Small business: Lubrication business Equipment Marketing (Emco) brings high-end Italian hose reels to Kiwis

James Driscoll is the managing director of Equipment Marketing.

James Driscoll, managing director of Equipment Marketing, talks to the Herald about how the reticulation products and installation services company is adapting and innovating to stay ahead of its larger competitors.

What is Equipment Marketing?

Equipment Marketing (2008) Limited, also known as Emco, is a wholesale business that imports lubrication equipment, primarily from Italy. Its high-end product range includes hose reels for oil, water, air, and grease, waste oil trolleys and drainers, oil pumps, and other fluid management products.

What motivated you to start the business?

After many years of consulting, we decided to start a small business that sold products rather than our time. This decision was driven by the desire to create a business that could generate income even in our absence, providing stability for our young family.

What services does Equipment Marketing provide?

Emco provides wholesaling and installation services for quality European and US-based equipment. We work closely with clients in the planning and designing of small- to large-scale reticulation systems for fluids and gases.

How big is your team?

We currently have three full-time staff and four contractors based around the country.

When did you start the business and how much has it grown since?

We bought into Emco in 2008 and have experienced cyclical growth in employees and turnover, producing a consistent income over the years and enjoying typically strong profits. Despite facing several challenges, such as the Global Financial Crisis and the Covid-19 lockdowns, the business continues despite the current national recession.

What challenges does the business face at the moment?

Larger Australian-based organisations have seen Emco’s business model and are now replicating it. This means we need to adapt and innovate to stay ahead of our competitors.

As a small New Zealand business, our knowledge and relationships with the local market give us a strong position against these larger organisations. We’ve noticed that work undertaken by offshore businesses often lacks understanding of local needs and frequently supplies inferior products with poor after-sales service.

What have been your highlights in business so far?

As a small company, we have done several significant projects that have stood the test of time. Our global suppliers have told us our work is of a leading international standard.

Other highlights include the relationships we have established nationally with leading brands, resulting in preferred supplier contracts. We are known as a company that will always stand by our work, not back away from problems, and ensure a customer is left with a reliable and durable product/system.

We have also developed strong technical skills and are often the go-to for projects that other businesses will not take on.

What growth plans do you have for the future?

We are now looking at strengthening and developing our online marketing and sales for our cardboard box sales. We are also considering expanding our hose reel range to cater to a wider spectrum of industry needs and costs. We’ve identified gaps in the lubrication market through competitive research and are keen to explore these opportunities.

What’s your advice for other budding entrepreneurs?

Starting a small business in New Zealand is not easy. It’s hard to get started and everyone is looking to chip away at your capital. Be careful with your vision — make sure it is bedded in a good financial and marketing plan and be very careful not to overcapitalise. Plan for growth conservatively as it can heavily impact your cash flows. New Zealand can be a very inconsistent market at times — being an island with a small population, it’s not only the weather that can be changeable.