Tooling Around
Cluster
RPM has been instrumental in forming a business cluster, NZ Tool & Dye (NZTD), with six like-minded engineering companies on Auckland's North Shore. "None of the companies in the group has the capacity to bid for the really big jobs, but as a group we can get the economies of scale required and can fund the marketing of our capabilities in off-shore locations." They have a sales rep on the road in Australia, and have quoted for $5 million worth of jobs. Some negotiations are bearing fruit now, including those for a set of tooling for Electrolux. Mr Smith explains that NZTD can compete in Australia because New Zealand companies are known to be responsive and service focussed. Though labour rates are comparable Australian employers pay more in accident compensation and superannuation, so ultimately production costs are lower here, and the exchange rate is also favourable.
"None of the companies in the group has the capacity to bid for the really big jobs, but as a group we can get the economies of scale required and can fund the marketing of our capabilities in off-shore locations."
China has a plethora of tool and die companies making moulds cheaply, but RPM is not fazed because its place is at the top of the global market, providing the highest-quality products and service, reflecting its investment in the best technology and the best people available.
Elizabeth Light is an Auckland-based freelance journalist.
