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Africa|Business|Engineering|Mining|Siemens|Equipment|Products|Insulation
Africa|Business|Engineering|Mining|Siemens|Equipment|Products|Insulation
africa|business|engineering|mining|siemens|equipment|products|insulation

The idle thoughts of an idle fellow

13th December 2019

By: Terry Mackenzie-hoy

     

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There is a lot of gloom and doom about in this country. In the professional community of which I am a part (that is, architects, builders, engineers, developers, and so on) I ask: “How’s business?” The answers are not positive. In 2010 World Cup days, we were all massively busy. I wrote then that there was not an engineering firm which was not overwhelmed. Not so now. There is work but the prices are low. Payments are delayed. I like to sleep at night, so I have a policy of paying all outstanding accounts within a few days of getting them. I sort of think this keeps the whole thing going. Other firms are not so diligent.

In these tough times, I think of how others survived tough times. I think, in particular, of the European firms that survived World War II. (I know there is a report from some Millennial 22-year-old who claims we should not study World War II, since it is not relevant. As they say, beauty is only skin deep but stupidity goes right to the bone). Firms like Siemens, Volkswagen, Citroen, Fiat, St Gobain (in South Africa as a supplier of gypsum board and fibreglass insulation), Rolls-Royce, Hawker Siddley, ICI, Warfedale (audio equipment supplier), and so on.

All these firms were trying, between 1939 and 1945, to stay in business while the country they were in was being bombed and was at war. Read that again. Bombed and at war. How did they do this? Simply put, they continued to supply their products in the market that prevailed. Obviously, car and aircraft manufacturers were doing very good business, as would the other firms. But there was a possibility (which became reality in the case of Italy, France and Germany) that the war would be fought in their cities and towns which, at the very least, would be disruptive to manufacturers. What happened, I think, is that all the firms adopted an attitude of stubbornness – they, in effect, said: “Okay, there is a war on. Supply and employee problems as a result. However, we are here and we are going to stay here until the war ends and for many years after.” In our experience, all the above-mentioned firms pay their bills on time. They have good reputations and pay bills on time. They know that nothing poisons more than a whispered reputation for cheapness and stinginess.

Getting back to our own country – this is actually the first thing: it is ‘our country’. We live here. Whether our forefathers arrived in 1652 or ages before that or in 1920 or 1970 or two years ago, it is where we are and it is our country.

Government may be on a back foot with economic pressures from State-owned enterprises and general mismanagement, but this is not a reason for any firm to shut down. We work in our country. We all can and will survive. Nobody can for a moment gainsay the fact that the firms I mention above are all large international profitable organisations. Unlike mining firms or oil production firms, whose profit is based on low production costs, the profit of the firms above is based on quality. Not government subsidy or mining concessions – quality of product. Stubbornness and quality.

Then this thing: advertising in local media is a good idea. Advert agencies will sell you circulation and exposure figures but word-of-mouth recommendations are the thing. No amount of advertising is going to be better than your buddy who tells you that an item is desirable because it is good quality and backed up by a long-lasting firm. If you have this and quality and longevity, price hardly matters.

Thus, if you are in our country, just say this mantra: “We are here and we are going to stay here until the situation changes and for many years after. We make good-quality items. People know us and recommend us.” And so, very good luck! Prosper!

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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