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contentsChairman’s Message 6

CEO’s Message 9

HunterNet Board 10

Founding Chairman’s Message 12

Introduction 14

“What the Hell is a Network?” 16 - The beginnings of HunterNet

Early challenges 20

Education & Training 21

HunterNet Group Training Company 22

Research on networks & clusters - Julia Connell 25

References 32

The Role of HunterNet 34

Forums & Committees 37

Recent Achievements 46

Lessons Learnt 48

Value to Members 49

Future Objectives & Challenges 50

Organisation Chart 52

Member Capability 53

Listing of Members 54-57

Celebrating 20 Years of HunterNet 32 HunterNet - The Power Of Many

This publication draws heavily on a number of previously published sources, notably “The First Ten Years 1992 – 2002” for which Andrew Eckford did valuable research.

John Coyle’s many learned presentations and addresses proved a rich source of information and quotation. Similarly, the commemorative video produced by Creative Pipeline “HunterNet – 20 Years” captured the voices of several members and some of their observations are included here.

Julia Connell, a long-standing support to HunterNet, helped shape the concept of the publication from the very beginning and wrote the section “Research on Networks and Clusters”.

Kim O’Neill from HunterNet provided invaluable assistance chasing up tardy contributors and sourcing necessary information.

Thanks are also due to those who kindly agreed to being interviewed: Bret Barton, Murray Christie, Ian Dick, Derek Hird, Phil Hird, Ruth Hutchinson, Tony Masters and Steve Meyn.

Finally, special credit is due to our wonderful designers at Imago Media for their creative flair and professionalism.

Claire Williams, Editor

, September 2012

AcKnoWLeDGeMents

InDustry (bIrDs eye of hArbour


A MessAGe froM Mr rIchArD eveLeIGh chAIrMAn of the hunternet boArD

I am honoured as the current Chair of the HunterNet Board to say a few words about this outstanding organisation. I first heard about HunterNet in 1994 from Joss De Iuliis when I was working for a Wollongong- based business which serviced the coalmines around Newcastle and the Hunter Valley.

I remember thinking back then that it sounded like a great idea that mixed both business support and improvement with pleasure.

In 1999 (the year the Newcastle steel works closed down) I moved my business to Newcastle. It was a difficult time as unemployment was high and not only had the steel works just closed down but the mining industry was also suffering from a downturn.

We joined HunterNet in 2004 and right from the start I found real benefits from working with the terrific group of collaborative business people that form the membership of HunterNet. The business has grown substantially since we became a member of HunterNet and over the years we have worked with many other HunterNet members.

Since its foundation HunterNet has continued to grow but through this period the personal interaction of members has remained a core

part of its . As Chair, I have the pleasure of working with a Board of enthusiastic Directors who all share a keen commitment to serving our membership and helping our regional manufacturing and services businesses develop and grow. As a membership-based organisation, our survival depends on providing value for members and our continuing growth indicates we are doing this well.

The challenge for us over the next period of HunterNet’s development is, as always, to support our members in dealing with the impact of change as markets go through business cycles, currency rates fluctuate and government policy changes. HunterNet helps its members develop business skills, access government initiatives and increase flexibility and capability

so that they are best-positioned to identify and respond to opportunities. In this, the great HunterNet team led by John Coyle does an outstanding job in maintaining member value and keeping the personal flavour of HunterNet as the organisation has grown.

The Board is of the view that the first twenty years of HunterNet presents a picture of great achievement; the challenge we all face at HunterNet is to maintain the values that have made this such a successful co-operative organisation over the past twenty years.

Chairman Richard Eveleigh speaking at the 2011 Chairman’s Awards

Celebrating 20 Years of HunterNet 7

A MessAGe froM Mr John coyLe ceo, hunternet

My involvement with HunterNet goes back some sixteen years, so I missed a few of the early times when the greatest challenge was to get the Co-Operative up and running. However, HunterNet has been an ongoing part of my work over those sixteen years, firstly as a Member, then as a Director of the Co-Operative, followed by Vice Chair, then Chairman and finally CEO for the last ten or so years, as well as Executive Director of the HNGTC.

It has been fascinating and exciting to be involved with so many outstanding members who have worked so hard to ensure that our network has continued to grow and expand its range of services and value offerings We have been fortunate that the original philosophy and objectives for HunterNet, as set up by the founding members, have stood the test of time. This has allowed us to build on these and with the drive and passion of Harvey Knox in the crucial second stage of development in the late 90’s, to ensure that the “Power of Many” became a reality.

In many ways, HunterNet was ahead of its time, as networking and collaboration were not then recognised as powerful tools in promoting business and regions,

but there is little doubt today of the role they play in aggregating the innovation and entrepreneurial capabilities of SME’s.

We are also fortunate that the Hunter has a long tradition of working together through tough times. We are proud to have been a part over the last twenty years of the revitalisation of our traditional manufacturing industry so that now we have become Australia’s leading regional player in today’s smart manufacturing environment.

HunterNet looks forward to the next stage of its evolution as it continues to deal with both the challenges and opportunities that will face our members over the next twenty years!

Air Warfare Destroyer Project, Forgacs Engineering

John Coyle, Avalon Expo, 2005

Industrial Maintenance & Fabrications


hunternet boArD

Richard Eveleigh - ChairmanManaging Director - Nepean Mining

Nick Killin – DirectorBusiness Development Manager – GHD

Stephen Cowan - DirectorGeneral Manager Operations – UGL

Jeff Phillips - Director*Managing Director – G.H. Varley

John Gambrill - DirectorManager - Newcastle Field Maintenance

Denis Hancock - Finance AdviserH & M Accountants

Chris Reeve - DirectorSales Manager – Precision Oxycut

Anita Hugo - DirectorCommunications Specialist

Tim Hardy - DirectorGeneral Manager – Newcastle Machine Shop

Garry Baunach - Vice Chairman*

Director – Simulation Modelling Services Pty Ltd

Asterisks indicate Directors who are retiring from the Board at the 2012 HunterNet AGM.

Celebrating 20 Years of HunterNet 11 10 HunterNet - The Power Of Many

Mr Joss De IuLIIs founDInG chAIr

As a founder of HunterNet and inaugural Chairman of the Board, it is with pride that I take this opportunity to reflect on some of my experiences of the organisation over more than twenty years.

The idea for HunterNet emerged at a time when there was change in both my business and personal life: I had sold a large part of one of my companies and bought land at Pokolbin with a view to establishing a vineyard. I had started thinking about succession

planning and different ways of managing my business. Then Harvey Knox came into the picture. He was interested in what I was doing and introduced me to new ideas and new people, notably Julia Connell from The University of Newcastle. The relationship with Harvey soon grew close and much of the work of developing the concept of HunterNet was done in my vineyard and at nearby restaurants.

The core HunterNet principle was “Go and find out who is the best. Instead of copying them, leave them to do what they do best and you do what you do best and see if you can’t help each other.” Not everyone understood the concept. When we went to a local politician to brief him and ask for support, he shook his head and said “It sounds like collusion. I can’t be part of that.”!

Government support was forthcoming, however. Glen Oakley was working in The Department of State and Regional Development at that time and he was instrumental in forming a relationship with HunterNet and sourcing much-needed funding. Glen was a maverick but it is mavericks who get things done!

Harvey and Julia’s roles were crucial. Julia mentored and guided Harvey, including calming his agitation when a local research report referred to HunterNet as a ‘soft’ rather than a ‘hard’ cluster - fighting words for any man to hear!

I recall when Prime Minister John Howard came to Tomago and HunterNet was given just fifteen minutes to make a presentation

to him about the Redbank Power Station project. Harvey practised, practised, practised. He practised in front of a mirror. He practised in front of other members, asking ‘Is the message right?’ It worked! The result was $30 million worth of government investment into the region, and work for many HunterNet members. It taught me that it doesn’t matter how good you are, practice is essential. HunterNet’s motto “The Power of Many” came out of the period of reflection that followed this success: there was a realisation that working together in a common cause was very powerful.

I want to thank the Chairmen who followed me: John McColl, Bob Cowan, John Coyle, Steven Smith, Phil Hird, Jeff Phillips, Nick Killin and Richard Eveleigh. All have been very effective and made an important contribution to the evolution of the organisation. This publication honours their leadership and celebrates the achievements of the whole membership and our many supporters.

Ken Moss & Joss De Iuliis at the HunterNet Launch, 1992

John Coyle, Jeff Phillips, Tim Hardy, Joss De Iuliis, Bob Cowan & Keith Horan

12 HunterNet - The Power Of Many Celebrating 20 Years of HunterNet 13

IntroDuctIonHunterNet is a unique Hunter success story. This publication celebrates its first twenty years.

