Constructing a career in the building industry

Sarah Stowe

Like any franchise, mobile building services sees established brands consolidate their name and new competitors trying to get their foot in the door.

Unlike food franchises though, which typically have a visible shopfront, new and existing mobile building services are built on two pillars — developing a good reputation and excellent marketing.

Dial-a-Digger, which specialises in earth moving and trenching, was established in 1984 and has grown from two company-owned units in Adelaide to 20 franchises across three states in Australia.

David Thornton, director at Dial-a-Digger, identified early on what customers wanted.

“Our goal was to provide the best service available [and] the key was to maintain a level of service that our competitors could not match,” he says.

It ignored both new and existing competition and instead focused its attention on meeting the goal.

“We concentrated 100 percent on providing a level of service that was unique and continually looked at ways of improving the level of services that we made available to our customers,” Thornton says.

“We have never spent time or energy on wondering what our competitors are doing.”

Although Thornton says businesses have attempted to copy Dial-a-Digger’s model, they have been unsuccessful because “they [have] underestimated the level of commitment that was required to operate their business at the level we do.

“During the past 30 years of being in this industry we have seen many businesses, both new and established, go out of business,” Thornton says.

He cites several reasons for this, such as little or no experience in the industry; under capitalisation; limited or no customer base; and limited or no expertise in marketing and business experience. “I don’t believe that many mobile businesses are innovative. Often their focus is on physically getting the job done and they neglect the important job of getting their business in front of their potential customers and improving their internal management and communication systems,” Thornton says.

“Being involved within an established franchise system often provides you with all of the innovative ideas that a modern business today needs to be ahead of your competitors.”

Danlaid Contracting, a flooring preparation and waterproofing contracting business, has modelled its business on much the same principles as Dial-a-Digger.

It has been operating for over 14 years and started from a small home office and storage facility in Glen Waverley, Victoria, and now has offices in five states across Australia.

Founder Danny Laidlaw began with a staff of two and has built the business up to over 40 people.

“Our business grew by offering good, honest and reliable service, time after time, at a fair and competitive price,” says Graeme Lyall, national franchise manager at Danlaid.

“Our project management team is extremely experienced with over 150 collective years between them.”

Danlaid has witnessed many new competitors come and go. Lyall says it has managed this new competition in three ways. One, by giving clients the reassurance that staff were well-trained and experienced in on-site labour “to guarantee that we met with the construction program and deadlines”.

Secondly, Lyall says Danlaid has built a reputation for carrying out quality workmanship and using the best and most appropriate products available to do the job.

“[And] with 12 franchises Australia-wide, we offer the builder the same quality and service that they can rely on, no matter where in Australia the work may be. No other contracting company in our field can claim this,” Lyall says.

Lyall believes Danlaid’s competitors which have failed have been affected by financial pressure or growing the business too big too soon.

Unlike Dial-a-Digger and Danlaid, Crackmasters is a new player in the industry. Formed in 2009, the company specialises in rejuvenating asphalt and paving. It has been so successful it has quadrupled its turnover since its first year.

Jason Cobb, manager at Crackmasters, says the key to the company’s success so far has been a necessity in the market for its services and Cobb’s 22 years experience in the pavement industry.

Due to Crackmasters filling a niche in the market — completing both small and large jobs — the business has virtually no competitors.

“I suppose in another way I’ve got more competitors in each individual field, but I’ve really got no competitors to crack filling,” Cobb says.

“There are asphalters around and there are concreters, but they don’t want to do the little jobs. They want the big jobs. It’s a different market.”

This was a deliberate strategy for Crackmasters. With 22 years experience in the industry, Cobb was aware of gaps in the market. Over the five years prior to starting his business he actively researched the market and developed his idea for a smaller pavement maintenance service.

This approach of providing an innovative or different service is one which Cobb says is essential for new businesses due to a reluctance from customers to try a new brand or service. “They get stuck in just a name,” Cobb says.

However, developing a new brand can be hard work. Cobb advises new entrants looking to enter the paving industry to join Crackmasters and come under its already established name and brand.

“Now is the growth phase of the business. We’re getting further and further out into new regions and it’s an opportunity to take up before someone else copies my concept,” Cobb says.

Although Crackmasters currently has no direct competition, that may not last. If new competitors do enter the market, Cobb’s strategy will be to ramp up his marketing campaign to consolidate his brand. Aside from that, he has no plans to change the business strategy or how it is run due to competition.

Crackmasters strategy going forward is simple — consolidate the brand and develop a core group of successful franchises around Australia.

“My aim isn’t to have hundreds of little franchises dotted all around Australia,” Cobb says.

“Just because someone wants one and can pay for it doesn’t mean they’ll get one. It has to be viable for where they are and it has to be a viable, ongoing thing. It also has to be the right person and the right mindset.”