The right equipment, the best support

Delivering on South Africa’s infrastructure programmes requires an integrated approach, with capital equipment central to its execution. Alastair Currie talks to Leon Goosen, group chief executive at Bell Equipment, about the company's unique service offering.

How can Bell Equipment best support the South African construction market?

LG First and foremost, as experts in our field, we tailor our technical advice and aftersales care package strategy to match customer requirements. This equally applies to new SMME entrants and toptier Construction Industry Development Board Level 9 contractors. Then, second, our operating philosophy is founded on the principle that if our customers are successful, we’re successful. Therefore, it’s a partnership approach from day one, which includes predictive and preventative maintenance support to maximise the customer’s machine availability.

Will 2021 see an increase in new work?

After several years of depressed trading conditions, the construction sector is expected to show signs of gradual recovery in 2021. There’s a sense of cautious optimism in the industry. Key catalysts include project roll-outs from Sanral, the implementation of government’s Economic Reconstruction and Recovery Plans, and allied initiatives like the Infrastructure Fund.

That means existing contractors will be reviewing their current earthmoving fleet and researching new acquisitions, rebuilds and upgrades. Government’s commitment to facilitating SMME growth also means that this will be a growth market.

There’s a definite willingness from the private sector to partner with government on infrastructure projects. Some of these will unfold as public-private partnership ventures – a prime example being the renewable energy sector. Rather than taking a shotgun approach, the ideal would be for government to focus on priority projects that can make a more immediate contribution to socioeconomic recovery post Covid-19 – with roads and transportation infrastructure being at the top of the list.

Why is optimal machine selection so important?

For any contractor, capital equipment decisions can make or break a business. Machine acquisitions need to synchronise with the business plan and the forward order book. Key questions that need to be asked and answered include whether the equipment purchased achieves the efficiency and longer-term availability needed to sustain business operations. For example, does the OEM or distributor have adequate parts and service backup, and are they able to customise solutions for your project? Then there’s the future resale value that needs to be considered, as well as whether the machine can be rebuilt for a second or even a third life.

Another major consideration is the life-cycle cost. Over the longer term, the initial machine purchase price works out to be a smaller portion of the cost over its working life when you factor in elements like maintenance and fuel burn. Therefore, buyers should not only base their decisions purely on the upfront price. After all, it’s a business tool, so customers need to appreciate that buying a premium product with worldclass support is the best decision they can make.

What should contractors consider when applying for finance?

The tenure of the project is the starting point. Banks will ask for demonstrated performance and positive cash flow. That makes it paramount that infrastructure work packages awarded to contractors, especially SMMEs, are sustained by a constant pipeline of new work.

Our Bell Finance Division enables customers to structure machine payments to best suit their needs. In South Africa, as well as internationally, we form strategic alliances with financial institutions to ensure competitive deals. We are not short-term sellers. Our responsibility is to advise our customers and to support them.

How does Bell Equipment manage its local and international markets?

From inception, our passion for research, development and product innovation has been our foundation for success. That goes back to the 1950s, when our founder, Irvine Bell, offered specialised machines to meet the needs of the sugarcane industry. In modern times, we’re especially proud of our global class leadership in articulated dump trucks (ADTs).

Our OEM products are designed and manufactured at our Richards Bay factory in KwaZulu-Natal for South Africa and the world, supported by a second factory in Germany. Today, we are represented across the globe in key markets that include Africa, Asia, Europe, the Middle East, and the Americas. While we have our own Sales & Distribution operation in South Africa, we have largely migrated to a dealer model in other regions, as experience has shown that this option provides better coverage and support to customers in certain markets.

Global experience strengthens our capacity to deliver excellence in the local market. The same is true internationally in core markets like the UK and USA. We are a major competitor in the global ADT market, competing against the world’s largest and most respected brands.

Which major new product launches are planned for 2021?

We’re excited about the launch of our Tracked Carrier into the American market, in response to a niche demand there for this product. Locally and internationally, we’ll also be unveiling a new low-profile underground mining truck. Alongside this, our R&D teams will continue to refine our Versa custom range and refine the next generation of ADTs.

We can proudly say that we are regarded as the global leader in ADT innovation. In every industry sector that we support, our product design engineers study how to make production sites safer and more efficient. That includes inter-machine communication, remote and automated control. Again, it’s an integrated solution aimed at bringing down the overall cost of the job. Future investments in information and communication technology will also increasingly transition our after-sales services into the digital space.

How do your OEM distributor agreements complement Bell Equipment’s growth strategy?

Business is easier for customers when they only have one supplier and one point of contact for their equipment needs, particularly if that supplier delivers strong, reliable support. So, as an OEM, we focus on our niches and then, to provide holistic fleet solutions outside our core areas to customers in Southern Africa, we have formed strategic dealership alliances with other globally respected OEMs. Our first was with John Deere, over two decades ago, to sell and support their construction and forestry equipment.

Since then, we have entered into agreements with the Fayat Group to represent the Bomag road construction equipment line, and with Finlay, a global leader in mobile crushing and screening. Our newest alliance is with Japanese excavator manufacturer Kobelco, which has further strengthened our offering by providing opportunities in the forestry industry.

Bell Equipment’s Richards Bay factory

What about training and transformation?

Bell Equipment has one of the largest apprenticeship training programmes in the country, and that’s key to the future. We train more than we need; we train for the industry.

Alongside this is our investment in our employees. We are proud to say that our Richards Bay factory and our Sales & Distribution companies are both 51% black-owned. A BBBEE Level 1 contributor, our Sales & Distribution company is also 30% black-woman-owned. We are firmly committed to building an inclusive business.

As a proudly South African company, we’ve embraced transformation and are committed to sustained local investment. Most importantly, we’ve empowered our people to provide South African customers – and customers around the world – with mechanised solutions that compete on a level footing with the world’s best.

Is Bell Equipment ready for 2021?

Absolutely. The foundation of any growth strategy in this business is that you need to have reliable and strong products, with equally reliable and strong support. We’ve achieved this.