ICN All the right connections
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1 ICN All the right connections Christchurch Earthquake Recovery Rebuild Adelaide, 27 July 2015
2 Welcome and Introductions Bettina Venner Manager Industry Supply Chain Department of State Development
3 ICN provides tailored local procurement solutions through a personalised consultancy service.
4
5 ICN Gateway Pivotal link between major project requirements and suppliers Around 12,000 public searches per month Around $400 billion in opportunities
6 Gateway subscription options Basic basic alerts and EOIs - no charge Be seen public profile $156 per year Be compelling Capability statement, 2 nd priority public listing $600 per year Premium webpage, promotional material, 1 st priority public listing $1,480 per year
7
8 Supply Chain Development Mining Industry Participation Office ICN SA ICT Roadmap Mining and Petroleum Services Centre of Excellence Roundtable for Oil & Gas Projects WG #1 Training WG #6 Oil and Gas Supplier Forum 8
9 ICN South Australia Level 9, Grenfell Street, Adelaide SA 5000
10 Christchurch rebuild overview Andy Balmain Business Capability Adviser ICN Victoria
11
12 ICN s Role in the rebuild of Christchurch Provide a capacity tap of construction capability for the Rebuild Provide a project and supplier online portal Using the capability of over 65,000 ANZ businesses listed on the ICN Gateway Strengthen construction supply chains Identify potential J/V partners for New Zealand Constructors and Suppliers Support our local ICN Office, the Rebuild Agencies, Private Project Owners and Developers, and regional Industry groups. Provide access to construction expertise and skill sets, particularly applicable to larger projects Provide support to not only large projects, but also small to medium projects In addition to local NZ capability, we can provide accessibility to over 1150 Australian constructors, professional services and suppliers who expressed an interest in assisting and working on the rebuild.
13 Objectives ICN as the trusted adviser for infrastructure projects foster local employment & economic development Maximise local community engagement Stakeholders Project Owners / Constructors Maximise Australian & New Zealand content across all projects Suppliers identify & help qualify Constructors (including J/V partners), Project Managers, Engineering, and suppliers streamline interaction with industry (suppliers and subcontractors) foster early supply chain engagement in projects identify new project opportunities platform for technology transfer connect to global supply chains support business improvement for industry
14 Presentation to: The Industry Capability Network Simon Nikoloff Investment Advisor, Central City Development,CCDU July, 2015
15 Overview Earthquake Events The Vision Blue Print Plan Rebuild Progress Private & Public Projects Opportunities Successful Engagement Q & A
16 Greater Christchurch
17 CBD Pre Earthquake
18 Lifelines and Utilities Phone and Power 659 km of sewer system (31%) 1,021 km of road (52%) 69 km of water supply mains 26 km damaged storm-water system 11km of Avon River stop banks - urgent repairs 31 km of fencing to protect road/footpaths 70% buildings in CBD demolished
19
20 Phases of Recovery First Major Seismic Event 4 Sept 2010 Last Major Seismic Event 23 Dec 2011 Canterbury Earthquake Recover Act 2011 Expires Most difficult phase of psychosocial recovery (Years 3-7) Insurance Settled Housing Stock Replenished Crown Catalyst Projects Completed Public Realm Complete Health/ Education Renewal Programmes Complete End Point of Recovery High Courts View
21 The Vision Aspirational vision-driven Recovery Plan Regeneration of a distinctive, vibrant and healthy heart for Christchurch Alive - dynamic - spirited - responsive - people focused - differentiated sustainable - creative 7
22 Central City Blueprint
23 Inner City Project Timeframes Bus Interchange Art Gallery An Accessible City - Stage I Justice Precinct Avon River Precinct Canterbury Earthquake Memorial Central Library Town Hall Convention Centre Precinct Metro Sports Facility Quarter Year
24 $40B+ How is it funded?
