Establishing a market entry point into Australia – with Warner Cowin
Australia has allocated a record-breaking AU$270.4 billion to infrastructure projects over the next four years compared to New Zealand’s projected infrastructure spend of NZ$11.6 billion for 2025. Sydney is only a three-hour flight away and the Australian infrastructure market offers New Zealand businesses the viable and real opportunity to diversify revenue and grow a new market. It is, however, not for the faint-hearted and knowing how to go about it is crucial for success.
Join us at the 2025 ACE New Zealand SME Summit in Auckland next month where Height Chief Executive Warner Cowin and New Zealand Trade and Enterprise | Te Taurapa Tūhono (NZTE) Customer Manager Kathryn Jones will share advice for prospective SME exporters about how to enter Australia and the support available from NZTE, the government’s business development agency.
We spoke with Warner about Height’s experience and why the Australian market should be on the radar of SMEs.
Why should SMEs contemplate entering the Australian market for an alternative revenue stream?
"The New Zealand market is currently very flat and I think the economy is unlikely to improve in the short term. If we’re to sustain a viable engineering sector, then even small consultancies will need to consider exporting.
"The Australian market is significantly bigger than ours. The infrastructure pipeline in New South Wales alone is about 20 times the size of New Zealand’s so the scale of the prize is huge. It’s tough to break in but, once you crack it, it’s awesome."
What are the key considerations when contemplating a market entry point?
"There are many things to consider, including:
- Core customers – who to target
- Partners
- Niche market
- Positioning
- Account planning
- Investment needed
- Patience required
"The process of entry point is often through the partnerships that New Zealand has. Most of the Australian corporates are in New Zealand and it’s critical to know how to build a relationship with them as this is what will take you across the Tasman."
When and how did you enter Australia?
"We started exporting to Australia just before Covid and ended up there by default. We were working for some Australian corporates in New Zealand, and they took us across – they thought we were good at what we did. It was pretty organic.
"But, when Covid hit, we decided to focus on New Zealand again to ensure we were looking after our core market. Then, about two years ago, we took on our first Australian employee and director, and we’ve had an office in Sydney for about a year. We took the plunge and invested.
"The interesting thing for engineers is that they want certainty but there’s nothing certain about it; you’ve just got to use the market feedback, and we’re really pleased we did."
How did NZTE support you with your entry into the Australian market?
"We received some partial International Growth Funding (IGF) from NZTE to do an initial market sounding. This helped us verify our core customers and niche target market, which was very different to what we’d expected. NZTE’s support was critical because it highlighted the subtle differences between the Australian and New Zealand markets, and revealed our value proposition into Australia, which we hadn’t recognised.
"NZTE funding can be hard to get. But, if you show perseverance, then NZTE can support you through some co-funding or introductions and connections. Many Australian companies are very interested in doing business in New Zealand and the political access we have to trade commissioners and our MPs who travel overseas appeals to our Australian customers. We take full advantage of what the New Zealand High Commission has to offer in terms of creating those introductions."
Can you share a key learning?
"We learned that if we wanted to do business in Australia, even with our existing clients, we’d get more consistent work if we had resources and an office in Sydney. On the back of feedback from three or four key customers, we committed to recruiting people, which was a little scary. Also, the importance of being niche – given that one third of our business is ex-military and the defence spend in Australia is AU$55.7 billion, we have found a niche in the defence construction pre-contract space.
"There were many lessons learned!"