Sustainable growth key for McLaren’s

FOURTEEN years ago, Karratha locals Sean and Lisa Clarke had ambitions to establish a vehicle hire business with a fleet of about 50 vehicles. That target could now be described as having been wildly on the cautious side, given that they’ve just announced the addition of the 1,000th vehicle to their McLaren’s Raw Hire fleet.

The company has clearly thrived since the early days in 1998 when the only vehicle was a Toyota LandCruiser fitted with welding equipment, which the couple rented out from their home at the Karratha caravan park.

And in a far cry from income of $600,000 in 2004, turnover hit $23 million last year and is  forecast to top $32 million this financial year. 

Staff numbers have continued to increase to about 50, and key contracts on projects such as Chevron’s Gorgon and Wheatstone gas developments have underpinned growth in the vehicle fleet.

Under the most recent contract with CB&I Kentz Joint Venture, 100 McLaren’s vehicles will be used for the electrical, mechanical and instrumentation contract on Barrow Island over the next two years.

It’s anticipated the Raw Hire fleet will reach 1,500 in the near future, with the company having just approved investment of $40 million for 430 new vehicles.

Sourcing those vehicles has been McLaren’s biggest challenge as it’s navigated the recent years of rapid growth – the Fukushima nuclear disaster and Thai floods both nearly halted vehicle imports, meaning McLaren’s had to retain some of its older vehicles for longer than it would have preferred.

The Clarkes’ intention has always been to take advantage of a lack of  supply for specialised vehicles needed by companies operating in the north-west, and the mining boom has certainly been a key driver in demand.

But they say their local emphasis has set them apart from competitors.

“It’s not about cashing in on the Pilbara,” Mr Clarke said. “It’s about being part of a once-in-a-lifetime opportunity to watch a region grow rapidly and be part of its ongoing development.”

Part of that regional dedication is evident in the company’s pledge to only buy vehicles through local dealers – while they all end up coming from the same manufacturer, local dealers benefit by having the orders placed through them.

McLaren’s has now shifted its focus to sustaining its successful growth – that has meant implementing strategic processes such as developing a vehicle check-in system to make sure the quality of vehicles is consistent across the fleet.

New management roles, including the appointment of Byron Smith as general manager, have also been created to help the company grow into a more mature operation. 

Meanwhile plans for expansion continue; a Newman base will be opened in January next year with a budget of about $1.5 million for a purpose-built facility. 

The company already has branches in Port Hedland and Karratha, and a head office in Perth – established to try and tap into a larger pool of potential employees.

Mr Clarke said he always had his eye on expanding, but was wary of increasing the company’s physical presence too fast.

“Yes we’ve got branches in Port Hedland, Karratha and a corporate office in Perth and we’re going to open a branch in Newman in January 2013. But we’ve done that over 14 years,” he said.

“We see opportunities to grow all the time, but it’s not always the right time to be able to do so sustainably.”

The key for ensuring future growth is building strong relationships with clients – the majority of the company’s business already comes through word of mouth and brand awareness, but new advertising campaigns will work to hone this market presence.

General manager Byron Smith says the capacity and ability of the McLaren’s Raw Hire team has to be the focus from here on out: “Keeping our people is always going to be a challenge in this market, and keeping them at the appropriate level,” he said.

“If you don’t have the right people you can’t implement all the improved processes.”