William Studd

Executive Chairman, WINDSOR ENGINEERING

William founded the Windsor Engineering Group Limited in 1975 - the business was based on the qualified engineering and design manufacture of new products such as Pulsejet Filters (Patented) and Timber Drying Kilns. The company is engaged in the design, engineering, manufacturing and commissioning of high technology equipment primarily for the processing of plantation softwood timber worldwide.

Today William is the company's Principal Shareholder, Founder and Executive Chairman. Windsor Engineering has grown to employ over 90 staff in Wellington.

Speaker Notes

CRACKING THE EXPORT MARKET

1. My position is Executive Chairman of the Group and I am talking specifically about our experiences at Windsor Engineering Group, in establishing our first export markets. The first export market target was Australia, certainly the best place to start in my experience, and the approach and methods learnt were then repeated for other countries as and when appropriate.

2. Introducing the Windsor Company

We are an engineering company with our own manufacturing facilities. We grew around a core of N.Z. qualified engineers, designers and tradesmen. Windsor was established 25 years ago and now employs 100 people. We build timber drying kilns, dust control filters, heat exchangers and air movement systems for variety of industrial applications.

We employ 15 qualified (B.E.) engineers, also several NZCE in design and project management. Our sales team are all engineering background. We have a design team of 12 and a manufacturing group of 45. The company is now well structured with Chief Executive Officer, Qualified Accountant and Administration staff.

3. The Products

• Timber drying kilns for radiata pine and plantation softwoods.
  
• Industrial exhaust and filtration systems.
• Special products which involve our engineering skills and manufacturing capabilities.

5. Development of Product Range (Kilns)

The development of our main product range (the kilns) came from my experience in N.Z. Forest Service and liaison with Forest Research Institute which initiated research into high temperature kiln drying technology by Dr. J. Kininmonth.

There was clearly a business opportunity for commercial application of this research and in 1980 we were the first to install large scale and correctly designed systems in the timber industry. The market need did not develop as quickly as we had hoped, which in hindsight was probably a good thing and gave us time for further design and engineering development.

6. Windsor Aluminium Kilns

Just prior to our first efforts in the export market we completed the development and successful installation of our all-aluminium timber drying kiln. The design was modular/section and packed to fit in containers for transportation from our workshops to site. This remains an important factor for our export markets; reduction of container space/freight cost is close to the Clients heart.

7. Australian Market

Myself and Brian Sutcliffe, Sales Manager at the time, visited Australia first in 1983, then exhibited at Forestry Trade Show in Albury the following year. This provided us with some usual initial contacts in the Australian timber industry. Within a few months we had identified 3 positive lines of enquiry:-

• Wood & Forests Department, South Australia. Government Tender Basis ($1m).
  
• Brown & Dureau Ltd, Morwell, subsidiary coy of large pulpmill APM ($1.5m).
• Softwoods Ltd, Tumut. Private company recognised as a leader and very efficient processor ($0.5m).

8. Meeting the key people, the decision makers, was vital, important to get as far to the top management as possible without offending the project and engineering staff!

The owners/principals of your company must undertake these initial visits, then introducing sales and engineering staff at appropriate levels. A network of contacts is necessary through each Clients organisation, from site operator levels, engineering office, Head Office and Management as required. There are differing decision making methods in every Client company, and it is necessary to understand and appreciate each one!

9. Meeting the People, Personal Relationships

In some cases your Product will sell itself, based on the technical benefits, such as operating efficiency, reduced power consumption, maintenance free design etc.

However the Client wants to know he is dealing with honorable people, that his downpayment with order is secure, that the Kiwis are going to stick at any site problems. Personal trust and mutual respect is most important; in time they become your friends!

Invite your potential Clients to visit your premises in New Zealand - we find they are always happy to come over here if they are serious.

10. Closing the First Deals in Australia

• Based on persistence, repeated visits, and unhurried information exchange. If the Client is in a rush to order then fine, but they must feel comfortable and confident that their decision in your favour is right.
  
• Determination and different ways of presenting the offer; in S.A. we found local manufacture of some items was necessary to satisfy the S.A. Tenders Board, for example.
• Price - always pressure on price, hopefully your product features, business reputation etc will offset to your benefit against cheaper alternatives.
• Delivery - very important to a Client. With our products they can make money as soon as operating. We offer realistic deliveries, but we are always on time - nowadays!

We established an office in Albury NSW in '87 as these projects and others were secured.

Transferred a good keen project engineer from N.Z. to live in Albury; still there today. He enjoys the Australian way of life and climate!

• Local phone calls, immediate support/spares and prompt visits for technical problems are seen as a big advantage by the Australians.

Our company Windsor Kilns Pty Limited is a wholly owned subsidiary of Windsor Engineering Group.

• We ship most of the product components from our manufacturing plant at Grenada North, Wellington.

12. Relationships - People

As our business expanded in Australia and our name well known, you must continue to travel, contacting your existing clients and introduce Windsor to new Clients. It is a continuing process for the executives, sales and engineering staff. We all make friends and contacts at the various levels and must maintain these, ignore at your peril.

New developments, technical changes/advantages must be introduced and advised to Client base. We use a Newsletter which features recent installations to assist in continuous liaison.

Clients like to see you regularly and especially when they are not in the Market for your Product - they will remember the visits you made to discuss business activity.

13. In our industry, always plenty to talk about; business in NZ/Oz, USA wherever. There is a common purpose amongst people in this industry.

14. Products

Do not disappoint your Client in -

And Fix problems promptly!

When you have problems, show that you are trying to fix them promptly.

15. Other Markets - then we heard of:-

Chile )
South Africa ) radiata pine and plantation pine
North America ) is the link
Korea )

• Travel and meet people and make connections.
  
• Get introductions from those you trust, soon a network/picture emerges.
• Initial Tradenz Reports on Markets are very useful.

• Companies in N.Z. grow by exporting.
  
• Overseas experience for your staff enhances their capabilities, confidence and interest.
• Stable NZD gives certainty of costs.
• Build the relationships, keep the loyalty.