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Collective Marketing Pays Dividends in Dunedin

Media release
For Immediate Release

Collective Marketing Pays Dividends in Dunedin

(Dunedin, Otago, 26 July 2004) Wayne Hughes, Managing Director of United Tooling Solutions (UTS), announced that UTS has broken into the Australian Automotive Industry and will be supplying tooling to manufacture components for Mitsubishi and Holden.

For three years United Tooling Solutions (UTS) has brought new engineering contracts currently worth more than $3 million to the City, which would not normally have come to Dunedin. This rise in business is thanks to the combined efforts of UTS and the Dunedin Tooling Cluster, three of the City's world-class engineering resources and technology companies.

UTS has steadily developed and increased its client base, targeting new domestic and international clients including winning work out of Auckland, thanks to UTS's quality, competitiveness in costs and supportive delivery infrastructure. This along with other work has encouraged a rise in manufacturing business for UTS's partners.

UTS is the sales and marketing vehicle of DC Ross Ltd, Scott Automation Ltd and Metalspray Engineering Ltd, specifically targeting metal stamping tooling. By combining resources it allows them to compete for larger specialised tooling contracts world-wide, which they would otherwise be unable to do individually.

From its launch in August 2001 to year-end in March 2002, through to year-end in March 2003 the Company recorded an increase in revenue of 1,400% and has maintained that level for its next financial year ending March 2004.

Bob Houliston of DC Ross Ltd confirms: "In the past 12 months, with the assistance of UTS, DC Ross has increased its tool manufacture business by 24% and strategically positioned the company in a better position for longer term growth." Keys strengths include higher marketing impact from combined group of company's capacity and image and a more focused national and international marketing campaign.

Wayne Hughes says the Company's brand is becoming more widely accepted with its New Zealand and international customer base rising steadily and new enquiries arriving daily. He has successfully bid with multi-national companies involved in a broad range of engineering products. Wayne Hughes is currently in discussion with major manufacturers in Australia and the United States of America for related tooling. UTS recently completed aircraft engine tooling for Pratt & Whitney in Columbus USA, which has led to a second large tooling contract for Air New Zealand. This is for its new Airbus V2500 jet engines, to be used at the Christchurch Engine Centre.

The Engineering Industry is a key economic sector within Dunedin employing 2000 people and contributing $120 million per annum to the City's gross domestic product in 2003; an increase of $3 million from the previous year.

Wayne Hughes aims to intensify his targeted marketing in Australia and recently attended the country's annual engineering trade show in Sydney. After attending the previous trade show with financial support from the Council's Economic Development Unit, he was able to network with current clients and visit potential customers. He also had a successful stand at the EMEX Engineering Trade Show in Auckland.

Bruce McAllister has joined UTS as Technical Director, providing full-time technical and design expertise, which many of its competitors are unable to offer.

Wayne Hughes says: "The DCC's Economic Development Unit, through their Business Advisor Des Adamson, continue to provide a supportive role for UTS." Assistance from the Unit's Project Gateway and Market Support programmes provides UTS with some financial assistance to develop their international markets and helps with participation at selected trade shows. "The Dunedin City Council's support has certainly helped UTS in bringing new work to Dunedin."

The Dunedin Engineering Cluster has 'sparked' growing trust between businesses, resulting in a number of hard business networks emerging. United Tooling Solutions was formed as a separate legal entity out of this wider Dunedin Engineering cluster group, after extensive investigation by the Council's Economic Development Unit, Steve Olds of Heritage Consulting Ltd and the participating companies.

- End -

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