Richard Coxon, co-owner of PEC (Pump Engineering Company), alongside his wife Jo, recently delivered an informative presentation highlighting the company’s history, current operations, and future vision.
Company Background and Evolution
PEC has been a fixture in Marton since 1939. It was originally founded by Reg Williams and later run by John Williams for many years. In 1999, the company was sold to the Gallagher Group and operated as Gallagher Fuel Systems until 2021, when Richard and Joe Coxon acquired it. The new owners revived the PEC name, recognising its significant technological heritage in New Zealand.
Company Background and Evolution
PEC has been a fixture in Marton since 1939. It was originally founded by Reg Williams and later run by John Williams for many years. In 1999, the company was sold to the Gallagher Group and operated as Gallagher Fuel Systems until 2021, when Richard and Joe Coxon acquired it. The new owners revived the PEC name, recognising its significant technological heritage in New Zealand.
PEC demonstrates how local innovation can thrive even against global competition while planning for a sustainable energy landscape
The company operates across three distinct business units, cleverly represented in its logo: petrol pumps (symbolised by a sharp angle representing precision), technology manufacturing (depicted with a design reminiscent of partnership), and hydrogen solutions (represented with an upward-moving element signifying growth and future potential).
Dominant Market Position in Petrol Pumps
PEC holds a remarkable 90% market share for petrol pumps in New Zealand, competing successfully against international corporations whose smallest competitor has an annual turnover of three billion US dollars. The company has produced pumps since the 1950s and partnered with Japanese company Tatsuno in the late 1970s/early 1980s.
Their latest product is an advanced touchscreen pump with sleek black surfaces, representing six years of research and development. This modern interface allows users to refuel, order coffee, receive weather updates, and access other conveniences, transforming the traditional fuel pump into a multifunctional kiosk.
Manufacturing Excellence
The Marton facility houses comprehensive manufacturing operations, including pump assembly lines utilizing the Kanban system, with components fed from the warehouse along production lines. The factory maintains approximately $13 million worth of inventory and features fully-equipped wet testing facilities with reticulated liquid systems for quality assurance.
Richard highlighted their environmental innovation, “Pinnacle Air,” a vapour recovery system that prevents fuel vapour from escaping into the atmosphere. He explained that when 50 litres of fuel are delivered into a car, approximately 200 litres of vapour are created, with 846 litres equaling one litre of fuel. This system captures these vapours, providing environmental benefits and preventing product loss.
Technology Manufacturing Services
Most of PEC’s operations involve manufacturing electronics for 25 other New Zealand technology companies. This service enables these businesses to focus on research, development, and sales rather than investing in expensive manufacturing infrastructure.
The facility houses sophisticated surface-mount technology (SMT) equipment capable of placing 65,000 components per hour, including small ones that’re barely visible to the naked eye. This manufacturing operation manages an impressive 34,000 different line items in its warehouse.
Hydrogen: The Energy Future
Richard passionately discussed hydrogen as a critical component of New Zealand’s energy future. He explained that hydrogen allows for energy storage in a renewable cycle, contrasting it with battery technology, which requires continued extraction of finite resources.
PEC has partnered with a French company with an annual turnover of 14% of New Zealand’s GDP to distribute hydrogen infrastructure in New Zealand. Richard expressed frustration that New Zealand lags behind countries like Germany and Japan in hydrogen adoption despite being ideally positioned with renewable electricity sources to produce green hydrogen.
Company Culture and Challenges
The company boasts impressive employee retention, with an average tenure exceeding 10 years and several staff members having served for 30-50 years. This continuity has preserved valuable skills and institutional knowledge.
Richard candidly shared his disappointment with New Zealand’s research and development incentives, describing the 15% tax credit as “pathetic” compared to support available in other countries. He noted that this disadvantage has historically hindered innovation and competitiveness.
Conclusion
Richard Coxon’s presentation offered an illuminating glimpse into a New Zealand manufacturing success story that continues to evolve. From dominating the local petrol pump market to facilitating other Kiwi businesses’ export journeys and positioning for a hydrogen-powered future, PEC demonstrates how local innovation can thrive even against global competition while planning for a sustainable energy landscape.
Dominant Market Position in Petrol Pumps
PEC holds a remarkable 90% market share for petrol pumps in New Zealand, competing successfully against international corporations whose smallest competitor has an annual turnover of three billion US dollars. The company has produced pumps since the 1950s and partnered with Japanese company Tatsuno in the late 1970s/early 1980s.
Their latest product is an advanced touchscreen pump with sleek black surfaces, representing six years of research and development. This modern interface allows users to refuel, order coffee, receive weather updates, and access other conveniences, transforming the traditional fuel pump into a multifunctional kiosk.
Manufacturing Excellence
The Marton facility houses comprehensive manufacturing operations, including pump assembly lines utilizing the Kanban system, with components fed from the warehouse along production lines. The factory maintains approximately $13 million worth of inventory and features fully-equipped wet testing facilities with reticulated liquid systems for quality assurance.
Richard highlighted their environmental innovation, “Pinnacle Air,” a vapour recovery system that prevents fuel vapour from escaping into the atmosphere. He explained that when 50 litres of fuel are delivered into a car, approximately 200 litres of vapour are created, with 846 litres equaling one litre of fuel. This system captures these vapours, providing environmental benefits and preventing product loss.
Technology Manufacturing Services
Most of PEC’s operations involve manufacturing electronics for 25 other New Zealand technology companies. This service enables these businesses to focus on research, development, and sales rather than investing in expensive manufacturing infrastructure.
The facility houses sophisticated surface-mount technology (SMT) equipment capable of placing 65,000 components per hour, including small ones that’re barely visible to the naked eye. This manufacturing operation manages an impressive 34,000 different line items in its warehouse.
Hydrogen: The Energy Future
Richard passionately discussed hydrogen as a critical component of New Zealand’s energy future. He explained that hydrogen allows for energy storage in a renewable cycle, contrasting it with battery technology, which requires continued extraction of finite resources.
PEC has partnered with a French company with an annual turnover of 14% of New Zealand’s GDP to distribute hydrogen infrastructure in New Zealand. Richard expressed frustration that New Zealand lags behind countries like Germany and Japan in hydrogen adoption despite being ideally positioned with renewable electricity sources to produce green hydrogen.
Company Culture and Challenges
The company boasts impressive employee retention, with an average tenure exceeding 10 years and several staff members having served for 30-50 years. This continuity has preserved valuable skills and institutional knowledge.
Richard candidly shared his disappointment with New Zealand’s research and development incentives, describing the 15% tax credit as “pathetic” compared to support available in other countries. He noted that this disadvantage has historically hindered innovation and competitiveness.
Conclusion
Richard Coxon’s presentation offered an illuminating glimpse into a New Zealand manufacturing success story that continues to evolve. From dominating the local petrol pump market to facilitating other Kiwi businesses’ export journeys and positioning for a hydrogen-powered future, PEC demonstrates how local innovation can thrive even against global competition while planning for a sustainable energy landscape.