A concrete business solution
Determination and enthusiasm help manufacturer stay ahead of the pack
YANG Kian Lock’s diligence and eagerness to provide his customers with invaluable service was something inculcated in him since his early days. He was always hungry to learn new things and did his best to give his clients the right solutions in a timely fashion.
That was how Yang, managing director of Sudut Swasta Sdn Bhd, successfully grow his concrete solutions provider business.
Yang, 48, started out as a sales executive for a formwork solutions provider after graduating with a diploma in business administration in the early 1990s. He sold wire mesh, also known as British Reinforced Concrete (BRC), which are used mainly in concrete construction works.
However, having had no training in engineering, he lacked the knowledge to inform his clients about the right calculations and theoretical aspects of construction methods to use. But where he falls short in technical knowledge, he makes up for it in determination and plenty of enthusiasm.
“I remember telling my clients that although I may not know all the answers now, just give me a chance and I will get all the answers after consulting my technical department,” Yang says.
And he was never one to let his clients wait too long for answers. He knew he needed to help them speed up the process and reduce cost too.
The company he worked for wasn’t a big one and Yang knew he couldn’t fully rely on the company’s technical department to serve his clients on time. So Yang is often seen at the production department – sometimes to the annoyance of the engineers – discussing with the engineers on how details for a project could be done better.
This taught him what he needed to go about getting the right calculations and designs for his clients on his own.
“Our clients comprise mainly of contractors, who will present us with their engineering drawings. We then have to provide them with the reinforced steel bar schedule. It will take time to wait for our engineering department to prepare it. So I learned how to do it and after I mastered the knowledge, I was able to prepare it for them quickly,” Yang says.
Although there were other companies in the market at that time who provided similar services, Yang was ahead of the pack because he could deliver his services faster since he could do it on his own.
Through his experience at the company, he also learned that the wire mesh had a promising potential in the construction industry. Unlike steel bars, which require a lot of labourers to cut and tie them to create a wire mesh system for construction works, his products are shipped direct and ready to be used.
“The contractors save on time, which will also lead to better cashflow control,” he says.
Yang’s bosses were quite amazed with his ability at learning up all that technical stuff and they often sought his feedback on work matters.
His hardworking attitude also got him close to his clients, and some of them went on to be part of his entrepreneurship journey.
In the aftermath of the 1997 Asian Financial Crisis, Yang shared his intention to start his own company with a long-time client, Low Teck Heng, 59, who, amazed at Yang’s enthuasiasm, did not hesitate to invest in his company.
Sudut Swasta was founded in 1999.
“Yang is able to gain the trust of the clients and is able to go through various departments of bureaucracy to get a deal done,” says Low, the company’s current corporate affairs director.
Back then, when there was still uncertainty in the economy, Yang saw the positive light. Many of the companies were closing shop and Yang thought that whoever was left standing should be good paymasters.
Besides, he was in his early 30s. If he failed to recover his payments, he could always go back to work for others.
Yang was determined to make his company a success. But he made it clear to his investors from the start that the company will grow gradually and organically.
He didn’t want to be like one of those large companies that had overextended themselves without building the capacity to withstand the shocks of a financial crisis.
So he started small, with RM300,000 capital. He rented an office in Puchong, and with one employee, traded in steel bar products, including wire mesh, and some other construction materials such as sand and bricks. They also supplied plywood, which is another major component in making formwork.
As always, Yang’s edge over his competition in the industry was his ability to offer his clients timely advice and delivery.
By 2006, the company achieved a revenue of RM7mil. They also added a warehouse, which allowed them to have better control of their stocks as many of their clients were turnkey contractors.
Yang likens his trading business to a hardware store.
“Operating a hardware store is like running a sundry shop. The next level is to run a supermarket chain store. But this model usually ends up being about competing for the lowest prices, which could boil down to a price war, or what people call a red ocean. We want to be in the blue ocean,” he says.
Although he had a great team, Yang knew it was his role not to
lead the company down the red ocean path.
From his past experiences, he observed that every product has a lifecycle and if no new products are developed, the competition will eventually catch on.
Hence, in 2008, Yang started to look at products which they could develop on their own.
Leveraging on their expertise in wire mesh, Yang decided to start producing their own fencing system.
They engaged a manufacturer to build according to their specifications and in year 2010, they started marketing the fences to architects.
“We focused on the wire mesh feature that allows people to see through, compared to brickwalls that are completely blocked, making the wall easier for burglars to hide behind,” he says.
Business grew. But Yang remained cautious, particularly, about the plywood segment that he is also in. He knew that the supply of plywood was not a sustainable business and he needed to look at the possibility of a reusable formwork system.
On one of his working trips to Canada, he found a suitable system and obtained the sole distributorship to market the system in Malaysia.
As the product is reusable, they also buy them back from the clients if the clients have no further use for the products. They also provide rental and refurbishment services.
Along the way, he also learned about the importance of using Building Information Modeling (BIM) and has been offering services related to structural engineering utilising the BIM.
BIM is a 3D model-based process that gives architecture, engineering, and construction professionals the insight and tools to more efficiently plan, design, construct and manage buildings and infrastructure.
Yang also went on to hire “people who are smarter than me” so that the company can continue to develop their own products.
This also means that Yang has more people to teach him new things about the industry. And he is constantly looking for new opportunities to utilise his knowledge to help his clients.
In 2015, they developed their own formwork system for the Thailand and Myanmar markets.
The company achieved a revenue of RM210mil in 2016 and currently has a staff size of 145.
Other than their manufacturing base and warehouse in Puchong, they also have warehouses in Melaka and Johor to better serve their clients in those regions.
“The attitude towards learning is very important. I am still learning, be it about new government policies or construction technology. That is the surest way of being a market leader,” he concludes.