CONTENTS Acknowledgements About GMUSG and Strategic Direction - - PowerPoint PPT Presentation
The Upper Spencer Gulf Resource Industry Cluster ANNUAL REPORT 2013-14 CONTENTS Acknowledgements About GMUSG and Strategic Direction Board and Management Chairman s Report Manager s Report Priorities for Action 2014-15 Operating
The Upper Spencer Gulf Resource Industry Cluster
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CONTENTS
Acknowledgements About GMUSG and Strategic Direction Board and Management Chairman’s Report Manager’s Report Priorities for Action 2014-15 Operating Budget 2014-15 New Members 2013-14 Audited Financial Statements 2013-14
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ACKNOWLEDGEMENTS
We are pleased to present the Global Maintenance USG Inc. 2013-14 Annual Report to members; funding partners; sponsors; and stakeholders. We wish to acknowledge significant funding and ongoing support from the South Australian Department of State Development (DSD) and the Upper Spencer Gulf Common Purpose Group Inc. We also acknowledge our corporate sponsors. Their contribution towards our Annual Conference and Trade Expo underpins this important
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ABOUT GMUSG
GMUSG is a not-for-profit association incorporated under the South Australian Associations Incorporation Act, with members primarily resource sector suppliers and service providers. Members are typically based within, or associated with, the Upper Spencer Gulf region of South Australia. GMUSG originated in 2002 as an initiative of local contractors with support from the Upper Spencer Gulf Common Purpose Group and the South Australian Government. GMUSG developed as one of the State’s first Industry Clusters. Clusters are typically a group of independent enterprises working collaboratively within a common industry sector and geographic area with an aim to improve productivity, foster innovation and increase local business participation. GMUSG draws on collective resources, market intelligence and expertise to improve member capabilities; market linkages; and ultimately business opportunities. GMUSG is now established as an important part of the Upper Spencer Gulf economic development framework and will continue to play its part to enhance the prosperity and sustainability of Upper Spencer Gulf communities.
STRATEGIC DIRECTION
OUR VISION Global Maintenance USG suppliers are innovative; interconnected; competitive; and valued by major customers. Global Maintenance USG is recognised as an effective enabler to maximise local business participation. OUR MISSION In partnership with our Members; our Customers; and Stakeholders; we will maximise local participation within Resources, Energy and Manufacturing supply-chains OBJECTIVES
maintenance and supply markets
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BOARD AND MANAGEMENT
Greg Clothier – Chairman General Manager Complete Pest Control Pty Ltd Rob Gibb Director GIBBRAC Pty Ltd Claire Wiseman Chief Executive Officer Regional Development Australia Far North Steve Arndt Principal Regional Community and Indigenous Affairs – Uranium BHP Billiton Andrew Hiscock Operations Manager E & A Contractors Darren Lamb General Manager ODT Australis David McPherson Compliance Officer Asset Management Nystar Port Pirie Pty Ltd Alexander O’Shea Project Engineer S J Cheesman Ed Milne Managing Director FTE Solutions Michael Edwards Commercial Manager Max Crane & Equipment Hire (SA) Pty Ltd Mark Malcolm - Manager Manager Global Maintenance USG
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CHAIRMANS REPORT
It is with pleasure that I present the Global Maintenance Upper Spencer Gulf Inc. (GMUSG) Annual Report for 2013-2014. This report provides members, funding partners and stakeholders with relevant information regarding GMUSG activities over the past 12 months. The Board wishes to express its sincere thanks to Mark Malcolm for his stewardship of GMUSG over the past 12 months. During the year Mark has been particularly active supporting our members and engaging various government and industry bodies to enhance and grow our stature as South Australia’s resource industry supply-chain cluster. Due diligence has been undertaken during FY14 with regards to establishing a Contracting Entity under the GMUSG structure. A final report is due in 2015 and while the process has been slow, the cost incurred has been minimal. Additionally we have now added the concept of using joint venture agreements between members based on templates developed by the Federal Government and Australian Steel Institute. Results will be distributed to members
Introduction of quarterly SA Resources Supply-Chain Panels in partnership with Ausindustry has proven valuable for small and medium size contractors wanting to test their market readiness with
through 2015 and add additional programs and services where we can demonstrate similar value to members. The economic slowdown has had a dramatic effect on most mining and energy producers and project developers. As a consequence
pressures for ongoing maintenance and supply. On a brighter note, conference presentations by BHP-Billiton, Nyrstar, Santos and Petro Diamond Australia suggest an improved market outlook for 2015. The 2014 Conference held in the city of Whyalla proved the resources and energy industry is a resilient group with over 380 attendees and 40 trade displays over the two days. It was refreshing to see firsthand the collective confidence in the room and particularly the degree of networking and business deals taking
process of planning the 2015 Conference. Port Augusta is excited to be hosting us for the first time since 2010 and will showcase their new $16 m facility at Central Oval. The target for the 2015 conference is to exceed 400 delegates and 60 trade exhibitors.