As well, it seeks to provide some answers to the many who ask CEO John Coyle and the HunterNet founders “How did you do it? Could it work for my region?”

And it tells a story about the Hunter, Upper Hunter and Central Coast Regions of NSW, leading centres of engineering, manufacturing, mining, defence and power generation.

HunterNet is in some ways an unlikely organisation. Who would have thought it possible that a strong and enduring network based on trust could be formed from a group of highly competitive, individual businesses? While conventional wisdom has it that

success comes from competition and the close guarding of information and intelligence, HunterNet demonstrates that co-operation and sharing offer a surer path.

This publication covers the beginnings of HunterNet (“What the Hell is a Network?”), the early challenges, the formation of HunterNet Group Training Company, what the research tells us about networks and clusters, the role of HunterNet and how it communicates with members, the operations of its specialist forums and committees, its major achievements, the value it provides to members, and future objectives and challenges. It provides as well a listing of the nearly 200 members, an outline of member

capability, and information about patrons and sponsors of the organisation as well as the support provided by government.

Finally, we provide some images from social events, meetings, site visits and national and international trips which give insight into the camaraderie that membership of HunterNet offers and the importance of the personal connections at its heart.

our MIssIon“To capture and showcase the engineering /manufacturing ingenuity, passion and capabilities of members as a way of growing sustainable value for the region and community.”

our vIsIon“Drawing on the power of many to establish the region as number one in sustainable engineering/manufacturing in Australia.”

HunterNet - working together, sharing information, building on core

competencies/developing expanding capability, acquiring new skills,

seeking joint opportunities and demonstrating The Power of Many

Ex-Chairman Nick Killin & Phil Mayfield Team Hunter at Pacific 2010 with Greg Combet MP & Jodi McKay

Chairman’s Awards Winners 2009


“WhAt the heLL Is A netWorK?” the beGInnInGs of hunternet

HunterNet today is a large and vigorous erative with nearly 200 members representing manufacturers, engineers and consulting companies in the Hunter, Upper Hunter and Central Coast Regions.

It is a respected voice of industry at the local, state and national level: its opinion and input are sought at the highest levels in the formation of policy and projects. Strategic direction is set by a Board of eminent members led by Chair, Richard Eveleigh, while operations are supported by a small, expert staff led by CEO John Coyle. HunterNet is funded by membership subscriptions and support from NSW Department of Trade and Investment.

Its founders could not have dreamed of such a development. So how did it all begin?

In 1991, some key players were exposed to the idea of networking by The Chamber of Manufactures (later, Hunter Business Chamber). At the same time, there was a push from BHP, Goninan and Tomago Aluminium for smaller manufacturers to group together in order to achieve more consistent quality standards.

The business context was another factor: major contracts had been lost, some companies were in trouble and there was an air of uncertainty. Founder John McColl says “The environment at that time was extremely poor. In the early 90s recession in the Hunter, there was a pending steel industry crisis. We were missing out on defence contracts that were promised. The Newcastle Region and particularly the manufacturing sector was not good at all.”

Something had to be done.

Founder Neville Sawyer’s view is that “HunterNet grew out of people getting together and talking about what was necessary” but the beginnings were not without challenges. Some expressed suspicion, caution, even pessimism after the initial viability meeting at the Chamber in March, 1992.

Founding Chair Joss De Iuliis sums up the uncertainty, even amongst those who supported the idea: “’What the hell is a network?’ We were all competitors. It took the first twelve months to get an understanding of what the hell we were all about.”In that time, the fourteen member companies agreed on the co-operative structure of HunterNet, fee-based membership and three key aims: to develop the capabilities of members, to

grow market opportunities and to reduce the costs of supplying services.

An inaugural Board was elected with Joss as Chairman, Gene Van Aardt as Treasurer/Secretary and the following as Members: Eric Kreutzer, Terry Askew, Neville Sawyer, Allan Clair and Brad Scott. Business planning support from The University of Newcastle and assistance from the Chamber and the MTIA provided both momentum and profile.

HunterNet was incorporated on 11 December, 1992 as a registered, member-funded, not-for-profit co-operative. It was formally launched by Dr Ken Moss at an event on the South Steyne attended by 180 people on 2 September, 1993. At the same time, a boost was provided by $30,000 seed funding from the Federal Government.

Business planning was the focus of the next year, with a commitment to common problem-solving and sharing of capability information amongst member companies. Major opportunities were presented by the Minehunter and Redback Power projects. HunterNet’s first joint promotional activity was undertaken - a stand at the Australian International Engineering Exhibition in Sydney, and a HunterNet delegation attended the Hanover Trade Fair. Ian Hickey was appointed full-time Business Manager. A more secure financial footing was gained with further Federal and State funding and a move into offices at the Department of State and Regional Development at Wharf Rd, Newcastle, where HunterNet remains.

A demonstrable early benefit for members was assistance with Quality Assurance accreditation. Joss De Iuliis recalls “Goninan was one of the first companies to get Quality Assurance certification. It provided them with a competitive advantage but they realised that if other companies didn’t have it, there was a threat to the supply chain.

Chris Huggins and John Fitzgerald invited HunterNet members to come and see their QA system. This was a big step. It changed the picture and inspired others. Following this, a QA Forum was held once a month and members worked through the process collaboratively. The lesson learned was the value of identifying a common problem that could be worked on together. It breaks down the barriers. Certification was a challenge for all but it promised access to valuable national and international contracts.”

Joss De Iuliis


In 1995, Harvey Knox became Business Manager. He successfully sought greater media exposure for HunterNet, additional training and development opportunities for members, and a strategic focus on mining and power generation. The following year, a project was undertaken with The Warren Centre for Advanced Engineering. HunterNet Group Training Company was established. The next major achievement, in 1996, was financial independence: with support from members, sponsors and patrons, HunterNet was now standing firmly on its own two feet.

1997 saw the launch of a mentoring scheme and the production of a capabilities directory. Inspired by his own studies for a MBA, Harvey fostered a relationship with the

Graduate School of Business of The University of Newcastle, providing members with access to management, leadership, marketing and communication training. Global links were established, with visits to industry associations in Asia.

An indication of the profile that HunterNet had gained by this stage was the Board Members’ meeting with Prime Minister John Howard in July 1997 which led to $30 million worth of Federal investment for the region. HunterNet’s pursuit of global markets was assisted by the Hunter Export Centre. A joint trade mission to Hong Kong secured work for members on a large rail project.

Communication with members and the wider world was enhanced with the launch of HunterNet’s website in 1999. In the same year, HunterNet funded a Software Engineering scholarship at The University of Newcastle. Another initiative was the “Model for Action” reflecting new business thinking for manufacturing in the context of the knowledge economy and a state grant of $50,000 the following year funded an audit of capabilities in the region. Major projects at that time included the construction of the Kooragang Coal Loader for Port Waratah Coal Services and British Aerospace’s Lead-In Fighter project.

One of the greatest challenges for HunterNet was the loss of its charismatic leader, Harvey Knox, in June 2001. In his memory, the “Opportunity Knox” scholarship scheme was established to support applicants in any area of endeavour to pursue their dreams.

John Coyle, former Chairman of the HunterNet Board, took over the role of Manager in October 2001 and remains in the position today.

A meeting with Prime Minister John Howard in July 1997

led to $30 million worth of Federal investment for the region

“WhAt the heLL Is A netWorK?” contInueD

Former HunterNet Manager, Harvey Knox

HunterNet representatives with then Prime Minister John Howard

HunterNet Launch 1993


eArLy chALLenGes

The early challenges can be summarised as leadership, competitors, disclosure of competitive advantage, legal aspects, management of the network and time.

Leadership means having the passion, skills and commitment to articulate a vision and carry people along with you. Founding Chair Joss De Iuliis was the leader HunterNet needed to turn a concept into reality: CEO John Coyle says that “Without Joss, it wouldn’t have happened. It was his leadership that made it possible.” The history of HunterNet is in some ways the history of strong leaders, each with their own unique approach. Ian Hissey had the skills to nurture a fledging organisation, Harvey Knox’s charisma secured support for his communication,

training and technology agenda, John Coyle has taken HunterNet to a “new level of professionalism”. Persistence also helps. One member comments “Harvey annoyed the crap out of us until we joined up”!

