Shortage of skills handicaps new golf factory

Press, 9 May 1984, Page 33

Shortage of skills handicaps new golf factory

By

NEILL BIRSS

The moving of an Australian golf-bag factory to Christchurch has struck a problem which may hit other Australian firms coming to the city because of closer economic relations, a shortage of skilled and semi-skilled labour. Precision Golf Forging, Ltd, of Australia, has moved its Melbourne bag factory to Christchurch and production is delayed by a shortage of machinists. PGF Australia, in the golf business for about 50 years, came to Christchurch in 1971, and in partnership with the English firm, Harrisons and Crosfield, Ltd, set up PGF New Zealand, taking over a small craft golfclub making firm of a Scotsman a Mr Allan at Aranui. The firm developed until it was employing about 28 people making clubs and about six making golf bags at a factory in Tuam Street. Harrisons and Crosfield in December 1983, bought a half-share in PGF Australia. Because of rising costs, all seven Australian golfclubs makers now have either equipment or componments made overseas, and with the advent of CER and the ownership change, New Zealand manufacturing costs were assessed says the manager of PGF New Zealand, Mr Des Turner, of Christchurch who will soon return to Australia to be the firm’s international marketing manager. It was decided to move the bag-making plant to New Zealand for these reasons, he said yesterday. © Some “know-how” was already in Christchurch because of the small bagmaking plant in Tuam Street.

® Wages are lower. © Government incentives. The firm’s new bag factory has now been set up in Wainoni, with $400,000 worth of machinery and plant shipped from the factory that was closed in Melbourne. The 11,000 square foot factory is still rather empty and quiet, however, only 20 workers have been hired. New Zealand Government agencies have given PGF considerable help in the move: aid has come from the Overseas Investment Commission, the Development Finance Corporation, and the Department of Labour, among other departments. The goal of this official help must at least partly be to help provide jobs in Christchurch, a city where more than 8800 are registered as jobless. But machines stand idle while the company’s officials are frustrated at a backlog of orders: 15 more machinists are needed. The problem is, Mr Turner says, that the company cannot take on more unskilled workers without slowing output. Already some of the machinists are still training. The Department of Labour has tried to help, running a machinist course in Christchurch Polytechnic, but PGF says that some workers, from this course have needed up to six months more on-the-job training. Former machinists from footwear factories, that had closed might make good recruits, Mr Turner said. However, the hiring is complicated by a new-jobs subsidy available to industry. This is available only to those who hire people put forward by the Labour Department, and so far only a

handful of suitable machinists have been found from the department’s lists. The company is confident that the golf-bag factory will reach planned output, however. The factory will then supply the New Zealand market and each year export S2M worth of golf bags and other pvc equipment to the Pacific Islands and Australia. The “other lines” include duffle bags, various insulated carrying bags ideal for keeping beer — or milk for a baby — cool, and instrument cases. PGF New Zealand already exports 15 per cent of its golf ... club production. About 50 per cent of the content is New Zealand made. Sports goods seem an ideal product for a leisuremad country like New Zealand, and golf clubs after opportunities for both home supplies of components and for craft spin-off industry. Despite its title, Precision Golf Forging, now uses mainly cast components — heads and shafts. These are imported, New Zealand entrepreneurs may some day supply these components. The hand-worked forged clubs of yesteryear are now used by only a few hundred of the world’s top golfers, according to Mr Turner of PGF. But this market niche could be competed for by club makers who learn their craft at PGF. Already a tiny firm of former employees has set up in business in Christchurch making clubs from cast components. In the meantime, however, there are pressing problems of training skilled labour which need to be cleared up so that Australian industry can be attracted to Christchurch and the city’s jobless helped.