storey commercial tower and 35,000 square metres of retail space are part of an estimated $450 million development proposal of the Parramatta Westfield Shopping Centre. The development could create in excess of 700 construction jobs and provide employment for approximately 2000 office workers and more than 200 additional retail jobs.
MP visits India
STATE PM for Parramatta, Dr Geoff Lee, has returned from a privately funded trip to the Indian region of Gujaret, from where most of the Indian population of Parramatta come from. “Indians make up 17 per cent of Parramatta and it is important we show there are great opportunities for them here, particularly students,” he said in the Parramatta Advertiser.
Opportunities in the retail battleground
By Kate Hill
Partner Deloitte Private
ANYONE who braved the packed Westfield at Parramatta the week before or the week immediately after Christmas won’t be surprised to know that Australia is one of the most attractive new markets for overseas retailers, looking for growth.
Whilst forecast retail growth rates in Australia of 2.9% for 2012-13 are relatively modest, they are still higher than many growth rates in North America and Europe.
With the strengthening Australian dollar and the increasing use of online as a medium for shopping, many Australians have taken to purchasing products from overseas. This has awakened global retailers to demand for their products from Australian consumers.
It has also given them vital information on what Australian consumers want which is a significant benefit when setting up business in Australia. According to a recent global retail study*, the largest players who are already here in Australia such as Costco, IKEA and Zara are looking to expand their local footprint by opening new stores in 2013.
Combine this with the new entrants expected to arrive shortly, such as Pottery Barn, Uniqlo, Hennes & Mauritz (H&M) and Abercrombie & Fitch and our shopping centres and high streets are becoming an even more competitive retail battleground.
In terms of Western Sydney this may see a number of new entrants to the local market. Even if they don’t locate a store in Western Sydney you can be assured that there will be increased demand for our local logistics and transport operators who are critical to moving products between distribution warehouses and stores.
Retailers live and die by the effectiveness of their supply chain, whether it’s getting fresh produce to the shelves or ensuring new fashion lines are in the store quicker than the competition.
In terms of new opportunities for local entrepreneurs and investors, there may also be franchising and joint venture opportunities with those overseas companies looking to enter or expand into the retail market.
Increased competition will undoubtedly boost consumer choice. I for one can’t wait to check out some of the big fashion and homeware brands that will soon be available locally.
Meanwhile many local retailers may fear for their market share as they face a challenge from slick international operators. However, don’t forget that Western Sydney retailers still have a number of advantages including a greater knowledge of the local market, customers and seasons; an established customer base; and prime store locations.
Being price competitive will always be an important part of a retailer’s strategy, but it can only have limited success against a retailer with a global presence and potential greater economies of scale.
Therefore it will be vital to differentiate and adapt, be it through product or customer innovation, branding, sales channels, speed to market or customer experience.
From my perspective the top issues for Western Sydney retailers to consider in 2013 include:
1. Strong Australian dollar - Effective management of the sustained A$ means lower product costs for some but increased overseas competition (from both online and multinationals) driving down sales and margin for others.
2. Create an experience - in-store consumer experiences requires good products and good people.
3. Value focused consumers – means pressure on margins, focus on cost structures and online strategy.
4. Digital strategies – are required to engage with consumers and respond to a changing business environment.
5. Cash is king - financial, cash flow and working capital management remain critical to making timely and informed decisions – i.e. on supply chain, inventory investment, landlord negotiations, logistics and warehousing decisions; as well as how best to respond to new entrants.
Those who get the above right are likely to prosper in the retail market over the next 12 months. However, those who don’t may not be around next Christmas to enjoy another busy festive season, only time will tell!
Kate Hill is a partner at Deloitte Private, Western Sydney. Contact her at 02 9840 7049 or email khill@deloitte.com.au
Why Sydneysiders aspire to the Hills
By Clr Dr Michelle Byrne
THE Census figures released last year provided interesting reading. You could spend weeks trawling through the statistics, figures and numbers and constantly find new, insightful information about the Sydney Hills.
