Hi-tech company thumbs nose at recession

John Maslin | 10th March 2010

Hi-tech Marton-based company PEC Pumps Ltd has made a mockery of the country's economic recession by recording its biggest sales year on record in 2009.

The company, which designs and produces fuel pump technology, currently exports more than 80 per cent of its production and is actively looking for more offshore markets.

Managing director Richard Coxon, told the Chronicle that despite a lot of media-generated negativity about the recession his company bucked that trend with a record-setting sales performance.

PEC's news comes hard on the heels of the latest National Bank business outlook report which is showing increasing business confidence around the country.

About half the businesses surveyed are pointing to improved business conditions in the coming year, the highest reading of business confidence since 1999.

Other businesses spoken to by the Chronicle had differing views on the impact of the recession.

Alastair Booth, director of Incept Marine, which manufactures inflatable rafts, boats and kayaks in Taihape said:

"We've not noticed business confidence going up. We're still in the middle of a recession, we're about 12 months behind because of it. People are still tightening their belts and not buying luxury products like ours.

Pacific Helmets chief executive David Bennett, said the helmet manufacturer was different in that the organisations he supplied to that needed his products as part of their safety compliance.

"We haven't felt the recession like retail businesses have," he said.

It was rise and fall of the New Zealand dollar against the euro, sterling and Australian dollar, that was its main concern as 90 per cent of the business was export he said.

"I think there has been a little bit of confidence coming back. We've taken on one extra person who we might not have had the confidence to hire a year ago."

Mr Coxon said the hype surrounding the recession was sending the wrong signals.

"My own personal view is that the recession had an impact of 3 to 4 per cent of GDP (gross domestic product) and that's certainly not 50 per cent of GDP," he said.

PEC Pumps employs 120 staff and is a subsidiary of the Gallagher Group. It has been manufacturing petrol pumps since the 1950s and is recognised as a leader in applying new technologies to fuel measurement systems.

Mr Coxon said the company tackled the recession by getting active and putting more effort in marketing, more effort in research and development and more effort into understanding its customers.

"It was about making sure were there for them," he said.

"Focus on your customers because at some point the recession will conclude and your customers will decide its over. If you're going to sit back and wait for the recession to be over, then you're a fool.

"You've got to get out there and run your business and manage things. If you're not doing that, in the hope market conditions will fix your own issues in your business, you should be shot."

Mr Coxon said PEC was now well positioned for significant growth in the near future at least.

The bulk of the company's market is in Australia but he said PEC was looking to try and break into new markets in Latin America.

"Chile is our prime focus, making use of the free trade agreement (P4)."

P4 is the Trans-Pacific Strategic Economic Partnership Agreement (TPP) between Brunei Darussalam, Chile, New Zealand and Singapore. Negotiations to expand the TPP to include the US, Australia, Peru and Vietnam are scheduled to resume this year.

Mr Coxon said the company was expecting to increase staff numbers in future.

He said there were advantages that came from operating the business from a rural town like Marton.

"You get a lot of loyalty and pride and it's unique to have a high tech career offered in a small town. There's a lot to be said on the positive side of working from here," Mr Coxon said.