Wednesday, November 04, 2015

Regional development: Austarm success story

Rather a nice story on Queensland Country Life about New England woolgrower turned Rob Ward.

Mr Ward's Austarm Machinery sources hardy Australian-built tillage, seeding and spray equipment and ground engaging tools for buyers in Africa, the Middle East and Eastern Europe.

From his base at Armidale, Mr Ward identifies and sources gear across eastern Australia to meet orders from customers as diverse as land barons in Kazakhstan, to mixed croppers in Botswana and agricultural aid initiatives with African villages. Australia's minimum- and zero-till revolution of the past three decades has contributed significantly to his export success.
I will leave you to read the full story. I found it interesting as someone who tried to establish an international business from an Armidale base and knows how hard it is. After initial success, the business finally went down in the recession of the early 1990s. We were one of a number of Armidale start-ups at the time that centred on high technology or professional services and that, for a period, seemed likely to give Armidale a new economic base. In the end, most closed or moved, in part because of the cost effects of very high air fares for businesses that depended on constant domestic travel. In our case, air fares were our second biggest expenditure item after salaries. 
I must try to write up the story of those days for they have lessons for development discussions today. . For the moment, Austarm seems to have a business model that is location independent but firmly based on Australian technical advantage.   

1 comment:

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