6 minute read
Interview with Peter Esterhuizen
Goscor Cleaning Equipment (GCE), a division of the Goscor Group of Companies, has announced the appointment of Peter Esterhuizen as its new Managing Director. Having joined GCE in 2016 as National Sales Director, Esterhuizen brings over 27 years of industry experience, providing valuable insight and proven leadership as the company enters its next phase of development. African Cleaning Review Editor, Johann van Vuuren spoke with Esterhuizen to explore his strategic vision for GCE’s future.
Describe your leadership style –what strategies do you employ to build and maintain strong relationships within your team?
Throughout my tenure as Sales Director, I have consistently led by example rather than simply delegating tasks. I maintain an open-door policy and strive to minimise hierarchical barriers, fostering transparent communication within the team.
At GCE, we take pride in our strong family-oriented culture, even as we operate within a corporate framework following Bud’s acquisition of the Goscor Group. The organisation maintains a flat structure that empowers team members to take ownership of their roles and environments. This approach encourages independent decisionmaking and allows individuals the freedom to learn from both successes and setbacks. This leadership philosophy has continually guided my management style.
The positional changes
As a Managing Director, I will maintain a very strong sales driven approach, ensuring that commercial performance remains a core priority, for I will oversee both Sales and Managing Director roles. Wesley Bodmer has been promoted to Operations Director, overseeing parts, workshop, and equipment rental. Stephen Rapaka is now Service Manager in Johannesburg, filling Wesley’s previous role.
What are the biggest challenges facing the company?
One significant challenge is the current economic situation and public perceptions of it. Additional factors such as global economic trends and their impact on the local currency also influence clients’ decisions regarding new equipment purchases. The procurement of cleaning-related products has typically been viewed as a necessary but reluctant expense.
Within the facility services sector, there is ongoing pressure from end-users to reduce costs, which encourages cleaning contractors to seek more affordable alternatives in order to remain competitive. This trend has contributed to a cycle of price reductions. Economic factors have expanded the market for lower-cost brands, many of which are imported and offer shorter product lifespans and limited aftersales support.
How do you address this?
There are two aspects to this – our strongholds being the mining and manufacturing sector with our range of Tennant heavy duty models, which makes us unique as few competitors offer comparable models or demonstrate the same level of commitment to stock investment. Hence, backed by scale and the stability of the Bud Group, our strength lies in an ability to offer a wide range of solutions along with customised offthe-shelf packages to individual clients based on their specific requirements. Another advantage lies in the fact that we are able to offer full maintenance finance rental options in-house through our group company, Goscor Finance. This is important as many customers struggle to obtain finance or have affordability criteria issues, as many financial institutions struggle to understand the concept of cleaning equipment, the lifespan thereof, and the remarketing of cleaning equipment. Many financial institutions do not see a lot of surety in the asset, whereas we understand our product.
What are your long-term visions for the company, and how do you plan to achieve them?
There are specific objectives that the group aims to achieve, including those related to the cleaning business. At present, my focus is on short-term goals. These include providing clients and staff with assurance regarding the stability and continuity of the business under current management, as well as ensuring that Original Equipment Manufacturers (OEMs) remain confident in the South African market.
Are you contemplating introducing new brands in the future?
I maintain the view that specialising leads to better outcomes than attempting to cover every area. Although we have evaluated additional product lines, at present we do not intend to expand our equipment range. Instead, we are exploring the possibility of introducing Autonomous Mobile Robot (AMR) versions from Tennant as the local market is gradually becoming more receptive to this technology.
How to stay updated with industry trends?
Our operations are strongly supported by our OEMs, enabling us to establish a comprehensive network both domestically and internationally. This network provides opportunities to explore various markets, revealing that many regions face comparable challenges.
While South Africa presents unique difficulties due to its status as a longhaul destination – necessitating careful planning to sustain appropriate stock levels – we observe notable similarities in equipment marketing, market response, and trends when compared with other countries where our OEMs operate.
Has the introduction of the professional range made new inroads in a price sensitive market?
The Tennant brand is known for its robust and long-lasting equipment, though it has generally been positioned at a higher price point. With the introduction of the new Tennant professional range, more companies have shown interest due to the revised pricing structure, while still benefiting from the durability of Tennant products and the association with Goscor Cleaning Equipment’s service and maintenance plans. Initial sales of the professional range have been strong, resulting in several first models being sold out and subsequent shipments arrived recently.
How do you defend price and educate on value?
GCE does not compete on price alone; instead, we focus on the total cost of ownership. This comprehensive approach encompasses not only equipment costs, but also operating expenses, operator wages, training, breakdowns, call-out fees, down-time, depreciation, and buy-back schemes, all integrated into our offerings. While lower initial costs may appear attractive, they often fail to account for hidden expenses that accumulate over time. By emphasising true value and longterm return on investment, we position ourselves as partners in our customers’ ongoing success. Our value proposition ensures that clients receive superior overall pricing when considering the broader scope of ownership.
The rise of robotics in cleaning –your view?
The South African end-user market requires further education regarding the benefits and practical applications of robotic machines. Contrary to common perception, not all models are entirely autonomous solutions. In our view the initial adoption of robotics is expected to progress gradually, primarily due to cost. However, we have identified a few niche sectors where robotics have the potential to enhance productivity, improve safety and strengthen operational security.
We are conducting research into the feasibility of introducing AMR machines to the local market. GCE hopes to launch the first Tennant robotic cleaning machine in South Africa during 2026. The Tennant range of AMRs is engineered to operate safely alongside staff while delivering efficient and thorough cleans through a suite of advanced features. AMRs represent the next advancement in the cleaning industry, establishing new benchmarks for cleanliness, safety, operational efficiency, and userfriendliness.
