It has multiple divisions, hiring out construction plant and general equipment, as well as cranes and specialised transportation. IBIS World says TBG is the only major player in the construction machinery and operator hire sector, with a 6.9 per cent market share.
Earnings across the company are split 40 per cent toward its earthmoving and construction equipment distribution division and 60 per cent from its equipment hire and heavy solutions units, the flyer shows.
In March 2021, TBG struck a joint venture with Cranecorp, another major crane company in Western Australia, creating a single point of contact and a shared labour pool between the businesses. In that state, TBG operates out of Port Hedland, Karratha, Bunbury and Perth, where it has a network covering Kwinana, Naval Base, Bassendean and South Guildford.
“Driven by strong net migration, Australia’s population growth has generally outpaced other developed nations,” the flyer reads. “Population growth directly drives residential and commercial construction, as well as continued investment in developing civil infrastructure.”
Clean growth
The company is also expecting to benefit from the transition to clean energy, telling potentially interested parties there were 96 renewable energy generation and 35 battery projects under construction. In the mining sector, growth will be “driven by investment in resource extraction and a material supply deficit in future-facing metals, which is expected to grow several fold over the next 20-30 years”.
TBG is by far the largest labour and equipment hire group on the market. Most recently, Farrelly Construction Services, was considering whether to put itself up for sale after testing the waters with trade and private equity buyers. FCS was making $100 million in annual revenues and about $10 million in EBITDA, Street Talk reported in February.