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Keith Smith is responsible for the construction services and materials activities |
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Murray & Roberts’ status as a market leader in the
construction services and materials supply markets has historically been
attributed to quality materials, top products, added value and service
excellence, combined with the use of new
and improved technology. Now, the restructuring of these activities into a
single product-focused business cluster
has further strengthened the group’s position.
The rationale behind the restructuring was to leverage the collective buying power in steel by grouping together all of the operations that have in common activities relating to steel, on the basis that they are more profitable together than apart. The success of this unified cluster has far exceeded expectations. “The secret of our success so far lies in a new clarity of vision and focus among our leadership and work teams,” says Keith Smith, the Murray & Roberts director responsible for the construction service and materials activities. “The vision is threefold: to deliver sustainable value to shareholders, to be market-focused and to be a major player in all of the markets in which the group is active. “This does not only refer to size,” says Keith. “We are more interested in being the best and delivering shareholder value. Anyone can buy market share by engaging in a price war. We subscribe to a culture of sustainable market growth.” RETAINING BRAND VALUES
“Our brands have inherent value and, in each market segment, we pride ourselves on being market leaders,” says Keith. “Much of our competitive edge comes from delivery and service excellence. We have successfully inculcated a culture in which we strive for excellence and we will not compromise on the quality of our prescribed performance levels,” he says. “We have achieved a level of consistency in our delivery and service, and this has been accomplished by benchmarking ourselves against the best in each of our niches. “In terms of technology, re-engineering principles and equipment, we have combed the world for the best benchmarks. “To ensure that our products have market appeal, we employ consultants throughout the world to constantly source new trends and innovations and bring them to South Africa where they can be adapted to local conditions.” THE COMPETITIVE EDGE “We do things that our competitors either do not do at all or do not do as well. A fundamental philosophy at Murray & Roberts is that we are always solutions-driven. We do not offer inflexible products but rather a ‘building block’ approach from which clients can select according to their needs.” Other reasons for the cluster’s success are less clearly definable. “Infrastructure spending is on the increase. We see it not only in our figures, but also in other similar infrastructure-type businesses, like cement and bricks. “Certainly, there is tremendous interest in the residential property market and interest rates are at historical lows. But much of the real work is low profile projects such as water and reticulation installation in townships. This forms a key part of the Government’s commitment to the delivery of basic services and we are well positioned to serve this market.” FUTURE GROWTH Keith is confident that favourable market conditions will continue in the short to medium term, but he adds that action needs to be taken to absorb more of the excess capacity. “Our businesses have reached maturity in their present form, and as a consequence, we are seeking acquisitions within the construction materials sector, and not only in South Africa. “At present we enjoy a significant market share, yet
only half of our capacity is in use. We need to broaden our product range
and expand into new, different markets,” he concludes.
- BY EAMONN RYAN The Construction Services and Materials Supply cluster offers:
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