Resene Paint has been in the business of colour for 78 years. But the family-owned business is now facing margin pressure. Video / Mark Mitchell
Resene Paint has been in business for 78 years and is as competitive and innovative as ever in the hands of the founder’s family.
“We’re staunchly Kiwi and we’re proud of it,” Resene chief financial officer Mike Durkin told the Herald’s Markets with Madison.
The company has 1000 employeesand hundreds of thousands of colours of paint available for sale.
Its profit margins were under pressure, Durkin said, because of increased costs for wages and imported products used to make its paint, such as resin and white pigment titanium dioxide - a product it used in high quantities to increase the quality of its paint.
“We’re already at a premium to the market in terms of our pricing, so there’s a ceiling on what we can charge. We can’t pass it on.”
Resene Paint chief financial officer Mike Durkin takes Markets with Madison inside its Wellington factory. Photo / Mark Mitchell
The business was “entirely bootstrapped,” Durkin said, meaning it had never taken on external investment or debt - and did not plan to, despite the pressure.
The company is run by Nick Nightingale, the grandson of its founder Ted Nightingale who started Resene in 1946 in Eastbourne, Wellington.
Nick Nightingale is the third generation leader of the family-owned business Resene Paint. Photo / Mark Mitchell
“Nick gets a tap on the shoulder quite regularly to sell his business, but there’s no intention of doing that,” Durkin said.
“The business will never be sold in his lifetime. It will never be IPO‘d, there won’t be a trade sale.”
“The staff know that they’re secure, that’s who we are.”
Resene’s major paint factory is in Wellington’s Lower Hutt - a site that about 40 years ago made Philips televisions.
When asked why the company had not moved its paint manufacturing offshore to help lower its cost base, like many other businesses had, Durkin said it was not motivated by money.
“That’s a fair question, but we’re a Wellington-based company, we’re a family company, we’re private, and we support 1000 families, and we’re going to continue to do so.
“It’s more pressure and it’s financially hard. But that’s who we are. We’re a Kiwi company.
“We’ve got no intention of moving. We just roll with the punches.
Resene Paint chief financial officer Mike Durkin (left) shows Markets with Madison one of its inventions - colour charts.
Despite being smaller than its global competitors, such as the United Kingdom’s Dulux, Resene has created many industry-first innovations over the years.
For example, Tony Nightingale, Ted’s son and the second leader of the Resene business until it was passed to Nick, came up with the concept of test pots.
“People poo-pooed the idea, they thought it was madness, and now it’s a global phenomenon.”
Tony Nightingale also came up with the idea to add sand to paint to give it grit when used on flooring for non-slip qualities.
“He was driving home one night down to Eastbourne, there’s a howling northwester coming across the harbour, and there’s sand blowing up onto the road and instead of getting annoyed about the weather, he thought, ‘hmm, I can use this’.
“The company grew because he was a very good salesman, he was a visionary,” Durkin said of Tony.
Despite the weaker economic environment, the company did not plan on slowing down under Nick’s leadership.
“We’re looking for growth, always trying to steal market share off the opposition,” Durkin said.
“I think we’ve got a better story than the opposition. People like us, and as long as they like us, they’re gonna keep buying off us.”
Go inside Resene’s paint factory in Wellington and hear more about its finances, in the latest episode of Markets with Madison above.
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