Competition and disclosure of competitive advantage were also issues, as The Newcastle Herald identified: “Companies that attended the first HunterNet meeting in August 1992 were guarded about their operations, and understandably so. After years of zealously keeping their management styles, ideas and innovations under wraps, the concept of sharing them with perceived competitors must have been difficult to overcome.” (The Newcastle Herald 6 September 1993)

Legal aspects had to be dealt with. What corporate governance structure was most suitable? How could “commercial-in-confidence” be protected? How would IP (intellectual property) rights be observed when members combined in business activities, for example, tendering?

Management of the network had to be decided including the size and roles of the staff, communication and reporting methods, resourcing and financial management, recruitment of new members and member responsibilities.

Time is always a challenge and in the early days when HunterNet was being established, significant time was required to work through

complex issues and fulfil formal requirements, for example, incorporation as a Co-operative, to say nothing of the time required for discussion, planning and problem-solving. Yet the founders were busy people, fully occupied running their own businesses in a challenging environment. It is a measure of the generosity and foresight of the founders that the time was found and the necessary work was done, and done well.

trAInInG & eDucAtIon

Developing member capability and the region’s skills base is a core commitment of HunterNet and it follows that there was a focus on training and education from the very beginning.

Neville Sawyer argues that education was at the heart of HunterNet: “Education was the thing – educating contractors, how they should market their companies, the things they should talk about, their areas of excellence, how they should work together, not do it as a separate entity.”

Important relationships were formed and continue with leading regional providers of education and training, relevant government departments and a range of smaller consultancy firms. A natural ally was The University of Newcastle (a founding Patron), given its international reputation

in engineering. Valuable assistance was also provided by staff of the University’s Business School. As noted by Professor Carter, Pro Vice-Chancellor of the Faculty of Engineering and Built Environment, “The University was originally established to serve the local community, to educate its citizens, train its professionals and act as a conduit for new ideas and best practice, so it was only natural that it should support the aims and goals of HunterNet. Community service is our common bond”.

Hunter TAFE, the leading provider of vocational education and training in the region, is an active partner organisation which trains the majority of the region’s apprentices. Rob Wolter, Faculty Director Industry and Natural Resources, Hunter TAFE, comments: “Hunter TAFE is proud of the long-standing relationship

with HunterNet as a patron member. Our staff play active roles in all the sub- committees of HunterNet including the Training Committee. We also have representation on the HunterNet Group Training Company Board. This partnership has allowed Hunter TAFE to respond quickly to any training needs of the membership, providing quality training solutions and advice”.

Visiting speakers, site visits (a visit to Goninan provided a turning point in the early days), and international trade shows all provided learning opportunities. The personal connections and social activities fostered by HunterNet proved fertile ground for informal learning through the sharing of knowledge, ideas and problems. John McColl observes: “Learning from one another - that was evident almost from the start”.

HunterNet Group Training Company


hunternet Group trAInInG coMpAny pty LtD

HunterNet’s boldest move in regard to training was in 1996 with the formation of HunterNet Group Training Company to administer and co-ordinate the training of HunterNet members’ apprentices. Its first full-time Training Manager was Wayne Gillett, followed by Murray Christie from 2000.

Murray Christie explains: “In the early 1990s when HunterNet was established, SMEs didn’t see that they had a role in training. BHP trained approximately 200 people a year and retained only 30% or so: the excess was available for others. In the mid 80s with the downturn in BHP operations, apprentice numbers dwindled. By the end of the decade, a skills shortage was beginning to bite and this proved a major motivator. Suddenly, SMEs realised they had a role to play but they knew they wouldn’t be very good at it. They could train apprentices but

they didn’t know how to manage them. At the same time, TAFE faced the challenge of learning how to deal with a multitude of employers with as few as one or two apprentices when they had been used to dealing almost exclusively with a sole major employer: BHP.”

The viability of the concept became clear after feedback from members. Nine companies came on board in the first year, and 23 apprentices were employed.

HNGTC was a training innovator, in response to member needs. An Accelerated Learning Program saw apprentices undergo a full-time, intensive three-month program at TAFE before they started in the workplace. Competency-based training meant that apprentices were able to speed up their training: HunterNet’s very first apprentice,

Andrew Ward, completed in early 2000, four months ahead of schedule. These initiatives brought benefits to employers: their new apprentices were work-ready when they started, and smart apprentices were qualified sooner.

HunterNet Co-operative is the sole shareholder of HNGTC which is a proprietary, not-for-profit company. It has a Board and John Coyle, CEO of HunterNet, is the Executive Director.

HNGTC currently employs 150 apprentices and trainees on behalf of over 25 companies. As well as the manager, there are two Field Officers and two support staff.

In essence, HNGTC recruits, employs, pays and manages the training of apprentices who are contracted out to work with HunterNet companies. HNGTC manages all contractual

arrangements, monitors apprentices’ progress, makes site visits at least once a month and liaises with Hunter TAFE, the training provider.

HNGTC represents an investment in the future of HunterNet companies. Its rationale is:

• To provide a key support service for members’ apprentice and traineeship requirements

• To use the strength of the network to provide specialist skills and experiences for apprentices

• To partner with Hunter TAFE to enhance program content and delivery, and

• To maximise career paths for apprentices

chAIr of hnGtc, rob MAsterson

“HNGTC provides an important service for members. It has a great track record in getting apprentices and trainees through the process. Our completion rates are well above the national average and there’s good retention after graduation.“

HNGTC’s Steven Shaw, Murray Christie & Andrew Maton


reseArch on cLusters/netWorKsProfessor Julia Connell, Curtin School of Business, Curtin University, Perth, WA was formerly based at The University of Newcastle, NSW. She has had close involvement with HunterNet since the mid-1990s, undertaking

This article explains why industry clusters can effectively promote knowledge-sharing and innovation, particularly for the SMEs of the twenty-first century. It considers why networks and clusters tend to be created in the first place, how

professor JuLIA conneLL

InDustry cLusters Promoting Knowledge-Sharing and Innovation

several member surveys and assisting with the development of a new member mentoring program. Julia was President of the Opportunity Knox fund raising committee in memory of Harvey Knox, former HunterNet CEO.

they can assist knowledge-sharing and innovation processes, the influence of cluster life-stage and the importance of effective cluster facilitation and new member mentoring.

2012 HunterNet Business Planning Conference


Why cLusters?In an increasingly globalised world where small and medium sized enterprises (SMEs) are under increasing pressure to compete internationally, clusters can play an important role in supporting their competiveness.

Networks are often created as self-help mechanisms for SMEs because contact and co-operation with other firms is seen as the best way for an SME to solve its problems, and external assistance is seen as a useful facilitator of

mutual learning. (Arzeni and Pelligrin, 1997, p28). Networks are frequently created as a result of a crisis. In the case of HunterNet, a contributing factor was the BHP closure in 1999 which resulted in

Fortunately, HunterNet can ‘tick the boxes’ for all of the nine elements, from the point of its creation (element 4), through its growth due to elements 5, 6 and 7 while prospering to celebrate its twentieth anniversary due to element 8. Moreover, HunterNet has enjoyed long- term relationships with the both The University of Newcastle and Hunter TAFE (element 9).

Most industry clusters begin life as networks, as did HunterNet with its small group of early founders. Later, HunterNet grew into an industry cluster which is defined as a group of inter-related industries where firms are located in close proximity to one another (DTI, 2008). It is generally accepted that the purpose of industry clusters is to achieve business, social and environmental improvements that would be

unavailable to firms individually (UNIDO, 2006). Porter (2008) states that clusters are geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated institutions (for example universities, standards agencies, and trade associations) in particular fields that compete but also co-operate (often referred to as being in a state of ‘co-opetition’). Porter’s (1998) cluster definition refers to firms and institutions with a high level of mutual trust, proximity, horizontal and vertical complementarity of activities – all of which are evident within HunterNet.

Watson (2011) maintains that there are few economic development policies as popular as clusters: it is difficult to find a country, region, or even a city

that is not trying to develop them, not least because the global economic crisis has highlighted the need for innovation in order to diversify economies and create jobs. Industry clusters are held to have a dual purpose: both to enhance the competitiveness of the SMEs that comprise them through business cooperation and agglomeration economies, and to build or revitalise certain regions. Where HunterNet is concerned, there is definitely a dual purpose at play with the intention that the co-operative build capacity not only for its members, but also for the Hunter Region as a whole in order to build its profile as a centre for manufacturing and engineering excellence.

MILLIer (2002) cItes A nuMber of eLeMents essentIAL for A successfuL cLuster:

The cohesion provided by both informal and formal information networks

Educational and research institutions involved in cutting edge work

Staying power over the long term, and

Various sources of investment capital

7

9

8

6

Access to a trained/educated workforce

Local champions as a catalytic influence

Entrepreneurial drive and sound business practices

Identification and support of regional strengths and assets

Recognition of the potential of knowledge-based industries by regional/local leaders

3

4

5

2

1

job loss for 2000 workers and 1000 contractors and an associated impact on manufacturing and engineering firms in the Hunter region.