7 You would recall the Board’s decision earlier this year to return annual membership subscriptions to 2012 levels. Our action on fees was in direct response to member feedback and we believe in the best interests of GMUSG and its members. The Board will recommend holding annual fees at current levels at the 2014 AGM. GMUSG is in a sound financial position; our membership base is strong; and our reputation within the resource sector and government is creating opportunities for us to influence direction in the interests of our members. In summary 2013-14 has been another sound year for GMUSG
Figure 1 - Alan Fiebig, 2nd from right, acknowledged for services to GMUSG at the 2014 Conference in Whyalla
I would like to acknowledge the Department for State Development (DSD) and the Upper Spencer Gulf Common Purpose Group for their funding contributions and ongoing support for our work. In particular, we acknowledge the contribution of Alan Fiebig who recently retired from DSD. Alan has remained a supporter and adviser to GMUSG since its inception and it was gratifying to acknowledge him and his wife Sally at the 2014 Conference and Trade Expo. In closing I also take this opportunity to thank fellow Board members who volunteer their time and skills on behalf of our membership. In particular we thank Claire Wiseman who will resign from the Board at our AGM. Greg Clothier CHAIRMAN
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MANAGER’S REPORT
The following provides an overview of our operations for 2013-14 and also incorporates activities up to and including our Conference and Trade Expo held in Whyalla on 3rd and 4th September.
Administration and Finance
The Port Augusta office of RDA Far North continues to provide accounting and administration services in support of GMUSG. Bronwyn Fuller, Office Manager and Shari Dodd, Administration Officer, perform these tasks on our behalf and provided excellent support over the past 12 months. GMUSG financial position remains strong despite an operating deficit of $25,231 for 2013-14. A deficit this year is largely due to timing of Conference income and expenditure which is typically spread across 2 financial reporting periods. A later date for the 2014 Conference and a slow start to Conference sales tended to understate our 2013 income. This impact will be reversed for 2014-15 income. Our cash position remains strong with $169,625 cash on hand at 30 June 2014. It should be noted that net assets include $60,000 received from the Department of State Development (formerly DMITRE) as the final instalment our 2-year funding agreement with State Government. $60,000 received under that agreement in June 2013 is to support
Consistent membership revenue and conference surpluses over the past 3 years contributed significantly to our strong financial position. Surpluses generated in 2012 and 2013 have enabled us to undertake several initiatives this year including: -
stand-alone Conference website
Chain Panels Our budget for 2014-15 (see later Section) indicates a small deficit. Our strong cash position enables us to maintain a higher than normal level of activity, however, GMUSG will need to address its relatively small revenue base if we want to continue current levels of service and activity beyond the medium term.
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Membership
We welcomed 13 new members during 2013-14, however membership has fallen slightly to 110 with a number of Adelaide based members not continuing membership. This is to be expected after 2 years when membership numbers swelled on expectation of expansion at BHP Billiton’s Olympic Dam mine. Difficult market conditions for our sector since 2013 also contributed to a number of lapsed memberships. It is notable that membership support remains strong for our long standing members and those based or closely linked to the Upper Spencer Gulf and regions.
Member Forums and Events
2014 and 10th GMUSG & SACOME Resource Industry Conference and Trade Expo The 2014 event was held in Whyalla Middleback Theatre on 3rd and 4th September. A record 383 attendees registered for the Conference and Trade Expo reinforcing this event as South Australia’s most important gathering of resources and energy contractors and suppliers. 40 exhibitor spaces were again sold-out with Position Partners winning the inaugural Alan Fiebig Award for best Trade Exhibit.
Figure 2 - 2014 GMUSG & SACOME Conference and Trade Expo Whyalla
We were pleased to offer a high quality program of speakers and panel sessions. Highlights for 2014 included: - BHP Billiton vision for Olympic Dam mine highlighting a focus on operational improvement and development of their heap leach pilot plant. Nyrstar introduced their $514 Port Pirie Transformation project which will reconfigure their Port Pirie smelter as a poly-metallic processing and recovery facility. Petro Diamond Australia chose our Conference to brief industry on their $100m fuel import and distribution terminal to be built at Port Bonython near Whyalla. Santos, Senex Energy and Achilles headlined our Oil & Gas feature session on day 2. They reinforced opportunities associated with rapid growth in oil and gas and particularly Cooper Basin unconventional gas. Prime Minister of Australia, Tony Abbott, set the scene on Day 1 via a video message to conference delegates.
