Bulls n Bears Entrepreneurship Zone :: Dream big: Have a global vision from the start, says manufacturing boss
Bulls n Bears
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Mon Feb 19 09:02:42 CAT 2018
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Fabrinox, a sheet metal manufacturing company, was founded 20 years ago in the Western Cape of South Africa, and has since grown to see an annual turnover of between R50m-R60m (US$4.84m-$5.81m).
The company’s founder and CEO, André Visser, has successfully taken Fabrinox’s business to a number of African countries. In light of being a finalist for the 2013 Sanlam/Business Partners Entrepreneur of the Year award, Visser told How we made it in Africa about the entrepreneurial decisions behind Fabrinox’s business, and shared his advice to South African companies looking to expand into the rest of Africa.
What inspired you to start Fabrinox?
Fabrinox was established in 1993 when Johan Beyers, owner of Filmatic Packaging Systems, challenged me to do so. I was working as a junior mechanical engineer in Filmatic’s design department at the time. The initial idea was to provide custom-made sheet metal products and components to Filmatic only, as they struggled to find a reliable supplier at the time.
We started off with five employees working in a 20x20m² space in the Filmatic factory, and have since expanded to 7,000 m², two sites and a staff complement of 148 people. We supply sheet metal components and sub-assemblies to more than 300 clients in industries such as the food, agriculture and mining sectors. We do under-licence manufacturing, import replacement manufacturing or batch manufacturing to a client’s specifications. Fabrinox also manufactures and delivers complete projects, and has recently also branched out to do installations for clients worldwide – from China to Poland and the Netherlands – even when we did not manufacture the installed products ourselves.
What has been the best decision you have made to grow your company?
To have followed the advice of my business mentor Johan Beyers to not restrict Fabrinox and its people to one geographical area, product or service, but to take a global view in running the business. For instance, it means that we think globally in terms of our supply chain, and are most willing to service clients beyond the boundaries of the Western Cape province in which we are located, and South Africa for that matter.
Fabrinox’s work extends beyond South Africa into other African countries. Describe the potential the African market holds for your business.
The fact that Africa has more than 650m cellphone users is just one indication of the potential that the continent and its people hold for most businesses. By collaborating with and servicing South African and other multinational companies, Fabrinox already provides products and services in Namibia, Senegal, Mozambique and Tanzania. Increasing one’s footprint into Africa is all about timing. It works well for us to combine forces with the right partners who already have sound working relationships in different countries.
Drawing from your experience, can you provide five tips for South African companies looking to expand into the rest of the continent?
1. Small to medium-sized enterprises should not try to expand on their own, but rather partner with others.
2. Africa needs turnkey solutions, so it’s better to provide a complete product or service – from manufacturing to installation, for instance.
3. It’s extremely expensive to do business in Africa, for instance in terms of transport, freight costs and accommodation.
4. Africa isn’t a quick solution, and one should be patient to really make profit.
5. Make sure that you add real value that can, for instance, create real new job opportunities.
What do you consider to be entrepreneurial success?
To do things differently, not necessarily in terms of the product that you supply, but in how it is delivered, the levels of excellence achieved and the quality of the product. I believe it can be achieved by leading by example, by working hard and by always being on the lookout for the next opportunity, even if it might mean taking the road less travelled. One needs flexibility and the ability to adapt to new technology, to new challenges, new markets and to new demands of clients. I believe entrepreneurs are the drummers of any society and determine the rhythm of a country’s economy.
What’s the biggest thing you struggle with as an entrepreneur?
It’s definitely to have enough patience. Although I’m quite prepared to wait for results, I cannot always understand why others are not on the same page as I am. Being able to employ the right people is becoming an increasingly difficult task. Fabrinox offers entry level employment, takes apprentices fresh from school, and also provides in-service training to university and college students in an effort to train artisans, technical staff and engineers. To be employable in this industry, people need to have had mathematics as a school subject. However, I feel our school system is failing many youngsters, because they receive poor education and are often advised not to take mathematics as a subject.
Do you have any advice for Africa’s aspiring entrepreneurs?
Africa needs industries that are willing to add real value and create new jobs. For its economy to really grow, we need to convert human energy into economic value. I respect people who have earned their money through hard work and sweat, as opposed to those who follow the “easy money” option. I have a special affinity for leaders from Africa, as they have proven that it is possible to make a success in this complex world.
Where do you see Fabrinox in 10 years? Any expansion plans?
Fabrinox is experiencing a growth phase, and recently expanded to a second site in Paarl, [South Africa]. In 2012 we were able to create 33 new jobs. Strategic acquisitions are definitely on the table. We will continue our strategy to partner with other companies already working in Africa and internationally, in an effort to increase our global footprint. Continuous investment in new technology is paramount, as it is so important to be able to service our clients even better.--Howwemadeitinafrica
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