Sam Wong & John Coyle at the 2008 Business Planning Conference


cLusters AnD KnoWLeDGe shArInG

Broader business frequently relies on networking between the firms that belong to clusters, to support knowledge-sharing and ‘spillovers’ (Hilliard and Jacobsen, 2011).

In the case of HunterNet, knowledge spillover occurs at monthly networking meetings held at member firm premises, special interest groups, a yearly conference, shared training, formal dinners, the group training company which supports apprenticeships and more. Member firms tender jointly and mentor new members. HunterNet acts as a conduit between government and member firms, providing information about tenders and policy and regulatory changes.

Solvell et al (2003) point out that co-location in a cluster does not guarantee knowledge-sharing: strategies and systems such as inter-firm learning, support networks, communication strategies, benchmarking and inter-firm working groups need to be in place. Hence, there is a growing consensus that there is a need for more interventionist policies and approaches in cluster development (OECD, 2005). Persson, Sabanovic and Wester (2007) add the need for a ‘positive social atmosphere’ which HunterNet members would certainly endorse.

Up until the last few years, facilitation within HunterNet was largely undertaken by the CEO and a small administrative team. However, the rapid growth of the cluster (there are now nearly 200 members) meant that more support was required. Accordingly, the new positions of Business Development Manager and Relationship Manager were created and a new member mentoring support program was established which together enabled more targeted and widespread facilitation amongst member firms.

cLusters AnD InnovAtIon

Niu (2010) maintains that industry clusters promote innovative capability and thereby competitive advantage. Moreover, the industry cluster concept is seen as integral to the development of knowledge economies (Connell and Thorpe, 2009).

It has been argued that as innovation is multi-faceted and difficult for individual firms to fully exploit (Bessant, 2004) clusters can provide a mechanism to manage the process more effectively. External knowledge is increasingly important for innovation (Bessant, 2004) and firms that are active in ‘strong clusters’ and regions with strong clusters tend to perform better (Solvell, Lindqvist and Ketels (2003).

Indeed competitiveness, innovation, growth and their inter-linkages at the regional level have been considered drivers of the national economy.

Innovation tends to be connected with clusters because the repeated and continuous interaction between firms encourages the exchange and creation of new knowledge.

HunterNet has supported innovation in a number of ways including the ‘Innovate the Hunter’ program which included a self-assessment tool to enable members to trace their firm’s innovation against a curve and identify appropriate strategies to drive innovative practices in their own businesses (Coyle, 2007).

NCIG Briefing for Members in 2008

Working group at the 2005 Business Planning Conference


cLuster LIfe-stAGe fAcILItAtIon AnD MentorInG

The level of collaboration, knowledge sharing and trust a cluster exhibits tends to be related to its stage in the cluster life cycle.

Each stage tends to be characterised by differences in the number of firms and employees and changes in the nature of the localised knowledge base (Menzel and Fornahl, 2010). Emerging clusters generally have few firms with a lasting vision, whereas established clusters tend to experience strong growth of existing firms and have a knowledge infrastructure that includes cluster stakeholders and other organisations that support their activities. Cluster facilitation is also likely to be influenced by a cluster’s life cycle, as cluster founders may also be the facilitators in the earlier stages of cluster development but as a cluster grows it most

likely will require a different type of facilitation, organisation and management and a dedicated cluster facilitator to manage communication and assist in relationship-management amongst members.

Where trust has been developed in cluster relationships it can be difficult for newcomers to ‘tap into’ them, even if they have something worthwhile to offer (Murphy, 2006). In recognition of this, HunterNet introduced a new member mentor program in 2009 to help new members meet established members and adjust to the ‘norms’ of the network so that they could benefit sooner from relationship-building and knowledge-sharing. A survey following the program found that both mentors and mentees (new members) recommended continuation of the program. Further, they were

enthusiastic about membership because of HunterNet’s reputation and the opportunities it offered. Comments were that they ‘didn’t know who they were going to meet’ and if they were not part of the cluster they ‘would never have had the opportunity to meet so many different member firm representatives and be able to network’.

In summary, it appears the effectiveness of cluster facilitation including providing opportunities for networking, training, strategic direction or interventions such as the new member mentoring program directly affects member satisfaction, trust and opportunities to collaborate, relationship-build and share knowledge. The importance of the cluster manager/facilitator in cluster development has been largely overlooked in the research thus far.

However, during the 2010 European Cluster Conference, the first ‘Cluster Managers Club’ was created as an interactive forum for cluster managers to gain inspiration and share new ideas. HunterNet has gone from strength to strength with the support of a few dedicated staff members. The cluster literature indicates that all clusters go through life cycles and interventions and strategies must be dynamic and focused on need (DTI, 2008). Hence, it is important that, as successful as HunterNet has been to date, its dedicated staff ensure that it remains relevant and responsive to member needs, thereby ensuring it prospers to celebrate future decade anniversaries.

General Members Meeting at Structural Cranes, 2007

National Anthem, Chairman’s Awards, 2010


references Arzeni, S. and Pelligrin, J. P. (2007),

Entrepreneurship and Local Development,

The OECD OBSERVER No. 204, www.

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id/61/file/Entrepreneurship, viewed

30/9/2011

Bessant, J. (2004). Getting the tail to wag:

Enabling innovation in small and medium-

sized enterprises. Learning and Knowledge

for the Network Society. In M. Heitor. New

York, Purdue University Press

Connell, J. & Thorpe, M. (2009), Do Clusters

Support Innovation? An Inside View of Two

Dubai Based Clusters, in: S. K. Singh and

B. Gupta (eds), Innovation Management,

Macmillan Publishers: New Delhi.

Coyle, J. HunterNet Case Study, Industrial

Revitalisation, Enterprise Connect

www.hunternet.com.au

Department of Trade and Industry (DTI)

(2008), A Practical Guide to Cluster

Development, www.dti.gov.uk/files/

file14008.pdf, viewed 30/9/2010

Hilliard, R & Jacobson, D (2011): Cluster

versus Firm-specific Factors in the

Development of Dynamic Capabilities in

the Pharmaceutical Industry in Ireland:

A Study of Responses to Changes in

Environmental Protection Regulations,

Regional Studies, 45:10, 1319-1328

Millier, L, (2002), Universities as a catalyst

for Development, Economic Development

Journal.Com. http://www.ecdevjournal.

com/index.php?option=com_content

&view=article&catid=4%3Adevelopm

ent-stategies&id=318%3Aeconomic-

clusters-universities-as-a-catalyst-for-

development&Itemid=11 viewed 7/9/2012

Murphy, J. T. (2006) Building Trust in

Economic Space, Progress in Human

Geography 30 (4) 427–450

Niu, K-H, (2010) Organizational trust and

knowledge obtaining in industrial clusters,

Journal of Knowledge Management, 14 (1),

141-155.

OECD, (2005), Business Clusters, Promoting

Enterprise in Central and Eastern Europe,

OECD Publications, Paris

Persson, M., Sabanovic, A., Wester, H.,

(2007), Is Cluster Theory in need of

Renewal? – Porter’s Diamond Revised,

Bachelor Thesis, from Kristianstad

University/Department of Business

Studies, http://www.essays.se/essay/

ef726a54e9/

Porter, M. (1998) ‘Clusters and the new

economics of competition’, Harvard

Business Review, 76-90.

Solvell, O; Lindqvist, G and Ketels, C,

(2003) The Cluster Initiative Greenbook,

Gothenburg: VINNOVA.

UNIDO (United Nation Industrial

Development Organization) Development

of clusters and networks of SMEs. http://

www.unido.org/index.php?id=o4297

viewed 30/9/2011

Watson, J (2011) Fostering innovation-

led clusters: a review of leading global

practices, Economist Intelligence Unit Ltd,

The Economist. General Members Meeting, hosted by ACS at the Westpac Rescue Helicopter Service

Newcastle Field Maintenance Services


the roLe of hunternet“To marshal the collective energies of engineering-based manufacturers to assist our members and other stakeholders in the Hunter,

Upper Hunter and Central Coast region so they can achieve a sustainable and innovative business that can compete in a global marketplace.

