Intellect Systems

Jason Monzu

Chris Kane

The downturn has hit the engineering and mining sector hard, with many companies forced to lower margins to unsustainable levels.

But Jason Monzu and Chris Kane of Intellect Systems say they are surviving by focusing more closely on their niche - providing electrical and control systems to the mining, oil, gas, manufacturing and utilities industries.

"The industry is becoming very cut throat due to the economic climate placing increased pressure on engineering companies to cover overheads and lower prices to be successful in winning work. On the other hand, as an employer there are more options when it comes to hiring staff and getting someone with the right fit for the business."

The company, which offers services including electrical design, industrial IT systems design and implementation and control systems management, recorded 136% growth during the past three years to reach $2.4 million in revenue during 2008-09.

It ran into trouble when Monzu discovered managing clients' business was difficult enough when trying to establish a new business at the same time.

"The most challenging part of start-up was developing the systems and strategies to manage and run a business while still working for the business. From this we learnt that the right way forward was to actively manage the time spent on working for the business."

As the industry changes, the pair believes the company's best opportunity to survive is to "quickly identify whatever key niches in the market, and don't be afraid to devote yourself to pursuing them".

Additionally, Monzu says part of the answer to surviving the downturn is simply growth, saying Intellect will "cement our company structure with the intention to become a medium size engineering house with the capacity to service larger projects and expand client base to create new business lines".

But he says the company is already preparing for recovery, focusing on its initial marketing strategy that emphasises "core values of integrity, innovation and excellence".

"We will develop a more well-rounded company structure, focused on maintaining customer satisfaction and expanding to ensure that we have the personnel ready to tackle new projects when they arise."