Q: How would you describe 2022 for your business?
The financial year ending March 2022 was always going to be hard act to follow, where we delivered five years of average growth in a single
Kahl Betham, chief Executive of the Gallagher Group based in Hamilton. Photo / Supplied
Q: How would you describe 2022 for your business?
The financial year ending March 2022 was always going to be hard act to follow, where we delivered five years of average growth in a single year. The biggest takeaway here was how well our people, our partners, and our customers pulled together to creatively solve the challenges posed by the global supply chain crisis.
A key challenging feature of 2022 was undoubtedly global inflation. This placed pressure on all parts of society, including our business. Ironically where the previous year may have been dominated by supply shortage, now many manufacturers are adjusting to the reality we find ourselves overstocked with inventory.
Taking a long-term growth mindset, in 2022 we continued to invest and double down on our strengths. In Animal Management we took a 10 per cent shareholding in New Zealand-founded innovative pest trapping company Goodnature, and in November we finalised the acquisition of Australian agricultural manufacturer Norton Livestock Handling Solutions.
In our security business we are now bringing our enterprise-level solutions to small and medium business too, and early in the New Year we will launch a significant upgrade to our flagship security product, Command Centre.
After a period of significant growth, the challenging global economic climate means we are expecting headwinds for the next two years which will slow our growth.
Q: How is your business planning to tackle 2023?
We believe innovation is a critical element of fighting the impacts of global inflation. Our customers can look forward to continued innovation from Gallagher in 2023.
In the first half of the year our eShepherd virtual fencing solution will become commercially available which transform pastoral grazing systems and will further propel our Animal Management offering into an increasingly impactful and digital future. And in security, our Controller 7000 Single Door will launch to businesses around the world.
Q: What will be the major challenges and/or opportunities for your business and industry?
The global economic climate is creating uncertainty for governments, businesses, families, and individuals the world over. We haven’t seen these inflationary impacts in decades.
Tech manufacturing companies across the world, having scaled up to ensure they could supply customers during the pandemic, are now finding themselves with an oversupply of inventory, at the same time as an economic downturn. Inflation is expected to continue to negatively impact customers’ ability to invest in capital for quite some time.
Conversely, with inflationary pressures comes the opportunity and requirement for our customers to improve their operational efficiency. Our solutions offer great benefits in this respect, so we look forward to being able to help our customers in this way.
Despite the challenges ahead we remain optimistic. Having been in business for 85 years in 2023, our business is diversified and robust, and because the bulk of our manufacturing operations is New Zealand-based we are able to quickly adapt to changing conditions.
Q: How do you think the Government has handled the economy?
I don’t publicly assess performance of any government, however I would strongly encourage supporting the growth of technology exports from all New Zealand regions (after all, as a nation our second largest export sector is now technology), and creating a welcoming environment and process to attract global talent to help fuel tech sector growth.
There isn’t a lot that growth can’t fix, and technology is an industry where we can lead.
New Zealand is well known for innovation and enabling businesses at every level to double down on this will support our economic recovery at multiple levels, including through the creation of more high-value jobs. Investing in New Zealand’s hi-tech future is a recipe for success.
Q: What are your predictions for 2023?
I don’t think anyone was able to predict the last few years, and I expect 2023 to be similarly unpredictable. What we do know is the global economy is contracting, which means some challenging times ahead.
Successful businesses will be those who stay close to their customers’ needs and keep a laser focus on doing only the things that will make a difference for their customers and their people.
Q: What was the most interesting story of 2022?
I have been pleased to see the conversation about human neurodiversity, and specifically ADHD, come into the open as something to be celebrated rather than treated as a disorder.
There is so much power and impact to be achieved in learning to help others identify and harness the untapped superpowers within, regardless of the cards they are dealt. As futurist Dave Wild says, innovation is not found within the normal or the average, it is found at the edge.
As a family living with diagnosed neurodiversities, I will continue to advocate for celebrating neurodiversity in all its forms throughout 2023 and beyond.
Q: What’s the worst mistake you’ve made in business?
I’m a naturally optimistic person so I try to focus on learning and continuous improvement rather than the mistakes. Having said that, a key learning throughout my career has to been to take steps as early as you can when a strategy, project, or relationship is getting off-track.
I recall times, in retrospect, that I could have addressed some challenging issues earlier, as issues become larger the longer they are allowed to grow. Even when we have challenging conversations, if we do it in a way that adds to the relationship then the relationship becomes stronger.
Q: What would you rate as your greatest success in business?
I can’t claim this as my doing as it has been close to 85 years in the development, but I am exceptionally proud of the culture we have all built at Gallagher, which has fuelled our innovation and enabled us to extend our reach into 160 countries across the globe.
Q: How are you holidaying this summer?
I’m looking forward to spending some time in Raglan with my wife and four children. Wellbeing is really important to us at Gallagher, so I’ll be prioritising time with family and friends, working on my fitness, and recharging, ready to take on 2023.
Gallagher Group is an 84-year-old international technology innovation company. Based in Hamilton, where it was founded, the family-owned company is a world leader in the invention, design and manufacture of animal management technology, high level security systems, data collection and metering.
The NZ sharemarket still managed to make a small rise in a slow end to July.