Strong foundations: Shane Wormall

Wormall Group will be responsible for around 60 percent of all the major residential developments underway in Western Australia this year. That’s some 3,500 lots.

In its 40th year of operation, the company is expanding rapidly, with 500 employees serving civil, infrastructure and commercial construction clients right across the state and in several international markets.

But, despite breaking records for its output, the group remains at heart a proud family business with deep ties to its local community in the south-west Perth suburb of Cardup, and a set of values put in place by its founders, Ray and Sue Wormall and Sue’s father, Ray Goatley.

Back then, the company was known as Wormall Contracting and supplied civil construction services to land developers before it rebranded as Wormall Civil two decades later, with the goal of offering a range of civil infrastructure services.

After Ray stepped down in 2005, his son Craig ran the business for 12 years, achieving annual turnovers of more than US$67 million, before handing the reins to his brother, Shane. And plans are already in place for when, many years down the line, Shane eventually passes the leadership mantle to the next generation in the form of his son Connor, who’s already an executive at the company.

During Shane’s seven years at the helm, revenue has quadrupled and Wormall Group has grown to comprise five distinct companies that together are now Western Australia’s premier civil engineering, construction services, manufacturing and building supplies specialists. But that doesn’t mean the ethos that Ray Wormall and his co-founders installed in 1984 has been diluted.

"My dad, Craig and I have always been aligned when it comes to our core value of respecting the people we work with and maintaining an open-door policy so every one of our employees feels they can pick up the phone or pop in to talk to me about anything," Shane tells The CEO Magazine. "And it works. I’d be amazed if there’s any other company in Western Australia with more long-term staff members than us.

"Just before Christmas, we had a reward and recognition event to honor those who’ve worked here for five, 10, 15 or more years. And there were so many who’d served us for even longer than that – our senior estimator, Dave, has been at Wormall for 32 years.

"Some of them have seen me grow up from when I was very young, working in the trenches and progressing to a supervisor. In those days, I was responsible for men twice my age so I learned very quickly how important it was to earn and show respect."

Competitive learning

Like his father before him, Shane’s fascination with business began at a very early age.

"I left school in Year 10 and put myself through a lot of training courses to gain knowledge," he remembers. "I was very different from my friends – I was signing up for things like ‘Accounting for Dummies’ because I just wanted to learn and get better. I had a business mindset right from the get-go. It was like a sport to me; I was just as competitive playing football as I was in the jobs I had early on."

But his hunger to succeed had nothing to do with gaining financial rewards.

"Money was never a motivator for me. I just wanted to be judged on how I was doing in the business world. I’m exactly the same today. I work hard to do my very best in every aspect of my life so I can set a good example to my colleagues and leave a strong legacy for the family."

And during those formative years, his family had by far the biggest influence on his values and business acumen.

"I learned so much from my father," he says. "As a boy, I worked with him laying pipes and working weekends and school holidays. Then, when I inherited the company, I benefited so much from working alongside him. I’ll admit that it didn’t always feel like I was benefiting at the time, but looking back now I can see how he helped me develop a strong work ethic and become who I am today.

"I was inspired by how much energy and drive he brought to his work every day, and now I’m just the same! No matter how long I’m here, I’ll never slow down."

Manufacturing passion

Shane joined the business in 1994 and worked in a number of project management and estimating roles on construction sites. He then launched Wormall’s manufacturing division, producing precast concrete and plastics, some of which were sold to other contractors.

The move unlocked a passion for that side of the business.

"I’d been in the industry since I was a kid so I’d been involved in pretty much every aspect and I realized it had given me a serious hunger for the manufacturing process. Whether it’s making concrete blocks, molded polyethylene or any products that service the land development sector," Shane explains.

"In many ways, it’s simpler than working on building sites because construction is a very labor-intensive industry with lots of people running around and a bunch of machines that need to be replaced. Whereas with manufacturing, there are many fewer people and they’re operating state-of-the-art pieces of equipment that will last for decades. You plug them in, turn them on and you see these products come out, so it’s a much easier process.

"I have ideas for new products we could manufacture every day. I’ve got so many strings we could tie to the bow that we haven’t realized yet. It’s just finding enough hours in a day and the capital to make it happen that’s holding us back from charging forward with some of them."

Growth leadership

His venture was so successful that in 2005, he bought it from his parents and formed an independent company, Smartstream Technology, which he ran for more than a decade. Then, when Craig announced he was ready to step back from his CEO duties, Shane brought the two businesses together under his leadership, and the upward trajectory accelerated still further.

Today, Wormall Group’s five businesses are:

Wormall Civil

The state’s leading civil engineering and construction firm has been responsible for multiple major land development, civil infrastructure and highway construction over the last two decades including residential projects at Brabham in the Swan Valley; Piara Waters; Forrestdale; and Brightwood in Baldivis. Its biggest client is Satterley, an award-winning West Australian firm and Australia’s largest private residential land developer with a slew of completed projects across several states.

