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INSIGHTS 2015

DAVID GALLAGHER CHIEF EXECUTIVE OFFICER, TR PTY LTD

Will the post-boom resources industry continue to be a primary focus for engineering vendors? The size and scale of the ~$23 billion resources industry, with an expected ongoing growth of 4% p.a., means that it will continue to be a large focus of engineering vendors. Mining production will continue to increase and there’ll be significant opportunities in maintaining existing infrastructure in what is currently a harsh environment. While new infrastructure requirements have slowed there will be new investment which will again provide opportunities for engineering vendors.

What do you think are the three most important things your customers are looking for in a supplier? From a TR point of view, I think our customers are looking for consultative advice, good quality customer service, honesty and reliability. We regularly deal with customers who have an immediate problem that they haven’t dealt with before. Often the customer is looking to leverage off our salespeople’s considerable experience to obtain advice on how to deal with a particular measurement problem. Customers also want to know that they will be able to talk to a person who can deal with their particular issue. TR has invested in a range of technology to ensure we understand their requirements, with a particular focus on quickly and efficiently solving their problem. As we often deal with time-critical applications, our customers need us to be brutally honest in terms of what we can and can’t do, so they can make appropriate and timely decisions. Often the cost of our service is insignificant in terms of the costs that may be involved in a breakdown or other problem. We work hard to understand the customers’ requirements and to ensure we give realistic expectations of what can be achieved.

What are customers demanding of you more today than five years ago, and how will you meet those requirements in 2015? Traditionally we have operated in the short-term rental space with rental lengths measured in days, weeks, and in some cases months. What we are currently seeing is that more and more organisations are working to an operating expense model where they are renting equipment for longer periods to satisfy the requirements of a particular project. Rather than purchasing equipment for a 12-month project they are now more savvy and have realised they can pay between 60 and 70% of the purchase cost for equipment, and then hand it back at the end of the term without any residual disposal or asset management issues. We are working closely with equipment manufacturers to ensure our longer term rental rates for 12, 24 and 36 months are competitive and attractive to our customers to assist them in better managing their costs.

Do you see organisations in the industrial and construction sectors taking up cloud computing in the near future? I do see organisations in the industrial and construction sectors taking up cloud computing - particularly with the increase in smartphones and the improvement in both costs and speed of internet available from our mobile telephone networks. We are already seeing an increase in cloud computing from our customers in this sector, with many of them now accessing our mobile website and YouTube channel to download information or instructional videos on the equipment that they have hired.

There has been much discussion in the general media of a weakening manufacturing sector in Australia. How do you see the future for Australian manufacturing? There is no doubt that some sections of the Australian manufacturing sector will struggle into the future and particularly those associated with the car industry as Ford, Holden and Toyota leave the country. However, there are other components of manufacturing that are doing well with strong domestic and export markets. Manufacturers need to be benchmarking themselves globally and ensuring that they are delivering world-quality products at competitive prices, which means they need to invest in people, plant and equipment to ensure that they are not just Australian leading manufacturers but world leading manufacturers.

David Gallagher was appointed CEO in February 2010, having held a number of roles within the TR business. These roles i n c l u d e d B ra n ch Ma n a g e r, Marketing Manager and Director of Operations. Prior to joining TR, David worked as Export Manager for Recoil Pty Ltd. The role covered North and Southeast Asia and the subcontinent, including branch responsibility in Singapore and Thailand. David also worked for Davey Products as Export Manager, covering the South Pacific, Southeast Asia and southern Africa.

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