EXPORT OPPORTUNTIES ABOUND FOR DIGGA

Written on the 8 March 2010 by Tom Reid

EXPORT OPPORTUNTIES ABOUND FOR DIGGA

WITH a national network of more than 400 dealers and export operations in Europe, Asia and the US, Digga Australia is the country’s largest manufacturer of earthmoving machinery and equipment attachments.

The company also now fully manufactures Kanga products out of its Yatala-based primary factory following the acquisition of the financially troubled mini digger and loader builders in early 2009.

Additional manufacturing plants in Sydney, Melbourne and United Kingdom service the extensive dealer network.

Digga CEO Suzie Wright (pictured), says the company will look to take advantage of recovering overseas economies but the priority in the current financial year is in consolidating the company’s Kanga acquisition and national market share.

“We are very much focused on continued growth in the Australian market. This country has had one of the strongest economies in the downturn and we don’t want to take our focus off that,” says Wright.

Wright says wholesaling to a dealer network has an immense advantage in sales and service to regional areas— where a significant percentage of Digga products are used.

“Having 400 dealers nation-wide is much more efficient than 60 salesmen in the head office. It would be very hard for our guys to know the areas and have the time to sit down and talk with country clients.

“To offer the best service you really have to have the time for them and that’s what our dealer network offers.”

Digga’s main priority in the export market is growing its presence in the United Kingdom where Wright says relationships can be built with OEMs as they come out of the recession.

With little competition in the specialised market, the opportunities in the United States however are plentiful. Digga recently secured a US defence force contract for 1000 of its Australian International Design Award-winning gearboxes.

The gearboxes use an innovative design to achieve a substantial increase in power output in a smaller unit.

But Wright is treating the volatile American market with caution however.

“We’re in the set-up stages and are looking for potential acquisitions over there. We may be looking at building a factory but the US economy is not recovering quickly at all from our side of things,” says Wright.

“We are already selling into America through a couple of OEM accounts and hope to have a company-owned operation selling by June.”

Digga Australia was the recipient of the 2009 Gold Coast Business of the Year award as judged by the Gold Coast Business Excellence Awards.


Author: Tom Reid

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