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CONTENTS
Acknowledgements
About GMUSG and Strategic Direction
Board and Management
Chairman’s Report
Manager’s Report
Priorities for Action 2015-16
Operating Budget 2015-16
New Members 2014-15
Audited Financial Statements 2014-15
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ACKNOWLEDGEMENTS
We are pleased to present the Global Maintenance USG Inc. 2014-15 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 GMUSG & SACOME Conference and Trade Expo sponsors. 2015 Conference Sponsors are listed below: -
Platinum Sponsor Silver Sponsors Bronze & Supporter Sponsors Junior Sponsors
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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
1. Develop organisational collaboration 2. Establish a positive reputation for GMUSG suppliers 3. Develop member capability 4. Increase member awareness of market trends and
opportunities 5. Increase member participation in major projects and ongoing
maintenance and supply markets
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BOARD AND MANAGEMENT
Greg Clothier – Chairman
Managing Director Clothier Consulting
Rob Gibb Director
GIBBRAC Pty Ltd
Ed Milne
Managing Director FTE Solutions
Steve Arndt
Principal Regional Community and Indigenous Affairs – Uranium BHP Billiton
Andrew Hiscock
Operations Manager Ottoway Fabrication
Darren Lamb
Operations Manager Toll Mining Services
David McPherson
Compliance Officer Asset Management Nystar Port Pirie Pty Ltd
Alexander O’Shea Project Engineer
S J Cheesman
Troy Grover
Economic Development Manager & Deputy Chief Executive Officer
Regional Development Australia Far North
Michael Edwards
Commercial Manager Max Crane & Equipment Hire (SA) Pty Ltd
Mark Malcolm
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 2014-2015.
Our sector is certainly experiencing tough conditions. As an industry
we are unable to control global commodity prices, but we have spent
the last 12 months controlling costs, resulting in a reported 5%
average industry wide reduction in operational costs. There has been
a significant reduction in projects with many being placed in
caretaker mode or being mothballed as boards and management
seek to contain risk, protect balance sheets and respect the interests
of shareholders.
Whilst these are reasonable considerations I wonder as the wheel
turns and resource activity returns, where will we find the expertise to
support the next growth cycle? Expertise to repair that pump, to weld
that steel together, to assemble that switchboard, to program that
PLC, or to calibrate that instrument? Whilst no one has a crystal ball
we are all aware that growth will return and we must be ready.
Like our members, GMUSG will look outside resources and energy
markets to explore business opportunities. Defence and Infrastructure
are clearly market segments where member firms have the
necessary capability.
The GMUSG Board is also looking to the longer term by encouraging
Upper Spencer Gulf and Outback leaders to pursue an action agenda
on expanding our role in the Nuclear Fuel Cycle. It would come as no
surprise that we included presentations on defence, infrastructure
and the nuclear industry at our 2015 Conference.
Defence and Infrastructure market outlook presentations were included in the 2015 conference program.
Over the past 12 months GMUSG has participated, arranged,
communicated and conducted: -
• Bid Teams • Member services and communications • Stakeholder & government engagement • Building our capability database • Resource industry supply-chain panels • Member forums and our annual conference
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On behalf of the Board and GMUSG members I acknowledge the
continued support we receive from the South Australian Department
of State Development and Upper Spencer Gulf Common Purpose
Group. Their funding support is long standing and important but so
too is their day-to-day assistance and collaboration.
We are pleased to announce that State Government has extended
funding support for GMUSG with the signing of a two year extension.
And for the first time the Department of State Development has
provided once-off project funding for GMUSG to undertake: -
• Indigenous business participation initiative • Major customer and tier one tour of the Upper Spence Gulf • Member survey gathering critical information about our sector
GMUSG has also partnered with Adelaide University to map cluster
linkages and GMUSG member capabilities. A resulting document will
provide a comprehensive capability statement.
We look forward to the year ahead knowing the role of GMUSG to
represent and deliver tangible value to its members and funding
partners. Our role is more than ever relevant given the challenges
confronting our industry.
In closing I would like to take this opportunity to thank fellow Board
members who volunteer their time and skills on behalf of our
membership, and Mark Malcolm for his continued service as GMUSG
Manager.
Greg Clothier
CHAIRMAN
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MANAGER’S REPORT
The following provides an overview of our operations for 2014-15
and also incorporates activities up to and including our Conference
and Trade Expo held at Port Augusta on 26 - 27 August 2015
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 remains in a sound financial position with cash reserves of
$97,020. We recorded a $65,708 surplus this year but it should be
noted this is largely due to receipt of a once-off grant of $60,000 from
the Department of State Development. These funds will be spent
during 2015-16.
Receivables at June 2015 were abnormally high at $182,674 due
mainly to DSD funding ($120,000) invoiced late June. Cash receipts
since June has resulted in Receivables reducing to near normal
levels.
