I’ve just been interviewed by a researcher from the University of Otago. Otago has undertaken a long-term research programme looking at how New Zealand firms derive world class competitive advantage from their geographical location, the networks they utilise, industry clusters they are involved in and from local sources of world-class science and technology.
Their focus at the moment is on fashion/apparel firms but the lessons they learn should be industry non-specific.
It was interesting doing what was, in essence, an industry wide SWOT analysis. Especially so given that this industry is particularly challenged on a number of levels; external competition,labour market conditions, distance from markets etc etc.
I await with interest the results of the research which will, hopefully, identify some ways to gain and maintain world class competitiveness for or businesses.
On a personal level it’s really nice to see a NZ startup that combines software and hardware products. While it’s not entirely rational, it’s great to see some hard kiwi products doing as well as our soft ones.
David and I had a lengthy dialogue over the weekend regarding the appropriateness or otherwise of actually making things in New Zealand. Those interested can read it here.
Basically (and to paraphrase David’s comments) he felt that manufacturing in NZ is dead and that we should be finding new ways to keep our workers busy - he mentioned film and software as two examples.
I replied thusly;
Xero actually supports my contention - it would be vastly cheaper to cut the code in Mumbai but Rod et al have made the decision to do it here - cutting code is not dissimilar as a role to working in a sewing factory - why is Xero applauded for doing it here while sewers are berated?
To which David said;
Code is core business for a software company. I wouldn’t expect a company that was innovating with code to sub it out - if only to protect IP
I then opened my RSS reader this morning to read that the strong dollar is pushing tech companies off shore in a bid to retain their margins. A number of examples were given about companies that were in this boat.
So… my question remains. If we’re no longer to have manufacturing in New Zealand, and the dollar is pushing our tech companies overseas (and a number are be brought out by offshore interests and shifted anyway thus the IP is lost) what are my two boys going to do for a living once they hit the workforce??????
Last last year film student Nicholas Hudak made a short film profiling some players in the New Zealand apparel scene. The film, entitled Triple Bottom Line sought to show the changes that occur when an industry moves to offshore manufacturing in an accelerated fashion.
While I’m aware that it is far to complex a situation to say something so simple as “locally manufactured good, offshore manufactured bad”, the film is food for thought about the results of our consumptive decisions.
It’s 15 minutes long ad Nico, being an artiste, couldn’t abide with any compression, hence it’ll take a little while to download.
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