Life jacket manufacturer thrives during pandemic
PFD Fiji Pte Ltd is a manufacturer of life jackets and rescuerelated equipment – the only life jacket manufacturer in Fiji.
The company celebrates 30 years in Fiji this year with its managing director Mike Towler sharing their experience during the past three years and the challenges they faced during the pandemic.
Mr Towler made a presentation on the success story of his business post-COVID at the Top Executive Conference (TOPEX) 2022 held at the Shangri-La Yanuca Island on Friday.
He said the company started with four shareholders, however, now he was the sole shareholder.
When the pandemic struck, businesses were left paralysed. There were no manuals on how to prepare and operate during a pandemic.
“We all just had to wing it, make up the rules as we went along and deal with all the adversity that is brought to our doorstep,” he said.
“While the pandemic decimated the economies of every country in the world, including Fiji, first world countries like our major trading partners, Australia and New Zealand were able to borrow their way out of economic ruin, not so for small island nations like Fiji.”
Mr Towler said for his business, COVID gave him two of the best trading years in the past 20.
“Why? Because my two main markets of Australia and NZ, the population was not able to travel overseas for their holidays. They were compelled to holiday at home and water sports played a big role in those holidays. Boats and all types of watercraft had record sales in Australia and NZ and every one of them required a life jacket.
“Also, my competitors in Asia (China, Vietnam and Thailand) were closed for long periods of time (up to five months and more). We were open, operational and we had good, long-established supply lines that we were able to tap into to ensure that we had the raw material to manufacture with. There were some hiccups along the way but generally we were able to overcome them and keep our manufacturing operation going.”
While most of the organisations were going out of their way to do their part during the pandemic, Mr Towler said he felt that the banks “went missing”.
According to Mr Towler, while the banks paused loan repayments for customers, it did not come as any help to his business.
“At the beginning of COVID, I had $1 million in various bank debt. I was lucky, my business boomed, I had two very good years, my business is now totally debt free.
“We achieved this during the two years of COVID but without the support of our bank, and it was a very common story that I heard from many others that were not doing so well.”
The 67-year-old businessman also raised concerns at the exorbitant freight costs and its impact on businesses.
“The problem is caused by the fact that there is zero regulation for these shipping lines because they operate internationally, we are able to regulate airlines then why not shipping lines.
“When will this price gouging finish? If it doesn’t stop sometime soon, it will be end of the manufacturing industry in Fiji, and when COVID closed our tourism industry, it was the manufacturing industry that kept many people in work and able to earn an income to support their family.”