Our Budget for 2015-16 (see later Section) indicates a forecast deficit
of ($63,559). The forecast deficit reflects expenditures associated
with the $60,000 once-off projects grant received this year.
I am pleased to report that we successfully negotiated a new 2-Year
$60,000 annual support grant from the Department of State
Development. This long standing support from the Department has
been crucial to the viability of GMUSG and we are pleased that this
support will continue. In addition to the new 2-Year Funding
Agreement, the Department (DSD) has provided an additional once-
off $60,000 Grant to deliver 3 new initiatives through 2015-16. These
initiatives are described in later Sections. The level of support from
State Government is significant and long standing.
Membership
We welcomed 12 new members during 2014-15 with an additional 5
new members joining since June 30. Total membership remains at
around 110 albeit we expect this number to decline slightly in the
short term due to market conditions in our sector and resignations
from primarily Adelaide based firms. Once again support remains
strong within the Upper Spencer Gulf and regions.
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Member Forums and Events
2015 - 11th GMUSG & SACOME Conference and Trade Expo
A near record 380 attended the 2015 conference and Trade Expo,
reinforcing this event as South Australia’s most important gathering
of resources and energy contractors and suppliers.
The event returned to Port Augusta for the first time since 2010 with
the newly opened Central Oval Sporting and Community Hub
accommodating a record 62 exhibitors including 59 booths under
one roof.
Alan Fiebig Best Exhibitor Award Winner - Visible Temporary Fencing
We were pleased to offer a high quality program of speakers and
panel sessions. Highlights for 2015 included: -
Hon Ian Macfarlane MP, Minister for Industry and Science
BHP Billiton vision for Olympic Dam mine highlighting a focus on
operational improvement, underground expansion and
development of their heap leach pilot plant
Nuclear Fuel Cycle expansion opportunities in South Australia
Project updates from WPG Resources, Sundrop Farms and Petro
Diamond Australia
BP Australia, Chevron, Santos and Murphy Australia Oil outlined
offshore oil & gas exploration plans for the Great Australian Bight
Defence and Infrastructure market briefs delivered by the
Defence Teaming Centre and Civil Contractors Federation SA.
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Our partnership with the South Australian Chamber of Mines and
Energy (SACOME) as conference co-convenor was beneficial once
more. SACOME’s role as South Australia’s peak body for mining and
energy producers adds 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 – RDA Far North Penny Archer - Virtual Assistance Craig Dearlove – Port Augusta Council Jodie Boully – Business Port Augusta
The 2016 and 12th GMUSG & SACOME Conference and Trade Expo
will return to Port Pirie 17th – 18th August 2016.
Jason Kuchel SACOME and Greg Clothier GMUSG. Co-Convenors 2015 GMUSG & SACOME Conference and Trade Expo
2014 AGM and Customer Briefing
Raymond Bentley-Comins, guest speaker at the 2014 AGM, spoke
about his experiences as a shutdown and construction project
manager; offered advice for contractors; and ideas for alliance
bidding on major maintenance shutdowns.
GMUSG and CCF SA Joint Member Forum
35 GMUSG and CCF members attended a networking event at CCF
offices on 20th November 2014. The event included a presentation
on industrial relations practices. Attendees tested CCF’s array of
plant simulators and enjoyed valuable networking opportunities.
GMUSG and Water Alliance Joint Member Forum
37 GMUSG and Water Alliance members gathered at the Adelaide
offices of SA Water on 17th March 2015 to network and hear about
advances in Cooper Basin water resource management.
LMA Bettcher - Regional “Preparing for Leadership” Front Line
Management Training
GMUSG supported a program of front line management training
delivered by LMA Bettcher during 2014-15. 4 of 8 participants
graduating on 5th March 2015 were GMUSG members.
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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.
SA Resources Supply-Chain Panels
Together with the Federal Department of Industry – AusIndustry we
offer suppliers an opportunity to meet with a Panel of resources and
energy procurement experts to gain feedback on their company
pitch and marketing approach.
Our Supply-Chain Panel Sessions, held quarterly, accommodate 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 from panel members and a
detailed report and recommendations.
13 GMUSG members and non-member firms participated this year
with further Panel Sessions planned for December 2015 and
throughout 2016.
We sincerely thank the following Panel members for their
commitment and sound advice.
SA Resources Supply Chain Panel Members
Valdis Evele Evele Consulting Services – Principal
Alexander Kachellek Korvest – Managing Director and SA President, Austmine
Mark Rosser Santos - Manager East Coast Procurement
Simon Telford Colindale Group - Procurement Specialist
Jonathan Nitschke Nitschke Group Pty Ltd – Managing Director
Paul Goiak Department of State Development - Director Industry Participation
Ken Cowen Department of State Development – Pace Manufacturing
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 Santos - Team Leader Procurement, Eastern Australia
Richard Peasgood Beach Energy Ltd - Contracts Manager
Mark Osborne (co-convenor)
Department of Industry – AusIndustry, Business Adviser
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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 remain registered and maintain effective profiles
on ICN’s Gateway.
