Working smarter to keep in front globally

Competition hots up among Gold Coast exporters

CHANGING market trends and a fiercely competitive global marketplace means the Gold Coast's exporting companies must continually push forward with new product development and be receptive to change.

But with that change often comes criticism. Wes Moxey, chief executive officer of Riviera, one of the Coast's biggest exporters, has hit back at critics of the company explaining that a recent small reduction in staff requirements was a strategic response to the global market's demand for larger vessels and Riviera's investment in new plant and equipment, which was less labour intensive. "Comments about our position by some competitors couldn't be further from the truth - this financial year we recorded double-figure growth, with 2006 revenue up 12 per cent to $324.5million," he says. "Looking forward we forecast a further nine percent growth to about $353.5 million in 2006/7. Riviera figures show the Coomera plant delivered 386 vessels in the financial year just past, with 345 forecast for 2006/7. "While this figure is lower the boats are much larger in size and value," says Mr Moxey. "This reflects significant growth in the market for larger 42-foot-plus vessels, a market which is not affected by hikes in the global oil market." The company has just completed an $11.7m expansion of the plant's southern block to include a new joinery and varnish/spray line, plus a staff training and IT facility.

A further $8.5million expansion, including a 70-tonne travel lift, manufacturing, antifoul/spray and aftermarket service facility is planned. "The company is focused on working smarter, to achieve a greater economy of scale and as an example the new varnish line does twice the output, with a third of the workforce," he says.

Mr Moxey says as in most manufacturing industries technology has dramatically reduced labour force requirements. "There have been 50 redundancies since October last year, but you have to remember that this reduction is based on a total Riviera workforce approaching 1200 permanent and sub-contract staff," he says. "That makes us one of the Gold Coast's largest employers. "Our emphasis is on up-skilling and redeploying our workforce where necessary, as well as continuing the trades' apprenticeship program offered in 24 regional high schools."

Meanwhile, Riviera has made the first steps towards tapping the 'potentially massive' luxury boating market in China by appointing an exclusive dealer in that country. The announcement last month of the appointment of SCAS Yachts International as Riviera's Chinese dealer is a further expansion of the company's world-wide dealer network. "Infrastructure plans are in place for 50 new marinas over the next 10 years, with the schedule being driven by existing demand, the 2008 Olympic Games and the 2010 World Expo," says Mr Moxey.

"The market in China at the moment is in its infancy, but the potential is staggering and with the rate of economic growth being experienced in that country now running at one of the highest levels in the developed world, we want Riviera to be positioned on the ground floor."