10 Our partnership with the South Australian Chamber of Mines and Energy (SACOME) as conference co-convenor was beneficial once
energy producers brings significant status to the event. The annual conference and trade expo cannot happen without significant support. We acknowledge the following for their assistance towards planning and event management: - Bronwyn Fuller and Shari Dodd – RDA Far North Rebecca Neilson and Teresa Court of Whyalla Council Ryan Sullivan of Country Arts Trust, Middleback Heidi Freeman of RDA Whyalla and Eyre Peninsula This year we introduced a stand-alone conference website www.usgconference,com.au and promotional e-flyer. Both developed by JWPM. These and more consistent promotion helped increase delegate attendance at the 2014 event. The 11th GMUSG & SACOME Conference and Trade Expo will return to Port Augusta in 2014. The city was host to the first 6 events and is keen to host the 2014 Conference at a newly completed sporting and function centre at Central Oval. 2013 AGM and Customer Briefing OZ Minerals presented on their Prominent Hill operations and Carrapateena project at our October 2013 AGM in Port Augusta. 15 member firms were represented. GMUSG Member Twilight Forum 40 members and guests attended a Twilight Member Networking event hosted by Fox Tucker Lawyers in Adelaide during November
capacity as Liberal spokesman for industry. Rob McCallagh of Achilles provided a briefing on the role of Achilles as a third party pre-qualification agent for South Australian oil and gas customers.
Programs and Member Support
Helping members access support to develop capability, capacity and market readiness is an effective way to support member interests and business sustainability. While GMUSG has limited capacity to undertake initiatives alone, we work with others to ensure GMUSG members can access services and advice. A summary of our activities is listed below.
11 SA Resources Supply-Chain Panels This year we joined with the Federal Department of Industry – Ausindustry (formerly Enterprise Connect) offering suppliers an
procurement experts to gain feedback on their company pitch and marketing approach. Our Supply-Chain Panel Sessions are held quarterly, accommodating up to 4 suppliers each session. Each participant meets with the Panel for 30 minutes including delivery of their 5 minute-pitch. Each participant gains 25 minutes feedback with panel members and receives a detailed report and recommendations. 14 GMUSG members and other firms participated this year with further Panel Sessions planned for December 2014 and throughout 2015. Alexander Kachellek, Managing Director of Korvest, one of our Panel members, summarised lessons learned from our first year of Panel Sessions at the 2014 Conference in Whyalla. Alexander’s summary,
from the list of conference presentations at www.usgconference.com.au. We sincerely thank the following Panel members for their commitment and sound advice. SA Resources Supply Chain Panel Members
Valdis Evele AECOM – Associate Director Strategic Planning and Advisory Alexander Kachellek Korvest – Managing Director and SA President, Austmine Mark Rosser Santos - Manager East Coast Procurement Simon Telford IronRoad – Commercial Manager Jonathan Nitschke Nitschke Group Pty Ltd – Managing Director Paul Goiak Department of State Development - Director Industry Participation Sharron Bird OZ Minerals Prominent Hill Operations, Contracts Superintendent Bryan Scruby Parsons Brinckerhoff - Head of Department, Procurement Brenton Emery Santos, Team leader, Eastern Australia Procurement David Field Team Leader Procurement, Eastern Australia Mark Osborne (co-convenor) Department of Industry – Ausindustry, Business Adviser
12 Other Programs and Member Support RISCI Group Workshop – 4 members participated in a Resource Industry Supply Chain Index group workshop facilitated by Mark Osborne of Department of Industry – Ausindustry, in Port Augusta – October 2014 Business Reviews – 7 GMUSG members participated in the Department of Industry – Ausindustry Business Review Program during the year. DTC Skills for All, subsidised training – 2 GMUSG members participated in Skills for All training facilitated by the Defence Teaming Centre. Upper Spencer Gulf Challenge of Leadership training – 4 members participated in the leadership training program offered via LMA-Bettcher at Port Augusta. ICN SA Gateway Registration – a review of ICN SA’s online supplier registration confirmed that more than 90% of GMUSG suppliers are registered with ICN SA and of those, 88% updated their registration details within 12 months. We will continue to work with ICN SA to ensure members are registered and maintain effective profiles on ICN’s Gateway. Ausindustry Lean Thinking Forum Port Pirie – 4 GMUSG suppliers joined Nyrstar Port Pirie Smelter management in a Lean Thinking Workshop funded by Department of Industry – Ausindustry February 2014.
Communications
GMUSG Video - During 2013 we commissioned member firm, Mav Media, to produce a GMUSG video promoting the capability of GMUSG member firms. 11 members contributed $500 each and were featured in the video which was completed December 2013. The video can be viewed at www.gmusg.com Email Alerts and Newsletters – 33 Email alerts and newsletters were used to communicate with members during the year. This will continue during 2014-15.
