Inventions give firm new hope

BY KARLA AKUHATA

The last 18 months haven't been easy for Robin Ratcliffe, the owner of Hamilton firm Modern Transport Engineers.

Like many owners of small to medium sized companies he has faced many challenges because of the recession.

And though it could be technically over, with the most recent figures pointing to a rise in gross domestic product, Mr Ratcliffe said his company was still struggling with the fallout.

"They can be technically out of a recession as much as they like but I will tell you this – we are still in a recession here," Mr Ratcliffe said.

The company has not yet reached Ratcliffe's goal of $100 million annual turnover but he is confident it will eventually get there.

"We should have been at $100 million turnover but we are at $40 million – we are going to get there, we are very sure of that, but we are having to evolve."

Six months ago he had to make 10 workers redundant.

Mr Ratcliffe said it wasn't easy and he never wants to do it again.

There were accusations from workers who had been laid off that Mr Ratcliffe had kept on immigrant workers at the expense of local ones.

It was a tense situation and one Mr Ratcliffe doesn't want to dwell on for too long.

"We have got the responsibilities as employers and it is never an easy to decision to lay people off but sometimes it has to be done," he said.

He points to a letter which sits on his cluttered desk among the invoices, designs and magazines selling equipment by companies which have gone belly-up.

The letter is from a worker employed from China by Mr Ratcliffe.

Mr Ratcliffe said when the man arrived he had very limited English but the words scrawled across two pages are touching and genuine.

David Huang wanted to thank his boss for giving him the opportunity to work for him.

He writes that he loves living in New Zealand, as do his family, and they have a lovely home and a better life.

Mr Ratcliffe is proud of the letter and for a moment he forgets about the 10 men who were laid off, leaving 35 on the staff.

"We thought we would have been putting staff back on by now but we are not.

"We have, however, managed to keep staff levels stable."

He admits times have been tough and said he has had to look to the Australian market just to keep his company afloat.

The company now exports at least 95 per cent of its product across the Tasman and beyond.

His son, Michael, and three other employees are living in Australia to ensure that relationships with clients there are maintained.

"The thing is that for us to do what we do and survive, we have had to come up with a whole heap of new designs for Australia," he said.

Mr Ratcliffe already has plans to expand into other countries, including the United States.

To date this year the company has come up with 12 new designs, including a new trailer with the ability to carry up to 550 tonnes, and an innovative safety vest.

The vest is designed to be a safeguard for operators while they work on trailers – essentially it acts as a force-field between those wearing it and moving trailers which can receive its digital transmission.

The idea was conceived in June by Mr Ratcliffe's team of three designers.

At present the company is ironing out a few details before it goes to the market but it has already been patented.

Mr Ratcliffe expects the vest should be released next year.

The vest will be a complementary product to the trailer business and Mr Ratcliffe says he will need to start up another subsidiary business.

The new venture will be based in Hamilton and Mr Ratcliffe believes it will create hundreds of new jobs.

"This past year for us to stay in business we have had to design ground-breaking stuff all of the time."

However it is fair to say that while the recession might still be biting, Modern Transport has every chance of survival.

- © Fairfax NZ News