The West Australian outlook

HRIA WA President Craig Palmer offers his view on the market in Western Australia

Hire Industry Mag Bimonthly 86.5 w x 130 h

Western Australia has 13.1% share of Hire industry enterprises nationally, which outweighs the state’s share of the national population. This is reflective of a state that has a large mining industry and has attracted the largest hire companies to take large positions in regional areas.

Much of the demand for hire equipment in mining is in a large part due to the iron ore sector servicing China’s need for raw product to make steel and construction supplies. However, the China's zero-Covid policy and domestic housing crisis, is having an effect on potential demand for our raw product.

There will be opportunities for growth in natural gas, copper and lithium mining markets.

Overall, the picture in Western Australia for the next two years is positive, particularly following the surprise $6 Billion budget surplus. It is forecast to grow via non-residential construction, construction of apartments, favourable trends in some mining sectors, agriculture, transport and household markets, and strong levels of transport infrastructure construction.

It's fair to say that businesses are expecting higher interest rates over the coming 12 months, and cost increases broadly due to inflation. Hire businesses that can manage their costs and employees and adopt new technologies will do well over the next couple of years.

Australia’s No 1 Hire Blaster

4,000 PSI ... BUILDS CUSTOMER SATISFACTION

NEW AUSSIE

RELIABLE | ROBUST | EFFICIENT

FREE Aussie Hire Equipment Catalogue 02 8865 3500

LIMITED TIME ONLY... CALL NOW

4 pole single phase Heavy duty triplex pump Stainless steel cover Double loop mild steel coil (shown with optional protective frame) ONLY $3,982+GST SAVE $700

40 years and counting

WHAT DOES IT TAKE TO STAY IN BUSINESS FOR 40 YEARS? WE CAUGHT UP WITH JARROD KERR, GM OF KERR’S HIRE IN GEELONG, TO ASK ABOUT LONGEVITY AND WHY HRIA MEMBERSHIP IS SO IMPORTANT TO A HIS BUSINESS.

HRIA: How have you remained in business for 40 years? Is there something special about Geelong?

JK: Mum and dad started the business in 1982 as they believed Geelong needed a locally-owned hire company. Geelong is a very loyal town and one thing that our business has been so strong on over 40 years is providing outstanding customer service. From the day mum and dad started the business, we’ve emphasised customer service which is why a lot of our business is repeat. We give our customers the utmost attention, and if we get it wrong, we sort it out, we fix it. It’s about building relationships with people and it’s a culture we’ve instilled in our staff. I’m actively involved in the business, serving customers and helping out. I also don’t mind getting my hands dirty and I think that shows a lot of respect for our guys who can say, ‘if Jarrod can do it, we can do it’.

HRIA: What values are important to your business?

JK: We put our customers first, have high-quality equipment, and ensure the customer’s job gets done properly and with the right gear. We also don’t always give people what they ask for; we talk to them about what they need. There’s a wealth of knowledge here, with some of our team having been with us for more than 20 years (our average staff retention rate is about seven years), so our customers are getting the value of our experience and not wasting their time or money. We’re happy for that wealth of knowledge to flow onto our customers. Helping people is one of the things I enjoy about my job as a rental and salesperson… people walking out going, ‘that guy knows what he’s talking about, he’s been so helpful.’.

HRIA: Your father and founder of Kerr’s Hire, Gary, played a significant role in the formation of the national HRIA and was a past president. So why is a national association for this industry so important?

JK: Dad was the first president of the HRIA and got it to where it is today. Kerr’s Hire is proud to be a local family business that strives to support other local businesses. That’s what I value most about being part of the association, the networking, dealing with like-minded

General Manager Jarrod Kerr with his parents, Gary and Heather, who founded Kerr’s Hire 40 years ago.

That's what I value most about being part of the association, the networking, dealing with like-minded individuals and helping people.

individuals and helping people. We can talk about business, help each other understand legislation and discuss equipment. We’re only a small hire company with three stores in Geelong but members can ring us and ask, ‘what have you done in this case?’. You feel good at the end of it. But that won’t happen if you don’t go to meetings or commit to being an active member. You can’t expect the HRIA to come to your site, give you a cuddle and ask you what you’re doing. You only get out what you put in. So put yourself out there, come to the meetings and start a conversation.

HRIA: After 40 years, what’s next for Kerr’s Hire?

JK: While I was only 2 years old when mum and dad started the business, I’ve been involved in the business since I was 15 working as a mechanic, driver and hire controller, until becoming General Manager in 2017. We now have 25 staff, three stores and turnover has tripled. At 42, I’m content with where we are and what I’ve got going. My girls are 7 and 12 and I don’t want to miss out on time with them, so I’m making an effort to find the right balance between work and life. I’m at capacity now so why put myself under more pressure? My business will suffer as it will dilute what we’ve got, and I’ll miss out on seeing my family which is tremendously important.

HRIA: What advice would you give to someone starting out in the hire and rental industry?

JK: Network and meet with like-minded people who might be outside your area but inside your business. And don’t be afraid to ask questions because you might find people who are willing to talk and share. There’s no point going it alone. Obviously, there’s competition in our industry, but I think 60–70% of all hire companies are family-owned business so if a guy in NSW wants to chat, why shouldn’t I help him out?

Kerr’s Hire marked 40 years in business in February 2022. Its founder, Gary, has played a significant role in the Associations and was instrumental in taking the HRIA from a state-based framework to a national body (around 2000), becoming the first national president. Since then, he’s been an extremely active member, most notably lobbying government for a change in the Personal Property Securities Act 2009 (PPSA).

www.kerrshire.com.au

Photo of the year

Pump and Power Hire Controller from the Kennards Hire Singleton branch, Chad Parsons, won this year’s HRIA Photo of the Year competition.