WA surveyor navigates rocky terrain

A DROP in demand is rarely considered a blessing in business, but for Western Australia-based Land Surveys a post-GFC lull has enabled it to become more sustainable and prepare for the growing resources economy.

In the years leading up to 2010, the survey company’s turnover had increased by more than 325 per cent while staff numbers tripled – successes that resulted in it being named a winner in WA Business News’ Rising Star Awards.

The company had several long-term contracts that enabled it to work through 2008-09 without experiencing the negative impacts felt by other businesses operating in the resources sector.

But founding director Peter Rullo says 2010 presented a quieter period and the company lost some of the hold it had on the market.

“We didn’t want to discount the price too much, unlike some of our competitors, which meant we probably lost a little bit of market share through that time,” Mr Rullo told WA Business News.

But the dip enabled Land Surveys to come to terms with its rapid growth and meant Mr Rullo could consider how to plan for the company’s succession; he reduced his total ownership of the company to a 71.2 per cent share by bringing in senior management as shareholders, of which there are now seven.

He also recruited former university friend Bruce Baker from his role at Neptune Marine Services to become the company’s general manager.

Mr Baker says Land Surveys had been running “on the back foot” up until 2010, but it has since been working to streamline its work processes and become more efficient and sustainable.

While the company opted to reduce staff numbers by about a third during the quiet period, the employee base has now doubled to 140 and turnover is expected to reach $24 million this year, up from $14 million last year.

The company has also been expanding across the country: it has just opened a satellite office in Port Hedland and has branched out into Queensland.

Mr Rullo said he took the initiative to enter the Queensland market after having seen the resources boom take off in WA, and anticipated similar activity in the east.

“There’s a lot of mines and coal infrastructure over there, but I don’t think the industry had seen such a rapid development of so many projects all at the same time as we have in WA,” Mr Rullo said.

But eastern activity has been slower than expected, which Mr Rullo said had encouraged surveyors to move west to get business from the booming mining sector here.

Mr Baker said amidst such competition the defining factor was having good employees.

“It’s got to be your people first and then your brand and reputation,” he said.

“There’s not much to differentiate because you all use the same technology – what we can add is getting the right people in at the right time.”

Getting skilled staff was one of Land Survey’s biggest challenges; it relied on recruiting staff from overseas and even flying workers in from New Zealand for projects. 

About 80 per cent of the company’s staff are employed on fly-in fly-out rosters, which Mr Baker said make recruitment even more difficult.

“You have to work remote, surveyors are at the very edge, so that doesn’t really appeal to those that want to have their social life,” he said.

It also had to combat severe shortages in accommodation for FIFO workers, increased red tape around contracts and a demanding financial environment.

“You’ve got wage costs increasing and we’re being squeezed as a supplier. Even in prosperous times people are going bust so it’s a hard place to work in,” Mr Baker said.

But he maintained a positive outlook; the company has invested almost $3 million in a new office development in Belmont to house its growing employee base, and was expecting turnover to grow by between 15 and 20 per cent in the next financial year.

DO YOU KNOW A RISING STAR?

Registration for the 2012 Rising Stars awards is now open!

Visit www.rising-stars.com.au