CASLAD: Building Bigger and Better

As 2020’s brutal lockdowns came into force, many entrepreneurs feared the worst. Consumers stuck at home, businesses closed, site activity ceased, investment crashed, and every penny being covered away for a brighter time. Negative sentiment was high, and growth prospects low. For many, there was no light at the end of the tunnel, and around 3000 businesses closed between March 2020 and June 2021.

But, at the same time, there were success stories in business, and those able to adapt and change at speed were able to achieve unexpected positivity – ‘Difficulties break some men but make others’ said Nelson Mandela in 1975.

CASLAD Agencies was established in 2009 and began as an importer and distributor of industrial equipment including ladders, castors, trolleys, scaffolding and more. Over time, the company grew and built robust relationships with clients, creating a presence across many of the country’s industrial sectors. Quickly, CASLAD began manufacturing its own products to ensure quality and delivery for customers.

Today, the business is a national success and operates in all major areas, as well as smaller regions through strategic partnerships.

Clayton Foster, CEO and Founder, tells Enterprise Africa that while others suffered during the pandemic, CASLAD was investing and growing with the goal of coming out as an industry leader. And it did just that.

“It was a challenge for everyone, but we did mange to come through it stronger. We secured some funding at a very preferential rate which boosted our cashflow and we were able to facilitate further growth within the company,” he says, adding that it was a very difficult period to manage but the culture in the company helped to drive continued ambition with a forward-thinking mentality.

“Our people were very understanding. When it began to stabilise, we found that we were preferred as a business because we had stock – during that time, we were still manufacturing. Our cashflow was good, and we were able to penetrate the market even further. It was a stressful time, but we managed to rally.”

With more than 100 people, and investments underway into a significant expansion project, CASLAD and Foster are proof that when you make the choice of optimism, opportunities are endless.

CLIMBING QUICK

CASLAD took on its own premises after the need to manufacture locally became apparent. Based in Boksburg, the company produces aluminium and fibreglass ladders, steel trolleys, and other products. Industrial materials handling equipment is also distributed from here to branches in Cape Town and Durban.

“We have two more branches in the pipeline – which we plan on opening towards the end of this year. From there, we will make plans around expanding into Africa,” says Foster.

“We recently purchased a new building next door to our existing premises where we will expand our manufacturing footprint. We are also expanding into the wire industry and we have just had a laser cutter installed with CNC wire bending machines as well as other technology to facilitate that factory. We will be manufacturing shopping trolleys and wire lockers and a range of other products,” he adds.

This expansion is not a result of vanity, or a kneejerk reaction following booming need as industry sectors opened post-pandemic – it is a calculated response to demand in the market. CASLAD has realised increases in demand and changes in buying patterns from its clients and is therefore confident in following an expansion strategy.

“In the last two years, we have grown 40% and we are expecting another 20% by the end of this financial year,” details Foster. “We have doubled our turnover in the last three years and we want to double again in the next three years with all the new lines that are coming onboard, as well as our new strategic partnerships.”

CASLAD marketing strategy pushes its strong brand online and at various trade events. A position at Electra Mining in Johannesburg and Gaborone in recent years have helped to fill the company’s pipeline, building strong and lasting relationships with clients. When this is backed with quality products, the growth potential is very strong.

“We spend a lot advertising our products. We attend major events and we have big scope – we are in a large range of industries and we can supply to anyone with a warehouse that needs to access or move something,” highlights Foster.

The SA government has placed infrastructure spend at the heart of its National Development Plan and is hoping to create jobs and opportunity in multiple sectors by 2030. Manufacturing, mining, agriculture, and green technology and energy are central in the rollout and, as investment is rolled out, opportunities in the supply chain become apparent for those able to deliver quality.

CASLAD is aspiring and has already put in place numerous differentiators in terms of excellence making it the first choice to anyone in the market.

BUILDING BETTER

Technology, efficiency, and reliability is where CASLAD stands apart from others in the industry. Always operating, not dependent on Eskom, and recognised for quality (backed by guarantees), Foster is adamant that CASLAD leads the way in South Africa in terms of delivery on promises.