Among Wormall Civil’s specialties are pump stations, earthworks, stormwater retention tanks, mining infrastructure, road construction, traffic management and pipe installation.

Smartstream Technology

A civil engineering and infrastructure innovator for over 30 years, Smartstream Technology manufactures cutting-edge plastic and concrete wastewater and stormwater products for multiple building applications, including an extraordinary 200,000 sewage maintenance shaft installations across Australia, New Zealand, Bali, Indonesia and the United States.

Beaufox Industries

At the forefront of designing and producing custom plastic injection molding for more than 30 years, Beaufox Industries uses CAD/CAM software to create innovative solutions for plumbing, air conditioning, fencing, mining, waste management and security that are sold throughout Australia.

Caves Road Sand Supplies

During the 2021 housing crisis triggered by the COVID-19 pandemic, Shane established a firm that proved critical in relieving the chronic shortage of sand in the construction industry.

West Coast Block Supplies (WCBS)

WCBS is a manufacturer and supplier of premium quality retaining wall products made from locally sourced limestone and gravel blocks. Shane acquired WCBS 18 months ago when the price of blocks was escalating. The business, which is based in Myalup 140 kilometers south of Perth, was taken in-house and immediately benefited its commercial, government and residential customers.

The portfolio of companies allowed Wormall Group and its customers to benefit significantly from economies of scale and enhanced efficiencies when the Western Australia government’s US$299 million housing stimulus package was announced in 2020.

It included US$215 million for social housing in the form of 250 new properties, refurbishing 1,500 existing homes and conducting maintenance on 3,800 houses in regional and remote areas.

The program anticipated an increase in economic activity by US$660 million and the creation of more than 1,700 jobs. Nationally too, construction is enjoying a boom time with revenues of just under US$300 billion expected for this year, a figure Master Builders Australia says will rise by some US$20 billion by 2029.

Benefits of integration

As the building boom kicked into action, Wormall found itself inundated with orders and scrambling to take on more staff and source enough materials.

"There’s certainly been more vertical integration through manufacturing processes that’s been advantageous because the stimulus package meant Wormall Civil had the volume. It’s something that’s only been the case since the COVID-19 pandemic and the many supply chain issues that it caused. I always hoped it would happen, but didn’t think I’d ever see it," Shane acknowledges.

"We’ve actually seen the tables turn somewhat, because Wormall benefits from our other companies because there’s continuous supply. Whether it’s items we’re importing from China like manhole covers or products we manufacture ourselves, we can make sure all our customers’ needs are met.

To that end, Wormall partners with Classic Hire and Mayday Rental for their ranges of high-quality construction equipment to keep every project progressing smoothly. It sources bulk orders of fuel for its industrial vehicles and machines from Fuel Distributors of Western Australia.

"We’re lucky to have long-term relationships with a number of trusted suppliers so nothing is ever left to chance," he adds. "Delays to projects are very expensive and can be caused by the unavailability of the smallest thing. But we avoid any such spanners in the works by tightly managing supply.

"Most of our clients don’t realize that we’re always peddling away in the background to patch up any supply chain holes to keep every project on track. We do it because we love this industry and we love our clients so we never want to let them down."

Wormall has been particularly important to one particular plant hire supplier.

"I think we may have been South Coast Civil’s first customer and we’ve grown together because we both have a consistency in our quality of service. We know that when the chips are down, they’ll dig in for us and fix any issues in a collaborative way, which is really important," Shane says.

"When it comes to our long-term suppliers, we pull together as a team and work out any problems without things getting silly or going down a legal route. That’s something we’ve always done, and it’s why there’s loyalty on both sides."

Sensing the Winds of Change

Before the pandemic hit, Wormall received just one shipping container of materials and equipment from China every couple of months. But as soon as news of the pandemic reached Australian shores, Shane knew that would have to change.

"I saw what was developing and acted swiftly. At one stage we had around 12 sea containers on the water packed with everything I knew might soon be in short supply that we had to urgently order. There were truckloads of stuff that we were stockpiling so we wouldn’t let people down."

His foresight paid off as Wormall seamlessly executed a series of projects over their entire lifecycle, from sourcing raw materials and manufacturing products to making sure the construction ran like clockwork. But there have been other challenges. One of the biggest is a shortage of skilled workers.

BuildSkills Australia estimates that another 90,000 construction workers have to be found this year if the federal government is to meet its target of building 240,000 homes per year for the next five years.

Last year, only 163,836 new homes were built, the lowest total in more than 10 years and some 80,000 short of expectations. One of the main reasons is a depleted workforce, with national shortages reported in half of skilled trades.

Not only that, the country faces a shortfall of 200,000 engineers by 2040, which could have a devastating impact on the construction sector and slow down the economy, Professionals Australia warned last year.

The situation has been made worse by the fluctuating price of many commodities and the continued disruption to international supply chains. Almost 1,400 construction firms filed for insolvency in the second half of 2023, nearly a third more than in 2020.

