Scotch College

Adversity paves the way for a Tasmanian company

Adversity paves the way for a Tasmanian companyWhen the winds of recession blew across Tasmania five years ago, it provided the opportunity for a local business run by an Old Scotch Collegian to take stock and head off to a brighter future. Shaw Contracting, a family-owned earthmoving, mining and civil contracting company, was founded in the war year of 1941 by the grandfather of the present Managing Director, Cranston Shaw ('81). Over the years the business thrived, and was passed on down the family lines to the third generation, represented by Cranston.

"The core function of the business was in Tasmania," Cranston told Great Scot. "It was 100% civil contracting; mainly dam construction and road building." Then the recession struck. Dam building tapered off. Road building dwindled to a trickle. "It was a bit of a sudden setback," Cranston said. "It forced us to have a think about the situation, and to look at other options. We went off to try to find a good mining contract, which would give the company a good cash flow, constant work, and keep the machines - and the staff - going.

Cranston Shaw with the bigger digger!

"It was tough for a while," he said. "As activity slowed, we were forced to sell off assets, mainly machinery, to keep the company alive." However, in adversity came opportunity, and Cranston soon realised that there was a market for good quality used machines. "That prompted us to start a used equipment business, and we now import machines from all over the world for resale in Australia; or we use them to top up our own fleet of machinery, when required." Meanwhile, the search for new business yielded fruit, with the company maintaining its base in the island state, but winning contracts interstate.

"We gained good business in West Australian and Victorian mines, to add to work we were doing in Tasmanian mines," Cranston said. "As well, our civil contracting division has remained based in Tasmania, but is also tendering for jobs in other states. We built a section of the Hume Freeway, constructed water storage dams in Victoria, and recently completed a dam wall strengthening project on the Yan Yean Reservoir near Melbourne." Leaving the mood of recession well behind it, Shaw Contracting currently employs 120 people, and operates 85 machines of all sizes, ranging from six tonne to 120 tonne excavators. It also runs a large fleet of 85 tonne dump trucks, as well as bulldozers, compactors, graders and articulated dump trucks. Shaw Contracting's business is now 65% civil contracting, 30% mining and 5% machinery sales. Annual turnover currently runs at $35 million per year. Cranston says that necessity was the mother of invention for Shaw Contracting. "To put it bluntly, we live in an ever-changing world and the company had to change its way of business to stay in the game. By changing the company's business activities it also changed our bottom line, and we're now the flavour of the year with our bank!"

David Ashton