Business continues to grow for Lumberland.
Only four years after starting up, Lumberland have already expanded, taking over the property next door enabling them to hold a lot more stock. Owners Simon and Fiona Cavanagh bought the Napier Road business on the outskirts of Palmerston North as an investment. Mr Cavanagh was running a fencing contracting business at the time and felt owning Lumberland would be beneficial, with access to materials at cost.
He intended to work at Lumberland for a short time, then return to fencing. Much to his surprise the work was more interesting than he had anticipated. “I had always worked in the rural sector and the thought of coming to work in town all day didn’t really appeal, but I like it. ”Preparing quotes, chasing up jobs and being able to be competitive despite being a small company was what he enjoyed most. “We are successful in gaining 70 to 80 percent of the jobs we quote for. ”Turn over doubled during the first two years and they began to look at expanding.
The Napier Road area worked for them. The location was good though still a lot of people weren’t aware Lumberland was there.
Lifting the image and moving to a higher- profile site made sense and at the right time the section next door went on the market. It was ideal.
“It was a great opportunity to double the size of our business. It meant we could lift our image, have room to move and work out of our own premises. It was an opportunity we couldn’t pass up. Six months after the shift to the new premises Mr Cavanagh said sales have lifted considerably. They have the irregular customers and new ones too. “Sales continue to grow”. “We are doing a lot of pole sheds now on rural properties, calf rearing sheds, sheds for tractors and equipment and worksheds.
”The new site has given them room to move, there is a concrete yard that is user friendly both for customers and staff. But getting the new space up and running was easier said than done. The site was zoned rural and gaining resource consent took some time.
The Palmerston North City Council needed assurances there wasn’t going to be a “grotty old timber yard” at the entrance to the city. Consent was finally granted and two houses that had been on the site were moved.
Building began and the new depot and yard opened in September last year. The Cavanagh’s found the slow down in the economy meant it was an ideal time to build. “It was easy to get a builder. When I needed a gibstopper or an electrician, they were here the next day. ”Lumberland went from 2000 square metres to 4100 square metres.
Staff numbers also increased from two to five. Being a fencer has given Mr Cavanagh an edge in the business, athrough post and rail fencing system is adesign he worked out. It is aesthetically pleasing and is a good solid fence that looks the same from either side. “It is a move away from the standard fencing. It really has the X factor. ”Over two years ago Lumberland joined the BuildLink group.
Lumberland remains 100 percent independently owned but has the advantage of the buying power that comes with being part of a group. “The biggest turn-around in the business was joining the Build Link. “We can offer trade prices to the public. We can sell at a fair price and offer good quality products. ”He said being part of BuildLink means superior quality products are sourced. “The economic down turn hasn’t hit Lumberland too hard. ”Though he said the recipe for business success is to keep over head slow and buy at the right price. Lumberland are at 138 Napier Road, Palmerston North.