IN CONVERSATION
machine that can do the same maintenance
work in certain sectors.
The Low Profile 1200-wheel loader is a
huge success in bulk materials handling.
This machine can manage three times
the volumes of a skid steer and can load
containers at a third of the time of other
machines. The haulage tractors have seen
phenomenal growth. In sub-Saharan
Africa, where they have nicknamed these
machines ‘the lion’ because of its strength
and reliability. There are huge growth
opportunities for us in Africa, while we
maintain our market share in South Africa.
We have shown a 25% growth year-on-
year for the last five years, and we have
strategies in place to build on that.
The mining and construction sectors
have been under enormous pressure over
the last few years. Would you agree, and
what has the impact been on equipment
sales at Dezzi?
If one looks at the construction companies
that have gone into business rescue the
past year or two, yes, we agree that the
construction industry is facing a lot of
challenges. With Moody's Investors Service
changing our government's credit rating
in the last quarter of 2019 from 'stable'
to 'negative', coupled with the fact that
unemployment is at an 11-year high, and
South Africa is facing huge budget deficits,
we have our work cut out for us. At this
stage we have not seen a negative impact
in our machine sales – our order book, until
end April 2020, is looking very promising.
We will not throw caution to the wind; we
will work smarter and adjust our strategy as
we encounter any challenges.
A variety of Dezzi hauler tractors are manufactured in Port
Shepstone. They are used in the mining, construction, plant hire,
forestry and quarrying industries.
With more regulatory certainty in the
mining sector, do you see more growth
opportunities in the near future?
The discussions around the Mining
Charter III is looking positive for local
manufacturers. It is a growth opportunity
for us, supplying equipment for surface
mining. Dezzi has been involved for
years manufacturing chassis locally
for other OEMs in South Africa for
underground mining.
Desmond Equipment SA (Dezzi’s) founding directors – husband and wife team, Louise and
Des Gutzeit (front) have been in business since 1973. The next generation of directors is
now phasing in, with sons, back from left: Jade, Shane and Carl taking the lead.
22
MARCH 2020
There are reports of more construction
projects coming online soon. Are
you aware of these new projects and
how will it affect your operations and
sales? Where do you think the most
opportunities for Dezzi are at the
moment?
Like all companies we subscribe to
informational portals that announce these
projects and tenders. We keep abreast with
the news on these tenders, and where
opportunities arise, we tender, depending
on the type of projects announced such
as civils, building, infrastructure and so
on. Where we can supply machines as a
local manufacturer, we will show growth,
depending on the industries that are most
active in releasing these new projects.
What would you say are the biggest
current challenges, first of all for Dezzi,
and secondly for South Africa in general?
The earthmoving equipment industry is a
cut-throat business and we have to stay
ahead of the opposition. Your salesperson
or brand sells the first machine, thereafter
the most important challenge is the back-up,
parts availability, and not to let a customer
wait for service. Fortunately, we have a
nationwide service network that reduces our
response time, here in South Africa and in
sub-Saharan Africa.
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