Best use of design in business

October 1st, 2009

This award recognises the best use of design to succeed in a global market niche, by using design to anticipate customer needs and by designing innovative products, services and brands.

Winner: Modtec Industries Ltd

Modtec Industries Ltd, a company that has carved out a profitable international niche designing and manufacturing the Integ range of modular monitor arms for commercial furniture and medical markets around the world, has won the award for Best Use of Design in International Business in the New Zealand International Business Awards 2009.

“Monitor arms are being used increasingly as they deliver numerous benefits, including better ergonomics, space savings and increased productivity,” says Chief Executive and founder Bruce Davies. “And with the growth in new technologies such as web cams and laptop usage, mounting solutions are becoming more sophisticated and specialised.”

The Auckland engineering and manufacturing firm has been in business for 30 years, but its focus traditionally was on contract manufacturing. The impetus behind designing the Integ range was to achieve greater influence over the design, manufacture and sales process.

Modtec started selling Integ monitor arms in 2003 after investing considerable time getting the design right. It also took time for the market to come up to speed, recalls Mr Davies. “We knew there was a niche for this product, but in order to tap into that niche we had to build relationships offshore and that was new to us.”

Integ has applications across a wide range of industries, from financial markets where users work with multiple monitors, to media markets, and offices where working with dual monitors is becoming more common as people realise the productivity gains they can achieve, as well as the space savings and ergonomic benefits.

Mr Davies says Modtec is targeting a high value niche market which requires it to regularly demonstrate its design and engineering capabilities under tight deadlines.

“We have a clear advantage over our competitors based on rapid customisation of our monitor arms using a Lego style philosophy. The Lego model means the original template can, with little physical change, evolve as technology evolves. The key component is a unique slot mechanism and alloy extrusion which can hold up to four arms of various lengths and is easily height-adjusted to suit the ergonomic needs and requirements of each operator.”

Australia is Modtec’s largest export market, and it is also achieving good results in the US, Asia and the UK.

Mr Davies says international growth has come through building relationships with commercial furniture from Original Equipment Manufacturers (OEMs), architects, interior designers and project managers.

“These relationships are critical and are founded on our ability to deliver what we promise. The superior design of our product gives us the confidence to make those promises. Our products are regularly featured in installations with the world’s leading furniture brands such as Herman Miller, and we regularly receive enquiries from OEMs’ sales offices outside of our traditional geographic markets indicating that our reputation is growing.”

Developing international markets is one of Modtec’s biggest challenges, says Mr Davies.

“We have to make sure we’ve got a structure and funding that allows regular market visits, which can be difficult for a small business.”

It has also had to ensure it has the manufacturing capability and flexibility to ramp up production to meet future projections.

Mr Davies says investing the time and resources into designing the Integ range of products and taking them to the international market was a radical change in direction for Modtec.

“It was a real risk to take this tack and get out of something we were doing well, which was contracting to organisations. It’s a large risk for any organisation when you design a new product and you won’t see the rewards for perhaps three to five years. We could see the growth of the market would come; it was a case of when it would come. But it has absolutely worked out.”

For further information

Ian Cooper, Head of Sales and Marketing, Modtec Industries Ltd, 09 426 6380,ian@integinternational.com, www.integinternational.com or www.modtec.co.nz