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Source: NZPA / Ross Setford -
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Mainfreight told shareholders on Thursday that it has responded to the challenges of a tough trading environment and the government must respond too.
The logistic company has renegotiated its bank facilities, ceased hiring or replacing people, deferred annual salary reviews, reduced capital expenditure, reduced costs and relied on a strong sales approach.
"Frankly, while uncertain, it is also an exciting time to be in business. It is a very good environment to improve performance, to deliver better than your competitors, and to work harder to take advantage of the opportunities," said managing director Don Braid.
He said the company's $NZ125 million and $US50 million ($NZ77 million) bank facilities had been renewed. Borrowing costs and bank fees increased but security of funding was needed to continue growth strategies.
The company announces its first quarter result on August 20.
It said that sales volumes had been impacted by slowing economies but market shares had increased. During July there had been improvements in volumes, particularly in Australia.
The company expects its operations in the bigger economies of Australia, the United States and China to improve more quickly and robustly than its operations in New Zealand.
Chairman Bruce Plested addressed remarks to the "big picture", as he often does.
New Zealand had to behave like a small businesses and find an entrepreneurial spirit.
"There is no better time than in a global recession to make some big changes. We must find our own destiny and forget about trying to follow the rules and ways of larger countries," he said.
Former ACT Party leader Richard Prebble is a director of Mainfreight.
Plested said now was the time to fight poor laws, stultifying bureaucracy and petty bureaucrats "that suck us all dry".
"We have a passion to be bigger, to be better, to claim our place in the world and without doubt we will make it happen," he said.
Braid said the government had to understand the need for a better road, rail and port infrastructure in New Zealand.
"Our port system needs to be capable of handling larger vessels, and we require an effective inland transport network that will interface with a super-port strategy," Braid said.
"Attempting to achieve the right transport infrastructure with boards of directors made up of political appointees with little or no transport or infrastructure experience is just plain stupid," he said.
Mainfreight has developed systems and technology that allow it to measure profitability weekly in 160 locations around the world, and the quality and service delivery via 10 key performance measures.
It is committed to the career development of employees and the
company's management structure seeks to give responsibility to
managers who are close to customers.
