MRC Group: Building Envelope Installer Posts Strong Growth

South Africa in 2013, after the global financial crash and post FIFA World Cup, was similar in economic backdrop as it has been for much of the past three decades – not living up to potential. Too many still out of work, corruption still seemingly rife, a tax base too small to deliver true change, intermittent energy supply – the list goes on. But GDP still grew by 2.5% compared to the previous year – one of the better performing countries globally.

For entrepreneurs Richard Polling and Marc Ferriman, there was an opportunity. Investments were being made into property. Companies and property owners were beginning to shift focus towards refurbishing and upgrading their facilities, and government was spending on new infrastructure.

The pair established MRC Group and began to work on building projects, contracting as metal roofing installers. After not long, the quality of work was clear for all to see and the company was asked by its clients to expand its service portfolio. Polling and Ferriman obliged. From here, MRC Group boomed and quickly garnered a reputation as an industry-leader. Economic uncertainty, political instability, and unfavourable conditions could not stop this roofing specialist crashing straight through the ceiling and aiming for the sky.

“Our first contract was on the other side of the country and was a 12-hour journey to Upington where we had to take some insulation out of a roof and put new insulation in. From there, we went from strength to strength,” remembers Polling.

QUALITY PARTNER

The Gauteng-based business is now the partner of building owners, developers, architects, quantity surveyors, and structural engineers, all over South Africa and growing into the sub-Saharan region.

“We are well-known for high-quality,” confirms Polling. “People know that we are not going to be the cheapest, and we trade on the basis that we are never going to be the biggest. But we do like to ensure we are one of the best, if not the best, in South Africa. We take pride in what we do but, because we offer the design service, it means we have to take full responsibility for everything we do.

“90% of our work is in South Africa. We do have potential projects in Nigeria, and we have done work in Botswana, Namibia and Zambia, but we do focus on South Africa as there is plenty of work here.”

The envelope of a building is where MRC delivers expertise. “Whether it’s a façade, a waterproofing system, a metal roof, green roof, living walls, corrosion coating, dry walls, fire walls, fire ceilings, raised access floors, rain screens – we cover everything and we are different because we offer full design as well as installation and maintenance,” details Polling.

Typically, many buildings in South Africa have been constructed using outdated technology and lacking adherence to international standards (Class B insulation is an important example). Of course, modern structures are almost universally well-built, but for older buildings and those requiring immediate maintenance, MRC is the perfect partner.

“We have now done work in most towns and cities in South Africa because of what we do and how we do it. Around 70% of our work is refurbishment and 30% is new build,” says Polling.

SHIP SHAPE

Currently, a major project for MRC is the new MSC Cruises Passenger Terminal at the Port of Durban. This R200 million project started in 2019 and was led by the KwaZulu Cruise Terminal Consortium (KTC). MRC Group has been integral in the development of this exciting new building which is set to receive cruise line guests from all over the world when the tourism industry is allowed to operate without restriction. Previously, MSC Cruises docked one liner at the Port of Durban but decided to double its traffic into South Africa thanks to increased demand. In the future, MSC will operate the Opera and Musica out of Cape Town and Durban, with each ship capable of carrying thousands of passengers. The previous arrival terminal in Durban, the N-Shed, was a makeshift building that has been operating for several years. The new structure is leagues ahead of existing infrastructure.

“We are at the end of that project and we have completed a full roof cladding system and façade system all in one. That was a big project for us and it will be an iconic building in Durban. It’s a parabolic design and small triangles make up a larger triangular shape across the entire roof area. It’s highly challenging and it is one of our most iconic buildings,” says Polling.

The terminal building is a 5000m² concrete and steel structure with multiple different areas required for inbound and outbound travel, including immigration, police services, baggage handling, check-in, and more. Internally, the finishes create a quality impression with beech ceilings and polished concrete. Externally, the roof and façade are firsts for South Africa, made from a composite structure supporting Equitone panels in an intricate arrangement.

Away from Durban, the company is also busy with a long-term contract for a large technology business investing in data centres. A building, or space within a building, dedicated to the storage of computer, telecoms and storage systems, data centres are becoming increasingly common, and their development has been spurred by the pandemic with digital communication technology driving the business environment.

For MRC Group to be involved in projects like this is a big deal for Polling.

“We have a number of data centres where we are handling the installation of the internal building envelope,” he says. “We are also handling the inside and outside façade in a major five-year development. There is a lot of investment going into data centres – perhaps thanks to Covid and the resultant switch to using technology every day.”

Major data centres are planned for Johannesburg, Cape Town, and Stellenbosch. Careful planning and development has to go into the construction of a data site, with extensive consideration given to fire protection and cable routing. Large data halls must be fireproof, cool, well-insulated, and will sometimes require raised floors and specialised cladding. This is why MRC Group us a contractor of choice.

“We tend to be involved with our clients for more than 20 years. It’s a different approach to most contractors who go in and do the work and leave. We do the maintenance too, and most maintenance schedules run twice a year so we are constantly reminding our customers that we are here,” says Polling.

GROWTH X3

For many in construction and development, the past 18 months has been a major challenge with Covid-19 restrictions preventing ordinary work to continue on site, and money from investors drying up or being held back. Despite the essential nature of the industry, there are few who can state that the last year has been business as usual.