25 Christchurch is Stronger Typically after large natural disasters GDP falls Population falls Unemployment rises Our experience Current GDP growth = 4.6% (cf 2.5% for NZ) Census 2013 = regional population > pre-quake Unemployment Q4, 2014 = 3.4% (cf 5.7% for NZ) Labour force participation = 73% (cf 70% for NZ) Christchurch has a strong economic base for recovery & renewal
26 Christchurch GDP Projections
27 Local Private Sector Investment
28 Landowner Confidence Map
29 Progress - Estimated Completion
30 What Are The Opportunities? Labour Supply Materials Supply Skills Supply New Products Contract Works JV & Partnering Establish Business Own Developments
31 Wider Public Sector Projects Christchurch City Council School Upgrades Canterbury University Lincoln University Christchurch Polytechnic - CPIT (TAFE) Port of Lyttelton Canterbury District Health Bd Hospitals Housing New Zealand $6b+ expenditure
32 Construction Supply Subtrades Four Tier One Construction Firms Surveyed Plumbing key area of concern for construction firms whilst Electrical and Mechanical Services identified as longer term supply risks
33 Canterbury Skill Shortage List Trades Construction Engineering Transport Painting Trades Worker Solid Plasterer Floor Finisher Wall and Floor Tiler Scaffolder (Advanced) Glazier Roof Tiler Electrician (General) Electric Line Mechanic Carpenter Bricklayer Joiner Stonemason Drainlayer Building Surveyor Surveyor Surveying Technician Project Manager Foreman Roading and Infrastructure Chip sealing, Asphalt or other Technical Manager Site Foreman Quantity Surveyor Building Inspector Structural Engineer Civil Engineering Civil Engineer Draughtsperson Technician Electrical Engineering Electrical Engineer Draughtsperson Technician Structural Engineer Telecommunications Telecommunications Engineer Welder Fitter-Welder Metal Fabricator Source: Immigration NZ
34 Current Advertised Jobs in Canterbury
35 Successful Engagement Our observations are: Early engagement with key agencies, e.g. ICN, Austrade, CCDU/CERA, Chamber of Commerce, Collaborate Canterbury, CDC, CCC Collaboration with NZ businesses and/or agents Regular contact, good relationship management Normal business conventions apply Attention to detail in procurement processes Partnerships, must be on the ground
36 Key Messages Public & Private sector projects Residential Light Commercial Heavy Commercial Business as usual Rebuild long tail ten years plus Capacity, Capability & Innovation needed Expansion of business activities Must have a presence in Christchurch Direct investment opportunities
37 Building Back Better
38 Building Back Better
39 Building Back Better
40 Building Back - Better
41 Q & A Contacts ICN Andy Balmain CERA CCDU Simon Nikoloff Investment Facilitator simon.nikoloff@cera.govt.nz
42 Some additional information to consider following on from Simon s Presentation Andy Balmain Business Capability Adviser ICN Victoria
43 Rebuild Overview Public and Private works programs Collaborate Canterbury Skills Shortfalls Strengthening the supply chain Constraints Success stories Investment opportunities Suggested pathways and possible actions forward
44 Rebuild Overview Public and Private works programs Don t overlook the sheer volume of private commercial reconstruction still to be undertaken Understand that there are over 1200 commercial buildings being built over the next 5-10 years of which in the vast majority will be private builds Consider the public works programs for both North and South Islands
45 Rebuild Overview Collaborate Canterbury, CECC, CDC Connect with them It s about adding value It s about commitment It s about relationships most importantly
46 Rebuild Overview Skills Shortfalls Remembering with unemployment sitting around 3% skills are in short supply Immigration NZ is encouraging NZ expats to consider returning to NZ We encourage Australian companies to consider setting up additional office s in NZ and considering Christchurch as the location in the first instance, but not negating Wellington nor Auckland. But consider labour rate variation between Australia and NZ.
47 Rebuild Overview Skills Shortfalls
48 Rebuild Overview Strengthening the supply chain Opportunity to look at offsite manufacturing Back filling local supply chains Direct supply in
49 Rebuild Overview Constraints Construction is some cases is delayed Limited by the existing supply chain Public project timing End use decisions Council consent orders Insurance payout Tenancies Normality
50 Rebuild Overview Success stories Design and Master planning Project Management Tier 1 construction and J/V partnerships Supply Chain Trades and Sub trades Specialised services
51 Rebuild Overview Investment opportunities Skin in Long term
52 Rebuild Overview Suggested pathways and actions forward Do your homework Talk to material suppliers Understand the opportunities Keep informed such as through ICN Gateway, NZ Govt. -GETS and Tenderlink Get news feeds Arrange to speak with Austrade Speak to ICN
53 Rebuild Overview Suggested pathways and actions forward - continued You are involved in any of the considered shortfall or supply chain stress industries You are in the supply chain of these Your are looking at NZ as a secondary location anyway You are an investor Your are looking at a sea change
54 Rebuild Overview Suggested pathways and actions forward - continued Speak to your State Government Agencies Speak to Australian companies involved already Scope it out by a visit to Christchurch to see with your own eyes Participate in trade missions / industry events
55 Thank you. Andy Balmain or phone on
56 Q&A
57 Closing comments Bettina Venner Manager Industry Supply Chain Department of State Development
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