The Asian business saw profits more than double to US$7m, driven by increases in market share and rate increases from both air and see freight, the firm said. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 43 years' experience in freight forwarding and logistics both New Zealand and internationally. What else do we need to do to satisfy that bunch of customers? We're trying to break all that down.". Net capex totaled $155m for the period, of which land and buildings accounted for $111.7m, plant and equipment $26.6m and IT at $16.7m. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. Don: With this event in front of us right now, I think cash is king, and the collection of cash. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Investment has to come year on year it cant just come as a bribe at election time., Embracing the company motto that Good enough is never enough, Braid is focused on fulfilling a vision to make Mainfreight a 100-year company. So youre not only giving them a responsibility for the P&L, but youre also giving them the responsibility of whos going to join our family. don@mainfreight.com; Profile. I might get a little bit wound up about stuff, a bit passionate about things, but I think you cant get so involved that you think about nothing else. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Investors who take an interest in Mainfreight Limited ( NZSE:MFT) should definitely note that the Group MD & Director, Donald Braid, recently paid NZ$74.61 per share to buy NZ$500k worth of. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. [8], Headquartered in 's-Heerenberg, The Netherlands, Wim Bosman is privately held and operates more than 1,000 transport units, manage more than 275,000m2 of cross-docking facilities and warehouse area, and employ roughly 1,414 staff within 14 branches located in The Netherlands, Belgium, France, Romania, Poland, and Russia. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. Zac: As the leader of Mainfreight, what do you personally focus on to get the team going in the right direction? Zac: Lets talk more about those weekly P&Ls. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? Once it became a global pandemic we needed to react and adapt as quickly as we could. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. Braid consistently delivers for shareholders and stakeholders alike. Bruce Plested, the firm's executive chairman who founded the company in 1978 with $7200 and a 1969 Bedford truck, recalls the day in 1994 when Braid - then a Freightways Group employee - had the job of pitching its Daily Freightways business to Mainfreight, which it acquired that year. Contact. Where do we need to be? Both are real legends and seem to really walk the talk. Well in Europe they had these time clocks. Don Braid. "He implements things very well and you don't have to remind him about anything you're trying to achieve. How does that actually work, practically? It only represents a small part of our revenue, but . [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. He is 100 percent dedicated to Mainfreight and its future and has led the company in consolidating its position as an international business, progress which will bring rewards not only for that company but for New Zealand as it continues to expand offshore. They love this as it makes them feel supported and that I understand their role. Hi Tanya. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. The firm has earned a reputation within the market for being slickly-run. Copyright 2023 Institute of Directors What have we got right? Don Braid's Phone Number and Email Last Update. So we are developing our people to be the best they possibly can be. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. He has clear vision of what it will take to navigate the unforgiving roads and heavy traffic of the international freight marketplace and so far he has kept this business right on track. He likes to surround himself with clever, energetic people who are equally as dedicated as him to meeting and exceeding the needs of Mainfreights customers. Our subscriptions start at $24 / month for individuals. Whilst describing the foundation of Mainfreight in 2000, Plested said to the New Zealand Herald, "We moved all our freight by sea between Auckland, and Christchurch and Dunedin, and we worked weekend shifts to make sure we loaded and unloaded the ship using the whole of the seven days - we found that was faster and more reliable than our big competitors."[4]. Initially wed take 10% of that profit and share it equally with everybody in the branch but as weve developed and gotten a little more sophisticated, weve applied quality stats to the numbers. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. That's ambitious, even . "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. Insurers support an immediate managed retreat for recent flood victims. So each person can earn some more money by not just making profit, but keeping customers happy, keeping claims to a lower amount, making sure were collecting cash, making sure that were delivering freight in full and on time but the base bonus, everybody gets the same amount no matter whether youve been there for one year or for 40 years and no matter what your position is. In his results commentary, Braid said the results were pleasing in light of initial supply chain disruptions during the early part of the year, on the back of lockdowns in response to the global pandemic. Experts say community investment is the future. We dont call them staff for us, they are our people or our team. Its the individuals responsibility to arrive on time and stay until the jobs finished. Were thinking about being around for a hundred years. In the leadup to the 2017 election, Braid said the country needed to be run by visionaries rather than a couple of accountants and he took aim at Nationals pledge to spend an extra $2.6b on Auckland transport. Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. The Biosecurity Business Pledge group has launched two new biosecurity guides. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. And what do you believe leaders need to excel at? Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. To join your company account for BusinessDesk and enjoy full access, With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. Having started out with two employees and one truck in 1978, the company now employs more than 7500 people in 22 countries and generated a net profit of $103m in the 2017 financial year on operating revenue of $2.33 billion. It has been listed on the New Zealand Exchange since 1996. "We've been in China for 20 years. You can follow him on Twitter, New tourism plan sidesteps immigration elephant, Mortgage arrears up as rates start to bite, Investors queue up ahead of Du Val liquidity events, Affordable housing levy sparks fear and loathing in Queenstown. The relationships we develop, both with suppliers and with customers, are there for the long term. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Her knowledge of high-tech companies is a welcome addition to the Boards capabilities, as is her familiarity with the complexities of acquisitions, and steering companies through growth and change. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. "If you allow the recession to roll over the top of you there's a great chance it will.". Other Current Directorships: Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. Boards have a key role to play in the wake of any crisis. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? For us its about pushing the decision-making as close to the customer as possible, getting those people to make decisions rather than pushing them upstairs for someone else to make. For me its being in the business, with people and in particular with customers. Biography Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 30 years' experience in freight forwarding and logistics both New Zealand and internationally.. Other finalists were: Briscoe Group managing director Rod Duke, NZX chief executive Mark Weldon, ex-Fonterra chief executive Andrew Ferrier, Xero founder Rod Drury, LanzaTech chief executive Jennifer Holmgren, Ngai Tahu Holdings Corp chief executive Greg Campbell, TZ1 founding chief executive and former Microsoft New Zealand chief executive Helen Robinson, Farmers/Whitcoulls owners David and Anne Norman and Ryman Healthcare chief executive Simon Challies. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight?