An exclusive one-day FICA workshop designed specifically for forestry contractors brought together a combined industry experience of over 150 years in Taupo recently.
Facilitated by Garth Beker (BFA), other speakers included Paul Gwynn (CrediFlex), Mike Fraser (Fraser Logging) and Ken Holmes.
The session which involved 10 contracting businesses, was about stepping away from the day-to-day, and challenging how each contractor currently thinks about their business, their goals and what they want the future to look like.
Paul Gwynn, CrediFlex Director said “the workshop was incredibly worthwhile because it allowed a neutral territory and space for contractors to open up, discussing and sharing how they each manage aspects of their businesses,” he says.
“I have been at similar transport, agriculture and civil sessions, and generally speaking, everyone is really guarded about their businesses. So, it was really refreshing to see contractors share deep insights into their businesses, and how they manage things.”
Funding mechanisms for second-hand gear and rebuilds
One key thing that stood out from the day to Paul was a robust discussion about funding mechanisms and banking structures that are available to contractors.
“We discussed the funding mechanisms that are available to contractors and the conversations were really robust. For example, we talked about how contractors can 100% fund second hand gear over a respectable period,” he says.
“They can also progress payment fund significant rebuilds (in the $100-$400k range) and give their existing asset a second life. In the current market, that’s more realistic sometimes, so we need to be providing more information and making contractors more aware of their various options.”
Contractor risk vs work concern
Another was the contractor risk and capital cost vs work certainty and value.
“Discussion really highlighted contractor concern about their risk and their capital cost when coupled with their consistency of work and the contracts they’re taking,” he says.
“If we can look at it from the angle that contractors can work as a collective, then they’re a lot more powerful.”
“There is absolutely more work to be done around safeguarding these business owners – our job as a broker is to make sure the funding works on both sides of the ledger when all is said and done.”
Legends demonstrating pure grit
Paul said the presentations from Mike Fraser and Ken Holmes gave real-world context and inspiration.
“Mike’s presentation blew my mind. His empathy and support for his staff and the way he has built his business around teaching staff is amazing,” says Paul.
“Ken was very entertaining too. He’s a true example of good old determination and pure grit – he took a massive leap of faith and it paid off.”
