Robert Dindas

Dindas Lew Australia

The timber industry has had more change in the last few years than in any period in the past.

We’ve seen the consolidation of producers into fewer but larger companies, and similar consolidation in the reseller sector, initially led by the big box retailers.

These changes have led to bigger companies in our industry, which has impacted on everyone in our industry.

Today the average timber company is much bigger and is more systems and corporate strategy focused. Advances in technologies have played a significant role in this growth.

The big producers and the big resellers use similar logic when they plan their tactics.

Their aim is to make or sell more by utilizing their resources to the limit.

This way they reduce the unit cost of production or distribution, leveraging off economies of scale, technology and market power.

In many cases, timber sells at prices similar to 10 years ago. This means the price of that timber has in fact dropped relative to other substitutes.

This is not necessarily a problem; it has in fact ensured timber remains competitive with other building products.

The increased competitiveness of timber has only been possible because cost has been taken out of the system - we are all working more efficiently.

Real success is only possible when you are able to add more value, relative to cost, than your opposition can, and this is what the leaders in our industry are all trying to do.

So what excites me?

We all get excited by a sporting event where the competition is fierce. I see no difference in business.

Every day is a challenge and every day we look at ways to do things better, at a lower cost, and so improve our efficiency.

The victory lies in the satisfied and loyal customer, and (hopefully) the profitable bottom line.

I get excited when we find a better way of adding value, or when we win a customer over, not just because our “price” was good, but because we did meet - and perhaps even exceed - that customer’s expectations.

What keeps me excited are all the possibilities in the future that come as our industry develops further.

I look forward not only to the opportunities that come, but also the obstacles ahead. Success in a changing industry is possible if we can turn obstacles into opportunities.

And what concerns me?

I guess my main concern is the de-humanizing we are seeing in the industry. Every day we are seeing products, processes and now people becoming more like computer codes.

The existence of big corporates and conglomerates will continue to put pressure on traditional privately owned timber companies - those whose relationships and characters actually built our industry out of nothing.

Relationships and loyalty are now taking a back seat to corporate strategy and market positioning.

I’m grateful that I remember the days when customers were actually people, and I hope my customers and suppliers will continue to see Dindas Lew as a great bunch of talented people that complement their businesses, and not just as stepping stones to market share.