Our Vision & Strategy

Our Vision: Diversify. Streamline. Strengthen.

 

Our Business Strategy

Black Diamond Group is an equipment rental and services provider with diversified operations, and a history of strong capital returns. We’re a growing enterprise with a business strategy centered on diversification and a disciplined approach to asset, risk and capital management.
 
Our commercial leadership team is made up of some of the brightest minds in the industry, with an average of over 20 years’ experience. This expertise in allocating capital, managing assets, logistics and supply chain, have been instrumental in the success of the company. 

Integrated Revenue Model



In addition to owning specialty rental assets, Black Diamond provides the support services for these assets including the following:
  • Transportation
  • Installation
  • Catering
  • Power
  • Water
  • Waste management
  • Security
  • Housekeeping
Many of these services are performed in collaboration with third party specialists. In doing so, we maximize the return on our assets while mitigating performance risks, business overheads, and enhancing quality assurance.
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Asset Management

Since 2003 we have built a rental fleet with a current net book value of more than $450 million. This consists of remote workforce accommodation, space rental and surface rental assets.


Our asset management strategy is designed to ensure maximum asset (and capital) efficiency.

The return targets we set for our business units are based on the original cost of their asset base. This creates discipline around the aging of our rental fleet, encouraging managers to regularly sell older, less economic rental assets on the secondary market, and replenish those with new rental assets.  This also keeps our brand associated with newer, higher quality assets.

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Business Diversification

We have been actively working to diversify Black Diamond's business geographically, and with respect to the types of assets and services offered, and the variety of customers and industries served. 

By diversifying into Australia and the United States and into specialty modular, education and Government markets we have taken strategic measures to mitigate volatility during an economic downturn in any one country, commodity or asset class. 
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Capital Allocation

We are focused on achieving industry leading returns on the capital we deploy. Our approach is to own quality rental assets and, through creative relationship-based sales and disciplined management, realize a target return on capital through diversified activities: 
  • Rental revenue
  • The sale of associated services (lodging and non-rental revenue) 
Achieving this is only possible through focus, efficiency and effective third party contracting. We outsource functions that are not core to Black Diamond's expertise or where the capital risk is deemed high such as manufacturing, construction, catering, transportation and any other functions that, while lucrative in a strong economy, might represent significant downside risk through the troughs of a commodity cycle. 
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Risk Management

Through careful selection and contracting with Black Diamond's counterparts, our management team strives to share risk appropriately, and promote mutually beneficial outcomes with partners, vendors, and customers. Where new capital is being deployed, we endeavour to tie that capital to a long-term customer commitment, allowing us to offer our customers lower rates in return for the certainty of increased asset utilization. 

This approach to risk management ensures we attain our risk adjusted targeted return on capital, and our customers achieve price certainty relative to spot rates for rental assets.

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