South Australia’s economy is displaying standout economic growth, according to the ANZ Stateometer report. ORIX’s Alex Alvarez certainly sees the potential in this thriving southern state. He recently joined the global fleet service provider’s local South Australian presence as New Business Manager.
“I understand business relationships here are very personal, and I’m excited about getting to know local executives and businesses, and talking to them about their fleet needs. We’ve identified some important industries whose bottom lines we believe we can improve through our leading technology and service.”
Key growth areas in South Australia
With significant federal government investment in both defence and space technology, as well as major residential development and mining infrastructure activity, there is a great deal of construction going on in the region.
“A flexible commercial fleet is vital for servicing the construction industry. We know construction projects have limited or changing timelines, so they need a fleet that can flex to suit the project needs – such as mini- or seasonal leases for tool of trade vehicles,” says Alex.
“Compared with Australia’s east coast capitals, Adelaide housing is still more affordable and we’re seeing growing residential developments in the region,” says Alex. “We do understand the ongoing challenges in the construction business model, and believe tailored products and services are essential to meet this industry’s needs.”
The healthcare industry is another growing opportunity in South Australia. With an ageing population and over 27,000 South Australians already benefiting from the federal government’s NDIS scheme, increasing numbers of people are becoming eligible to receive care and support services.
“We specialise in developing solutions for organisations that service the disability and aged care sectors,” says Alex. “For example, our carpool booking system lets employees share vehicles – ideal for an industry so dependent on shift work.”
Alex says there are also great opportunities for healthcare providers to increase their return on investment on their trade vehicles. “We’ve looked into ways to automate the way people use these vehicles to decrease admin and operational time, while increasing productivity and time to focus on creating business efficiencies and cost savings.”
Primary industries such as agriculture is also booming in South Australia, with its flourishing wine and food regions. The industry accounts for roughly 11% of the many small and medium-sized (SME) businesses that are the heart of the South Australian economy.
According to 2017 research, 98% of all SA businesses were small businesses employing up to 19 full time equivalent (FTE) employees, contributing $35billion to the economy annually.
“Every SME has unique and changing needs for their fleet. Sometimes they need to scale up, and other times it’s about scaling down and making the most of what they’ve got,” says Alex. “ORIX’s operating lease is a great solution for small businesses – and one they might not always know enough about to seek out.”
Typically, smaller businesses are more likely to be on a finance lease which may means they could be missing out on cost savings, as well as ways to reduce the risk of tying up their capital in an aging fleet.
Alex says fleet managers often overlook this factor if they’re focusing on cost. “For a fleet of 10 vehicles in a growing business, this becomes an operating expense. They think they’re saving money by maintaining a car that’s 15 years old – while actually that is heightening their vulnerability to risk by operating a vehicle with a higher likelihood of accident or injury to the driver,” says Alex.
Optimising transportation efficiency and costs
The biggest hurdle for many businesses is knowing when to re-think the status quo. Many businesses managing their own fleet tend to stick with what they know. But this can lead to missed opportunities to optimise fleet costs, which can have a significant impact on a business’s bottom line.
“By investigating your current leasing policies and contracts, you can uncover any hidden costs and benchmark your total cost of ownership, to potentially optimise your fleet size,” says Alex. “Regular strategic reviews ensure you continue to save, year after year.”
As one of Australia’s leading mobility solution providers in full-service fleet management, ORIX is committed to assisting businesses realise more value and efficiency and have more confidence in their fleet and leasing arrangements. No matter how big or small their operations.
“As specialists in the acquisition, financing and management of vocational tool of trade and commercial vehicles, we’re excited to talk to these growing South Australian sectors – and work out how we can apply our flexible and financially optimised solutions to their projects.” says Alex. “We’re also excited to work with sectors like medical and health, renewable energy and Industry 4.0 technologies.”
From mini leases to car-pooling platforms, ORIX has flexible solutions that help you respond to opportunities fast.
If you’d like to have a chat with Alex to discuss optimising your solution, you can reach him on 0416 240 315.