It’s a worrying trend, but Shane’s flair for entrepreneurism and building successful businesses has so far protected Wormall from any such dangers. It’s also an area where a loyal partner, Pacific Finance, Western Australia’s leading commercial finance specialist, plays a key role. But even with this support, Shane doesn’t see an end to the labor crisis anytime soon.

"There’s no question that the number one issue for us in recent years has been finding enough experienced and skilled people," he says. "There’s no silver bullet to solve the problem, as it’s been going on for years. All I can do is watch out for competitors trying to steal our people and offer enough high-quality training to retain our valued staff.

"We’ve also had to look overseas to recruit the best people for many positions for some time now, and I expect that will continue."

Flush with success

Another reason Shane has been looking overseas is the Poo Pit Sewerage Shaft, Smartstream Technology’s flagship smart pit and maintenance shaft. An incredible 120,000 of the ingenious durable polyethylene devices have already been installed across Australia and New Zealand, but they’re set to create ripples around the world.

"I invented it 25 years ago," he says proudly. "It replaces a traditional precast concrete manhole so it’s less susceptible to chemical attack, as you get a lot of hydrogen sulfide in sewage systems.

"Concrete manhole covers sometimes only last for five or so years because the acid dissolves them, but the Poo Pit should last for well over 100 years. Its carbon footprint is 175 times less than concrete, which is very important to developers these days."

Shane demonstrated its capabilities at a major United States trade event in Las Vegas in 2017, not even knowing if the country already had something exactly like it or whether anyone would be remotely interested.

"I wondered if I was wasting my time and money, but the response was overwhelming! No one there had seen anything like it and there was an immediate hunger for it. It made me wish I’d taken it there many years earlier. Off the back of that show, I sold a license to a Canadian company called QuickStream and they’ve been fantastic.

"We’ve now got approvals for it in 14 American states so we’re getting some serious traction and it’s looking extremely exciting for the future, especially in Texas, Florida, Dakota and the Carolinas.

Earlier this year, he spent three months in the United States with his wife and his two youngest children, aged 10 and six, and says he expects to make many more visits in future as word of the Poo Pit spreads. So far, over a quarter of a million are in operation, a number set to rise sharply in coming years.

"It’s a game-changer that’s shaping the future of the sewer industry," he says. "By reducing reliance on concrete manholes, it’s helping us towards a safer, more sustainable approach to waste maintenance. It’s been extensively tested and has proven itself in the harshest of conditions."

Eyeing parallel markets

The product is an important part of Wormall’s ambitious expansion plans, some of which is shrouded in secrecy.

"We have a long-term growth strategy and part of that is further diversification although I can’t be too specific about it at this stage. What I can say is that we’re exploring some exciting parallel markets to residential, which is currently around 90 percent of what we do right now.

"It’s obviously not an ideal time to branch out as we’re absolutely flat-out servicing the housing market but we do have our eyes on a couple of targets that will allow us to strategically bring our Wormall Civil and Smartstream precast and plastics crews together to service an audience."

If all goes to plan, Shane is clear about what that holy grail would look like.

"Really, my dream would be to walk onto a project and see everything that’s on the ground has come from one of our factories. When that happens, I’ll know I’ve done as much as I can in this space. And for the most part, that’s within our reach, certainly around the underground component – the drainage and sewage and utilities."

A lasting legacy

But even when that occurs, it won’t mean he’s ready to take a step back any time soon.

"To be honest, I don’t think I’ll ever stop," he says with a smile. "I’d go mad if I did – and I know someone who’d get very frustrated with me if I was sitting at home all day!

"But when that day does come, I’ll hand over to my son, and have my other children in the business. The challenge will be to make sure that he and his siblings have the same level of passion and hunger that I’ve always had so the legacy is maintained and the family culture continues."

Shane’s son Connor is currently Wormall’s Group Operations Analyst while his sister Abbey works for the firm as a Marketing Executive.

"Connor is great with strategy and always has the bit between his teeth to learn and do better. One day he’ll take over and carry the mantle for another generation."

The pandemic gave Connor an invaluable opportunity to prepare for his future responsibilities.

"During the pandemic, the shortage of skilled workers was even worse," Shane says. "So I brought my dad and uncle back into the business so they could impart their skills to others. I deliberately had Connor working alongside Dad for 12 months which was one of the best things I did. He learned so much and grew from being a boy into a man."

But that doesn’t mean Shane is going to go easy on his heir apparent.

"My kids certainly don’t get a free ride! I’m probably tougher on them than anyone else. My dad was the same with me and it taught me a great deal. That’s why I think we’re really well geared for when Connor takes over," he says.

"Wherever I end up getting Wormall to, he can use it as a springboard to grow it even further. So that means the big task for me is to be as successful as possible so when I leave it to him, he’ll have some very big and very exciting challenges ahead."