We do this by marketing the combined capability of our members, providing business development and training opportunities and

promoting the region as a whole as a region of manufacturing and engineering excellence.” - John Coyle

Specifically, HunterNet seeks to:

1. Drive innovation (for example, through the “Innovate the Hunter” project.)

2. Promote the Hunter as the engineering heartland of Australia

3. Be the voice of SMEs in the manufacturing/engineering sector

4. Build capacity through helping companies develop their potential, and

5. Identify and grow business opportunities for members

What is HunterNet NOT?

1. A rescue organisation. Joss De Iuliis says: “The ones that came to HunterNet with a broken business still failed; the ones who were innovators, striving for best practice today are very successful companies, due in part to HunterNet’s support. All of them had an opportunity but HunterNet was never designed to be a rescue organisation.”

2. Political. While HunterNet has an advocacy role and its input is sought by all levels of government, it is not political.

Steven Smith explains:

“HunterNet has remained apolitical through its entire existence and that’s very important given that it deals with both state and federal governments. It’s important to our credibility.”

Above all, HunterNet is an organisation that communicates. Its success depends on effective communication with stakeholders and partners including Regional Development Australia – Hunter, Department of Trade and Investment, Enterprise Connect, Hunter Export Centre, Hunter Manufacturing Awards Inc, Industry Development Centre, Hunter Business Chamber, Hunter

TAFE, The University of Newcastle and HunterNet Patrons and Sponsors. It is communication with the HunterNet members, however, that is the critical success factor, along with the facilitation of communication between members.

Communication tools include email, newsletters, website, social media, forum and committee meetings, general meetings, the annual planning meeting, surveys, seminars and training sessions, presentations, submissions, visiting speakers, site visits, international trade missions and social events.

An Events Calendar is distributed periodically to members. It indicates a high degree of activity. The schedule for September 2012, for example, lists meetings of the IT Forum, the Defence Forum, the Infrastructure Forum and the Marketing Committee; a HunterNet Board meeting and a General Meeting, a Golf Day, a public speaking course for members entitled “HunterSpeak”, and a welcome event for new members.

Communication tends to engender openness and openness tends to engender trust.

Phil Hird comments:

“HunterNet is unique. We learnt you have to get to know people, get together, spend time together and learn to trust each other. It’s grown from that basis.”

Founding Chairman Joss De Iuliis sees the role of HunterNet operating on a number of levels: “We are all about creating prosperity for ourselves, for our employees, for the nation we live in.”

Phil Hird & Steven Smith, Chairman’s Awards 2001

HunterNet & HNGTC Staff Steven Shaw, Lyn Currey, Jodie Jacobs,

Karl Putnis, Murray Christie, Kathy Stokes, John Coyle, Susan Letcher and Andrew Maton,

2010 Chairman’s Awards Dinner


foruMs AnD coMMIttees

As HunterNet grew and the diversity of its membership and interests increased, the generic “Projects Committee” of the mid-1990s evolved into specialist Forums and Committees.

Currently, they comprise of the Mining Forum chaired by Tony Masters, the Defence Forum chaired by Bret Barton, the Infrastructure Forum chaired by Phil Hird, the IT Committee chaired by Steve Meyn, the Marketing Committee chaired by Derek Hird and the Training Committee chaired by Ruth Hutchinson.

Each Forum or Committee meets every 4-8 weeks and between 10 and 70 members attend meetings where expert visiting speakers provide up-to-date information about imminent contracts and opportunities. All HunterNet members are free to join Forums or Committees and many are members of more than one. To ensure coordination, a Joint Chairs meeting is held twice a year. In addition, Chairs provide regular reports to HunterNet general meetings.

“Members need to be more innovative, smarter about the way they work, more careful managing risk. HunterNet can help with all of these things.”

Ian Dick & John Coyle, Avalon Airshow, 2011

Ben Henri & Steve Meyn, Chairman’s Awards Dinner, 2011

Mining Forum Meeting, June 2012

Bret Barton & Ken Brown, General Members Meeting, 2008


MInInG foruM

It is no surprise that mining has long been a focus for HunterNet given the region’s pre-eminence in coal extraction, loading and transport, primarily for export (Newcastle is the largest coal-exporting port in the world).

The purpose of the Mining Forum as set out in its Charter is to identify and act on opportunities for the benefit of members; its mission is to identify relevant major projects as well as project requirements and match these to HunterNet members’ capabilities.

Each meeting of the Mining Forum examines, discusses and collaboratively updates an “Active Projects” spreadsheet, which provides detailed information about current and proposed projects including the name of the client, the site, the value of the project, its status and

the name of the person nominated to follow up any opportunities for HunterNet members, for example as a “Project Champion”. Forum Chair Tony Masters comments “Opportunities for members are at all stages: construction, operations and maintenance. Maintenance is the big one.”

He adds that the sector is strong but not without its challenges:

“Coal prices are dropping, margins have narrowed, China has built up a large stockpile of steel and some major projects are on hold. Growth is continuing but slowing. There have been job losses.”

He notes that some innovative work is being done in power generation, especially in view of the push for new, greener technologies but

“for many years to come, the world will continue to need minerals that are mined. In our region, that’s coal.”

Manufacturing is continuing to struggle with the high Australian dollar. HunterNet has established a Taskforce to look at the PM’s Report on Manufacturing and to report back to members on its progress.

InfrAstructure foruM

The purpose of the Forum is to identify and act on opportunities in all sectors outside of mining and defence while its mission is to identify relevant major infrastructure projects including the project requirements and to match these to members’ capabilities in order to secure ongoing business. Members come from diverse sectors including fabrication, machining, engineering and EPCM (engineering, procurement, construction and management).

Chair Phil Hird says the main achievement of the Forum is “providing a pipeline to facilitate opportunities: we invite senior project people at an early stage, then members can register interest and chase the work.”

Each meeting of the Forum examines, discusses and collaboratively updates an “Active Projects” spreadsheet which provides detailed information about current and proposed projects including the name of the client, the site, commencement date, the value of the project, the prime/sub- contractor, the tender stage and the name of the HunterNet “Project Champion”.

What of the regional picture? “Many companies are challenged at the moment – it has been a quieter first quarter. While some are busy and some not, this is cyclic and overall, most companies are doing OK. In terms of major opportunities, NCIG (Newcastle Coal Infrastructure Project at Kooragang Island) is coming to a conclusion and T4 (the fourth coal loader) is big but is at least 12 months away”.

Mr Hird concludes:

“It’s all about passion: attending the meetings and forums, participating, contributing. What you put in is what you get out. It’s not a matter of ‘I’ve paid my money to join, now give me the information and the leads.’ We all walk through each other’s workshops and we don’t hide things like we used to. We see an opportunity and we think about how others can be part of that and work together with us.”


The strength of the Forum derives from the utilisation of the various experiences and skills brought to the team including:

• Marketing

• Project management

• Business acumen

• Industry knowledge

• Industry contacts

• Business management

• Relevant Defence experience

Co-ordinated events such as site visits are held with Hunter Business Chamber Defence Industry Committee. HunterNet and HBC jointly support Defence and Defence Industry under the Hunter Defence brand.

Mr Jason Clare MP, Minister for Defence Materiel, recently spoke at the HunterNet Defence Forum and expressed the view that the future for the region in regard to Defence

The Defence Forum was established in 2009 at a time when defence was the single biggest spender of taxpayers’ dollars in acquisitions and infrastructure development.

Chair Bret Barton recalls: “There were twenty or so companies doing business with defence but others were looking to diversify into defence. One of many barriers for those without experience was the unique culture of defence. The global financial crisis meant that many small to medium companies were struggling, especially those in competitive trade and those in the steel industry. They were doing it tough.”

Forum members include “seasoned servicing companies with experience who understand the contractual mechanisms and various barriers and can provide assistance to

those without experience, advising companies how they could increase their understanding of defence clients and their needs.”

The Forum is supported by Ian Dick whose position as Hunter Defence Project Manager with HunterNet has been funded by NSW Trade and Investment since 2010. Ian supports Hunter and Central Coast SMEs in the region as a conduit and facilitator.

The Defence Forum’s Charter is to increase defence-related opportunities for members and to have HunterNet recognised as a cohesive and competent resource for the Defence sector.

Its mission is to identify relevant projects that allow for the collaboration of member capabilities to develop new

business and to develop programs that incorporate awareness, education and the implementation of relevant technologies that assist to drive business efficiencies. The Forum actively promotes the Defence capabilities of the membership with a focus on efficiencies in manufacturing.

Sectors represented in the Forum include engineering, manufacturing, simulation, logistics, and professional services. Some businesses are small, others medium and some as large as Forgacs Engineering and G.H. Varley. Forum meetings are addressed by guest speakers, most recently the Land 400 Project Director.

