One of the great elements of the New Zealand business landscape is that there is a real focus on family. According to Crowe Horwath International, around 75 per cent of all enterprises are family-owned, passed down from generation to generation.
However, family businesses in this country are just as at risk from market conditions and digital disruption as their industry counterparts – highlighting the importance of communication, forward-planning and innovation.
Digital disruption is coming
As part of the 2016 PwC Family Business Survey, it was revealed that growth prospects for these enterprises remains strong, but poor strategic planning could hamper progress moving forward.
PwC Partner and Private Business Market Leader Robbie Gimblett explained that 41 per cent of New Zealand family businesses felt vulnerable to digital disruption, compared to 24 per cent of global respondents.
"An important balancing act for family businesses is staying profitable and continuing to build value for the future, while investing in new products and services and making sure their business model is relevant," he said.
Additionally, 62 per cent of New Zealand respondents noted that innovation was going to be a challenge over the next five years. In the manufacturing industry, where innovation is at the cornerstone of advancement, it would appear that family businesses need to act now to ensure a profitable future.
62 per cent of New Zealand respondents noted that innovation was going to be a challenge over the next five years.
Thinking about the next generation
As the baby-boomer generation begins to head towards retirement, it's the next generation of business leaders who will have to lead this technological revolution. However, based on the survey, succession planning isn't the prominent topic that it should be.
"A worrying trend is that succession planning for senior roles is still taking a back seat for more than half the family businesses surveyed," Mr Gimblett explained.
The importance of automation for manufacturing business leaders
Innovation in the manufacturing industry is all about automation. While family businesses may have got away with manual processes in the past, it's clear that automation is the way forward to keep up with the competition. This is where the team at Design Energy can help.
We will come to your operation and let you know what products and services are a good fit for your organisation. Automation is a concept that can't be rushed, which is why our process is measured, concise and in-depth.
If your family business would like to learn more about the benefits of automation, get in touch with our team today.