Industrious Italians
In an economy dominated by two tribes, outsiders often found it tough to make a way in South Africa. But hard work usually pays offÔÇöand it has for the family behind Scribante Construction, as Alan Swaby learns.
Prior to the 1994 transition from apartheid to black democratic rule in South Africa, power was in the hands of either the Afrikaans or the English-speaking communities; each with their own geographical strengths. So what inspired Italian immigrant Franco Scribante to leave his native Italy for Port Elizabeth, deep in the Afrikaans-dominated Eastern Cape?
Perhaps it had something to do with wine, since Scribante was from a wine-making family north of Milan; but when he telegraphed his brother Aldo Snr to leave their fascist-dominated homeland and come and join him in South Africa, it was with the intention of digging tunnels rather than growing grapes.
ItÔÇÖs hard to know if the first generation of Scribantes considered theyÔÇÖd made the right decision. It certainly helped that they had been brought up in the industrious northern part of Italy, because for many years, as the younger members of the family have heard a thousand times, the only time off the brothers allowed themselves was Christmas Day!
Scribante Construction was established in 1939 and for years it struggled to win business in a marketplace dominated by Afrikaner companies. The turning point in its fortunes came when it won the contract to supply blasted stone for work being carried out in Port Elizabeth harbour. Even then, it was mostly muscle-driven, with holes for explosive charges being punched into the rock by 16lb hammers and rocks hoisted out of the pit and onto rail cars by manual block and tackle. It was only towards the end of the contract that there were sufficient funds to invest in any form of machinery.
Life for the third generation of the family currently running the business is easier, as Aldo Scribante, chief executive officer of Scribante Construction, freely admits. ÔÇ£There are no more 16lb hammers,ÔÇØ he says, ÔÇ£but the work ethic is just as strong as ever it was. WeÔÇÖre a one billion rand business today but senior managers and directors are still very much hands-on.ÔÇØ
ItÔÇÖs an approach which helps the company compete with others far bigger in size. Although Scribante Construction has the highest possible industry rating, enabling it to bid in open tender for any magnitude of contract it wishes to pursue, itÔÇÖs still only in the second tier of businesses ranked by turnover. ÔÇ£There are at least a dozen far larger companies,ÔÇØ says Scribante, ÔÇ£but they are weighed down by a much higher level of overheads than we are.ÔÇØ
In terms of economic activity, the Eastern Cape has always been the poor relative in South Africa. But this has worked in Scribante ConstructionÔÇÖs favour by encouraging it to diversify. Consequently, although the company might lag behind the really big boys on a national basis, itÔÇÖs probably the leader within a 200-mile radius of the headquarters in Port Elizabeth.
Over the years, the business has never been reluctant to extend into other regions. In the 1970s it went to Durban when huge expansions to the local infrastructure were being made; in 1976, it won the largest road building contract ever awarded to a single contractor from the department of transport in Natal. Later, it moved further up the Natal coast to Richards Bay and still does very well there through associated contracts with Richards Bay Minerals, where the process of recovering titanium from coastal sand dunes is ongoing.
Currently the focus is on expanding its interests in the mines of Gauteng. Since 2004 it has strengthened its commercial ties with miners of platinum, chrome and coal. In each case, the work has involved moving mountains of overburden to get at the mineral-bearing rock. Millions of cubic metres of earth have been stripped and shifted by members of the 500-strong fleet of heavy earth-moving equipment run by Scribante Construction.
ÔÇ£As an organisation,ÔÇØ says Scribante, ÔÇ£we have always been very careful in financial matters. Our aim is to grow the company and balance the associated risk within a structured environment. We arenÔÇÖt that bothered about getting up into the top bracket of contractors where we would be obliged to go for stock exchange listing, as this would have no impact on the style of management we currently conduct.ÔÇØ
Like all of the construction industry, the business has done well from the huge investments being made in infrastructure and facilities for the soccer World Cup, being held in 2010. Although not a primary contractor on any single project, it has been involved as a subcontractor. For example, excavations for the Port Elizabeth stadium were dug by Scribante Construction, as was much of the construction for new dedicated bus lanes taking spectators to the ground. This expenditure is largely over now but in the Eastern Cape there is still activity linked to the new Ngqura deep water harbour in Port Elizabeth.
Scribante Construction has been somewhat protected from the world economic downturn, thanks to the extent of its diversification and the recent high levels of government work. Similarly, the next decade should be busy with expanding contracts aimed at the Gauteng mines. At the niche end of the scale, ScribanteÔÇÖs specialist self-levelling and self-compacting concrete mixes are also attracting new business.
No doubt, if Franco Scribante were to look around the organisation he started, heÔÇÖd hardly recognise a thing; but he would certainly be highly proud of his descendents.
