Capital Equipment News January 2022

The distributorship agreement with McCloskey International in October 2020 allows McCloskey to expand its products and services in the mining, aggregates, construction and demolition, recycling and infrastructure markets.

It is a common norm that businesses should never put all their eggs in one basket; this is the central thesis on which the concept of diversification lies. Given the importance of a well-diversified portfolio in any market condition, Lothian maintains that the multi-brand approach places the business in a far more balanced position. In the event that one of the markets struggles, for example when construction is down, the business can tap into other markets such as mining and materials handling to remain on a level footing. “We are building our business around five different pillars – Kemach Forklifts (materials handling), McCloskey (crushing & screening), BULL backhoe loaders (construction), BOMAG (infrastructure development) and Liebherr, which gives us a footprint in not only construction, but also the logistical handling of mining materials. All of these segments leverage each other, giving our business the much-needed balance,” says Lothian. Apart from diversification into different sectors of the economy, the multi-brand strategy also allows Kemach Equipment to offer a total solution to its customers. As customers chase the convenience that comes with dealing with a single provider for their different needs, the equipment industry has not only seen an accelerating trend towards consolidation within the supplier community, but also an expansion of the range of products and services offered under one roof. This has created true one-stop shops that are able to service a wide range of customers’ needs from one stable. “In a crushing and screening application, for example, we are now able to offer a crusher and a matching excavator to load it.

Following the end of the JCB dealership agreement in 2021, Kemach has adopted a multi-brand strategy that has seen the company entering into distributorship agreements with several premium equipment brands

The business realignment strategy was put in motion in March 2020 when, in partnership with Anhui HELI, Kemach introduced its Kemach Forklift range, giving the company a footprint into the booming materials handling market

The distributorship agreement with McCloskey International in October 2020 was a further coup for Kemach in its quest to expand its products and services in the mining, aggregates, construction and demolition, recycling and infrastructure markets

In July 2021, Kemach was appointed as the new supplier of the full range of BULL backhoe loaders in South Africa, Lesotho and Eswatini

In August 2021, Kemach Equipment signed a distributorship agreement to sell and support the full range of Liebherr earthmoving equipment in South Africa

QUICK TAKE

single brand we were limited to a certain extent. There are several sectors of the South African economy which we couldn’t participate in. With a single brand, we were

pretty much limited to the construction sector, and missed out on opportunities in the materials handling, mining and quarrying sectors, among others,” explains Lothian.

9

CAPITAL EQUIPMENT NEWS JANUARY 2022