Airport systems company views dark clouds on horizon

Auckland's BCS Group provides check-in systems and other IT solutions for airports around the world.

An Auckland company which has landed a $9.2 million contract to upgrade Gold Coast Airport at Coolangatta characterises the mixed outlook for manufacturers doing business overseas.

BCS Group provides airport, security and baggage handling IT systems, and hopes to have the job partly completed by the middle of this year in time for the winter tourist influx.

The company's general manager of international airport systems Marc Michel said the future business environment was starting to look tough.

"The outlook going forward is very difficult. Airlines are shrinking their services which means there is less demand for airport infrastructure."

BCS last year had a turnover of about $70 million and has about 270 staff around the world, including 70 in Auckland where IT development and servicing was based.

It was now in the process of moving work done at its Melbourne manufacturing plant to China where labour costs were lower.

"We see there will be opportunities in this recessionary environment but you need to be lean and mean to take advantage of them," Michel said.

The low New Zealand dollar was making the business more competitive.

"The lower dollar is of assistance but we understand that you cannot build a business based on a low currency alone - you need to be innovative."

The company has provided airport services at large and regional airports throughout Australia, installed Air New Zealand's bag drop system at domestic airports here as well as Morocco, Greece and France. There was also a "bright spot" in the Philippines and a staff member had been appointed there.