Customer and Stakeholder Engagement
Customers and Projects – Engaging with major customers and prime contractors helps promote GMUSG and member capability. Examples over the previous 12 months include: - Oz Minerals, Carrapateena Project Team Nyrstar, Transformation Team and Smelter Operations Management Santos, Moomba CO2 Removal Train project delivery Sundrop Farms, Greenhouse project Port Augusta Port Bonython Fuels, project Whyalla
13 Our interaction with Prime Contractors and EPMC firms also increased this year. We were approached by, and provided information to: - Fluor, Laing O’Rourke, Thiess, AECOM, Calibre Global, Barker Wentworth and John Holland.
Figure 3 Ausco supplies 400 bed accommodation at Nyrstar’s Transformation Port Pirie
State Government – GMUSG receives significant support from the South Australian Department of State Development (DSD) via an annual grant of $60,000 and ongoing support from the Industry Participation Office, ICN SA and other divisions. The current funding agreement with DSD finishes June 2015. We will commence discussions with DSD regarding continuance of this support over coming months. Other examples where we have worked with or participated in DSD initiatives include: - Joined the DSD Roundtable for development of unconventional gas in South Australia Participated in the Shaping the Future of South Australia consultation process coordinated by the Economic Development Board, KPMG and DSD. The Premier recently announced 10 Economic Priorities for South Australia stemming from Shaping the Future of South Australia recommendations. Participated in 3 Meet the Buyer events hosted by the Office of the Industry Advocate. These events focussed on increasing local supplier participation in State Government projects and procurement. Participated in a series of Manufacturing Works update forums hosed by DSD. Federal Government – We continue to work with the federal Department of Industry – Ausindustry and the former Enterprise Connect group. We jointly convene the successful SA Resources Supply-Chain Panel sessions and we refer members to their Business Adviser facilitated RISCI and Business Review programs. The department and staff are also significant and consistent supporters of our annual Conference and Trade Expo.
14 Regional Development Australia – 3 Regional Development Australia Boards operate in the Upper Spencer Gulf and surrounding
growth in regions and are supported by the three tiers of
information and regularly co-host business forums. We also acknowledge their assistance in planning and delivering our annual conference and trade expo. Upper Spencer Gulf Common Purpose Group (CPG) – The CPG is an association of the three Upper Spencer Gulf city councils and
initiative of the CPG before we incorporated and operated independently around 2004. The CPG continues to support GMUSG by contributing $10,000 per year to support our work. Our Mayors are enthusiastic participants at our conferences and each year provide significant in-kind support for the event.
Concluding Remarks
In closing I want to thank our Chairman, Greg Clothier, and GMUSG Board members for their support and direction through the year. Board members contribute significant time as volunteers and undertake executive tasks where necessary to ensure GMUSG can deliver value to its members. Once again I thank RDA Far North and particularly Shari Dodd and Bronwyn Fuller for their valuable administration support through the year. GMUSG has developed a sustainable business model underpinned by a strong member base; profitable annual conference; and
Local Government. I look forward to assisting the Board to deliver value to members next year. Mark Malcolm Manager
Figure 4 - Port Augusta's $16 m Central Oval Redevelopment will host the 2014 Conference and Trade Expo
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PRIORITIES FOR ACTION 2014-15
Our Business Plan for 2014-15 reflects our commitment to deliver value for members and our funding partners. The following summarises our program for the year ahead: - Host the 2015 and 11th GMUSG & SACOME Conference and Trade Expo in Port Augusta Host Customer Supplier Forums and Member Networking events in the USG and Adelaide Act as co-convenor for SA Resources Supply-Chain Panels Distribute timely and relevant information to members via regular email alerts and Newsletters Ensure all member profiles are registered and current on ICN SA Gateway Link members to pre-qualification opportunities Maintain and update the GMUSG Capability Directory Broker member access to business capability improvement services Represent GMUSG and member interests among major customers, industry, government and media.
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OPERATING BUDGET 2014-15
INCOME $ Department of State Development 60,000 USG Common Purpose Group 10,000 Conference Surplus 38,000 Membership Subscriptions 35,000 Other Income 200 Interest 2,000 Total Income $145,200 EXPENSES Management Services 107,000 Administration Services 11,626 Fuel 4,200 Consulting 2,000 Accommodation/meals/travel 2,450 Audit, Legal & Accounting 1,200 Member Forums 3,500 Communications and Website 12,600 Project and Program Expenses 5,000 Meeting Expenses 2,000 Bank Fees and Charges 1,000 Insurances 3,000 Other and Contingencies 1,500 Total Expenses $157,076 Surplus/Deficit
NEW MEMBERS 2013-14
Chandler McLeod Outback Pipe & Civil Constructions Des’s Cabs Mine Power Solutions Clothier Enterprises JWPM Environmental Projects ODT Australis Caledonia Scaffolding Defence Teaming Centre AddCash Finance LMA – Bettcher D J McQueen & Associates
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