When the company representing Becker Pumps in Australia was bought out by Becker’s main competitor, the German manufacturer of vacuum pumps, compressors and pneumatic systems was left in the lurch and looking for a new distributor.
Enter Phil Giles. Already heavily involved in the vacuum industry, and working at a firm that occasionally sourced Becker products, Phil was familiar with the company, and well placed in the industry. So, in 2001, after meeting with the management team in Germany, and convincing them he could grow the business in Australia with the help of his own sub-distributor network, Phil took over the Australian distribution, running Becker Pumps out of his Brisbane home.
Escaping the 9-to-5 grind
At the time, James Stewart, current owner of Becker Pumps Australia, was whiling away the hours at a boring insurance job in Melbourne. “I was getting nowhere with the 9-to-5 grind,” he says. “But the thought of running my own business had never crossed my mind.”
At least, not until he had a conversation with father-in-law Phil.
“I’m not sure how the initial conversation eventuated, but it was decided I could be of some assistance to Phil on a part-time basis by managing his spare parts business. His turnover was steadily growing and at the time he was still using a 4 x 6m shed in his backyard to store everything, so it was bursting at the seams,” explains James.
“We both saw this arrangement as a win–win, so he shipped all the spares down to Melbourne and I set up shop in a shed in my backyard!”
I’m so grateful to be in this position. I could still be in a normal 9-to-5 job now if it wasn’t for the opportunity afforded me by my father-in-law.
Over the next few years, Phil operated out of Brisbane while James ran Becker Pumps Melbourne. Then, in 2007, after the birth of his first child, James and his wife decided to move closer to their family. “We decided to move back to Brisbane, combine the two businesses we had set up and nurture more growth for the Becker name in Australia.”
A new market in medical suction
“For a long time the name Becker was synonymous with the printing industry but the demand dropped off. The repair and replacement business was strong, but most of the machinery that had Becker pumps fitted was manufactured overseas.
“We needed a niche that we could tap into that resulted in us being able to sell our pumps at the manufacturing stage. It was Phil’s brainchild to look into medical suction as an alternative. We started our own, albeit small, custom-made production line.”
We’re now one of the leading suppliers of medical suction systems in the country.
Becker’s dry-vane pumps, which require less maintenance and use variable speed drives for greater efficiency, provided the business with its point of difference. And the idea paid off. “We’re now one of the leading suppliers of medical suction systems in the country,” boasts James.
The company is currently in the process of adding dental suction to the mix, but this has proven a little more complicated. “There are more regulatory approvals required when selling dental suction as it is considered a medical device, which wasn’t the case with medical suction for hospitals,” James explains. “We designed our own unique system and methodology and even took out a patent on part of our design. It has been a long, hard road, but we are on track to complete this process by the end of 2017 and start reaping the rewards thereafter.”
Navigating the GFC
James is no stranger to overcoming challenges, having seen the business through the GFC. “Things were tough. Everything seemed to happen at the same time for us. We had already decided to expand our business and hire a salesman for the Brisbane area and an engineering manager to help with growth in the medical suction side of the business. We also moved premises at the time and the downturn in sales hit soon after,” says James.
In fact, the business took a massive hit, and James wasn’t sure it would recover. At one point, Phil and James considered selling the business.
“Luckily, that didn’t eventuate. I got advice from a business coach and also looked to Phil and my key personnel for guidance.
“The theme was common amongst them – we can ride this out and come out the other side a stronger and more robust business able to meet new challenges head on,” says James.
They weren’t wrong. The business not only survived, but flourished. Through all the peaks and troughs the business has grown from $200K to $2.2M in 15 years. “This is an achievement I am proud of when you consider the high attrition rate for small businesses during that time,” says James. “It has, in no small way, been aided by the team around me and the loyal and dedicated staff.”
Building the Becker brand in Australia
In 2010, James signed an agreement with Becker Germany to take over the distributorship rights from Phil’s company. He says the relationship with Becker Germany is of paramount importance to the Australian company’s future growth plans.
“They can see we are serious about building the brand in Australia and New Zealand; but realise we don’t have the budget of a large corporation. Hence they are constantly and pro-actively checking with us if there’s anything they can do to nurture future sales,” he explains.
“We meet once a year with the area sales representative and they are always willing to advise us on solutions to problems that arise from time to time.”
The goal for Becker Australia is to double its turnover within 5 years, with set goals along the way in a detailed business plan. “Without planning, failure is imminent; I have therefore engaged trusted advisers to check in on us and guide us along the path,” says James.
Never boring
It’s clear that James has never regretted his decision to leave the insurance industry and run his own business. When asked what he loves about his job, his immediate reply is, “It’s never boring!”
He goes on, “I’m so grateful to be in this position. I could still be in a normal 9-to-5 job now if it wasn’t for the opportunity afforded me by my father-in-law, the great relationship and support from the team at Gebr. Becker, as well as my wife, who has put up with a lot through all the ups and downs.
“I took the opportunity and drove it to where we are now but couldn’t have done it without the loyal and dedicated team working for me and the key advisers I’ve aligned with. We still have a long way to go – I don’t believe we’ll ever stop growing and improving ourselves though.”
As a former long-time associate of Becker in the USA, and friend of James’, I can agree that the work is never boring. There is always something new with every project. I have seen James grow in his business (from a great distance), and wish him the very best in the future.