‘We’re continuing to invest heavily because we see a long-term future for the business,’ says chairman of the Shave & Gibson Group Simon Downes. ‘You don’t make these kinds of investments if you don’t believe you’re going to be around for many years to come.’
The company’s investment programme reflects that confidence. Shave & Gibson now owns around 72 000m² of space, recently acquired its main factory and built a new 24 000m² warehouse. It has installed 2 800 solar panels, is investing in further energy resilience and continues to spend on plant, technology, R&D and process improvements.
The company operates in a market characterised by weak demand, rising complexity, infrastructure constraints and long supply chains. Simon says continued investment is intended to strengthen the business despite those conditions.
‘It’s about sustainability of the business. You have to see beyond the bottom line,’ he comments.
The company says this philosophy has guided its approach for decades. Rather than following rigid five-year strategies, the group favours broad objectives and the flexibility to change course as circumstances evolve.
Managing director Richard Downes describes it as an entrepreneurial culture built around agility. ‘If an opportunity comes along, whether it’s a system, supplier, product, machine or business, we investigate it and decide whether it makes sense,’ he says. ‘We’re not fixated on being right or wrong. As more information comes in, you adjust and move.’
Richard says the approach is suited to an operating environment where customer requirements, technology, supply chains and market conditions can change faster than conventional business plans can accommodate.
Technology is also playing a larger role in the business. Shave & Gibson is using AI to extract, interpret and connect data across the business, not as a replacement for people, but as a means of removing routine tasks and improving decision-making.
For Richard, the value lies in seeing what conventional analysis can miss. ‘The biggest benefit at the moment is getting the data, interpreting it and trusting it. Without that, you’re effectively flying blind.’
The company also continues to invest in manufacturing capability and R&D, recognising that staying competitive in paper and board requires more than producing the same products more efficiently.
Its move into point-of-sale manufacturing is one example. Launched around two years ago, sg displays has become a significant part of the business, applying the company’s manufacturing expertise to a market traditionally associated with creative and design services.
The strategy is to focus on innovation where it adds value, whether through product design, production systems, automation or efficiency. ‘Investment in manufacturing capability is the answer at the end of the day,’ says innovation and quality manager Michael Downes. ‘You have to invest in the people, equipment and systems in order to innovate.’
You don’t make these kinds of investments if you don’t believe you’re going to be around for many years to come.
The same philosophy also explains why the group is prepared to carry costs that a more short-term business mindset might avoid. Long and less predictable supply chains mean holding significant stocks of paper and board can be expensive, but being unable to supply customers can be even more costly.
As a family-owned business, decisions can be made quickly, without layers of corporate approval or the pressure to optimise every decision for the next reporting cycle.
Simon sees that as one of the company’s competitive advantages. ‘There’s no corporate red tape to trip yourself over, and if a decision turns out to be wrong, we can change it.’
The family’s continued commitment to South Africa is reflected in its investment in infrastructure to support its operations. ‘We’re rooted in this country. This is our home. We have a strong belief that the political and economic issues it faces will iron themselves out slowly over time,’ Simon says.
