Compass moves all manufacturing to Newcastle
Compass Pools Australia has announced a restructure of its manufacturing operations in Queensland and New South Wales, which will see the Yatala plant ceasing to operate as a manufacturing centre and all manufacturing moving to the larger factory at Newcastle.
Managing Director Ian Mewett says that a significant number of Yatala employees will be made redundant as a result of the direct restructure of the Group's manufacturing activities.
The Yatala facility will continue to operate as a distribution hub for all Compass pool deliveries in Queensland and Northern NSW. Specialist staff will also be retained in the Queensland business for new mould development work, pool shell technology R&D and warranty support activities. Staff employed at Chermside in the Compass Pools SEQ dealership will not be affected.
Streamlining operations
“Less than 25 per cent of our national pool sales are in Queensland, so it really does make sense to concentrate our production efforts in New South Wales,” he says.
Mewett says that the downturn in Queensland played a part in the decision, but it was equally balanced with a need to streamline manufacturing operations.
“Since the industry downturn from the GFC in 08/09, the Victorian and New South Wales markets have largely recovered, but Queensland has not. The depressed pool market in Queensland has contributed to the decision, but it is equally as much about economies of scale with the rising costs of manufacturing, including costs of electricity, waste disposal, compliance and labour,” he says.
Between three and five additional production and yard staff will be employed at Newcastle. The NSW business currently employs approximately 40 staff and has a production capacity of 1800 pools per year. Compass has retail sales of approximately 200 pools per year in the Newcastle area.
“We are fortunate to have a very competent management team in Newcastle, headed up by our Chief Operating Officer Anthony Cross,” he says. “With Anthony’s team looking after all manufacturing going forward, it really does free us up to expand our retail brand in Queensland and to work on some new R&D projects that will benefit the entire Compass Pools dealer network.”
Victorian potential
Compass also has longer term plans to look at manufacturing opportunities in regional Victoria.
“Victoria is our biggest market, followed closely by NSW. We have an extremely efficient transport and distribution capacity between NSW and our distribution hub in regional Victoria (Shepparton), but it is only a matter of time before the right manufacturing opportunity comes along,” he says.
He also discussed plans to expand retail operations in SE Queensland, building on the recent takeover of the Brisbane dealership by Compass Pools Australia.
“With my wife and business partner Kerri, we are focusing on growing our retail presence in South East Queensland, as well as providing ongoing administration support to our head office operations in New South Wales.
“Despite the obvious economies of scale and transport efficiencies in consolidating all manufacturing at our New South Wales factory, it was a personally difficult decision to make,” says Mewett.
“Even though some Yatala staff have been made redundant, I am buoyed by the fact that our participation in the Queensland marketplace will continue to grow as we expand our retail operations here.”
For 33 years Compass Pools has been a recognised brand and a leading group in the Australian pool industry. For almost two decades the company has successfully promoted the benefits of its patented ceramic composite pool technology and Vantage in-floor cleaning and circulation system.
Compass Pools are also successfully produced overseas under licence.
Earlier in the year, a Brisbane dealer Compass Pools Northside collapsed, leaving Compass Pools Australia to finish the pools, largely through the SPASA Queensland watertight fund.
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