Defence foruM

“The tangible information and peer support provided by the Defence Forum is of direct value in helping companies adapt

and respond to new needs in the Defence area.”

is extremely bright, both on the maritime side and the air side. Bret Barton explains why: “Because of the Hunter’s natural assets – our big port can handle increased traffic, and development at the airport is designed to support the demand associated with the air warfare destroyer project: the joint strike fighter will be in service from 2014, in 2018 they will be ‘in-country’ and Williamtown will be a hub. This

project will provide opportunities for the next 10-20 years.”

He continues: “There isn’t enough consistent demand from the different sectors, for example, rail and power generation, to allow companies to survive doing what they have always done. They need to have options and be flexible enough to respond effectively to new opportunities.”

Jason Clare MP, Sharon Grierson MP & Bret Barton, 2012


It coMMIttee

As set out in its Charter, the purpose of the Committee is twofold: to drive innovation and awareness of technology within the wider HunterNet membership and to promote the growth of the IT industry in the Hunter and Central Coast regions.

Its mission is to identify relevant projects to develop new business and to promote awareness, education and the implementation of relevant technologies to drive business efficiency, especially in manufacturing.

Chair Steve Meyn elaborates: “The focus is on making the wider HunterNet membership aware of innovations in technology to build business via two key streams: e-commerce and social media (applied to the business’ relationship with its customers and suppliers as well as within the particular

organisation). HunterNet’s 2011-2012 Business Plan included a commitment to help members understand and implement social media. The 2013 Plan developed this further and referred to interactive websites and implementing the learnings about social media, making two case studies available, and putting local ICT providers in touch with industry. This has been achieved.”

The Committee conducted a survey in March 2012 to assess members’ use of online tools, their understanding of the capability and associated risks, and the alignment of any use with overall business strategy. More than one third of members responded and of these, 55% said they wanted to understand more about e-commerce and 61% said they wanted to understand more about social media. Accordingly,

several social media sessions have been conducted, a case study has been developed and a 15-point checklist has been prepared to help organisations approach social media.

In terms of e-commerce, a Working Party has been formed with an approach that includes training to assist members to increase their online presence and understand options, vendor services and operational and legal risks.

Some innovation pilot projects have been developed on the Central Coast with the support of The University of Newcastle. The Innovation & Technology Committee has evolved into the Information Technology Committee so as to allow a greater focus on IT issues on behalf of members.

Chair Steve Meyn says “The survey statistics prove that HunterNet members are ahead of the game in regard to their use of IT/new technologies.” Further, the IT industry in the region is quite robust: “There is a big cross-section of skillsets and a big pool from infrastructure through to communications, through to security and risk, to ERP systems, to website and online developers. Employment is strong, with some shortages in the security and risk areas (which will be an even bigger problem with the NBN rollout), in the IT server engineer space, and in test managers.”

Major opportunities will come with the national broadband network (NBN) “but it will only be as good as business makes it. The NBN is just a framework – the challenge

is to use it to gain efficiencies and business growth. Increased connectivity and bandwidth will provide opportunities for people to work more efficiently with a more mobile workforce, to access systems they’ve never been able to before (thanks to cloud computing), and to increase connectivity to benefit the supply chain: product information, manuals, demonstrations, the exchange of information can all be online 24/7 rather than face-to-face. The question is ‘Is business ready - do they understand how the NBN can benefit them?’”

Chairman Richard Eveleigh presenting IT Committee Member John Smith with membership certificate


MArKetInG coMMIttee

Chaired by Derek Hird, this small committee has a charter to develop a strategic marketing plan with a focus on building the HunterNet brand, capitalising on the brand for the benefit of members, capturing community and business opportunities and promoting member capability and innovation.

Regular meetings and special events are held. HunterNet will often have a booth at a trade show or conference, for example the recent Mining and Engineering Expo, allowing members to have representation without the expense and effort of doing it on their own. Member success stories are told through HunterNet promotional material, newsletters, website and media releases.

Achievements include the recent rebranding of HunterNet which included refreshing the logo and changing the tag line to reflect its increasing industry and geographical diversity. ‘HunterNet: the competitive edge in engineering’ is now ‘HunterNet: the power of many’.

The Committee’s challenges include supporting and promoting a growing membership. Future directions will focus on embracing social media and assisting members to develop marketing skills to benefit their own businesses.

trAInInG coMMIttee

Chaired by Ruth Hutchinson, this small committee supports HunterNet members by gathering information about vocational education and training options, identifying member needs, and connecting members to the most appropriate training.

The Committee promotes itself as a first ‘port of call’ for members and offers access to funding opportunities, linkage with ITABs (Industry Training Advisory Boards) and assistance with apprenticeship and traineeship issues.

Committee members include HunterNet CEO John Coyle, HNGTC Manager Murray Christie, and representatives of training organisations including Hunter TAFE.

Major achievements include securing funding for a program to up-skill welders and a project to recruit and train new entrants in the engineering and fabrication area. Some members took up the opportunity recently to undertake a Certificate 4 in Project Management. A workshop is planned on supervisory skills for members with apprentices and trainees.

The Committee’s challenges include encouraging members to see training as integral to their business success, and to understand the options available to them.

Derek Hird & Greg Skinner at 2010 Patrons Dinner

Amber Bibby & Ruth Hutchinson,

Chairman’s Awards Dinner, 2011

HunterNet Group Training Company

44 HunterNet - The Power Of Many

recent AchIeveMents of hunternet

Key Performance Indicators include member satisfaction, brand strength/awareness, financial targets and membership targets.

1. Development of HunterNet’s value proposition to members through new services including training programs in social media, sustainability and access to national and global supply chains; an enhanced website; advice on government funding sources and green business opportunities; information about the carbon tax; an induction process for new members; extension of the mentoring program; improved engagement with Patrons and collective purchasing options.

2. Increased effectiveness of Forums and Committees within HunterNet through improved member participation and collaboration and achievement of milestones for Defence Project and SME Mining Supply Chain Project.

3. Continued growth and expansion into the Upper Hunter and Central Coast membership targets have been met and the impact of growth has been monitored. One program ensuring the development of this key HunterNet strategy is the Coal & Allied Partnership. This will see the implementation of a program to engage SMEs in the Upper Hunter Region to increase participation in the industry supply and value chain.

4. Increased value to members of HunterNet Group Training Company through a focus on providing a service to members and addressing skills shortage in core industry sectors.

5. A stronger HunterNet brand Board members act as ambassadors, engaging with external stakeholders, communities, and business and industry groups. There’s an increased awareness of the brand as a symbol of the values of the organisation and its members at both Industry and Government levels.

6. Stronger governance through continued transparency of operations and an effective Risk Management Plan.

7. Integration of the HunterTech Network HunterNet’s long term association with the HunterTech Network took a positive turn when the network joined forces with HunterNet in 2011. HunterTech’s decision that it was in their best interests to amalgamate with HunterNet has helped HunterNet members appreciate the importance of ICT in the transformation to smart manufacturing.

Richard Eveleigh presenting Doug Goold from Celtron with

membership certificate

Port Waratah Coal Services

46 HunterNet - The Power Of Many

Lessons LeArnt

HunterNet has learnt many lessons over the twenty years of its existence and it has harnessed what has been learnt to ensure it remains relevant and effective.

CEO John Coyle says:

“Over the years we have certainly learnt that it is better to ‘over-deliver’ rather than to ‘over-promise’ and that our members want to network with each other and our external stakeholders as much as possible.”

We know that the members that contribute most to our Co-operative are the ones who get the most from it.

It has also become apparent that organisations such as NSW Department of Trade and Investment need co-operatives like

HunterNet and that the alliances we have in place continue to grow in strength as we continue to grow.

We have learnt that:

• Leadership and vision come from within the network

• Competitive barriers are mindsets

• Trust comes from ongoing, demonstrated commitment to the network, from sharing of information and joint initiatives

• We are marketing the region as well as our members

• We have an important role in shaping perceptions of our region and future investment”

vALue to MeMbers

As a member-based organisation, HunterNet’s sustainability depends on the presentation of a compelling value proposition to its members. Its strong growth over twenty years to nearly 200 members suggests that this has been achieved.

HunterNet offers members:

• Access to information• Opportunities to share

knowledge and develop new skills

• A forum for discussion and problem-solving

• Competitive advantage• Joint tendering options• Profile• New connections• Fellowship

“A forum like HunterNet provides the opportunity to get access to new projects that may be happening in the area, access to training and

development programs, access to government. All of these things combine to create an atmosphere of hope where you can seek opportunities and very much not do it on your own.” - Steven Smith

HunterNet’s modus operandi has always been connecting people and businesses. CEO John Coyle says when he joined HunterNet in the early days, “They connected me to organisations I didn’t know existed”.

