In a recent address to the Cape
Chamber of Commerce and
Industry, Minister Trevor
Manuel, while talking about
the hardships of doing business in
the South African environment,
recalled how in 1995 as the then
Minister of Trade and Industry he
had given an export award to a Cape
Town company that manufactured
ovens for bakeries.
“Does this firm even still exist?”
he asked. “Which others have
shut down? It would seem that
competitive pressures from China
would have caused a wide range of
companies, including long-standing
intergenerational firms to move
from manufacturing to finance or
IT, sometimes because of creative
destruction or because a new
generation does not understand the
processes.”
Well Mr. Manuel, I have good
news. Not only does Macadams
Baking Systems still exist, but the
accolades continue to pour in.
Macadams, manufacturers of
ovens and all related products
for the baking industry, has been
around for more than 100 years
and is a South African good news
story of note. Having developed into
a major force in the international
baking industry, its key strength
has been its
ability to evolve
and reposition
itself in an everchanging
global
market.
“The company
was initially
an agent and
importer of
equipment,
but when
sanctions were
implemented
against South
Africa a radical
change had to be made and that led
to the purchase of a manufacturing
plant,” Shane McMeeking, CEO of
Macadams International, told FTW.
“But if you have a factory, you need
volume – and subsequently exports
grew.”
And not only to the traditional
markets serviced by South Africa.
Anywhere and everywhere is a
possibility for Macadams which
more than 20 years ago foresaw the
potential in Africa.
“We are strategically placed to
service the African market,” says
Graham Noonan, the financial
director. “It has been a major focus
for growth in the
company for at
least 15 years. We
have exported
to 36 of the 54
countries on
the continent of
which about 18
are active and
ongoing exports.”
Noonan
says the initial
focus on Africa
was primarily
because the value
of the sale was
higher and they found synergies for
their sales by providing complete
solutions to customers.
“Our business in Africa is slightly
different from the other markets
that we export to. In Europe or
Asia we have no control over
our products once they are sold,
but in Africa we create business
opportunities, we work very closely
with entrepreneurs and we have
long-standing relationships that
develop.”
It is not an easy market by any
means, says Mike Hodgson, the
company’s projects director. “We
had to develop the means to be able
to supply specific solutions
to different countries.
There is no one size fits
all approach. We were
selling ovens in the
Congo when they were
still at war and we learnt
some very valuable
lessons that have led us
to build a very strong
brand reputation across
Africa.”
Today, he says, the
African market is a
lot more stable and
predictable but it
remains risky at
times.
“One of the
greatest challenges
in Africa is that
its economies
are so small
that making
predictions
is very
difficult. You could have a fantastic
year exporting to a country and
then the very next not make one
single sale,” says Hodgson.
Their African recipe is based
on building good partnerships at
ground level in the countries to
which they export.
“It is all about
trust,” says
Hodgson. “You
have to be able
to provide longterm
service
to this market
– some sort of
scenario where
you can give
technical backup.
Training is
essential in the
African context.”
Their 17500-sqm manufacturing
facility in Cape Town is serviced by
sea and road.
“Airfreight is just too expensive
into Africa so we prefer to ship out
of Cape Town harbour and do the
final stretch of delivery by road.
Our service providers are chosen
to suit the ethos of our company
– reliability, dedication, open
communication, transparency
are what we look for in the
people we work with,” says
Noonan.
The company’s African
strategy continues to evolve,
says McMeeking. “We have
this year made some
significant progress into markets
like Sudan and Rwanda. Our
strategy for Africa is however not
set in stone. It changes and evolves
as does the market and we adapt
to conditions on the ground. At the
same time our export team works
hard at knowing the market. We
visit the countries
we export to
several times a
year, work on
our relationships
and continuously
strive to add
value for our
customers.”
INSERT & CAPTION 1
Africa’s economies are
so small that making
predictions is very difficult.
You could have a fantastic
year exporting to a country
and then the very next not
make one single sale.
– Mike Hodgson
INSERT & CAPTION 2
We have exported to 36
of the 54 countries on the
continent of which about
18 are active and
ongoing exports.
– Graham Noonan
CAPTION 1
The premises of Macadams Baking Systems in Blackheath Cape Town – strategically positioned for efficient
distribution into Africa and close to Cape Town harbour for international shipments.
CAPTION 2
The Macadams manufacturing plant – impressive systems to ensure a smooth operation.
