NZ Business Dives into Blue Economy After Forestry Income Drops

Kernohan Engineering, a 50-year-old engineering business based in Nelson, New Zealand, has successfully transitioned from providing maintenance services to manufacturing businesses, particularly in forestry, to becoming a key player in the blue economy. According to Paul Miller, the company identified the risk of declining forestry income in 2018 and began taking action in 2020 by acquiring a stainless steel and marine engineering business.

The acquisition allowed Kernohan Engineering to bring fishing and aquaculture capability into the business, and with flexible loan agreements that enabled them to buy assets and equipment, they were able to move quickly into the blue economy. From only 10% of their income coming from the blue economy in 2020, it now makes up about 50%, with Miller stating 'for every dollar we lost in that declining market, we've made $2 in the blue economy.'

Much of the opportunity for others lies in growing infrastructure and service providers alongside aquaculture. Miller emphasized that companies or individuals don't have to be defined by what they've been doing for years and can become experts in new areas. However, hiring core skills is a challenge and will continue to be as the industry grows.