2024 Thought Leaders: Mark Ferguson

What growth opportunities do you predict for your industry in 2024?

I see potential for growth in the supply of purpose-designed compressors and systems for contamination-free, scientific, chemical, food and beverage and precision engineering applications. The introduction of new innovations in specialised, energy-saving compressors, including variable speed, permanent magnet, oil-free and low-pressure models, offers machines that are designed to match critical industry needs with maximum energy efficiency. Global resources also allow us to custom design and build compressors for mining, marine and other demanding applications.

With industry needing to maintain compressors and systems in peak running condition to maximise production with the lowest possible energy usage and extend the life of existing installations, we will see a growing need for repairs, replacements and regular servicing. To that end we have increased our national fleet of highly trained mobile technicians backed by a comprehensive stock of compressor parts and system accessories for all makes and models.

What are the three biggest challenges or threats facing your industry in 2024?

We find the three biggest challenges are around staffing, energy costs and global unrest.

Firstly, there is a shortage of available personnel skilled in compressed air-related trades and administration. Being a highly specialised industry, we are aware of the need to train future technicians through an ongoing apprenticeship program. Even competent technicians from similar fields need intensive training and experience in the ever-evolving compressed air industry. The hangover from COVID-19 also continues to put pressure on recruiting and retention of our workforce; however, we believe providing a positive work environment and real growth opportunities will keep us ahead of the game throughout 2024 and beyond.

Increasing energy costs and supply uncertainties also continue to put pressure on our industry and that of many of our customers. We at Kaishan must continue to lead in the development of low energy cost solutions to compressed air supply. With the introduction of global initiatives including rare earth and permanent magnet technologies, we are currently achieving quite remarkable results in improving energy in to airpower out ratios that have maintained compressed air as a viable and sustainable power supply.

Thirdly, uncertainties in relation to global trading and the ramifications of international conflict are constantly putting upward pressure on pricing for production commodities. Increased capital costs of compressors and ancillary products are stifling customer equipment upgrades and replacement investment by customers.

How is your company mentoring staff and developing workforce skills in 2024 and beyond?

As a rapidly expanding business, we are constantly seeking skilled and capable people to grow and enhance our administration, sales and service departments around the country. Attracting and retaining these people is an ongoing challenge with intensive training and retraining, remuneration and succession strategies that reward our people. Our apprenticeship program is training new technicians to handle current and future developments in the industry.

What strategies is your company developing to build resilience to extreme weather conditions in 2024?

We have grown and prepared our national, mobile service teams to handle customer downtime emergencies with a professional and effective rapid response protocol. Our national network ensures we are adequately stocked avoiding supply delays in all types of compressors and products to meet the continuing demands of our customers.

What plans does your company have in terms of the energy transition, electrification and replacement of gas?

Fortunately, most of our air compressors run on electricity, so our reliance on gas and other forms of energy are minimal. This is why we are so focused on minimising the amount of electrical input for airpower output. With Australia’s rapid intended transition to renewable energy generation, we are very aware of the part we and every industry will have to play in reaching these goals. Energy-efficient compressors and well-maintained systems will be paramount in assisting our customers to meet their industry emission reduction targets.

How is your company tracking with its net zero emissions by 2050 targets?

Globally, the Kaishan Group is on track to produce more renewable energy than our compressor products take from the worldwide grid. We are global leaders in manufacturing and installing power plants that generate power back into production by converting waste energy into useable electricity. This allows factories to reduce energy usage and meet their emissions reductions targets.

For over 30 years Mark Ferguson has worked with a myriad of compressed air equipment applications across Australia. Starting in the industry as a Graduate Engineer, Mark has been involved in all aspects of compressed air including sales and marketing, design and manufacture through to business leadership.