Communications
Email Alerts and Newsletters – 39 email alerts and newsletters
were used to communicate with members during the year. This will
continue during 2015-16.
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: -
Sundrop Farms, greenhouse project Port Augusta
Port Bonython Fuels, project Whyalla
Cultana Defence Training Facility Expansion
BP GAB Offshore Exploration – Bristow Helicopters Aviation Base
WPG Tunkillia and Tarcoola Gold Projects
CERES Wind Farm – Yorke Peninsula
Nyrstar, Maintenance Shutdown alliance tender
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 within the
Department. GMUSG participates in a range of DSD initiatives on
behalf of members including the Roundtable for Oil Gas and Mining
Industry Participation Office Advisory Council. We also promote the
various programs offered through MIPO and ICN SA.
Federal Government – We continue to work with the federal
Department of Industry – AusIndustry. We jointly convene SA
Resources Supply-Chain Panel sessions and refer members to
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.
Regional Development Australia – 3 Regional Development
Australia Boards operate in the Upper Spencer Gulf and surrounding
regions. RDAs have a broad role aimed at facilitating economic
growth in regions and are supported by the three tiers of
Government. We continue to work with the 3 RDAs, share
information and co-host business forums. We also acknowledge
their assistance in planning and delivering our annual conference
and trade expo.
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Upper Spencer Gulf Common Purpose Group (CPG) – The CPG is
an association of the three Upper Spencer Gulf city councils and
RDAs. It should be noted that GMUSG began as an industry cluster
initiative with CPG support until 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 provide
significant in-kind support for the event.
New Initiatives 2016
We will deliver 3 new initiatives over the next 12 months as result of
a $60,000 once-off grant from the Department of State Development.
We will: -
1. Major Customer Tour of Upper Spencer Gulf
We will host a 2-3 day Upper Spencer Gulf tour for targeted tier 1
contractors, engineering consultants and procurement
executives. The aim of the tour is to ensure important customers
are familiar with USG member capability. The tour will involve
site visits and networking opportunities in each city
2. Indigenous Business Development
We will be working with our indigenous business members and
others to increase commercial engagement between major
customers and indigenous owned businesses. We want to
match local indigenous business capability with emerging
purchaser intent among major customers.
3. Member Survey
We will conduct a survey of all GMUSG members early 2016 to
improve our understanding of member expectations. We will
also use this opportunity to collect data that will help us measure
the economic health of our sector.
Nyrstar Transformation - early works
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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
ongoing funding support from State Government. I look forward to
assisting the Board deliver value to members next year.
Mark Malcolm
Manager
PRIORITIES FOR ACTION 2015-16
The following summarises our program for the year ahead: -
Host the 12th GMUSG & SACOME Conference and Trade Expo in Port Pirie 17-18 August 2016
Host 4 Member events in the USG and Adelaide
Co-convene 4 SA Resources Supply-Chain Panels
Deliver 3 SA Government funded initiatives: -
o Upper Spencer Gulf Major Customer Tour
o Indigenous Business Development Program
o Member Survey
Distribute information via regular email alerts and Newsletters
Ensure members 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 capability improvement services
Represent GMUSG and member interests among major customers, industry, government and media.
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OPERATING BUDGET 2015-16
BUDGET
Income 2015 - 2016
Misc Income 100
Interest 3,000
DSD Funding (1st of 2-Years) 60,000
Membership 33,000
Conference Income 140,000
Total Income 236,100
Expenses
Printing & Stationery 1,000
Bank Fees & Charges 1,200
Advertising 3,300
Insurance 2,890
Legal, Accounting & Audit 1,300
Management Services 105,862
Administration Services 12,207
Fuel 3,400
Consultant Expenses 500
Miscellaneous Expense 1,000
Travel, Meals & Accommodation 1,900
Workshops, Forums attendance 3,750
Forums/Meeting Expense 2,000
Website & Internet Expenses 10,850
Conference Expenses 100,500
Projects Costs 48,000
Total Expenses 299,659
Net Surplus/Deficit -63,559
NEW MEMBERS 2014-15
Land Access Management Services Pty Ltd RAM Equipment Pty Ltd Carey SA Pty Ltd Narungga Mining and Logistics Company RIS Safety Loadex Hire SA Pty ltd Biz Hub Australia Pty Ltd Tooling and General Heat Treatment Leske Transport Pty Ltd Electrical and Powerline Services Pty Ltd Scaled Management Systems AMY Nominees Pty Ltd New members year to date (July - October 2015) Mechvac Engineering Pty Ltd EP Analysis Pty Ltd Access Training Centre Pty Ltd Lee Quality Solutions Pty Ltd Flinders Crest Services Pty Ltd Maratime Constructions Pty Ltd
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