ELB Equipment (ELB), a business with a century-long history, has established itself as one of the most respected names in its industry – it is one of just a few South African companies that can offer a broad range of earthmoving, construction, mining and quarrying equipment from a single supplier.
The company represents a number of world-renowned manufacturers whose products are designed to meet strict emission and safety control regulations. The benefits are clear – enhanced ergonomics; improved productivity; conformance to quality standards; as well as reduced operating costs. With an international supply chain, ELB today has seven branches in South Africa and seven dealers in the southern African region.
A single source
CEO Desmond van Heerden says: “The company was established in 1903, so we have long-established roots in the sector. We pride ourselves on our long-term relationships with all the stakeholders; we align ourselves to the needs of our clients, almost forming partnerships with them, and that approach really shines through. The ease of doing business with ELB is one of our differentiators – we are a very flexible, pliable organisation.”
He explains that the company consists of three divisions – construction, earthmoving, and mining and quarrying, with the latter being the strongest at the moment, accounting for around 60% of its business.
ELB follows a “best of breed” approach that aims at bringing customers the world’s best from a single source. The offering is wide and ranges from rollers, pavers and pipe-bursting systems to landfill compactors, from loaders and tracked excavators to screens and crushers, and many more.
Tailored solutions are also available – a dedicated Engineering Department develops modifications and alterations in partnership with the OEMs, ensuring approved designs with strict configuration control policies, all crucial in amplifying ELB’s level of aftermarket support.
ELB’s Parts Department offers round-the-clock service, ensuring that users have ready access to a comprehensive range of parts and service exchange components, thereby limiting equipment downtime. In addition, the company runs a 24-hour call-out service reflecting its commitment to ensuring the trouble-free operation of all its equipment in the field.
Handling the challenge
Mr Van Heerden himself knows the company inside out, having worked in the business for over 30 years in various departments, before being appointed to the CEO role during the pandemic. During that unprecedented challenge, he led the organisation to sustain its robust position and to emerge from the difficult years in a healthy, profit-making shape.
ELB did have to shut down the operation for some time with its employees going into isolation. However, as the company provides essential service capabilities to the mining industry and agriculture, it was allowed to keep its field service running, although the operation itself was very limited. “We had to do a little bit of restructuring and refocusing. And just making sure that we got the right things right. It was tough, but it was manageable,” says Mr Van Heerden.
“Getting through the Covid-19 pandemic and its financial and economic impact has been a major achievement we can be proud of,” he affirms, noting that the company has been stable through all the turmoil, and has now got back to pre-pandemic levels, experiencing steady growth with increasing income and profitability.
He acknowledges that the business is strong enough to withstand the new challenges resulting from the current macroeconomic and geopolitical upheavals – the war in Ukraine, short supply of equipment and components as well as shipping costs that increase on a monthly or bi-monthly basis. “The lead times for machines have gone way out, and that is a major concern. However, we do the best we can. And I think we’re doing quite a good job.”
Building communities
Despite the challenges, the company remains committed to supporting the wider community. ELB has recently become a proud holder of a level-one Broad-Based Black Economic Empowerment Certificate; and, together with the shareholders, has established an Educational Trust that provides bursaries to disadvantaged students, allocated on an annual basis.
Mr Van Heerden says ELB also runs a strong Yes4Youth programme, an initiative from South Africa’s government that provides a free and zero-rated national platform that connects talented and engaged work seekers to various opportunities.
“Within the programme, we took 30 people in this year to train them in a working environment, so that they develop skills for their later work. But we also run our own apprenticeship programmes, to bring some fresh blood into the business, which also helps us address the shortage of skilled labour in South Africa, particularly around technical skills.”
He affirms that the company is well aware of the value its employees bring to the business. “We take good care of our staff. We foster long-term relationships with our employees and pride ourselves on very low staff turnover. We take the same approach with our business partners. This organisation can only sustain itself if we have good, strong relationships with both customers and suppliers,” he says, noting that some of ELB’s relationships with OEMs date back 35 years.
Organic growth
Looking ahead, the company is set to grow organically, continuing to serve the South African market as well as those of the neighbouring countries. “The mining segment will probably remain our strongest line of business, although we have seen some very strong numbers coming through the earthmoving and construction divisions,” reflects Mr Van Heerden.
“Over the last 12 months, there was only one month with sales trends lower than in the previous year, the other 11 months all recorded positive growth. We would like to sustain that trajectory, possibly adding some products and services to our offering.”
He adds that the company is also focusing quite heavily on strengthening its aftermarket departments to provide its clients with a superior service, which will automatically give ELB that extra market growth.
With an outstanding level of service and a clear strategy for years to come, it seems that ELB’s tradition, spanning two centuries, is set to continue.
