Fast Movers 2008
Issue No. 45 - Feb/March 2009
Model for success
CEO Adrian Smith explains how transport technology firm Sydac takes a very deliberate approach to rapid growth.
A Fast Mover for 2008, the Adelaide-based ICT engineering firm provides simulation-based solutions in >transport, industrial and defence markets in Australia and overseas.
“The simulator business is our dominant arm,” says Adrian. “Simulators for rail transport is our biggest market but we also offer training for railway equipment and professional driver training.”
Heavy haul (coal and iron), freight and passenger rail transport are the principal focus areas. Sydac offers beginner training but most of its work is with experienced drivers. Its systems can cut train driver qualification time in half, from 18-24 months down to a year.
The big advantage, Adrian says, is that Sydac simulation can model emergencies and system failures even an experienced train driver would seldom see.
“We also teach professional driving – minimizing energy use and fuel consumption and minimizing wear and tear on equipment is important, particularly in heavy haul. Even on the passenger side there are fuel savings to be had,” Adrian says.
A decision to go global in 2004 started Sydac’s rapid growth, which took hold in 2006.
“From my perspective it was very clear: we had 80% of market share in Australia but the amount of work was 'lumpy’ (due to large project size and irregular scheduling).
We have had 100% variation in volume of work from year to year. In 2003 we had 100% national market share because there were no purchases!
“The global market is a much bigger pool where total business fluctuates less than 20% year to year.”
In that pool Sydac has competitors based in Germany and France,with some smaller players elsewhere.
Adrian believes Sydac ranks second in the world, but is the market leader in every market Sydac has penetrated.
“We have a tight plan for market penetration,...
