Focus on Niche Markets Pays Off
Targeting niche markets in Australia and the Pacific Islands has been a winning export strategy for General Cable New Zealand.
The Christchurch-based manufacturer is one of the leading producers of cable products for the electricity, telecommunications and data sectors in this part of the world, and exports nearly half of its output to markets across the Asia-Pacific region.
GCNZ general manager Andy Lester says a focus on targeted exports has helped cushion the company from the ups and downs of the domestic market, and contributes to the long-term viability of the Christchurch facility.
“At a time when many local manufacturers are closing doors, we’re opening up into new markets,” Lester says.
“A big part of that success is our ability to meet customers’ requirements for reliability and specialisation.”
Supplying cable products into diverse situations, from large- scale electricity transmission to specialised telecommunications projects, requires immense flexibility to meet demand for short lead times, low volumes and a wide product range.
“Across the world, most cable plants are set up to produce high volumes of a narrow range of products.
“Here, we’re a lot more agile; we can produce a wide range. We probably manufacture the largest range of cable on a single site anywhere in the world.”
The bulk of export production goes to Australia, where sales have grown substantially in the past three years, partly as a result of the company establishing a new distribution arm, General Cable Australia.
During the same period sales into the Pacific have remained consistent despite difficult trading conditions.
“It’s also about having a great team,” Lester says.
“Our set-up means we have a multi-skilled workforce, and our people bring a huge amount of experience, as well as a passion for excellence and getting it right.”
GCNZ has a turnover of more than $200 million annually and employs some 420 people, 300 of them in the five production facilities on its Riccarton site, manufacturing energy, electrical, telecommunications and data cables and flexible cabling products.
The cable manufacturer has a long track record as a successful Canterbury manufacturer and exporter.
Its origins can be traced to the formation of Associated British Cables in 1946.
The Riccarton facility has been exporting since the 1970s when it began shipping telephone cable to the Pacific Islands. In 1998 the operation became part of the US-based General Cable group, which is among the top five global cable manufacturers, with net sales of $US3.7 billion (NZ$5 b).
This year the company has also strengthened its commitment to exporting out of its local facility with the investment of $2m in a new logistics and transport centre.
General Cable New Zealand has been nominated in the Skellerup Canterbury Exporter of the Year category of this year’s ANZ Canterbury Export Awards.
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