It is excellent to celebrate the success of Tuapeka Gold Print in the aftermath of the news of Cadbury’s imminent manufacturing demise in Dunedin.
The company has been roaring ahead and now employs about 170 people. All going well, it could grow to employ about 200 more in the next four years.
This shows, despite the loss of manufacturing jobs in Dunedin over the years, potential remains for companies to find niches and export. While several bigger employers have gone, generally overseas or to Auckland, far more manufacturing takes place in the city than many realise.
Whether this is scales for weighing containers (Bison), high-end gas fires (Escea), outdoor clothing (Earth Sea Sky), or many other relatively small-scale businesses, a lot is going on. Some is for city markets, some for southern clients and consumers and some for elsewhere in New Zealand, Australia and the world.
Most are small and many have local owners. Although they might lack the scope or size of big business, they are an extremely important part of the city and its prosperity.
With Dunedin’s dependence on education — and the university especially — such diversity is essential to buttress the city’s future. Add in tourism, which has grown faster than expected, and there are plenty of positive signs. Then there are national and international services run from Dunedin and various technology companies as well as NHNZ.
The university itself has seen its roll stabilise after a few years of slipping. Crucially, first-year numbers were up last year and look good this year. Once the leaner years work their way through, the university could return to growth. Meanwhile, the polytechnic is thriving, and international student numbers have risen.
The pressure on housing, while creating its own stresses, is a sign of the growth, and it will be intriguing to see what has happened to Dunedin’s population come the next census. Certainly, traffic density has increased and parking become less easy.
Of course, clouds loom. They always do. On the manufacturing front, there are fears for Gregg’s coffee production (for brands including Gregg’s, Robert Harris, Orb, Civo and Bruno Rossi) — despite $20million being spent on the North Dunedin plant in recent years — because the Japanese owners are putting it up for sale. This concern is despite assurances from the parent company Gregg’s would be sold as a going concern and would continue to be operated if a sale was not forthcoming.
Overseas and outside owners bring much to companies in capital, expertise, market connections and scale. This has led to expansion in many cases. But, as Cadbury illustrates, it also can bring ruthlessness. Overseas and outside owners usually lack the local will and loyalty when other options are presented.
No-one should pretend manufacturing from Dunedin is easy, despite the city’s lifestyle advantages, stable workforce, excellent port connections and the working-at-a-distance that is possible through modern-day technology and efficient logistics.
There remains less-than-ideal air links, especially internationally, and the distance from markets. Manufacturers face relative isolation and lack the range or depth of support that can be possible in bigger cities. New Zealand itself is a tiny market and Australia not that much larger. We are a long way from North America, Europe and even East Asia.
Yet, a small, coherent city with close personal ties also brings many advantages.
Tuapeka Gold Print succeeded from Lawrence. Its move to Fairfield allowed for expansion. Hopefully, Dunedin can remain its base for many years as it endeavours to grow further, and this Otago success story can be celebrated well into the future.
