Branach's ladders are built for tough environments including quarries. Photo: Supplied
A virtually indestructible product and plenty of rungs - not a bad recipe for climbing the business ladder.
Melbourne business Branach, which claims to make the 'world’s best safety ladders,' hasn’t put too many steps wrong in claiming its niche market, growing an average of 25 per cent a year in recent times.
And now the company, started by brothers Mike and John Walsh in a backyard garage in 1990, is aiming to take on one of the world’s fastest growing markets - the Persian Gulf region.
Branach general manager James Streeton-Cook.
General manager James-Streeton Cook says the Croydon company, which has 30 staff, is just a ‘‘grain of sand’’ compared to the huge numbers being thrown around in the Middle East, but the potential market for Branach was massive.
‘‘I think it will be pretty huge, it’s probably at least as big as we have in Australia,’’ Streeton-Cook says. In fact it could potentially bring in $2 to $4 million in export sales in the next two to three years.
Branach’s target markets, which include power utilities, mining and rail infrastructure, are well represented in the Middle East.
‘‘It’s kind of good that the whole bubble burst and the whole construction stuff stopped; it was consuming capital,’’ Streeton-Cook says. ‘‘They’re doing nation building stuff now (such as building railway lines).’’
Branach’s fibreglass ladders range from about $1000 to $3500.
Streeton-Cook says the ladders are used by about 80 per cent of power utilities in Australia. They’re also popular in manufacturing and in mines, including South Australia’s Olympic Dam, on its way to being one of the world’s largest mines.
He calls the company's products the "Mercedes" of ladders - premium, but not out of reach.
‘‘Our customers are people who do serious stuff and hence they appreciate having a good product,’’ he says.
The nature of selling such a niche product means Branach takes a different approach to some other smaller manufacturing companies, Streeton-Cook says.
‘‘Unfortunately they’re not products where advertising does a whole lot. To really sell the product you want it in people’s hands.’’
He says the company survives by being the best in the field, constantly innovating and having very clear strategies.
In recent times Branach has also changed its own operations, implementing a "lean" manufacturing strategy with the help of federal government initiative Enterprise Connect.
Analysts looked at the flow of production through their plant, a process which cut lead times dramatically - from three to four weeks down to just two to six days from order to despatch.
Branach paid $40,000 upfront for the expert help, receiving half of that back in government grants.
‘‘It was an excellent investment - it was a major change in the business,’’ Streeton-Cook says.
But there was a downside to that, of sorts.
‘‘Because we’re so efficient we can’t see very far into the future. We have to measure and manage on a daily basis,’’ he says.
A partly contracted workforce has helped them manage some of the ebbs and flows.
And the increased profitability has allowed Branach to fund its growth and invest back into the business.
An improved website has also started creating new leads - with a containerload of ladders recently sent to Romania, and others sent to a nuclear plant in the US.
The ladders are also used at events including the Australian Grand Prix and various art exhibitions.
Streeton-Cook predicts there is still plenty of growth yet, even in Australia. One of the problems with the product, ironically, is it is so strong it doesn’t often need replacing, he says.
‘‘(But) in mining they tend to run them over with machines, which is good for us because they then break,’’ he says.
‘‘I think we’re a very long way from saturating the mining industry.’’
James Streeton-Cook’s tips for other niche businesses
1. You’ve got to know what your market is, what are they going to pay for?
2. Understand what your capabilities are
3. Know what you want to do and how you’re going to go about it. Focusing on getting things done is important. You need to have a good focus on getting results. It can be so easy to just dribble on.
James Streeton-Cook will be speaking at the National Manufacturing Week event in Melbourne, from May 24-27.
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