Membership of HunterNet offers personal as well as business benefits. Close friendships have been nurtured as well as strategic connections. HunterNet social activities are known for their sense of fun and good humour.

Joss De Iuliis concedes:

“We are social animals and we’ve been criticised for that from time to time but the social aspect keeps the whole thing alive.”

“When Lovells first came to Newcastle I asked [Federal Member] Sharon Greirson which was the best or most important group to join as a business group.

She recommended John Coyle and HunterNet and that was the best advice I had received for a long time on any matter.” - John Wayland

Doug Goold, Leigh Bryant & Andrew Collison at a Welcome New Members evening, 2012

John Coyle, HunterNet, 2009


future obJectIves AnD chALLenGes

CEO John Coyle says:

“All of the initiatives we have led and the lessons we have learnt have the Hunter region geared up for its next stage of industrial development and we believe we have the capacity and model in place that will see us truly become Australia’s leading industrial and manufacturing region.”

Identified growth sectors for manufacturing/engineering include:

• Defence• Aerospace• Newcastle Port• Coal• Gas• Infrastructure• Clean energy• Aluminium• Power• Rail

Innovation will be the key to future success.

Bob Cowan comments:

“Manufacturers in Australia are innovative and that’s where we’ve got our edge. We might only make a few products but we make bloody good ones.”

He continues: “HunterNet is massive now; it covers such a wide area. It makes us a very, very powerful group.”

But John Coyle cautions:

“As we grow, it is important that we don’t lose our focus and become irrelevant to our members. To ensure this doesn’t happen, we have an annual business plan through which our members drive the actions we set out to achieve each year, we seek feedback from our members through regular surveys, and we

communicate with them through our general meetings and website. We also regularly evaluate the effectiveness of our programs and committees.”

Tony Masters says:

“HunterNet is a significant force to be reckoned with and listened to by state and federal government.”

The challenges, however, are significant.

Steven Smith summarises:

“In 2012 the challenges are much greater and much broader. We’re seeing local industry downsize. Added to that we have a national decline in manufacturing, we suffer greatly from imports, and instability in Europe.”

• The high Australian dollar, making Australian manufacturing less competitive

• The Carbon Tax

• Increasing global competition and pace of change

• Access to capital

• Scale – large scale production is increasingly necessary for efficiency

• Higher costs – of raw materials, freight and labour

• Regulation and taxation burdens

• Drive innovation to deliver sustainability

• Increase project opportunities and build effectiveness of Project Forums

• Strengthen the strategic capability of the HunterNet membership

In its Manufacturing Industry Action Plan Issues Paper (2011), the Department of Trade and Investment identified the following challenges for Australian manufacturers

• Planning approvals process can be a barrier

• Government procurement

• The lack of innovation incentives

• Regional/sectoral differences

• Skills shortages and an ageing manufacturing workforce

• Shortage of innovation management capabilities

• Industry leadership, and

• Confidence affected by negative perceptions of manufacturing

HunterNet’s 2012-2013 Business Plan sets out an approach to these challenges and includes clear objectives

• Increase HNGTC engagement with HunterNet members

• Strengthen communication and information systems

• Build pathways with China/Asia

• Promote capabilities of the region

DYWIDAG Systems International

MeMber cApAbILIty

MAnufActurInGAerospace, aluminium production, aluminium extrusions, automation, construction – civil, industrial, EPCM, coil spring manufacture, crane repair, electrical, fabrication, fire suppression systems, ground support equipment, hydraulics, lifting equipment, machining, mining equipment, noise reduction material, portable building, powder coating, pressure vessels, rail rolling stock, ship repair, specialised vehicle manufacture, steel plate profiling and rolling, steel production, fibreglass/composite production.

servIcesAsset management, accountancy, business systems, business management, education and training, electrical components supply, environmental assessment, financial, human resources, industrial supply, instrument calibration, insurance, labour hire, legal, OHS consultancy, project management, recruitment, simulation modelling, surveying, visual arts production, valve supply, water pump supply and testing, waste management.

enGIneerInGConsultancy, civil, mechanical, structural, electrical, chemical, environmental.

teLecoMMunIcAtIonsIT systems, data cabling, carrier networks and data hosting facilities.

trAnsportHeavy haulage, bulk haulage, transport logistics.