Featured
Male networks extend glass ceiling say female execs
ABOUT 60 per cent of Australian business women say male dominated referral networks are one of the biggest barriers in their rise to executive roles, a survey from Executive Women Australia (EWA) has found.
Featured
New APP may transform renovation industry
A NEW App has been launched that may revolutionise the way in which Australian renovators and tradespeople purchase, sell and dispose of unwanted building materials that are often thrown out as rubbish.
Why working harder is not enough
By David Ley
WORKING hard in your business is not enough to ensure that it will be profitable.
In the modern economy, hard work is not a competitive advantage anymore; everyone works hard. “Become a Key Person of Influence” is a book written by Daniel Priestly.
He points out that if you were to gather up all the hardest working people in the world, you would not find the top CEO’s and Entrepreneurs, you would find the people who are struggling to make it up the ladder or struggling to survive it all.
The competitive advantage is in thinking expansively, connecting with the right people and spotting fresh opportunities.
Michael Gerber who has been described as the world’s #1 Small Business Guru tells the story of Sarah who owns a bakery.
She started the business because she was a great pie baker, and all her best friends told her to open a pie shop because she was so damn good at it.
Now she starts work at 3.00 in the morning, works hard baking, selling, cleaning up, ordering, paying invoices, banking and then preparing for the next day.
She finishes work at 9.00pm then starts to figure out how she is going to pay the rent next month. She has been at it for three years and now hates pies, and hates the business. So the business is not about pies……. its about hard work.
The fatal assumption says Michael Gerber is that “if you understand the technical work of a business, you understand a business that does the technical work.”
The facts are that this is just not true. I f you are a carpenter, or an electrician or a hair dresses, or even a lawyer that does not necessarily mean that you have all the skills and knowledge to run a successful business.
So what advise would Michael Gerber give Sarah to turn her business around and make it both profitable and a delight to turn up to work every day.
For the answer, Gerber turns to the most successful small business in the world-McDonalds. The average McDonalds restaurant produces more than $2m in annual sales, and is more profitable than almost any other retail business in the world, with an average 17% pretax net profit.
The key is that McDonalds not only lends its name to the smaller enterprise but it also provides the franchisee with an entire system of doing business.
When he first established the McDonalds business, Ray Croc spent a considerable amount of time working on the business. He took an expansive entrepreneurial approach, establishing tested and proven systems to run the business, as distinct from the limited technicians approach of just doing the work. To explain a little further, lets look at what an Entrepreneur does.
The Entrepreneur asks the questions:
• How must the business work? Rather than what work has to be done?
• What systems must be in place? Rather than a business in which people work to produce inside results?
• What is our vision of the future and what do we have to do to change the present to meet our vision of the future? Rather than what is going on in the business now and how do I keep it going?
• The Entrepreneur also sees the business as a whole, totally integrated and they work towards shaping the business as they see it in their vision of the future. On the other hand the technician sees the business in parts modeled on the present day.
The success of McDonalds is obvious to us all.
As a further example of an Australian business that has done a fantastic job of establishing clear and well thought out systems we need look no further than ”Jims Group”.
Jim has successfully established systems and franchised 35 small businesses, with everything from mowing, to building, finance, glass, dog wash, security etc etc.
In the 25 years since Jim Penman turned his mowing round into Jim’s Mowing, and started expanding, he has created a network of 20 divisions and 2700 franchisees in Australia, New Zealand, Canada and Britain, and now has a turnover of $200 million. Just go to Jims web site to read more about his philosophy.
Now franchising is not for everyone, but the message is very clear. If you are like Sarah then its time to start working on your business, establishing clear well thought out systems that put the customer first, and start thinking like an Entrepreneur.
If this seems like a daunting task, and you are unsure how to get started and would like to know more, then get some help from a professional.
David Ley is a Director with Thexton Armstrong Ley. Contact at him at david.ley@thextonarmstrong.com.au
Moss backs regional LAS Awards
ONE of Australia’s most successful business leaders has backed a new regional awards program that recognises success and leadership in Greater Western Sydney (GWS).