For MRC Group, while the industry has been slowed by the effects of the pandemic, the work has not dried up and Polling has given the instruction loud and clear: Full steam ahead.

“I’m bored of the Covid story,” he states. “Going into Covid we had a lot of work and then the SA lockdown hit but we were allowed to work as a contractor under emergency legislation. We were allowed to assist in emergency situations with repairs and other work. We didn’t do a lot but it was enough to keep us ticking over.

“When we came out of lockdown, our workload was reasonably healthy and we have gone from strength to strength. The business turnover has increased by around three times. From a business perspective, it did not impact us too much and the reality is that our pipeline and order book is extremely healthy.”

This continued stream of work can be put down to three things – quality of portfolio, quality of relationships, and the never-ending nature of maintenance when it comes to buildings.

“From a maintenance perspective, you either have it or you lose your warranty. If you don’t maintain your roof or water proofing, all the money you’ve invested is at risk as you will lose your product guarantee.”

Because of the company’s history and the ability to prove its worth, long-term and direct relationships with clients are helping to consistently grow the MRC Group pipeline.

“We don’t tender for a lot of work, we negotiate directly with our clients. The type of client we are involved with is blue-chip. Consol Glass, BMW, Mercedes-Benz, Redefine – a lot of the bigger developers. We are doing a lot of work for PepsiCo and Kimberly-Clark right now – it’s mainly a lot of the bigger property owners. We don’t tend to work for a contractor, we work directly for the client themselves,” explains Polling.

In order to market the company effectively, major projects are showcased through social media specifically LinkedIn where MRC Group is constantly active in trying to build its profile.

“We are one of the only companies in South Africa who puts this level of detail into social media but people recognise it and appreciate the transparency,” says Polling.

“We do a lot of Facebook and LinkedIn. We do a lot of technical articles in construction journals. We have a lot of different sites and a lot of technicalities that we are trying to show people. We don’t polish our photos or make any enhancements – we show people exactly what is going on and they can see for themselves the work that we do and the quality we install. It also allows us to show the challenges we face on site and displays the true live environment that we work in.”

SUPPLYING THE BEST

The MRC Group process is start-to-finish. There is no parachuting in and leaving before the end of a project. The company describes its involvement as ‘cradle to grave’. From the initial design process through specification, installation, and maintenance; by utilising industry leading products the MRC Group brings international excellence to South Africa.

“The type of work we are involved with is highly technical and we are bringing systems and solutions into South Africa from all over the world,” says Polling.

“We only work with good quality products that come with good quality technical back up. It’s all very well having a great product, but if you’re not there to help us on site or to help our design department then you’re not going to be a lot of good. It’s a mixture of technical capability, quality product, quality material, and stock availability.

“Our relationship quality with our supply chain is imperative for the business – our supply chain means everything to us. The reality is that they are there to support us. The type and size of project that we are involved with, it would be impossible to fund without a quality supply chain that helps us bring about the results we want. A lot of what we are doing alongside our supply chain is helping them make more work and they help us by supporting us through our installations.”

STEELED FOR THE FUTURE

Construction and development continues to change as an industry sector – especially in South Africa. New materials, new regulations, new parts of the country, and new total cost structures are important for all contractors to take into account. For Polling and Ferriman – both industry veterans, running MRC Group for almost a decade – shifting concepts are well received.

“We have grown into the marketplace and we are now starting to see much more opportunity. More and more solutions and more technical offerings are coming to the table but that is an evolutionary process.

“We were in the heart of the process of changing regulations around how to build. Our changes included ensuring more, thicker and better insulation is used to keep buildings warm and cool. We were at the heart of that change and it is going out to public committee as we speak.

“The major change for us is seeing a switch from new build to refurbishment as people cannot afford the new build side of it.”

To ensure a streamlined approach to each project, MRC Group has split its offerings into separate divisions, each capable of delivering the precision and quality that the company’s reputation is built on.

“Our divisions include water proofing, metal roofing, façade, and green roofing. But even though we have segregated the business, we are a lean machine. We have 20-25 internal staff and project managers, and we have around 140 on site staff. It’s responsive to the work we have, and right now we are busy,” details Polling.

In the future, MRC Group is certainly looking to take the bull by the horns in terms of driving progress in a sustainable and quality-focussed way.

“Our design capability is a real differentiator. We don’t sit and wait for people to give us solutions – we give them the solutions and we tell people how things should be done,” Polling confirms.

With the global community now seemingly looking beyond the pandemic, and the SA economy predictably unpredictable, the CEO is confident about what lays ahead.

“There is money to be spent and the South African story is that people are starting to invest in the country again – we are seeing that. We are seeing the data centre work, we are seeing food storage facilities, we are seeing distribution centres. Commercial has been hit in terms of office blocks, but everyone has to refurbish their buildings.

“We want to carry on growing. If we haven’t already done so, we want to establish ourselves as the go to building envelope installer and supplier. We want to be the company that everyone comes to when there is a design challenge or when they need help and assistance. We are getting there, and it is our goal for the next two to three years,” he concludes.