hIreMobile crane, site sheds, welding machinery

hunternet Group trAInInG boArD

co-operAtIve boArD

hnGtc MGr MurrAy chrIstIe

fIeLD reps AnDreW MAton steven shAW

ADMIn support susAn Letcher

Lyn currey

nsW trADe & InvestMent enterprIse connect

GovernMent AGencIes

busIness Dev.MGr

KArL putnIs

MeMber servIces MGr

robert MAsterson

Defence proJect MAnAGer IAn DIcK

Accounts / WebsIte

JoDIe JAcobs

ceo John coyLeexec AssIstAnt

KIM o’neILL

hunternet orGAnIsAtIon chArt


MeMbersPatron Members

Ampcontrol Pty Ltd www.ampcontrolgroup.com

ANZ (Australian & New Zealand) Banking Group, www.anz.com

Ausgrid www.ausgrid.com.au

Downer EDI Engineering www.downergroup.com

Downer EDI Rail www.downergroup.com

DYWIDAG-Systems International www.dsiminingproducts.com.au

Forgacs Engineering Pty Ltd www.forgacs.com.au

Laing O’Rourke Services www.laingorourke.com.au

Port Waratah Coal Services www.pwcs.com.au

TAFE NSW - Hunter Institute www.hunter.tafensw.edu.au

Thales Australia www.thalesgroup.com.au

Tomago Aluminium www.tomago.com.au

Trade & Investment NSW www.business.nsw.gov.au

UGL Rail www.ugllimited.com

The University of Newcastle www.eng.newcastle.edu.au

General Members

ABB Australia Pty Limited www.abbaustralia.com.au

Abigroup Contractors Pty Ltd www.abigroup.com.au

ACD Group

ACS Integrated Service Provider www.acsiso.com.au

Advitech Pty Ltd www.advitech.com.au

Aggreko www.aggreko.com.au

Air Liquide www.airliquide.com.au

Alfabs Engineering Group www.alfabs.com.au

Alfasi Equipment Hire www.alfasi.com.au

Alliance Power & Data www.apdpower.com.au

Alminco www.alminco.com.au

ALS Industrial www.alsglobal.com/industrial

APP Corporation Pty Ltd www.app.com.au/northernNSW

Archer Enterprises www.archerenterprises.com.au

Armor Galv (Australia) www.armorgalv.com.au

ATB Morton Pty Ltd www.atbmorton.com.au

ATSA www.atsa.com.au

Aurecon Australia www.aurecongroup.com

Ausco Modular Pty Ltd www.ausco.com.au

Avoca Engineering www.avocaengineering.com.au

Berendsen Fluid Power www.berendsen.com.au

Bohemia Interactive Australia www.bisimulations.com

Boss Oil www.bossoil.com.au

Bottomline Consultants Pty Ltd

Bramco Electronics www.bramco.com.au

Bramweld Manufacturing

Brunette Engineering Pty Ltd

Bureau Veritas www.bureauveritas.com.au

Bylaser Australia Pty Ltd www.bylaser.com.au

BusinessCraft Pty Ltd www.businesscraft.com

Capability Resources www.capres.com.au

Cape www.capeplc.com.au

C-E Solutions www.c-esolutions.com.au

CIAgent Solutions Australia Pacific www.ciagent.com.au

CMC Australia www.cmc.com

Coastal Management Group Pty Ltd www.coastalmanagementgroup.com.au

Conneq i.Power Solutions Pty Limited www.conneq.com.au

Cowan Manufacturing Pty Ltd www.cowanmfg.com.au

CQMS Razer www.cqmsrazer.com

Creative Pipeline www.creativepipeline.com.au

Current Generation Technology www.currentgeneration.com.au

Custom Fluidpower www.custom.com.au

Custom Transportable Buildings Pty Ltd www.ctb.net.au

Da Gama Industries Pty Ltd www.dagama.com.au

D & N Engineering www.dneng.com.au

Delnorth Pty Ltd www.delnorth.com.au

Deshel Pty Ltd www.deshel.com

Discovery Training Pty Ltd www.discoverytraining.com

DMS Group www.dmsgroup.com.au/anderson-group

EDC Group www.edcgroup.com.au

Engineers and Managers Australia www.ema.net.au

EPTEC Pty Ltd www.eptec.com.au

Fitt Resources www.fittresources.com.au

GHD www.ghd.com

Goal Professional Services Pty Ltd www.goalgroup.com.au

Hatch Associates Pty Ltd www.hatch.com.au

Hedweld Engineering Pty Ltd www.hedweld.com.au

Hetronic Australia Pty Ltd www.hetronic.com.au

House with No Steps www.hwns.com.au

Humanomics www.humanomics.com.au

Hunter Valley Filter Sales Pty Ltd ww.hvfs.com.au

Hunter Valley Welding Hire Pty Ltd www.huntervalleyweldinghire.com.au

Hushpak Engineering www.hushpak.com.au

Industrial Maintenance & Fabrications www.imfab.com.au

Instalair Pty Ltd www.instalair.com.au

IWR Lifting www.iwrlifting.com.au

JA Martin Electrical Pty Ltd www.jamartin.com.au

KGB Protective Coatings Pty Ltd www.kgbprotective.com

KLJ Consulting Group www.klj.net.au

Leading Performance Consulting www.leadingperformance.com

Lovells Group www.thelovellsgroup.com.au

Machine Shop & Engineering Services Pty Ltd www.cncmachineshop.com.au

Macquarie Manufacturing www.macmfg.com.au

Marciano Industries Pty Ltd www.marcianoindustries.com.au

Maxwell Engineering www.maxwelleng.com.au

Monadelphous www.monadelphous.com.au

Morson Engineering P/L

Multiskilled Resources Australia (MRA) www.multiskilled.com.au

NEPEAN Mining www.nepean.com/mining

New Macey Ptd Ltd www.newmacey.com

Newcastle Field Maintenance Services www.nfmpl.com.au

Newcastle Innovation www.newcastleinnovation.com.au

Newcastle Machine Shop www.newcastlemachineshop.com


NHP Electrical Engineering Products www.nhp.com.au

NIS Pty Ltd www.nis.com.au

Nova Group www.novagroup.com.au

Onsite Access www.onsite.com.au

Orica Australia Pty Ltd www.orica-miningchemicals.com

Outbye Engineering & Mining Services www.oems.com.au

Pacific Rail Engineering Pty Ltd www.pacificrail.com.au

Pacific Services Group www.psgcorporate.com.au

Paul Harrison Transport Pty Ltd www.paulharrisontransport.com.au

Pegasus Training / IT/ Technical www.pegasus.net.au

Performance Engineering Group www.performance.net.au

Planelec Services Pty Ltd www.planelec.net.au

Port Container Services www.portcontainerservices.com.au

Power & Mining Industrial Supplies www.pmindustrialsupplies.com.au

Power Control Engineers Pty Ltd www.pceng.com.au

Powerdown Australia www.powerdown.com.au

PP Newcastle (Precision Puzzle) www.puzzleprecision.com.au

Precision Oxycut www.steelcutting.com.au

Priority Powder Coating Pty Ltd www.prioritypowdercoating.com

R & R Murphy www.rrmurphy.com

R G Engineering www.rgengineering.com.au

R.R Taylor Pty Ltd www.rrtaylor.com.au

RCR Energy www.rcrtom.com.au

Resinject Pty Ltd www.resinject.com.au

R.I.G. Installations (Newcastle) Pty Ltd www.riginstallations.com.au

RPC Technologies Pty Ltd www.rpctechnologies.com

RPS www.prsgroup.com.au

Schenck Process Australia www.schenckprocess.com.au

Sell & Parker Pty Ltd www.sellparker.com.au

SGM Fabrication www.sgmfab.com.au

Sharpe Bros. (Aust) Pty Ltd www.sharpebros.com.au

Simulation Modelling Services Pty Ltd www.simulationmodelling.com.au

Specialised Wholesale Pty Ltd www.specialisedwholesale.com.au

Spectrom Pty Ltd www.spectrom-welding.com.au

Structural Cranes www.structuralcranes.com.au

Syntechtron Pty Ltd www.syntechtron.com

Tank Solutions Pty Ltd www.tanksolutions.com.au

T W Woods Construction Pty Ltd www.twwoods.com.au

TCT Pty Ltd www.tcteng.com.au

Teco Australia Pty Ltd www.teco.com.au

TEMMCO www.temmco.com.au

Thermaline Pty Ltd www.thermaline.com.au

Thiess Services Pty Ltd www.thiess-services.com.au

Thomas & Coffey www.thomascoffey.com.au

Total Fire Solutions (Aust) Pty Ltd www.totalfire.com.au

Treloar Group Limited www.treloar.com.au

UEA Group Pty Ltd www.uea.com.au

Ullrich Aluminium www.ullrichmetals.com.au

UNE Partnerships Pty Ltd www.unep.edu.au

Varley www.varleygroup.com

Volgren Australia www.volgren.com.au

WEARX www.wearx.com

WorleyParsons Services Pty Ltd www.worleyparsons.com

Xylem Water Solutions Australia Ltd www.xyleminc.com

Sponsor Members

Advanced Drug Solutions www.advanceddrugsolutions.com.au

Andor Systems Pty Ltd www.andor.com.au

AusIndustry www.ausindustry.gov.au

Bluescope Lysaght www.lysaght.com

Celtron Network Cabling www.celtron.com

Chandler Macleod www.chandlermacleod.com.au

Colourworks Australia Pty Ltd www.colourworks.com.au

Computer Systems Australia www.csait.com.au

Connect Personnel www.connectpersonnel.com.au

Department of Education and Training www.skilling.nsw.gov.au

Diamond Information Technology Pty Ltd www.diamondgroup.net.au

Enterprise Connect www.enterpriseconnect.com.au

Farrow Wyatt www.farrowwyatt.com.au

Forsythes www.forsythes.com.au

Gencom Two Way Radio www.gencom.com.au

GPA Matrix www.gpamatrix.com.au

HiValue Strategies www.austcoalconsulting.com

Hunter Cargo & Customs www.hccnewcastle.com

Ipera Communications Pty Ltd www.ipera.com.au

JSA Group www.jsagroup.com.au

Labour Co-Operative Ltd www.labourco.com.au

Lawler Partners www.lawlerpartners.com.au

Liveware Solutions www.liveware.com.au

Markey Group Pty Ltd www.markeygroup.com.au

MEGT (Australia) Ltd www.megt.com.au

Michael Murray & Associates Pty Ltd www.mmurray.com.au

Monteath & Powys Pty Ltd www.monteathpowys.com.au

Moray & Agnew www.moray.com.au

Morgan Cradock www.morgancradock.com

Mountain Industries Pty Ltd www.mountainindustries.com.au

National Australia Bank www.nab.com.au

Newcastle Port Corporation www.newportcorp.com.au

OAS Technology Group www.oas.com.au

Perform HR www.performhr.com.au

PriceWaterhouseCoopers www.pricewaterhousecoopers.com

Programmed Integrated Workforce Limited www.integrated.com.au

Redback Solutions www.rb.com.au

Safetyworks Group Pty Ltd www.safetyworks.com.au

Scorpion International Freight Services www.scorpioninternational.com

Sparke Helmore www.sparke.com.au

WEA Hunter www.weahunter.com.au

Williamtown Aerospace www.williamtownaerospace.com.au

MeMbers contInueD


references IntervIeWs

Coyle, J. HunterNet Case Study, Industrial Revitalisation, Enterprise Connect www.hunternet.com.au

Creative Pipeline (2012) HunterNet – 20 Years (video)

HunterNet (2011) Submission for Manufacturing Industry Action Plan

HunterNet (2002) “The First Ten Years 1992 – 2002” Newcastle

NSW Department of Trade and Investment (2011) Manufacturing Industry Action Plan Issues Paper

Bret Barton, Chair HunterNet Defence Committee 30 Aug 2012

Murray Christie, Manager HNGT 5 Sept 2012

Ian Dick, Hunter Defence Project Manager 7 Sept 2012

Derek Hird, Chair, Marketing Committee 6 Sept 2012

Phil Hird, Chair Infrastructure Forum 22 Aug 2012

Ruth Hutchinson, Chair Training Committee 10 Sept 2012

Tony Masters, Chair Mining Forum 22 Aug 2012

Steve Meyn, Chair HunterNet IT Forum 28 Aug 2012

pubLIcAtIon sponsors

DesIGn by prInteD by

Ore Loader under contruction TW Woods

Glenn Ellis & Nick Killin at the 2009 Chairman’s Awards

Port Waratah Coal Services


contAct DetAILs A Level 3, 251 Wharf Rd Newcastle NSW 2300 Australia

p +61 2 4908 7380 f +61 2 4929 7450

e [email protected] W www.hunternet.com.au

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