THE secret to surviving a world-wide recession is innovation, says
the head of a Dandenong South manufacturer that has grown steadily
since the early 1990s — even through the global financial crisis.
Sven Mannfolk, managing director of Al-Ko, which engineers
products for trailers and caravans, said the company owed its success to
its cutting-edge products.
“That’s really where our success has come from,” he said.
“We’ve been very innovative in what we’ve been doing. The fact
that we have been able to grow right throughout the GFC [global
financial crisis] and [up to] now is really because we have brought new
products to the market.”
In recognition of the company’s resilience and growth, the state
government recently inducted Al-Ko into the Victorian Manufacturing Hall
of Fame.
Manufacturing Minister David Hodgett praised the company for its innovative work.
“Respect and recognition must be given to this year’s hall of fame
company inductees,” Mr Hodgett said. “This year’s winners have
demonstrated an extraordinary capability.”
Mr Mannfolk, who has been the company’s managing director for 24
years, said: “It’s been a very enjoyable journey … to be part of
growing and developing the business and of course now, to be recognised
as a hall of fame manufacturer, is something that we really are very
proud of.”
Al-Ko supplies engineering products such as axles and brakes to
the caravan, motor home and trailer industry. The company’s success
comes from products such as its electronic stability control system,
which activates when a caravan or trailer sways while moving. Sensors
installed behind the axle monitor swing and apply brakes to straighten
the car and caravan.
The system became available only at the start of this year, but it is already being fitted by all caravan manufacturers.
“Some of them have made it standard either on some of the models or across the range,” Mr Mannfolk said.
“A recognition of the value of this system is that some of the
insurance companies are now offering a discount [on the premium] if you
have this fitted to your caravan.”
Mr Mannfolk said he believed manufacturing had a sound future,
contrary to some dire predictions about the health of the sector in
Victoria.
“Obviously that future is looking different today than it might
have looked 10 years ago,” he said. “You have to be extremely efficient.
To stay in manufacturing in Australia and Victoria you have to automate
your production because the cost of manufacturing is very high compared
to the south-east Asian region and other countries.
“To do so, you have to invest in the best equipment and the best
processes so that you can do it here, as opposed to people bringing it
in from other countries.”
DANIEL TRAN
dtran@mmpgroup.com.au