“We are advanced when it comes to technology,” he states. “In our factory, our machinery is mostly CNC and we have invested heavily in the best machines in the market. That helps us to be versatile and efficient. We are not using old tooling and dies and presses – we have a 5-Axis milling machine and we process a range of products on that machine,” adding that CASLAD can swap input on machines in a matter of minutes compared to others where the process takes hours.

“We have one person operating a machine where it takes our competition up to 10 people to complete the same process. We are versatile, we have a big product range, we have a small staff compliment in relation to our competition, but we push out more than they can because of all the investment we have put into the company,” says Foster.

Further efficiency is achieved through the use of modern power installations. For too long have manufacturers been at the whim of loadshedding and Eskom incompetence. The entrepreneur in Foster refuses to have fate sit externally. “We have a 74 kW grid tied solar system installed at our Johannesburg facility, backed up with a 124 kVA generator. When it comes to loadshedding, we have protected ourselves and we are able to work whenever we need to,” he says.

Put in place in 2020, similar systems have been rolled out across the company’s footprint and the result is CASLAD able to operate to tight client deadlines, never missing targets because of blackouts or system shutdowns. With around 70% of products manufactured internally, and only minimal inputs outsourced, being able to operate without interference from an erroneous grid is crucial.

AFRICAN PUSH?

Before 2020, CASLAD had received great interest for its range from clients north of the border. Botswana was a strong market, with a powerful mining industry and a number of opportunities for CASLAD. The company had built relationships at the 2019 Electra Mining conference, and the path onto the continent had become clear. Foster and team went about establishing a presence in the country with a view to further rollout held for the following years. But the lockdowns of March 2020 in South Africa, and the uncertainty about the structure of pandemic management across different nations was too much risk.

“We were 99% there and we had the branch set up with a branch manager in place but Covid hit and we had to pull the plug,” remembers Foster. “We haven’t re-approached that just yet while we focus on the South African market to establish ourselves around the country so that our customers can access us wherever they may be. Then, we will relook at Africa.

“Logistically, Africa is a challenge,” he adds. “Botswana was the obvious choice for a first step. Even though we didn’t end up opening the branch, we still get the business from the people we met there. We are thinking about whether we look at this as a model for other parts of Africa, keeping production and sales centralised in South Africa, or whether we actually open a physical premises in those countries. When we have finished our expansion here, we will address that.”

As Fourth Industrial Revolution technologies help to automate mining and drive efficiency, the continent remains under the spotlight in the international community for its unrivalled mineral wealth. Clearly, Africa provides much scope for CASLAD but nothing will be rushed and there remains significant prospect for growth in South Africa.

ENTREPRENEURIAL FLAIR

Foster and business partner David Lyus know about taking advantage of gaps in the market in South Africa. Recognised for the past 14 years with CASLAD, and also building a modern, digital travel company – My African Dream Travel – while at the same time creating a wine business (Collectible Vintage) that brings the best of SA to international clients – these entrepreneurs know how to make things happen. For CASLAD, this will continue with further integration of the value chain to support quality.

“From a growth perspective, I am focused on owning the supply chain, and owning the full length of it,” reiterates Foster. “We want to own the production of the raw materials all the way up to the finishing of them. The bigger we grow and the more raw materials we demand, the more into the supply chain we will dive. That is how we will grow the business. we will open separate divisions and they can then supply the core business as well as external operations – that is our focus.”

An innovator with an eye always fixed on the next opportunity, Foster is certainly well placed to guide CASLAD forward, achieving industry leading status across each sector it supplies into.

As for his other ventures, the Collectible Vintage and its first product, Oniv, is sold out. Working with South Africa’s first master sommelier, the product has been hotly anticipated. My African Dream is set to trial a business model never seen in South African tourism while building sustainability in the downtrodden industry.

“We have a lot on our plate,” he smiles. “We are continuously expanding and trying to do everything ourselves to keep control over quality, supply, and price,” he concludes. Evidently, the stress and pressure that grew in the pandemic was short-term and those rolling out a longer-term growth strategy have been able to thrive. For CASLAD, there was always light at the end of the tunnel and now the company stands out brightly as a driver of positive activity.