| 95 Chasing greater efficiency is the focus Kelly Deeks Rising machinery, fuel, and labour costs are putting the squeeze on rural contractors, but Clinton’s Nick Wilson Contracting is responding by chasing greater efficiency across an increasingly diverse operation. Based in Clinton, Nick started his business aged just 18, initially buying a tractor and plough and working for local farmers with the long-term goal of buying a farm himself. Today, he has about 15 tractors, trucks and trailers, four excavators, and eight full-time staff, with seasonal operators joining the team when workloads demand it. Agricultural contracting remains at the heart of the business, covering cultivation, drilling, seeding, baleage, and other seasonal work, while its earthmoving capability has opened up opportunities in forestry, including roading and land preparation ahead of planting. Farm to forestry conversions have slowed considerably over the past five years, but Nick Wilson Contracting continues to work in established forestry blocks and has also seen some land begin moving back into farming. That diversity has become increasingly important, giving the business different streams of work while allowing machinery and staff to be deployed across a wider range of jobs. One of the biggest challenges facing the contracting industry today is not finding work, but ensuring the price charged reflects the rapidly increasing cost of delivering it. Fuel, labour, machinery, and replacement equipment have all become significantly more expensive, while farmers are also facing higher costs and cannot simply absorb higher contracting rates. “We have got tractors in our yard that are worth $600,000 to $700,000 to replace,” Nick says. “If we have got an hourly charge-out rate, it has to be pretty good to even match those costs.” That makes efficiency increasingly important, with Nick estimating there can be gains of up to 10% simply by finding better ways to work. Technology is part of that equation, with the business continually assessing new equipment and systems that can reduce passes, improve accuracy, and make the most of every hour and litre of fuel. It is also about making sure the machinery is working where it can add the most value, rather than simply adding equipment as the business grows. With a wide range of agricultural and earthmoving work, Nick can shift resources as different seasons and projects create demand. Having the right people is equally important. Nick has built a strong core team and supplements it with seasonal operators, including students, school leavers, and farmers’ sons. Nick also farms about 500 hectares himself, currently focused on fattening lambs, giving the business a direct connection with the pressures facing its farming customers. That perspective helps keep the focus on practical outcomes, with the business needing to balance what customers can afford with what it costs to “We have got tractors in our yard that are worth $600,000 to $700,000 to replace.” If we have an hourly charge out rate it has to be pretty good.” RURAL SERVICES » Nick Wilson Contracting Offices now located in Riversdale, Gore and Winton | Phone 03 202 7508 | www.hammonddavidson.co.nz Farm to forestry conversions have slowed considerably over the past five years, but Nick Wilson Contracting continues to work in established forestry blocks and has also seen some land begin moving back into farming. deliver a quality job.“What the farmer wants hasn’t changed,” Nick says. “They want a good job at a fair price. We listen to our clients, find out how they want their job done, and work with them to make sure they get what they want.” www.precisionprofile.co.nz | sales@precisionprofile.co.nz | 03 477 7277 | 12 Birch St. Dunedin Otago’s Plate Cutting Specialist Now Laser Cutting Mild Steel • Stainless Steel • Aluminium
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