The CEO of the Sevaan Group has urged SMEs in Australia not to rest on their laurels too early in the new government term.
Mr Tony Panrucker of Sevaan Group, one of Australia’s most progressive manufacturing companies believes that every company is still somewhat of a moving target while Australian industry falls into place under a government that claims it will once again re-energise Australia’s manufacturing sector and the mining industry.
However, he warns that every SME in the manufacturing supply chain is a potential moving target for a downturn unless it makes strong alliances with other companies in its supply chain to maintain strength and momentum in numbers. He urged all SMEs in manufacturing to be frugal to the greater extent until the economy generated some momentum.
According to Mr Panrucker, Sevaan Group’s strategy of joint ventures during the last five or six challenging years proved a period of growth not just for the organisation but also the companies who formed partnerships with them.
The same period almost proved the death knell for a majority of Australia’s manufacturers; now at a time when the economy is showing signs of revitalisation, they are quite stretched and may consider going into an unfeasibly high level of debt to gain momentum with the rest of the market.
He advised these manufacturers to be gradual in growth rather than sudden, and thus help to proof their business against any unforeseen downturns in the near future until all policies are set in stone and the economy is visibly on an upward curve.
In recent years, Sevaan Group has amalgamated several longstanding engineering companies, invested in its own powder coating, sandblasting and painting facilities, and has made joint venture arrangements with companies armed with product patents. Rather than conducting ruthless takeovers, Sevaan Group saw it as more beneficial to all parties to come in as a strong venture partner to help the associated business reach higher levels.
In turn, Sevann Group itself sustains more growth as it uses any of its large range of technologies, facilities and highly trained staff to uptake more contract work. This has allowed the company to future-proof itself while also showing the tact needed for a manufacturer to grow in the Australian market and eventually become an exporter to the world.
Mr Panrucker adds that it is equally important to keep innovating at the management level including entering partnerships to take the company to the next level and continue on the growth path.