G&S Engineering stay strong in a tough market
WHAT doesn't send you broke will only make you stronger.
Mining companies have tightened their belts and Paget-based mine service companies have had to remodel their business structures to stay afloat.
However, G&S Engineering Services has defied the trend to boast their best year for revenue this year.
But G&S managing director Mick Crowe has warned that while revenue was high, profitability was hard to find.
MAIN deputy chairperson Allan Ruming said the difficult times were set to continue for Paget servicing companies but businesses that had managed to hang tough by adapting and diversifying would eventually be left with more robust and dynamic companies.
G&S Engineering's high revenue was mainly due to the "back end" of the boom times, as large construction projects were still being completed, Mr Crowe said.
There had been a vast switch of gears in the way they serviced their clients, he said. "We used to be helping clients expand rapidly but now it's about offering the most cost-efficient services we can."
Mr Ruming, who is also a director at Group Engineering, said businesses had to have a long hard look at the books and think about what their real costs were.
"We need to have a focus on improving ... everyone has had to adapt to lower cost structures," he said.
"The businesses that have been looking to diversify in what they are offering will be in the box seat going forward."
Merging with the publicly listed company Calibre Group was crucial in allowing G&S to expand.
The business, which was started in Mackay in 1995, is now establishing a strong toe-hold in the Pilbara in WA.
"I have always said I don't care how big we are, I just care how good we are," Mr Crowe said.